[Image] Term [Image] (Cite as: 58 FR 68116) 1993 WL 529828 (F.R.) NOTICES DEPARTMENT OF COMMERCE (Docket 63-93) Foreign-Trade Zone 185--Culpeper, Virginia; Application for Subzone; Merck & Co. Pharmaceutical Plant, Elkton, Virginia Thursday, December 23, 1993 *68116 (Cite as: 58 FR 68116, *68116) An application has been submitted to the [Image]Foreign[Image][Image]-Trade [Image] [Image]Zones[Image] Board (the Board) by the Culpeper County Chamber of Commerce, grantee of FTZ 185, requesting special-purpose subzone status for the pharmaceutical manufacturing facility of Merck & Co., Inc., (Merck) in Elkton, Virginia, adjacent to the Front Royal Customs port of entry area. The application was submitted pursuant to the provisions of the [Image]Foreign[Image][Image]-Trade[Image] [Image]Zones[Image] Act, as amended (19 U.S.C. 81a- 81u), and the regulations of the Board (15 CFR part *68117 (Cite as: 58 FR 68116, *68117) 400). It was formally filed on December 14, 1993. 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 Elkton plant (1,330 acres, 624,221 sq. ft., 82 bldgs.) is located on Route 340S, in Elkton (Rockingham County), Virginia, some 20 miles east of Harrisonburg. The facility (780 employees) is used to produce a range of patented prescription products, including "Primaxin", a broad spectrum antibiotic, "Mefoxin", an antibiotic for lower abdominal pain, and "Pepcid" ulcer treatment. The plant also produces certain veterinary products sold by the company's AgVet Division. The company may produce pharmaceutical intermediates and/or raw materials at the plant in the future. Finished products are shipped to Merck's West Point, Pennsylvania, facility (FTZ application pending, FTZ Doc. 29-93, 58 FR 38749, 7/20/93) for U.S. distribution or export. Some 50 percent of production is exported. Currently, foreign-sourced materials account for 2 to 12 percent of the finished product value and include the following specific ingredients: Acetoxy azetidinone, HP-20 resin dianon, SP-07 (brominated polysytrine resin), D- carboxamide, TAC (thienylacetyl chloride), P-TSC (Paratoluene-sulfonchloride), and famotidine. The company also may purchase from abroad 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 the production of 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 3.0%-6.3% range). The duty rates on foreign- sourced items range from duty-free to 23.5 percent, with most falling in the 3.9%-7.9% 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 February 22, 1994. Rebuttal comments in response to material submitted during the foregoing period may be submitted during the subsequent 15-day period (to March 8, 1994). A copy of the application and accompanying exhibits will be available for public inspection at each of the following locations: Culpeper County Chamber of Commerce, 133 West Davis Drive, Culpeper, Virginia 22701. Office of the Executive Secretary, [Image]Foreign[Image][Image]-Trade [Image] [Image]Zones[Image] Board, U.S. Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW.,Washington, DC 20230. Dated: December 17, 1993. John J. DaPonte, Jr., Executive Secretary. (FR Doc. 93-31385 Filed 12-22-93; 8:45 am) BILLING CODE 3510-DS-P 58 FR 68116-02, 1993 WL 529828 (F.R.) END OF DOCUMENT Copr. (C) West 1998 No Claim to Orig. U.S. Govt. Works [Image] Term [Image]