FR 2021-03144

In the recent notice published in the Federal Register, the Foreign-Trade Zones Board, on behalf of the Port Authority of New York and New Jersey, submitted an application to establish a subzone for Celgene Corporation's facilities located in Warren and Summit, New Jersey. This development outlines significant procedural requests and invites public engagement on the matter.

General Summary

The document under review signifies a formal request to initiate subzone status for Celgene Corporation. A subzone is a designated area wherein companies can benefit from specific regulatory exceptions or tax advantages, typically to encourage economic activity and improve operational efficiencies. The proposed sites are 7 Powder Horn Drive in Warren (3.59 acres) and 556 Morris Avenue in Summit (90.09 acres). This request follows established procedures as dictated by the Foreign-Trade Zones Act and FTZ Board regulations.

Public commentary on this proposal is actively solicited until March 29, 2021, allowing interested parties to express support, concerns, or insights.

Significant Issues or Concerns

Upon reviewing the document, several notable issues arise:

• Lack of Justification for Subzone Status: The application does not clarify why Celgene Corporation needs this designation. This absence of rationale may lead to questions regarding the necessity and the expected outcomes of this initiative.

• Economic Impact: There is a noticeable gap in the document concerning the potential economic impact, whether beneficial or adverse, resulting from granting subzone status to Celgene Corporation. This missing information could be essential in determining the decision's broader financial implications.

• Exclusion of Production Activity: While the document notes that no production activity will be authorized initially, it fails to explain this decision's reasoning. Clarification on this matter could be essential for understanding the scope and limitations of the proposed subzone.

• Benefits for Celgene Corporation: The notice does not specify how Celgene Corporation might benefit from the subzone status, leaving readers questioning what advantages or incentives are anticipated.

Additionally, while the notice is straightforward, it assumes familiarity with FTZ procedures, which might not be common knowledge among all readers, potentially limiting accessibility or comprehension.

Public Impact

The impact of establishing a subzone can be widespread. For the general public, there can be potential indirect effects such as increased local employment and economic growth resulting from enhanced business operations and incentives for the corporation. However, these outcomes are not guaranteed and can vary based on numerous factors not detailed in the document.

Stakeholder Impact

For Celgene Corporation, the subzone could offer substantial economic benefits, such as reduced customs duties or streamlined logistics, potentially lowering operational costs and boosting competitiveness. Conversely, if the lack of production activity authorization signals a limitation, it may restrict operational growth or flexibility, affecting potential benefits.

Stakeholders, including local communities, government entities, and competing businesses, may also be impacted. Local communities could benefit from job creation and economic vibrancy, while competing businesses might face increased competition if Celgene Corporation capitalizes on regulatory advantages.

In summary, while the document introduces a potentially significant economic opportunity, it leaves several crucial aspects unexplored. Addressing these gaps would provide a clearer picture of the potential benefits or challenges this proposal may bring. Public engagement and further clarification during the comment period may address some of these uncertainties.