FTZ Board Considers Production Request for Drug Facility
The Foreign-Trade Zones Board has received from Suffolk County, N.Y., a notification of proposed production activity at the LNK International Inc. facilities within subzone 52B in Hauppauge, N.Y., which are used for the production of over-the-counter analgesic pharmaceutical products. Comments are due by Dec. 24.
Production under FTZ procedures could exempt LNK from customs duty payments on the foreign-status components used in export production. On its domestic sales, for the specified foreign-status materials and components, LNK would be able to choose the duty rates that apply to dosage form ibuprofen, aspirin, and acetaminophen pharmaceutical products (zero).
LNK would also be able to avoid duty on foreign-status components that become scrap or waste. In addition, customs duties could possibly be deferred or reduced on foreign-status production equipment.