[Federal Register Volume 61, Number 177 (Wednesday, September 11, 1996)]
[Notices]
[Pages 47870-47871]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23111]
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DEPARTMENT OF COMMERCE
[Docket 66-96]
Foreign-Trade Zone 61--San Juan, PR; Application for Subzone
Status: PepsiCo of Puerto Rico, Inc. (Soft Drink Concentrates) Cidra,
Puerto Rico
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Commercial and Farm Credit and Development
Corporation for Puerto Rico, grantee of FTZ 61, requesting special-
purpose subzone status for the soft drink flavoring concentrate
manufacturing plant of PepsiCo of Puerto Rico, Inc. (PPR) (subsidiary
of PepsiCo, Inc.), located in Cidra, Puerto Rico. 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 August 22, 1996.
The PPR plant (35,000 sq.ft.) is located at Streets A and B (Lots 9
and 10) within the Cidra Industrial Area of the City of Cidra, about 25
miles south of San Juan. The facility (160 employees) is used to
produce PepsiCo, Inc., branded soft drink flavoring concentrates for
products such as ``Pepsi'', ``Diet Pepsi'', and ``Mountain Dew'', that
are sold to licensed bottling companies in the U.S. and abroad. The
application indicates that ingredients purchased from foreign sources
include: sodium benzoate, sodium citrate dihydrate, citric acid,
erythoribic acid, caffeine, gum arabic, FD&C yellow #5, citrus pectin,
aspartame, liquid invert sugar, orange juice solids, and potassium
citrate (duty rate range: free-18.6%; 8.4 cents/kg).
Zone procedures would exempt PPR from Customs duty payments on the
foreign ingredients used in production for export. On domestic sales,
PPR would be able to choose the duty rate that applies to finished soft
drink concentrates (10%) for the foreign ingredients noted above. The
ethanol used in the production process is domestically-sourced, and FTZ
procedures would provide an alternative means of exempting the ethanol
from federal excise taxes based on its use in the manufacture of soft
drink concentrates. 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 November 12, 1996. Rebuttal comments in
response to material submitted during the foregoing period may be
submitted during the subsequent 15-day period (to November 25, 1996).
A copy of the application and the accompanying exhibits will be
available for public inspection at each of the following locations:
U.S. Export Assistance Center, Federal Building, Room G-55, Chardon
Avenue, Hato Rey, PR 00918
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th Street & Pennsylvania Avenue,
NW., Washington, DC 20230.
[[Page 47871]]
Dated: August 28, 1996.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 96-23111 Filed 9-10-96; 8:45 am]
BILLING CODE 3510-DS-P
