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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trade Zones Board 
 
                               [Docket No. 29-86] 
 
                                  51 FR 32504 
 
                               September 12, 1986 
 
 
Foreign-Trade Zone 114 -- Peoria, IL; Application for Subzone; Diamond Star
Auto Manufacturing Plant 
 
TEXT: An application has been submitted to the Foreign-Trade Zones Board 
(the Board) by the Economic Development Council for the Peoria Area, grantee
of FTZ 114, requesting special-purpose subzone status for the automobile 
manufacturing plant of Diamond Star Motor Corporation, a Chrysler/Mitsubishi
joint venture, located in Normal, Illinois, adjacent to the Peoria Customs
port of entry. 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 
September 2, 1986. 
 
   The plant, which is currently under construction on a 636-acre site at 
U.S. Route 150/I-74 in Normal, McLean County, Illinois, will be used to 
produce compact automobiles, employing 2500 persons. Certain components 
such as engines, transmissions, suspension and brake system components, 
will be purchased from Mitsubishi in Japan. Most of the steel and remaining
components will be sourced domestically. The finished autos will be sold 
through Chrysler and Mitsubishi dealers. 
 
   Zone procedures will exempt Diamond Star from duty payments on foreign 
material used in its exports. On its domestic sales the company will be 
able to take advantage of the same duty rate available to importers of 
finished autos (2.6 percent) compared to a 3.2 percent rate that would 
apply to most of the foreign parts it plans to use. Subzone status will be
an important factor in full utilization of the plant. 
 
   In accordance with the Board's regulations, an examiners committee has
been appointed to investigate the application and report to the Board. The
committee consist of: Dennis Puccinelli (Chairman), 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 St., Chicago, IL 60607; and Colonel Neil A. Smart, District
Engineer, U.S. Army Engineer District Rock Island, P.O. Box 2004, Rock 
Island, IL 61204.  
 
   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 October 26, 1986.
 
   A copy of the application is available for public inspection at each of
the following locations: 
 
 
Port Director's Office, 
U.S. Customs Service, 
411 Hamilton Blvd., 
Suite 1118, 
Peoria, IL 61602 
 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 1529, 
14th and Pennsylvania NW., 
Washington, DC 20230  
 
   Dated: September 5, 1986. 
 
 
John J. Da Ponte, Jr., 
 
   Executive Secretary.  
[FR Doc. 86-20575 Filed 9-11-86; 8:45 am] 
 
   BILLING CODE 3510-DS-M