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                           DEPARTMENT OF COMMERCE

    			Foreign-Trade Zones Board

                               (Docket 1-92)

 Foreign-Trade Zone 119--Minneapolis-St. Paul, MN; Application for Subzone
     Davisco International, Inc., Dairy Products Processing Plants, St.
                         Peter/Nicollet, MN

                         Tuesday, January 28, 1992

An applicaton has been submitted to the Foreign-Trade Zones Board (the Board)
by the Greater Metropolitan Area Foreign-Trade Zone Commission, grantee of 
FTZ 119, requesting special-purpose subzone status for export activity at 
the intermediate dairy products manufacturing facilities of Davisco 
International, Inc. (Davisco), located in St. Peter and Nicollet, Minnesota. 
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 January 10, 1992.

FN1 This application is the first one filed under the FTZ Board's revised
regulations (56 FR 50790-50808, 10-8-91), and all docket numbers that
follow will involve applications similarly filed and processed.

The proposed subzone would consist of three manufacturing/warehousing
facilities: Site 1 (30,100 sq. ft.)--drying/blending facility located at
119 North Front Street in St. Peter, Minnesota; Site 2 (35,000 sq.
ft.)--warehouse located at 1511 Gault Street, in St. Peter, approximately
65 miles southwest of Minneapolis-St. Paul; and, Site 3 (25,000 sq.
ft.)--drying facility located 11 miles southwest of St. Peter at 734 Sixth
Street in Nicollet, Minnesota.

The facilities are used to produce a variety of dairy products, but
subzones status is being requested only for the production of intermediate
dairy food products and by-products for export. The proposed activity
involves the blending of foreign non-fat dry milk and casein with
ingredients purchased domestically, such as milk minerals and proteins,
lactose, sodium hydroxide, calcium hydroxide, and potassium hydroxide. The
final products include: whey protein concentrate, delactosed whey, whey
protein isolates, lactose, and various milk mineral by-products, which are
sold to food product manufacturers. The application indicates that subzone
status would help Davisco compete in its Asian markets.

Zone procedures would exempt the company from quota requirements and
Customs duty payments on the foreign milk products used in the production
for export. They would not be used in regard to the manufacture of products
for the domestic market.

In accordance with the Board's regulations (as revised, 56 FR 50790-50808,
10- 8-91), a member of the FTZ Staff has been designated examiner to
investigate the application and report to the Board.

Public comment on the application 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 March 25, 1992. Rebuttal comments in response to material
submitted during the foregoing period may be submitted during the
subsequent 15-day period (to 4-9- 92).

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 District Office, 
108 Federal Building, 
110 S. Fourth Street, 
Minneapolis, MN 55401.

Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, room 3716,
14th Street and Constitution Avenue, NW., 
Washington, DC 20230.

Dated: January 21, 1992.

John J. Da Ponte, Jr.,

Executive Secretary.

(FR Doc. 92-1982 Filed 1-27-92; 8:45 am)