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(d) To require compliance with lawful regulations of the Board and of other Government departments, State or municipal agencies, which may be applicable to the zone.

(e) To prescribe the form and manner of keeping the accounts of the zone.

(f) To require the submission annually, and at such other times as the Board may prescribe, of reports containing full statements of the operations, receipts, and expenditures, and such other information as the Board may require.

(g) To inspect and examine at such times as the Board may deem advisable the premises, operations, or accounts of the grantee.

(h) To impose fines of not to exceed $1,000 per day for violations of the act or of the regulations in this part.

(1) To revoke the grant of any corporation after due notice and public hearing for repeated and willful violations of the act.

(j) To prescribe reasonable and uniform regulations for like conditions and circumstances for the erection of buildings within the zone by other than the grantee.

(k) To make a report to the Congress on the first day of each regular session, containing a summary of the operation and fiscal condition of each zone, and to transmit therewith copies of the annual report of each grantee.

(1) To perform such other duties as may be necessary to administer the provisions of the act.

§ 400.201 Cooperation with other agencies.

The Board is authorized to cooperate: (a) With other Government departments or other Federal agencies having jurisdiction in or adjacent to ports of entry.

(b) With State and local authorities in the exercise of their police, sanitary, and other powers in connection with the zone.

(Sec. 9, 48 Stat. 1000; 19 U.S.C. 811) § 400.202 Cooperation with Board of other agencies of the Government. By authority of the act and Executive Order No. 7104, the executive departments and other establishments of the Government will furnish to the Board such records, papers, and information in their possession as may be required by the Board, and temporarily detail to the service of the Board such officers, ex

perts, or engineers as may be necessary to enable the Board to carry out its duties under the act.

(Sec. 10, 48 Stat. 1001; 19 U. 8. C. 811) § 400.203 Executive Order No. 7104. Executive departments and other establishments of the Government are hereby ordered and directed to cooperate with the Board established by the act of June 18, 1934 (48 Stat. 998-1003; 19 U.S.C. 81a-81u), for carrying out the purposes thereof, and at the request of the said Board to furnish it such records, papers, and information in their possession, as it may require, and to temporarily detail to its service such officers, experts, or engineers as may be necessary for the purpose of facilitating the investigation of the Board and its work in connection with the establishment, operation, and maintenance of foreigntrade zones.

[E. O. 7104, July 18, 1935]

NUMBER AND LOCATION OF ZONES § 400.300 Each port of entry entitled to at least one zone.

Subject to the provisions of the act and of the regulations in this part, each port of entry shall be entitled to at least one zone.

(Sec. 2, 48 Stat. 999; 19 U. S. C. 81b)

§ 400.301 Port of entry located in more than one State entitled to a zone in each such State.

When a port of entry is located within the confines of more than one State, such port of entry shall be entitled to a zone in each of such States.

(Sec. 2, 48 Stat. 999; 19 U. S. C. 81b)

§ 400.302 Zone may be authorized in each of two cities separated by water in one port of entry.

When two cities separated by water are embraced in one port of entry, a zone may be authorized in each of said cities, or in territory adjacent thereto. (Sec. 2, 48 Stat. 999; 19 U. S. C. 81b) § 400.303 Additional zones in port of entry may be authorized by Board. Zones in addition to those to which a port of entry is entitled shall be authorized only if the Board finds that existing or authorized zones will not serve adequately the convenience of commerce.

(Sec. 2, 48 Stat. 999; 19 U. 8. C. 81b)

§ 400.304 poses. The establishment of a zone, or a sub-zone in an area separate from an existing zone, for one or more of the specialized purposes of storing, manipulating, manufacturing, or exhibiting goods, may be authorized if the Board finds that existing or authorized zones will not serve adequately the convenience of commerce with respect to the proposed purposes.

Zones for specialized pur

[Order 29, 17 F.R. 5316, June 11, 1952] ECONOMIC, FINANCIAL, AND PHYSICAL REQUIREMENTS FOR ESTABLISHMENT OF ZONE

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Before a grant is made, an economic survey must demonstrate to the satisfaction of the Board that the anticipated commerce, benefits, and returns, both direct and indirect, will justify its construction to expedite and encourage foreign commerce.

§ 400.401 Proof of ability of applicant adequately to finance zone.

