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400.1000 Operation, maintenance and ad

ministration. 400.1001 Regulations promulgated by gran

tee, and posting of regulations

within zone. 400.1002 Grantee's reports to Board. 400.1002a Uniform system of accounts, rec

ords, and reports. 400.1003 Zones to be operated as public

utilities. 400.1004 Inspection of zones. 400.1005 Separability of regulations in event

of invalidity. 400.1006 Changes in regulations. 400.1007 Authority for publishing, posting,

and Aling of schedules of rates

and charges. 400.1008 Adoption and issuance of sched

ules. 400.1009 Definitions. 400.1010 Designation of agent for Issuanco

of schedules. 400.1011 Uniformity of schedules. 400.1012 Construction of schedules. 400.1013 Additional instructions.

USE OF GOVERNMENT PROPERTY 400.1100 Use of Government property. VIOLATION OF PROVISIONS OF ACT OR

REGULATIONS 400.1200 Pne imposed for violation of act

or regulations. 400.1201 Revocation of grant. 400.1202 Procedure for revocation. 400.1203 Appeal from revocation order.

RULES OF PROCEDURE AND PRACTICE 400.1300 Headquarters. 400.1301 Organization of Board. 400.1302 Committee of Alternates. 400.1303 Meetings of the Board. 400.1304 Order of business. 400.1305 Authorization for hearings. 400.1306 Orders of Board. 400.1307 Applications. 400.1308 Examiners Committee. 400.1309 Hearings before Examiners Com

mittee, 400.1310 Submission of further evidence. 400.1311 Rehearing on application. 400.1312 Action of Board on application. 400.1813 Payment for inspection. 400.1314 Construction of zone. 400.1316 Evidence.

Sec.
400.1316 Object of hearing.
400.1317 Notice of hearing.
400.1318 Procedure at hearing.
400.1319 Adjournment of hearing.
400.1320 Record of proceedings.
400.1321 Additional rules of practice.

AUTHORITY: The provisions of this part 400 issued under sec. 8, 48 Stat. 1000; 19 U.S.C. 81h, unless otherwise noted.

SOURCE: The provisions of this part 400 contained in Regulations, June 29, 1935, unless otherwise noted.

DEFINITIONS § 400.100 Act.

The term “Act" means the ForeignTrade Zones Act of June 18, 1934 (48 Stat. 998–1003; 19 U.S.C. 81a-81u),

as amended by Public Law 566, 81st Congress, approved June 17, 1950. (Order 29, 17 F. R. 6316, June 11, 1952) § 400.101 Zone.

The term “zone" means a “foreigntrade zone." It is an isolated, enclosed, and policed area, operated as a public utility, in or adjacent to a port of entry, furnished with facilities for lading, unlading, handling, storing, mainipulating, manufacturing, and exhibiting goods, and for reshipping them by land, water, or air. Any foreign and domestic merchandise, except such as is prohibited by law or such as the Board may order to be excluded as detrimental to the public interest, health, or safety may be brought into a zone without being subject to the customs laws of the United States governing the entry of goods or the payment of duty thereon; and such merchandise permitted in a zone may be stored, exhibited, manufactured, mixed or manipulated in any manner, except as provided in the act and other applicable laws or regulations. The merchandise may be exported, destroyed, or sent into customs territory from the zone, in the original package or otherwise. It is subject to customs duties if sent into customs territory, but not if reshipped to foreign points. [Order 29, 17 F. R. 6316, June 11, 1952)

CROSS REFERENCES: For Immigration regulations, see 8 CFR Chapter I. Regulations of Bureau of Customs, see 19 CFR Chapter I. Postal Service, see 39 CFR Chapter I. Publia Health, see 42 CFR Chapter I. $ 400.102 Secretary of Commerce.

The term "Secretary" means the Secretary of Commerce.

8 400.103 Board.

Army in whose district the zone is

located. The term “Board" means the Board

(Order 17, 14 F. R. 3671, July 2, 1949) created by the act to carry out the provisions thereof. The Board shall con- $ 400.110 Examiner, sist of the Secretary of Commerce, who

The term "examiner" means an emshall be chairman and executive officer,

ployee of the Board, an expert, oficer, the Secretary of the Treasury, and the

engineer, or any other person who is Secretary of the Army.

designated by the Board to conduct an [Order 17, 14 F. R. 3671, July 2, 1949)

investigation concerning the establish§ 400.104 State.

ment, operation, maintenance, or admin

istration of a zone. The term “State" includes any State,

JURISDICTION AND AUTHORITY OF BOARD the District of Columbia, Alaska, Hawaii, and Puerto Rico.

