DEPARTMENT OF COMMERCE
Proposed Foreign-Trade Zone for
Madawaska (Aroostook County), Maine, and
Subzone for Northern Trading Company, Inc. (Toiletries/Cosmetics Plant),
Madawaska; Application and Public Hearing
Friday, March 1, 1991
An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the Madawaska Foreign-Trade Zone Corporation (a private not-for-
profit corporation), requesting authority to establish a general-purpose
foreign-trade zone in the town of Madawaska, Aroostook County, Maine, within
the Madawaska Customs port of entry, and for subzone status at the
toiletries and cosmetics packaging and manufacturing plant of Northern
Trading Company, Inc. (NTC), in Madawaska. It was submitted pursuant to the
provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 81a-81u),
and the regulations of the Board (15 CFR part 400), and was formally filed
on February 15, 1991. The applicant is authorized to make this proposal
under title 5, section 13062 of the Maine Revised Statutes Annotated.
The proposed general-purpose zone would be located at a warehousing complex
owned and operated by NTC at 190-202 East Main Street (U.S. Route 1),
Madawaska, within 1.5 miles of the U.S. Customs office at the border
crossing on the St. John River, opposite Edmunston, New Brunswick, Canada.
The facility is on a 6.5 acre site which contains a series of
interconnected one- and two- story buildings covering some 29,000 square
Zone authority is being requested to aid local economic development and
revitalization efforts in northern Maine. Several firms have expressed an
interest in using zone procedures for warehousing/distribution of products
including liquor and merchandise used in gift sets. No specific
manufacturing approvals are being sought for the general-purpose zone site
at this time.
Such requests would be made to the Board on a case-by-case basis.
The proposed subzone would be located at the cosmetics and toiletries plant
of NTC, located on U.S. Route 1, some 2 miles east of the general-purpose
zone site, Madawaska, Maine. The company is involved in contract packaging
and manufacturing for fragrance and cosmetics companies (colognes,
perfumes, deodorants, body lotions and other cosmetics and toiletries). The
finished products are generally classified under HTS Headings 3303, 3304
and 3307 (duty range 0.0%-9.0%). NTC receives components and materials
(including containers and packaging) from domestic and foreign sources.
Among the items sourced abroad are:
--Finished toiletries and cosmetics (HTS Headings 3303, 3304,
--Odiferous substances and mixtures (HTS Heading 3202--4.1%-4.7% + 11/Kg)
--Perfume bottles with stoppers (HTS Heading 7013--9%)
--Containers for perfume or other toilet preparations (HTS Heading
--Scent sprayers (HTS Heading 9616--3.7%)
--Cartons and pkg. material (HTS Headings 3923/4819--2.8%-5.3%)
Zone procedures would exempt foreign items used in products which are
exported from Customs duty payments. On products sold in the U.S. market,
duties would be paid at the finished product rate (0-6%) when applicable.
The duty rates on the components/containers range from 3.7 to 9.0 percent.
The application notes the existence of increasing foreign competition in
this industry and indicates that the savings resulting from zone procedures
will help improve the Madawaska plant's international competitiveness.
In accordance with the Board's regulations, an examiners committee has been
appointed to investigate the application and report to the Board. The
committee consists of: John J. Da Ponte, Jr. (Chairman), Foreign-Trade Zones
Staff, U.S. Department of Commerce, Washington, DC 20230; Edward A. Goggin,
Assistant Regional Commissioner of Customs, U.S. Customs Service, Northeast
Region, suite 801, 10 Causeway Street, Boston, MA 02222-1056; and Colonel
Philip R. Harris, Division Engineer, U.S. Army Engineer Division, New
England, 424 Trapelo Road, Waltham, MA 02254-9149.
As part of its investigation, the examiners committee will hold a public
hearing on March 21, 1991, beginning at 10 a.m., at the Madawaska Public
Safety Complex Building, Conference Room (second floor), 344 East Main
Street, Madawaska, Maine.
Interested parties are invited to present their views at the hearing.
Persons wishing to testify should notify the Board's Executive Secretary in
writing at the address below or by phone (202/377-2862) by March 14, 1991.
Instead of an oral presentation, written statements may be submitted in
accordance with the Board's regulations to the examiners committee, care of
the Executive Secretary, at any time from the date of this notice through
April 22, 1991.
A copy of the application and accompanying exhibits will be available
during this time for public inspection at each of the following locations:
Area Port Director,
U.S. Customs Service,
2 Bridge Street,
Madawaska, Maine 04756.
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, room 4213,
14th and Pennsylvania Avenue, NW.,
Washington, DC 20230.
Dated: February 22, 1991.
John J. Da Ponte, Jr.,
[FR Doc. 91-4865 Filed 2-28-91; 8:45 am]