[Federal Register Volume 64, Number 132 (Monday, July 12, 1999)]
[Notices]
[Pages 37497-37498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17640]
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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 34-99]
Foreign-Trade Zones 19--Omaha, NE; Application for Foreign-Trade
Subzone Status, Zeneca Inc. (Agricutural Chemical Products) Omaha, NE
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Dock Board of the City of Omaha, grantee of FTZ 19,
requesting special-purpose subzone status for the manufacturing
facilities (agricultural chemical products) of Zeneca Inc. (Zeneca),
located in Omaha, Nebraska. The application was submitted pursuant to
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
June 25, 1999.
The Zeneca facility (42 acres, 252,000 sq. ft. + 223,000 proposed)
is located at 4111 Gibson road in Omaha, Nebraska. The facilities (63
full-time and 30 seasonal employees) produce agricultural chemical
products, which Zeneca intends to formulate, test, package, and
warehouse under FTZ procedures. The principal product to be formulated
initially under subzone procedures is the herbicide which is marketed
under the trade name Achieve. Other products sourced from
this site are the Force 3G insecticide, the
Ordram 15GM, FulTime, Surpass EC,
Eradicane, Eptam, and Ro-Neet
herbicides, the Turbocharge crop adjuvant, and the
Bonzi plant growth regulator. Zeneca indicates that other
products may be sourced from this facility in the future, and that
initial U.S. value added will be 15 percent of finished products'
value.
Zeneca has indicated that the following inputs will be the
principal products to be imported initially under FTZ procedures:
tralkoxydim; azoxystrobin; n-phosphonomethylglycyne trimethyl sulfonium
salt; brodifcaoum; paclobutrazol; daconil; bromoxynil; cyhalothrin CS;
and pirimiphosmethyl. Current duty rates for these inputs range from
3.7 to 10.7 percent.
Zone procedures would exempt Zeneca from Customs duty payments on
foreign components used in export production. On its domestic sales,
Zeneca would be able to choose the lower duty rate that applies to the
finished products (6.5 percent) for the foreign inputs noted above.
Zeneca would be able to avoid duty on foreign inputs which become
scrap/waste, estimated at 0.5 percent of imported inputs. The
application indicates that FTZ procedures would also allow Zeneca to
eliminate its current use of a foreign ``toll'' manufacturer to process
the Achieve herbicide, thus realizing savings through the
internalization of this function. FTZ status may also make a site
eligible for benefits provided under state/local programs. The
application indicates that the savings from zone procedures would help
improve the plant'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 on the application is invited from interested
parties. Submissions (original and three copies) shall be addressed to
the Board's Executive Secretary at the address below. The closing
period for their receipt is September 10, 1999. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period to September 27, 1999.
[[Page 37498]]
A copy of the application and the accompanying exhibits will be
available for public inspection at each of the following locations:
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th and Pennsylvania Avenue, NW.,
Washington, DC 20230
U.S. Department of Commerce Export Assistance Center, 11135 ``O''
Street, Omaha, Nebraska 68137
Dated: June 30, 1999.
Dennis Puccinelli,
Acting Executive Secretary.
[FR Doc. 99-17640 Filed 7-9-99; 8:45 am]
BILLING CODE 3510-DS-P