The ability of the applicant adequately to finance and conduct the undertaking must be demonstrated to the complete satisfaction of the Board. § 400.402

Physical facilities required in the operation of a zone.

(a) Where zone will be adjacent to water. (1) Adequate slips to accommodate vessels engaged in foreign trade.

(2) Wharves and docks suitably constructed for the needs of the specific commodities to be handled over them.

(3) Mooring facilities for the protection of vessels while loading, unloading, or awaiting berth.

(4) Transit sheds on the wharves for the protection of goods accumulated for shipment or unloaded and awaiting disposition.

(5) Warehouses so constructed and located as to meet the requirements of goods to be stored and the special regulations of the Treasury Department to safeguard the revenue.

(6) Transportation connections with systems serving surrounding territory and other parts of the United States, so arranged as to permit of proper guarding and inspection for the protection of the revenue.

(7) Fuel facilities for servicing vessels with coal or other fuel, with adequate reserve storage spaces.

(8) Light and power facilities throughout the zone, on the wharves and docks, and to meet any special requirements of the Treasury Department in safeguarding revenue.

(9) Water and sewer mains constructed to meet approved plans for service and health protection

(10) Fire protection suitable for proper protection of zone and goods in storage.

(11) Administrative and living quarters and facilities for the officers and employees of the United States, State, and municipality, whose duties may require their presence within the zone.

(12) Adequate enclosures to segregate the zone from customs territory for the protection of the revenue, together with suitable provisions for ingress and egress of persons, conveyances, vessels, and merchandise.

(13) Sanitary facilities and appliances to conform to Federal and local requirements.

(14) Adequate facilities for the disinfection and fumigation of merchandise as required.

(15) Such other facilities as may be required by the Board.

(b) Where zone will not be adjacent to water. (1) Warehouses so constructed and located as to meet the requirements of goods to be stored and the special regulations of the Treasury Department to safeguard the revenue.

(2) Transportation connections with systems serving surrounding territory and other parts of the United States, so arranged as to permit of proper guarding and inspection for the protection of the

revenue.

(3) Light and power facilities throughout the zone, and to meet any special requirements of the Treasury Department in safeguarding the revenue.

(4) Water and sewer mains constructed to meet approved plans for service and health protection.

(5) Fire protection suitable for proper protection of zone and goods in storage.

(6) Administrative and living quarters and facilities for the officers and employees of the United States, State, and municipality, whose duties may require their presence within the zone.

(7) Adequate enclosures to segregate the zone from customs territory for the protection of the revenue, together with

suitable provisions for ingress and egress of persons, conveyances, and merchandise.

(8) Sanitary facilities and appliances to conform to Federal and local requirements.

(9) Adequate facilities for the disinfection and fumigation of merchandise as required.

(10) Such other facilities as may be required by the Board.

(c) Ratproofing and sanitation. All buildings and other structures within the zone, whether it is adjacent to water or not, shall be so constructed or altered, and maintained, as may be required by the Surgeon General, United States Public Health Service, to prevent the harborage of rodents. Water supply, sewage disposal, and provision for general sanitation (including adequate facilities for disinfection and fumigation) shall be as required by the Surgeon General, United States Public Health Service. (Sec. 12, 48 Stat. 1001; 19 U.S.C. 811) § 400.403 Construction and operation of equipment for segregation from customs territory and quarters for personnel.

(a) All zones shall be segregated from the land area of adjacent customs territory by a fence of woven galvanizedwire netting, of not less than No. 6 gage wire, with a mesh not exceeding 2 inches, and an over-all height of at least 10 feet above the concrete base in which the posts are set. The netting shall be securely attached to the insides of the posts and shall be set sufficiently low so as to be flush with the ground at all times. The fence shall be topped by at least three strands of galvanized barbed wire, fourpoint type, each strand consisting of two strands of No. 122 gage wire. The three strands shall be secured to metal brackets affixed to the top of each post, the brackets inclining at approximately 45° inward and upward. The strands shall be parallel and from 3 to 4 inches apart. Suitable concrete or metal posts shall be set in concrete footings, not less than 3 feet deep by 10 inches square, and with centers not more than 10 feet apart. Proper anchors and braces shall be installed at corners and gates. The gates shall be of the same material and height as the fence and shall be topped by three strands of the barbed wire above deSed, such strands to be affixed to metal brackets perpendicular with the gate. Suitable attachments shall be se

cured to the gates for the purpose of affixing locks. Alternate proposals for barriers of equal efficiency may be approved by the Board.

