DEPARTMENT OF COMMERCE
Foreign-Trade Zones Board
Foreign-Trade Zone 22, Chicago, Illinois; Application for Subzone
Status Henkel Corporation (Natural Vitamin E), Kankakee, Illinois
An application has been submitted to the Foreign-Trade Zones Board
(the Board) by the Illinois International Port District, grantee of FTZ
22, requesting special-purpose subzone status for the natural Vitamin E
manufacturing facility of Henkel Corporation (Henkel) in Kankakee,
Illinois. Henkel is a wholly-owned subsidiary of Henkel of America,
Inc., which is a wholly-owned subsidiary of Henkel KgaA (Germany), a
global manufacturer of oleochemicals and organic specialty chemicals.
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
June 4, 1997.
Henkel's plant (177,500 mfg. sq. ft./306 acres) is located on South
Kensington Road in the city of Kankakee (Kankakee County), Illinois,
some 60 miles south of Chicago. The facility (400 employees) produces
thermoplastic resins, adhesives, dimer acid products, natural vitamin
E, sterols, fatty acids, sulfation products and plastic additive
products. The facility also serves as Henkel's Midwest Distribution
Center. The application requests authority to manufacture only Vitamin
E, sterols and fatty acids under zone procedures. Some of the vegetable
oil distillate is sourced abroad, accounting for approximately 15 to 25
percent of the value of the natural vitamin E produced at the facility.
Some 20 to 40 percent of production is exported.
Zone procedures would exempt Henkel from Customs duty payments on
foreign materials used in production for export. On domestic shipments,
the company would be able to choose the duty rates that apply to the
finished products (duty-free to 4.1%) instead of the rates otherwise
applicable to the foreign material (deodorizer distillate rates could
range from duty-free to 11.5% + 2.6 cents/kg., depending on Customs
classification and GSP status). The application indicates that the
savings from zone procedures will help improve the international
competitiveness of Henkel's Kankakee plant and will help increase
In accordance with the Board's regulations, a member of the FTZ
Staff has been designated examiner to
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investigate the application and report to the Board.
Public comment is invited from interested parties. Submissions
(original and 3 copies) shall be addressed to the Board's Executive
Secretary at the address below. The closing period for their receipt is
August 15, 1997. Rebuttal comments in response to material submitted
during the foregoing period may be submitted during the subsequent 15-
day period (to September 2, 1997).
A copy of the application and accompanying exhibits will be
available for public inspection at each of the following locations:
U.S. Department of Commerce Export Assistance Center, Suite 2440, 55
West Monroe St., Chicago, Illinois 60603
Office of the Executive Secretary, Foreign-Trade Zones Board, U.S.
Department of Commerce, Room 3716, 14th & Pennsylvania Avenue, NW.,
Washington, DC 20230.
Dated: June 5, 1997.
John J. Da Ponte, Jr.,
[FR Doc. 97-15749 Filed 6-13-97; 8:45 am]
BILLING CODE 3510-DS-P