Schwarz Pharma, 126550

Public Notice of Subzone
Application For Foreign-Trade
Zone No. 170

The Ports of Indiana, Grantee of Foreign-Trade Zone No. 170, has applied to the Foreign-Trade Zones Board requesting special-purpose foreign-trade subzone status on behalf of Schwarz Pharma Manufacturing Limited. The Schwarz Pharma facilities are located at 1101 C Avenue West in Seymour, Indiana. The facility is used to manufacture, test, package, and warehouse pharmaceutical products. Components and materials sourced from abroad (representing 75% of the value of the finished product) include: alprostidil, edex applicators, lacosamide, moexipril, kremozin, vanlafaxim and esomeprazole magnesium (duty rate ranges from duty free to 5.3%). The application also requests authority to include a broad range of inputs and finished pharmaceutical products that Schwarz Pharma may produce under FTZ procedures in the future. FTZ procedures could exempt Schwarz Pharma from customs duty payments on the foreign components used in export production. The Company anticipates that less than 5 percent of the plant’s shipments will be exported. On its domestic sales, Schwarz Pharma would be able to choose the duty rates during customers entry procedures that apply to Edex kits, Vimpat, Moexipril, Kremozin, Vanlafaxim, and an acid reflux pharmaceutical (all duty free) for the foreign inputs noted above. FTZ designation would further allow Schwarz Pharma to realize logistical benefits through the use of weekly customs entry procedures. Customs duties also could possibly be deferred or reduced on foreign status production equipment. The request indicates that the savings from FTZ procedures would help improve the plant’s international competitiveness. Public comment on the Application is requested from interested parties. Submissions (original and 3 copies) shall be addressed to the Board’s Executive Secretary at the address listed below. A copy of the Application and accompanying exhibits will be available for public inspection at each of the following locations: the Office of the Foreign-Trade Zones Board’s Executive Secretary, Foreign-Trade Zones Board, U.S. Department of Commerce, 1401 Constitution Avenue, N.W., Room 2111, Washington, D.C. 20230; and at the “Reading Room” section of the Board’s Web site, which is accessible via www.trade.gov/ftz. The closing period for comment is November 2, 2009.

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