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                             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 
   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 
   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 
   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