& 400.200 Duties of the Board. (Sec. 1, 48 Stat. 998; 19 U. S. C. 81a)

The Board is authorized, subject to the 8 400.105 Corporation.

provisions of the act, the laws governing

the navigable waters of the United The term “corporation" means a pub- States, the laws governing foreign and lic or a private corporation:

interstate commerce, those controlling (a) "Public corporation" means & the revenue, the Shipping Act of 1916, State, political subdivision thereof, a as amended (39 Stat. 728, as amended; municipality, a public agency of a State, 46 U.S.C. Chapters 23, 24, 24A, and 27), political subdivision thereof, or munici- the Interstate Commerce Act (24 Stat. pality, or a corporate municipal instru- 379, as amended; 49 U.S.C.), and other mentality of one or more States.

laws of the United States applicable to (b) “Private corporation" means any zones: corporation (other than a public corpo- (a) To grant to corporations, subject ration) which is organized for the pur- to the conditions and restrictions of the pose of establishing, operating, and

act and of the rules and regulations maintaining a foreign-trade zone and made thereunder, the privilege of estabwhich is chartered under a special act lishing, operating, and maintaining (enacted after June 18, 1934) of the foreign-trade zones in or adjacent to State or States within which it is to op- ports of entry under the jurisdiction of erate such zone.

the United States, if it finds that the pro(Sec. 1, 48 Stat. 998; 19 U. 8. C. 81a)

posed plans and location are suitable

for the accomplishment of the purpose $ 400.106 Applicant.

of the foreign-trade zone under the act, The term "applicant” means & cor

and that the facilities and appurtenances poration applying for the right to estab

which it is proposed to provide are lish, operate, and maintain a foreign

suficient. trade zone.

(b) To prescribe such rules and regu(Dec. 1, 48 Stat. 998; 19 U. 8. C. 81a)

lations as may be necessary to establish

and conduct such zones. $ 400.107 Grantee.

(c) To approve rates and charges for

all services or privileges within the zone, The term "grantee" means a corpora

and to assure uniform treatment under tion to which the privilege of establish- like conditions to users of the zone or ing, operating, and maintaining a for- to merchandise within the zone subject eign-trade zone has been granted.

to such treaties or commercial conven(Sec. 1, 48 Stat. 998; 19 U. 8. C. 81a)

tions in force at the time.

(d) To require compliance with lawful 400.108 Collector and collector of cus

regulations of the Board and of other toms.

Government departments, State or muThe terms "collector" and "collector nicipal agencies, which may be appliof customs” means the collector of cus

cable to the zone. toms in whose district the zone is located. (e) To prescribe the form and manner

of keeping the accounts of the zone. $ 400.109 District Engineer.

(f) To require the submission annuThe term "District Engineer" means ally, and at such other times as the Board the engineer of the Department of the 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.

(i) 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. 8. 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, experts, 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. 813) $ 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. 818-81u), for carrying out the purposes thereof, and at the request of the said Brard 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, 1985)

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 try shall be ntitled to a zone in each of such States. (Sec. 2, 48 Stat. 999; 19 U. 8. 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 Zones for specialized pur

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

zone,

commerce with respect to the proposed (10) Fire protection suitable for purposes.

proper protection of zone and goods in (Order 29, 17 F.R. 5316, June 11, 1952]

storage.

(11) Administrative and living quarECONOMIC, FINANCIAL, AND PHYSICAL RE

ters and facilities for the officers and emQUIREMENTS FOR ESTABLISHMENT OF

ployees of the United States, State, and ZONE

municipality, whose duties may require $ 400.400 Economic survey of proposed their presence within the zone.

(12) Adequate enclosures to segregate Before a grant is made, an economic

the zone from customs territory for the survey must demonstrate to the satis

protection of the revenue, together with faction of the Board that the anticipated

suitable provisions for ingress and egress commerce, benefits, and returns, both

of persons, conveyances, vessels, and direct and indirect, will justify its con

merchandise, struction to expedite and encourage for

(13) Sanitary facilities and appliances eign commerce.

to conform to Federal and local require

ments. $ 400.401 Proof of ability of applicant (14) Adequate facilities for the disinadequately to finance zone.

fection and fumigation of merchandise The ability of the applicant adequately

as required. to finance and conduct the undertaking

(15) Such other facilities as may be must be demonstrated to the complete

required by the Board. satisfaction of the Board.

(b) Where zone will not be adjacent to

water. (1) Warehouses so constructed § 400.402 Physical facilities required in and located as to meet the requirements the operation of a zone.

of goods to be stored and the special reg(a) Where zone will be adjacent to

ulations of the Treasury Department to water. (1) Adequate slips to accommo

safeguard the revenue. date vessels engaged in foreign trade.

(2) Transportation connections with (2) Wharves and docks suitably con

systems serving surrounding territory structed for the needs of the specific

and other parts of the United States, so commodities to be handled over them.

arranged as to permit of proper guarding (3) Mooring facilities for the protec

and inspection for the protection of the tion of vessels while loading, unloading,

revenue. or awaiting berth.

(3) Light and power facilities through(4) Transit sheds on the wharves for

out the zone, and to meet any special the protection of goods accumulated for

requirements of the Treasury Depart

ment in safeguarding the revenue. shipment or unloaded and awaiting dis

sewer (4) Water and

mains position.

con(5) Warehouses so constructed and lo

structed to meet approved plans for servcated as to meet the requirements of

ice and health protection. goods to be stored and the special reg

(5) Fire protection suitable for proper ulations of the Treasury Department to

protection of zone and goods in storage. safeguard the revenue.

