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Expanded FTZ Production Authority Sought for Pharmaceutical Facility

Monday, April 03, 2017
Sandler, Travis & Rosenberg Trade Report

The Foreign-Trade Zones Board has received from MSD International GMBH (Puerto Rico Branch) LLC, operator of subzone 7G, a notification of proposed production activity for its facility in Las Piedras, Puerto Rico. MSD already has authority to produce certain pharmaceutical products within subzone 7G and the current request would add a finished pharmaceutical product and a foreign status material/component to the scope of authority. Comments on this request are due no later than May 15.

Production under FTZ procedures could exempt MSD from customs duty payments on the foreign-status components used in export production. On its domestic sales, MSD would be able to choose the duty rates that apply to anacetrapib pharmaceutical tablets for treatment of cardiovascular disease (zero) for the specified foreign-status material/component. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

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