(b) If, according to the terrain or other factors adjacent to the fence surrounding the enclosure, or for other reasons, the height of the fence as provided for herein is not sufficient for proper protection to the revenue, the height shall be suitably increased at the direction of the Board or the District Director of Customs.

(c) If sides of buildings situated within a zone form a part of the zone enclosure in lieu of the fence prescribed above, all openings in such sides of the buildings shall be securely closed by heavy metal netting, grills, or other effective barriers.

(d) Fences and other exterior lines of the zone shall be equipped with electric lights and shall be illuminated to the satisfaction of the collector during such times as he may deem necessary.

(e) Such additional protection against the unauthorized transit of persons, goods, or conveyances to or from a zone shall be provided as may be deemed necessary by the District Director of Customs.

(f) Adequate living quarters, administrative and other facilities for officers and employees of the United States, State, and municipality whose duties may require their presence within the zone, shall be provided by the grantee. The requirements and extent of these facilities will be fixed by the Board.

(g) Each grantee shall provide and maintain such other facilities as may be required from time to time by the Board. (Sec. 12, 48 Stat. 1001; 19 U.S.C. 817) [Regulations, June 29, 1935, as amended by Order 74, 32 F.R. 13714, Sept. 30, 1967] ELIGIBLE APPLICANTS

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unless such applications have been authorized by an act of the State legislature (enacted after June 18, 1934). (Sec. 2, 48 Stat. 999; 19 U.S.C. 81b)

§ 400.502 Act of State legislature necessary in case of private corporations. Grants to private corporations will not be approved by the Board unless such corporations have been authorized by an act of the State legislature (enacted after June 18, 1934).

(Sec. 2, 48 Stat. 999; 19 U.S.C. 81b)

§ 400.503 Preference to public corpora

tions.

In granting applications preference will be given by the Board to public corporations.

(Sec. 2, 48 Stat. 999; 19 U.S.C. 81b)

APPLICATIONS FOR GRANTS

§ 400.600 Address.

Applications for grants should be filed with, and all official communications in connection therewith addressed to the Secretary of Commerce, Chairman and Executive Officer of the Foreign-Trade Zones Board, Washington 25, D.C. (Sec. 6, 48 Stat. 1000; 19 U.S.C. 81f) § 400.601 Number of copies.

Every application, exhibit, or enclosure, except where specifically excepted, shall be in quadruplicate duly authenticated and referenced.

(Sec. 6, 48 Stat. 1000; 19 U.S.C. 811)

§ 400.602 Form and content.

Every application shall be in letter form on letter-size paper and shall contain the date, official designation of the applicant, and shall show whether the application is for the establishment or expansion of the zone, be signed by an authorized officer of the corporation, and bear the corporate seal.

(Sec. 6, 48 Stat. 1000; 19 U.S.C. 811)

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(2) the means of segregation from customs territory, as required by §§ 400.402, 400.403; (3) the fitness of the area for a zone; and (4) the possibilities of expansion of the zone area.

(b) Exhibit No. 2. A statement as to whether the port is within the confines of more than one State, and whether the zone will be in or adjacent to a port of entry.

(c) Exhibit No. 3. A statement giving full details as to the applicant's plans for acquiring title to, or the right to occupy and use, lands other than those owned by the applicant or by the United States, which are essential for carrying out the project or projects covered by the application. If the applicant, at the time of filing the application, has, by easement, lease, franchise, or otherwise, acquired the right to occupy and use lands owned by others, the statement must show, with respect to each separate right of occupancy and use: (1) From whom acquired; (2) the date acquired; (3) nature and extent of the right acquired; (4) whether perpetual or of limited term; and (5) if of limited term, when such term expires.

(d) Exhibit No. 4. A statement showing in detail the method proposed to finance the undertaking, accompanied by proof of the ability of the applicant to finance the construction and operation of the zone.