(6) Administrative and living quar(6) Transportation connections with

ters and facilities for the officers and emsystems serving surrounding territory

ployees of the United States, State, and and other parts of the United States, so

municipality, whose duties may require arranged as to permit of proper guarding

their presence within the zone. and inspection for the protection of the

(7) Adequate enclosures to segregate

the zone from customs territory for the revenue. (7) Fuel facilities for servicing vessels

protection of the revenue, together with with coal or other fuel, with adequate re

suitable provisions for ingress and egress serve storage spaces.

of persons, conveyances, and merchan

dise. (8) Light and power facilities through

(8) Sanitary facilities and appliances out the zone, on the wharves and docks,

to conform to Federal and local requireand to meet any special requirements of

ments. the Treasury Department in safeguard

(9) Adequate facilities for the disining revenue.

fection and fumigation of merchandise (9) Water and sewer mains con- as required. structed to meet approved plans for serv- (10) Such other facilities as may be ice and health protection,

required by the Board.

(c) Ratproofing and sanitation. All shall be suitably increased at the direcbuildings and other structures within the tion of the Board or the collector. zone, whether it is adjacent to water or (c) If sides of buildings situated withnot, shall be so constructed or altered, in a zone form a part of the zone enand maintained, as may be required by closure in lieu of the fence prescribed the Surgeon General, United States above, all openings in such sides of the Public Health Service, to prevent the buildings shall be securely closed by harborage of rodents. Water supply, heavy metal netting, grills, or other effecsewage disposal, and provision for gen- tive barriers. eral sanitation (including adequate facil- (d) Fences and other exterior lines of ities for disinfection and fumigation) the zone shall be equipped with electric shall be as required by the Surgeon Gen- lights and shall be illuminated to the eral, United States Public Health Service. satisfaction of the collector during such (sec. 12, 48 Stat. 1001; 19 U.S.C. 812)

times as he may deem necessary.

(e) Such additional protection against 8 400.403 Construction and operation of the unauthorized transit of persons, equipment for segregation from cus

goods, or conveyances to or from a zone toms territory and quarters for per

shall be provided as may be deemed sonnel.

necessary by the collector. (a). All zones shall be segregated from (f) Adequate living quarters, administhe land area of adjacent customs ter- trative and other facilities for officers ritory by a fence of woven galvanized. and employees of the United States, wire netting, of not less than No. 6 gage State, and municipality whose duties may wire, with a mesh not exceeding 2 inches, require their presence within the zone, and an over-all height of at least 10 feet shall be provided by the grantee. The above the concrete base in which the requirements and extent of these posts are set. The netting shall be se- facilities will be fixed by the Board. curely attached to the insides of the posts (g) Each grantee shall provide and and shall be set suficiently low so as to be maintain such other facilities as may be flush with the ground at all times. The required from time to time by the Board. fence shall be topped by at least three

(Sec. 12, 48 Stat. 1001; 19 U.S.C. 811) strands of galvanized barbed wire, fourpoint type, each strand consisting of two

ELIGIBLE APPLICANTS strands of No. 1242 gage wire. The three

$ 400.500 Grants made to corporations. strands shall be secured to metal brackets affixed to the top of each post, the Grants may be made to public or pribrackets inclining at approximately 45° vate corporations. inward and upward. The strands shall (Sec. 2, 48 Stat. 999; 19 U.S.C. 816) be parallel and from 3 to 4 inches apart. Suitable concrete or metal posts shall be

§ 400.501 Requirements for grant where

harbor facilities owned and set in concrete footings, not less than 3

trolled by State and by municipality. feet deep by 10 inches square, and with centers not more than 10 feet apart. Where harbor facilities of any port of Proper anchors and braces shall be in- entry in the State are owned and constalled at corners and gates. The gates trolled by the State, and where harbor shall be of the same material and height facilities of any other port of entry in as the fence and shall be topped by three the State are owned and controlled by a strands of the barbed wire above de- municipality, grants to public corporascribed, such strands to be affixed to tions will not be approved by the Board metal brackets perpendicular with the

unless such applications have been augate. Suitable attachments shall be se

thorized by an act of the State legislacured to the gates for the purpose of af

ture (enacted after June 18, 1934). xing locks. Alternate proposals for

(Sec. 2, 48 Stat. 999; 19 U.S.C. 81b) barriers of equal eficiency may be ap- § 400.502

Act of State legislature necproved by the Board.

essary in case of private corporations. (b) If, according to the terrain or

Grants to private corporations will not other factors adjacent to the fence sur

be approved by the Board unless such rounding the enclosure, or for other rea- corporations have been authorized by an sons, the height of the fence as provided act of the State legislature (enacted for herein is not suficient for proper after June 18, 1934). protection to the revenue, the height (Sec. 2, 48 Stat. 999; 19 U.S.O. 816)

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