[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]


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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