Import Administration
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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
                               [Docket No. 5-81] 
                                  46 FR 27364 
                                  May 19, 1981 

Foreign-Trade Zone No. 22, Chicago; Application for Special-Purpose Subzone

   Dated: May 11, 1981. 
TEXT: Notice is hereby given that an application has been submitted to 
the Foreign-Trade Zones Board (the Board) by the Chicago Regional Port 
District (Port District), grantee of Foreign-Trade Zone No. 22, 
requesting authority to establish a special-purpose subzone at a steel 
plant in Chicago, Illinois, within the Chicago Customs port of entry. The 
application was submitted pursuant to the provisions of the Foreign-Trade 
Zones Act of 1934, as amended (19 U.S.C. 81a-81u), and the regulations of 
the Board (15 CFR Part 400). It was formally filed on May 11, 1981. 

   The Chicago zone was authorized by the Board on October 29, 1975 (Board 
Order 108). The Port District, created as a municipal corporation to 
promote commerce through Chicago's ports, has authority to make zone and 
subzone proposals under Illinois Law (Act of June 6, 1951, Sec. 8.01). 

   The application calls for the establishment of a 46-acre subzone at the 
steel tube manufacturing facility of the Unarco-Leavitt Division, Unarco 
Industries, Inc. The facility, located at 1717 West 115th Street, Chicago, 
currently consists of a 500,000 square foot manufacturing plant on a 
19.1-acre parcel owned by Unarco. The company has leased an adjacent 
26.5-acre parcel from Holco Corporation, a subsidiary of Estel, N.V., a 
Dutch Steel Company, which is constructing a 240,000 square foot building 
on the site for Unarco-Leavitt operations. A Dutch subsidiary of Estel 
will supply at least 60 percent of the new facility's steel sheet 
requirements. Both parcels will be included in the proposed subzone. 

   The facility currently produces electric-welded steel tubing from 
carbon steel sheet and plate. The tubing consists of both mechanical and 
structural shapes and sizes up to 5 inches in width, or outer diameter, 
and up to .25 inches in the thickness. It is used in the manufacture of 
scaffolding, railings, agricultural machinery, automobiles, industrial 
boilers and condensers. The new 26.5-acre section of the plant will 
produce large, electric-welded structural steel tubing with diameters or 
widths ranging from 5 to 10 inches and thicknesses from .188 to .5 
inches. The larger shapes are used in the production of farm and off-
the-road equipment and in the construction of low and medium rise 
buildings. Plant capacity will be increased from the current 300,000 tons 
to 500,000 tons per year, and employment from 500 to 700 workers.  
   The applicant indicates that U.S. import duties are about $22 a ton 
less for steel tubing than for steel sheet and plate, based on an average 
sheet and plate price of $320 a ton. Subzone status would remove the cost 
disadvantage resulting from the inverted tariff and help Unarco-Leavitt 
compete in the domestic market with tubing imported directly from abroad 
at the lower rate, which in 1979 accounted for about one-third of U.S. 
consumption. In addition, the application indicates that there will be 
public economic benefits ranging from increased investment, business 
activity and employment in Chicago's depressed South-side area to 
positive effects on the U.S. balance of trade.  

   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: Ben L. Irvin, Deputy Director, Office of 
Compliance, Import Administration, U.S. Department of Commerce, Washington, 
D.C. 20230; Peter F. Gonzalez, Chicago District Director, U.S. Customs 
Service, Region IX, 610 South Canal Street, Chicago, Illinois 60607; and 
Lt. Colonel Christas A. Dovas, District Engineer, U.S. Army Engineer 
District Chicago, 219 South Dearborn Street, Chicago, Illinois 60604. 
   As part of its investigation, the Examiners Committee will hold a 
public hearing on June 18, 1981, beginning at 9:00 a.m., in the Board 
Room of the Chicago Regional Port District Offices, 12800 Butler Drive, 
Chicago. The purpose of the hearing is to help inform interested persons 
about the proposal, to provide an opportunity for their expression of 
views, and to obtain information useful to the examiners. 

   Interested parties are invited to present their views at the hearing. 
They should notify the Board's Executive Secretary of their desire to be 
heard in writing at the address below or by phone (202/377-2862) by June 
10, 1981. 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 18, 1981. Evidence submitted during the 
post-hearing period is not desired unless it is clearly shown that the 
matter is new and material and that there are good reasons why it could 
not be presented at the hearing. A copy of the application and 
accompanying exhibits will be available during this time for public 
inspection at each of the following locations: 

International Trade Administration District Office, 
U.S. Department of Commerce, 
1406 Mid Continental Plaza Building, 
55 East Monroe Street, 
Chicago, Illinois 60603; 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 2006, 
14th and E Street NW., 
Washington, D.C. 20230.  

John J. Da Ponte, Jr., 
Executive Secretary.  

[FR Doc. 81-14874 Filed 5-18-81; 8:45 am]