DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
[Docket 19-89]
54 FR 42317
October 16, 1989
Foreign-Trade Zone 22 -- Chicago, IL; Application for Subzone; E.J.
Brach Candy Plant, Chicago
TEXT: An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Illinois International Port District, grantee of FTZ 22,
Chicago, requesting special-purpose subzone status for the confectionary
manufacturing plant of E. J. Brach & Sons, Inc. (subsidiary of Jacobs
Suchard Inc.), located in Chicago, Illinois, within the Chicago Customs
port of entry. The application was submitted pursuant to the provisions of
the Foreign-Trade Zones Act, as amended (19 USC 81a-81u), and the
regulations of the Board (15 CFR part 400). It was formally filed on
September 26, 1989.
The Brach plant (30 acres) is located at 4566 W. Kinzie Street, Chicago.
The facility (3700 employees) is used to produce confectionary and related
products. Some of the finished products are exported (currently, 2%).
Foreign-sourced items currently account for about one percent of finished
product value, and include cocoa, nuts, and flavorings. Brach plans to
purchase sugar from abroad, which would account for some 25 percent of
product value.
Zone procedures would exempt Brach from quota restrictions on foreign
sugar used in the production of non-quota products. The company would also
be exempt from Customs tariffs on the foreign content of its exports.
Products sold in the U.S. market would be subject to quotas and tariffs on
the basis of the finished product. The applicant indicates that the
ability to use lower-priced foreign sugar at the Chicago plant would help
Brach reduce its operating costs and encourage capital improvements.
Brach's objective is to improve the plant's ability to compete against
candy imports and become more competitive internationally, thus helping
the company maintain U.S. employment.
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: Dennis Puccinelli (Chairman), Director, Foreign-Trade
Zones Staff, U.S. Department of Commerce, Washington, DC 20230; Larry
Shirk, Assistant District Director, U.S. Customs Service, North Central
Region, 610 South Canal Street, Chicago, Illinois 60607; and, Lt. Colonel
Jess Franco, District Engineer, U.S. Army Engineer District Chicago, 219
S. Dearborn Street, Chicago, Illinois 60604.
Comments concerning the proposed subzone are invited in writing from
interested parties. They should be addressed to the Board's Executive
Secretary at the address below and postmarked on or before November 21,
1989.
A copy of the application is available for public inspection at each of
the following locations:
U.S. Department of Commerce District Office,
Mid-Continental Plaza, Room 1406,
55 E. Monroe Street,
Chicago, IL 60604;
Office of the Executive Secretary,
Foreign-Trade Zones Board,
U.S. Department of Commerce, Room 2835,
14th & Pennsylvania Ave., NW.,
Washington, DC 20230.
Dated October 6, 1989.
John J. Da Ponte, Jr.,
Secretary.
[FR Doc. 89-24269 Filed 10-13-89; 8:45 am]
BILLING CODE 3510-DS-M