[Federal Register Volume 59, Number 9 (Thursday, January 13, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-885] [[Page Unknown]] [Federal Register: January 13, 1994] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Foreign-Trade Zones Board [Docket No. 1-94] Foreign-Trade Zone 104--Savannah, Georgia; Application for Subzone, Merck & Co. Pharmaceutical Plant, Dougherty County, GA An application has been submitted to the Foreign-Trade Zones Board (the Board) by the Savannah Airport Commission, grantee of FTZ 104, requesting special-purpose subzone status for the pharmaceutical manufacturing facility of Merck & Co., Inc., (Merck) in Dougherty County, Georgia. The application 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). It was formally filed on January 3, 1994. Merck is one of the world's largest pharmaceutical manufacturers with nearly $9 billion in total sales in 1991. Its primary product lines include: patented prescription and over-the-counter pharmaceutical products, veterinary pharmaceuticals and agricultural and specialty chemicals. This proposal is part of an overall company cost reduction effort (Subzone status is being requested for seven other Merck facilities). Merck's Georgia plant (800 acres, 283,910 sq. ft., 35 bldgs.) is located at 3517 Radium Springs Road, Dougherty County, Georgia, 7 miles southeast of Albany and some 180 miles southwest of Savannah. The facility (310 employees) is used to produce bulk pharmaceutical chemicals and intermediates used in Merck's human and animal health products. Company plans call for expansion of plant facilities to include refrigerated storage and tank farms. At the outset, zone procedures would be used primarily for the production of Cefoxitin, Omeprazole, and Losartan. Zone procedures could also include production of remoxipride hydrochloride, TRUSOPT, and chlorsulon. Currently, foreign-sourced materials account for 10 to 20 percent of finished product value and include the following specific ingredients: TAC (Thienylscetyl chloride), P-TSC (Paratoluenesulfonchloride), metmereazole, pyrmethyl alcohol, imidazole intermediate, bromo benzyl bromide, S-2-Aminomethyl-1-ethyl pyrollidone, N-Bromo-Succinimide, hydroxy sulfone, M-Nitro benzaldehyde. The company also may purchase from abroad other active ingredients and items in the following general product categories: gums, starches, waxes, vegetable extracts, mineral oils, phosphoric acid, hydroxides, hydrazine and hydroxylamine, chlorides, phosphates, carbonates, hydrocarbons, alcohols, phenols, ethers, epoxides, acetals, aldehydes, ketone function compounds, mono- and polycarboxylic acids, phosphoric esters, amine-, carboxymide, nitrile- and oxygen-function compounds, heterocyclic compounds, sulfonamides, vitamins, hormones, sugars, antibiotics, gelatins, enzymes, color lakes, soaps and detergents, medicaments, and pharmaceutical products. The company may also source from abroad insecticides, rodenticides, fungicides and herbicides for use in agricultural/veterinary products. Zone procedures would exempt Merck from Customs duty payments on foreign materials used in production for export. On domestic sales, the company would be able to choose the duty rates that apply to the finished products (duty-free to 23.5%, most falling in the 3.7% to 16.6% range). The duty rates on foreign-sourced items range from duty- free to 23.5 percent, with most falling in the 3.7%-20% range. The application indicates that the savings from zone procedures will help improve the firm's international competitiveness. In accordance with the Board's regulations, a member of the FTZ Staff has been designated examiner to investigate the application and report to the Board. Public comment is invited from interested parties. Submissions (original and 3 copies) shall be addressed to the Board's Executive Secretary at the address below. The closing period for their receipt is on March 14, 1994. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15- day period (to March 29, 1994). A copy of the application and accompanying exhibits will be available for public inspection at each of the following locations: Port Director, Port of Savannah, U.S. Customs Service, Southeast Region, 1 East Bay Street, Savannah, Georgia 31401. Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of Commerce, room 3716, 14th & Pennsylvania Avenue NW., Washington, DC 20230. Dated: January 3, 1994. John J. DaPonte, Jr., Executive Secretary. [FR Doc. 94-885 Filed 1-12-94; 8:45 am] BILLING CODE 3510-DS-P