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                             DEPARTMENT OF COMMERCE 
                            Foreign-Trade Zone Board 
                               [Docket No. 32-86] 
                                  51 FR 39772 
                                October 31, 1986 
Proposed Foreign-Trade Zones -- Burns Harbor, Indiana With Subzone for 
Caterpillar Engine Plant in Lafayette Application and Public Hearing  
TEXT: An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the Indiana Port Commission (IPC), an Indiana public corporation,
requesting authority to establish a general-purpose foreign-trade zone in 
Burns Harbor, Indiana, adjacent to the Chicago Customs port of entry, and a
special-purpose subzone for the engine manufacturing plant of Caterpillar 
Tractor Company in Lafayette, Indiana. The application was submitted pursuant
to the provisions of the Foreign-Trade Zones Act, as amended (19 U.S.C. 
81a-81u), and the regulations of the Board (15 CFR Part 400). It was 
formally filed on October 17, 1986. The applicant is authorized to make this
proposal under section 8-10-3-2 of the Indiana Code. 
   The proposed foreign-trade zone would cover 441 acres within the 500-acre
Port of Indiana/Burns International Harbor (Burns Harbor), on the south 
shore of Lake Michigan, 30 miles southeast of Chicago, in Porter County, 
Indiana. A warehouse for which IPC plans to select a private operator will 
be available for initial zone activity. 
   The application contains evidence of the need for zone services in the 
Burns Harbor area. Several firms have indicated an interest in using zone 
procedures for storage/distribution of vehicles, auto parts, prestressed 
strands for concrete, plastic products, paint, textiles and apparel. No 
manufacturing approvals are being sought at this time for the general-
purpose zone. Such requests would be made to the Board on a case-by-case 
   The proposed subzone would be located at Caterpillar's Lafayette Engine
Plant at 3701 State Road 266 in Lafayette, some 80 miles south of Burns 
Harbor. The 440-acre facility is used to produce large diesel engines for 
marine and industrial uses, employing 445 persons. Some 7 percent of the 
parts used at the plant are sourced abroad, including pistons, bearings, 
turbochargers, water pumps, forgings, radiators, valves, bolts, filters and
contactors. Some of the engines are exported. 
   Zone procedures would allow Caterpiller to avoid duty payments on the 
foreign parts used in its exports. On its domestic sales, the company would
be able to take advantage of the same duty rate available to importers of 
engines. The duty rate for engines is 3.9 percent, whereas the rates for 
the imported parts range from 3.5 to 9.5 percent. Zone savings will help 
the company improve its international competitiveness. 
   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), Foreign-Trade Zones 
Staff. U.S. Department of Commerce, Washington, DC 20230; Larry K. Shirk,
Assistant District Director, U.S. Customs Service, North Central Region, 
610 S. Canal St., Chicago, IL 60607; and Lt. Colonel Frank R. Finch, 
District Engineer. U.S. Army Engineer District Chicago, 219 S. Dearborn 
St., Chicago, IL 60604.   

   As part of its investigation, the examiners committee will hold a 
public hearing on December 2, 1986, beginning at 9:00 a.m., in the City 
Council Chambers, Portage City Hall, Portage, Indiana. 
   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 November 25. 
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 
January 9, 1987.  
   A copy of the application and accompanying exhibits will be available 
during the time of public inspection at each of the following locations:  
Port Administration Bldg., 
Burns International Harbor, 
6600 U.S. Highway 12, 
Portage, IN 46368 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Rm 1529, 
14th and Pennsylvania Avenue NW., 
Washington, D.C. 20230.  
   Dated: October 28, 1986. 
John J. Da Ponte, Jr., 
   Executive Secretary.  
[FR Doc. 86-24714 Filed 10-30-86; 8:45 am]