(e) Exhibit No. 5. An economic survey showing in detail the potential commerce and revenue of the proposed zone and other direct and indirect benefits accruing therefrom; present foreign trade of the port area, including transshipment, re-export, and reconsignment trade; present steamship services, and possible increases in such services where necessary; comparative study of export rates on domestic commodities for mixing with foreign goods; analysis of ocean freight rates where applicable to zone activity; potential new markets for zone business; activities best suited to particular zone; and such other data as may be necessary to a determination of whether the establishment of the zone is justified to expedite and encourage foreign commerce.

(f) Exhibit No. 6. (1) A description of the proposed project, where zone will be adjacent to water, to include:

(1) Slips and docks, giving number and for each the dimensions and depth of water below a stated datum;

(ii) Wharves, giving number and for each the type of construction, width, area, sheds, loading and unloading facilities, trackage, fire protection, motoring facilities, and an estimate of the number of ocean-going ships which could be accommodated;

(iii) Warehouses, giving type of construction, floor area, and fire protection;

(iv) Transportation connections by rail and highway, giving the number of tracks and routes by which they would be connected with existing rail and highway systems;

(v) Facilities for coal and other fuel, and for light and power;

(vi) Water and sewer mains;

(vii) Administrative and living quarters and facilities to be provided for the officers and employees of the United States, State, and municipality, whose duties may require their presence within the zone (as required by §§ 400.800400.812);

(viii) Enclosure to segregate the zone from customs territory, together with the provisions for ingress and egress of persons, conveyances, vessels, and merchandise, showing in detail compliance with §§ 400.800-400.812, and including a description of openings and, if buildings form part of the enclosure line, a full description of the construction of the buildings and any openings therein on the line side.

(2) A description of the proposed project, where zone will not be adjacent to water, to include:

(i) Loading and unloading facilities; (ii) Warehouses, giving type of construction, floor area, and fire protection;

(iii) Transportation connections by rail and highway, giving the number of tracks and routes by which they would be connected with existing rail and highway systems;

(iv) Facilities for coal and other fuel, and for light and power;

(v) Water and sewer mains;

(vi) Administrative and living quarters and facilities to be provided for the officers and employees of the United States, State, and municipality, whose duties may require their presence within the zone (as required by §§ 400.800400.812);

(vii) Enclosure to segregate the zone from customs territory, together with the provisions for ingress and egress of persons, conveyances, and merchandise, showing in detail compliance with §§ 400.800-400 812, and including a de

Iscription of openings and, if buildings form part of the enclosure line, a full description of the construction of the buildings and any openings therein on the line side.

(g) Exhibit No. 7. A preliminary estimate of the cost of the proposed project, sufficiently detailed to be subject to verification.

(h) Exhibit No. 8. A statement of the time after the date of the approval of the application within which the applicant proposes to commence and complete the construction of the zone and the facilities and appurtenances, and to set up and commence operation of the zone.

(i) Exhibit No. 9. The largest scale charts of the United States Coast and Geodetic Survey of the locality, showing in red the boundaries of the proposed zone (four copies); or if an interior zone, four copies of a map on an appropriate scale, showing in red the boundaries of the proposed zone.

(j) Exhibit No. 10. A detailed map, on tracing linen and three blue line prints, showing the proposed lay-out of the zone.

(1) The map shall be not smaller than 24 inches by 36 inches and not larger than 28 inches by 40 inches; shall have a clear border of one-half inch on three sides and 21⁄2 inches on the left-hand shorter side; shall have a numerical scale and a graphical scale, the latter not less than 6 inches in length; shall have the true meridian indicated thereon; and shall have a space 4 inches by 7 inches in the lower right-hand corner, the upper half of which shall bear the title, scale, etc., and the lower half shall be left clear.

(2) The map shall show, in land areas, all existing structures and improvements, and, on water areas, by soundings, the present depths below a plane of reference stated on the map. The outline of the proposed slips, docks, wharves, warehouses, streets and highways, railroads, facilities for fuel, light, power, water and sewer mains; quarters and enclosures shall be shown by suitable heavy lines and these features designated clearly by lettering. The depths to be provided in water areas below the noted datum plane shall be shown by figures.

(3) The scale of the map shall be such as to show the complete zone on one sheet of the size prescribed.

(4) If rail connections to existing railroad systems cannot be shown on the map of the zone, an additional map or

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