[Congressional Record Volume 144, Number 14 (Tuesday, February 24, 1998)]
[Extensions of Remarks]
[Pages E199-E200]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   CONGRESSIONAL RECORD STATEMENT UPON THE RETIREMENT OF JOHN DAPONTE

                                 ______
                                 

                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                       Tuesday, February 24, 1998

  Mr. CRANE. Mr. Speaker, on December 31, John DaPonte retired from 
U.S. Government service and returned to his home state of Rhode Island 
after having served at the FTZ Board since 1968. The retirement of a 
federal official happens most every day. However, I believe it is 
important that John DaPonte's career in government be remembered 
because of the impact that he and the Foreign-Trade Zones Board have 
made on U.S. trade policy, U.S. companies in the global marketplace, 
and the economic development of a wide range of communities in the 
United States. There are

[[Page E200]]

few federal government officials who have made such a direct positive 
impact on the subject they manage.
  The agency for which he worked, the Foreign-Trade Zones Board, is one 
of the smallest federal agencies in Washington, DC with only nine 
employees. It is so small that it does not have a line item in the 
federal budget. In 1968, zone projects existed in only 6 states and 
Puerto Rico and were very modest in size; today, Foreign-Trade Zones 
Board activity is in all 50 states and Puerto Rico. During his tenure 
at the Board, the Agency's zone projects increased from 9 in 1968 to 
586 in 1997, a yearly growth rate of 221%; domestic merchandise 
receipts grew from $18 million in 1968 to $125.6 billion in 1996, an 
average yearly rate of 24,933%; and employment increased from 1,200 
jobs in 1968 to 370,000 jobs in 1996, an average yearly rate of 1138%. 
There are few, if any, federal agencies with this growth record. John 
DaPonte deserves a thank you for managing an important U.S. trade 
program that grew rapidly over the last 30 years with very modest 
resources.
  The Foreign-Trade Zone program is an economic development tool for 
communities providing financial assistance to many troubled U.S. 
industries, as well as to foreign-based firms interested in 
establishing U.S. production operations, by helping them be competitive 
in the global marketplace. Foreign-trade zones place U.S. production 
facilities on an equal footing with foreign operations. This benefit 
requires investment and jobs in the U.S. as opposed to another country. 
Industry groups become involved in the Foreign-Trade Zone Program in 
order to solve trade problems. Major industries involved In the program 
include shipbuilding, motor vehicles, oil refining, pharmaceuticals, 
information technology, etc.
  The growth of the Foreign-Trade Zone Program required a very 
significant amount of effort by the staff of the Foreign-Trade Zones 
Board. The Foreign-Trade Zones Act or laws pertaining thereto were 
amended in the 1968 to 1997 period on thirteen (13) occasions. Mr. 
DaPonte implemented many new procedures at the Foreign-Trade Zones 
Board including Minor Boundary Modifications and Grant Restrictions to 
assist in managing the very rapid growth of the program in a balanced 
manner and without major funding or personnel. In 1968, 2 Applications 
for new projects were filed; in 1997, 85 Applications were filed. Board 
Orders approving new zone projects grew during the period from 3 Board 
Orders issued in 1968 to 78 Board Orders issued in 1997.
  In order to effectively manage the developing program, a wide range 
of Customs management changes were necessary. The Board supported these 
changes when it issued Board Order 103 on November 27, 1974, 
encouraging Customs to manage zone projects in a new and innovative 
manner. In 1981, the U.S. Customs Service published its first Foreign-
Trade Zone Manual, which has been subsequently updated. In 1986, the 
U.S. Customs Service Regulations were totally rewritten to reflect the 
many necessary changes to the zone program. Special new procedures 
introduced to expedite activity included valuation of manufactured 
products, recognition of industry inventory methods, Customs audit 
management, direct delivery, daily CF 214s, and weekly entries.
  In order to undertake its activities, the Foreign-Trade Zones Board 
actively interfaces with a wide range of U.S. government agencies. Most 
importantly, was the Board's continuing involvement with state and 
local governmental organizations that carried out most zone activity. 
At a time when Washington is trying hard to empower states and 
localities, it would do well to look at the positive program developed 
under John DaPonte's leadership. The Foreign-Trade Zone Program, from 
the beginning, has been one that actively engaged states, counties, 
cities, and port authorities on a wide range of bases to encourage 
local economic development activities. Literally hundreds and thousands 
of meetings and reports and articles were written over the period that 
Mr. DaPonte was at the Foreign-Trade Zones Board on all of these 
issues.
  It is clear that during John DaPonte's tenture at the Foreign-Trade 
Zones Board, the program experienced extraordinary growth. He managed 
this high level of growth effectively with extremely modest personnel 
and budget resources. No other Federal agency has created such a 
positive impact on our nation's balance of trade with such limited 
resources. John DaPonte's involvement in the Federal Government is a 
classic example of the federal government at its best. Today, we 
remember the positive contributions of John DaPonte in Washington, DC 
to U.S. trade. This Congress thanks him for his efforts and wishes him 
well in his future endeavors.

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