DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket No. 29-84]
49 FR 22842
June 1, 1984
Proposed Foreign-Trade Zone -- Peoria, Illinois With Subzone for
Caterpillar; Application and Public Hearing
TEXT: An application has been submitted to the Foreign-Trade Zone Board (the
Board) by EDC, Inc., the Economic Development Council for the Peoria Area, a
non-profit Illinois corporation affiliated with the Peoria Area Chamber of
Commerce, requesting authority to establish a general-purpose foreign-trade
zone in Peoria, Illinois, and a special-purpose subzone for Caterpillar
Tractor Company plants in the Peoria area, adjacent to the Peoria Customs
port of entry. The application was submitted pursuant to the provisions of
the Foreign-Trade Zone Act, as amended (19 U.S.C. 81a-81u), and the
regulations of the Board (15 CFR Part 400). It was formally filed on May
21, 1984. The applicant is authorized to make this proposal under Public
Act 83-440 of the 83rd General Assembly of the State of Illinois, approved
September 17, 1983.
The general-purpose zone will involve five sites totalling 314 acres.
Site 1 covers 105 acres at 1925 Darst St., Peoria, operated by Peoria Barge
Terminal, Inc. Site 2 covers 150 acres at United Facilities, Inc., 603 N.
Main St., East Peoria. Site 3 is a 17-acre site operated by Central
Illinois Dock Company at 1001 Wesley Rd., Creve Coeur. Site 4 is at O'Neill
Brothers Transfer and Storage Company's 2-acre facility at 706 SW.,
Commercial St., Peoria. Site 5 is a 40-acre site operated by KMI Sales,
Inc., at 278 Koch St., Peoria. Each of the 5 sites has public warehousing
facilities and three are involved in storage activities for Caterpillar.
The subzone for Caterpillar will be located at the company's three
Peoria area plants. Caterpillar is a producer of industrial engines, and
earthmoving and construction equipment with world-wide sales of over $5
billion. With its headquarters and major manufacturing facilities in the
area, Caterpillar is Peoria's largest employer, providing some 20,000 local
jobs. Subzone Site 1 is Caterpillar's Mossville, Illinois, Plant, a 267-
acre facility that produces engines for industrial vehicles and equipment.
Site 2 is the Company's 412-acre Morton, Illinois, Parts Distribution
Center. It is the headquarters for Caterpillar's worldwide parts
distribution network. Site 3 is the 412-acre East Peoria Plant, the
company's main facility for manufacturing agricultural, earthmoving,
construction, and materials-handling machinery and equipment, such as
track-type tractors, loaders and pipelayers. Approximately 5 to 7 percent
of the parts and material used at the plants are purchased from foreign
sources, including steel, castings, weldments, engine parts, bearings,
pumps, radiators, winches, and seats. About half of the products are
exported.
The application contains evidence of the need for zone procedures in
the Peoria area. In addition to Caterpillar, which uses three of the five
proposed general-purpose facilities as a part of its parts supply network,
several firms have indicated as interest in using zone services at these
facilities for warehousing/distribution of products such as machinery and
parts, agricultural equipment, castings, tools, electronic components and
products, precision instruments, paper and foil products. No specific
manufacturing approvals are being sought for the general-purpose zone at
this time. Such requests would be made to the Board on a case-by-case
basis.
Subzone status for Caterpillar would exempt the company from duty
payments on the foreign parts and materials it uses for its exports. On
its domestic sales the company will be able to take advantage of the same
duty rate available to importers of complete equipment. These savings will
contribute to Caterpillar's cost-reducing efforts designed to make its
domestic plants more competitive with equipment manufacturing facilities
abroad.
In accordance with the Board's regulations, an examiners committee has
been appointed to investigate the application and report to the Board. The
committee consists of: John J. Da Ponte, Jr. (Chairman), Director,
Foreign-Trade Zones Staff, U.S. Department of Commerce, Washington, D.C.
20230; Leo W. Partyka, District Director, U.S. Customs Service, No. Central
Region, 610 South Canal St., Chicago, IL 60607; and Colonel Bernard P.
Slofer, District Engineer, U.S. Army Engineer District Rock Island, Clock
Tower Bldg., Rock Island, IL 61201.
As part of its investigation, the examiners committee will hold a public
hearing on June 28, 1984, beginning at 9:00 a.m., in City Council Chambers,
City Hall, 402 Fulton, Peoria.
Interested parties are invited to present their views at the hearing.
Persons wishing to testify should notify the Board's Executive Secretary in
writing at the address below or by phone (202/377-2862) by June 22. Instead
of an oral presentation, written statements may be submitted in accordance
with the Board's regulations to the examiners committee, care of the
Executive Secretary, at any time from the date of this notice through July
30, 1984.
A copy of the application and accompanying exhibits will be available
during this time for public inspection at each of the following locations:
Port Director's Office
P.O. Bldg., Room 332,
P.O. Box 1015,
Peoria, IL 61653
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 1872,
14th and Pennsylvania NW.,
Washington, D.C. 20230.
Dated: May 25, 1984.
John J. Da Ponte, Jr.,
Executive Secretary.
[FR Doc. 84-14785 Filed 5-31-84; 8:45 am]
BILLING CODE 3510-25-M