[Federal Register Volume 62, Number 40 (Friday, February 28, 1997)]
[Notices]
[Pages 9159-9160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5031]


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DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 9-97]


Foreign-Trade Zone 21, Charleston, South Carolina; Application 
for Subzone Status, Bayer Corporation (Rubber Chemicals), Goose Creek, 
South Carolina

    An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the South Carolina State Ports Authority, grantee of FTZ 
21, requesting special-purpose subzone status for the rubber chemicals 
manufacturing facility of Bayer Corporation (Bayer) in Goose Creek, 
South Carolina. 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 February 18, 1997.
    The Bayer Corporation is a subsidiary of the Bayer AG (Germany), a 
global manufacturer of health care and life science products, chemicals 
and imaging systems. Its Fibers, Organics and Rubber Division operates 
the Goose Creek rubber chemicals manufacturing facility. (Bayer has 
several other manufacturing facilities in Goose Creek, but they are not 
included in this request.)
    Bayer's rubber chemicals manufacturing plant (100,000 sq.ft./4.4 
acres) is located within the Bushy Park Industrial Complex, Highway 503 
in Goose Creek (Berkeley County), South Carolina. The facility (60 
employees) produces rubber chemicals used in the production of a 
variety of industrial rubber products including tires, hoses, belts, 
seals and gaskets. The main products currently manufactured at the 
plant are benzothiazyl-2-cyclohexylsulfenamide (CBS) and benzothiazyl-
2-dicyclohexylsulfenamide (DCBS), rubber chemical accelerators; 
2,2'Dibenzamido diphenyldisulfide (DBD), a peptizer used to improve the 
mixing performance of natural rubber; and N-(1,3-dimethyl-butyl)-N'-
phenyl-p-phenylene diamine (6PPD), an antidegradant to prevent ozone 
damage. The Bayer facilities include a new state-of-the-art plant for 
the production of CBS and DCBS and expanded facilities for DBD 
production. Some 10 to 50 percent of production is exported.
    Zone procedures would exempt Bayer from Customs duty payments on 
foreign materials used in production for export. On domestic shipments, 
the company would be able to choose the duty rates that apply to the 
finished products (duty-free to 15.1% + $0.017/kg) instead of the rates 
otherwise applicable to the

[[Page 9160]]

foreign materials. The HTSUS categories and duty rates for the finished 
products are as follows:

------------------------------------------------------------------------
              Product                  HTSUS No.          Duty rate     
------------------------------------------------------------------------
DBD...............................    2930.90.2600  duty-free.          
6PPD..............................    2921.59.8090  15.1% + $0.017/kg.  
CBS...............................    2934.20.8000  13.3% + $0.026/kg.  
DCBS..............................    2934.20.2500  duty-free.          
------------------------------------------------------------------------

    The HTSUS categories and duty rates for the primary foreign-sourced 
inputs are as follows:

------------------------------------------------------------------------
               Input                   HTSUS No.          Duty rate     
------------------------------------------------------------------------
Benzoyl chloride..................    2916.32.2000  7.1%.               
4ADPA.............................    2921.51.5000  15.1% + $0.017/kg.  
Sodium MBT........................    2934.20.2000  10.7% + $0.006/kg.  
Dicyclohexylamine.................    2921.30.3000  13.7% + $0.026/kg.  
------------------------------------------------------------------------

    Foreign materials account for some 20 to 40 percent of the value of 
the final products. The application indicates that the savings from 
zone procedures will help improve the international competitiveness of 
the Bayer plant and will help increase exports.
    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 
April 29, 1997. Rebuttal comments in response to material submitted 
during the foregoing period may be submitted during the subsequent 15-
day period (to May 14, 1997).
    A copy of the application and accompanying exhibits will be 
available for public inspection at each of the following locations:

U.S. Department of Commerce Export Assistance Center, 81 Mary St., 
Charleston, South Carolina 29403
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. 
Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW., 
Washington, DC 20230

    Dated: February 21, 1997.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 97-5031 Filed 2-27-97; 8:45 am]
BILLING CODE 3510-DS-P