ment is detrimental to the public interest, health. or safety.

(Sec. 15, 48 Stat. 1002; 19 U. S. C. 810) [Redesignated by Order 29, 17 F. R. 5316, June 11, 1952]

§ 400.808 Retail trade within zone.

No retail trade shall be conducted within a zone except under permits issued by the grantee and approved by the Board. Such permittees shall sell no goods except such domestic or duty-paid or duty-free goods as are brought into the zone from customs territory. Permits which are sent to the Board for approval shall be accompanied by a sworn statement, subscribed to by the applicant before a duly authorized officer to administer oaths, setting forth in detail the nature of the retail trade to be conducted, and containing an agreement that such applicant will sell no goods, except of the kinds specifically authorized by the act, which are brought into the zone from customs territory. No goods shall be offered for sale or sold in a zone which are not of the same kind and quality permitted to be offered for sale or sold in the political jurisdiction in which the zone is located. If the permittee violates any provision of the regulations in this part, his permit shall be revoked by the grantee, who shall immediately report such action to the Board.

(Sec. 15, 48 Stat. 1002; 19 U.S.C. 810) [Redesignated by Order 29, 17 F.R. 5316, June 11, 1952]

§ 400.809 Residence within zone.

No person shall be allowed to reside within a zone except Federal, State, or municipal officers or agents whose resident presence is deemed necessary by the Board.

(Sec. 15, 48 Stat. 1002; 19 U.S.C. 810) [Redesignated by Order 29, 17 FR. 5317, June 11, 1952]

All persons entering a zone for any reason whatsoever shall be bound by the regulations promulgated by the Board and by the operator of the zone. [Redesignated by Order 29, 17 F. R. 5317, June 11, 1952]

§ 400.812 Identification of employees within zone.

All persons on duty within, and in connection with the operation of, a zone, with the exception of Federal employees and uniformed employees of the zone shall be required while within the zone to carry identification cards or wear appropriate identification badges to be provided by the operator of the zone. [Redesignated by Order 29, 17 F. R. 5317, June 11, 1952]

§ 400.813

Hours of business and service. Hours of business and service, for customs purposes, shall be the same as those prescribed in Customs regulations. (19 CFR Chapter 1)

[Order 29, 17 F. R. 5317, June 11, 1952]

§ 400.814 Payment of customs officers and employees.

(a) The cost of maintaining the customs service in a zone shall be paid monthly by the grantee of such zone to the collector of customs.

(b) Customs officers and employees performing services in a zone at night, or on Sundays and holidays, shall receive extra compensation, to be computed as and under the conditions prescribed by Customs regulations.

(c) For the purpose of computing extra compensation the word “night” shall be construed to mean the time from 5:00 p.m. to 8:00 a. m. and the word "holi

day” shall include only national holidays, viz., January 1, February 22, May 30, July 4, the first Monday in September, November 11, the fourth Thursday in November, and December 25, and such other days as may be made national holidays.

(d) In a zone at a port where customary working hours are other than those herein mentioned, the collector of customs is authorized to regulate the hours of customs officers and employees assigned to the zone so as to agree with prevailing working hours in said port, but nothing herein shall be construed in any manner to affect or alter the length of a working day for customs officers or employees, or the overtime pay. [Order 29, 17 F. R. 5317, June 11, 1952] § 400.815 Erection of buildings within

zone by persons other than grantee.

The grantee may, with the approval of the Board, and under reasonable and uniform regulations for like conditions and circumstances to be prescribed by it, permit other persons, firms, corporations, or associations to erect such buildings and other structures within the zone as will meet their particular requirement: Provided, (a) That such permission shall not constitute a vested right as against the United States, nor interfere with the regulation of the grantee or the permittee by the United States, nor interfere with or complicate the revocation of the grant by the United States; (b) that in the event of the United States or the grantee desiring to acquire the property of the permittee, no good will shall be considered as accruing from the privilege granted to the zone; and (c) that such permits shall not be granted on terms that conflict with the public use of the zone as set forth in the act: And provided further, That accepted sanitary practices be followed in the construction, equipment, and operation of such buildings and other structures.

The zone shall be operated, maintained, and administered by the grantee under (a) the supervision, direction, and control of the Board in accordance with the provisions of the act and the regulations of the Board in this part, (b) the regulations relating to foreign-trade zones of the Bureau of Customs for the protection of the revenue (19 CFR Part 30) and any other law, regulation, or instruction the Customs Service is required or authorized to enforce, (c) such other applicable laws and regulations thereunder of other Federal agencies, and (d) the regulations and schedules of rates and charges made and fixed by the grantee and approved by the Board. The collector in whose district the zone is located shall, in addition to his duties as Collector of Customs, be in local charge of the zone as the resident representative of the Board. He may call upon the district engineer and local representatives of other governmental departments and agencies for advice in matters of operation, maintenance, and administration.

[Order 29, 17 F. R. 5317, June 11, 1952] § 400.1001 Regulations promulgated by grantee, and posting of regulations within zone.

The grantee shall, before beginning operation of a zone submit to the Board its own rules, regulations, and practices for the operation of the zone, subject to disapproval of the Board. There shall be posted in a conspicuous place within the zone copies of the regulations issued by the Board and the approved regulations of the grantee, or of such extracts from either or both of such regulations as the Board may designate. [Order 29, 17 F. R. 5317, June 11, 1952]

§ 400.1002 Grantee's reports to Board.

Each grantee shall make to the Board annually, and at such other times as the Board may prescribe, reports containing

Every grantee of a zone shall keep its books, records, and accounts in the form and manner prescribed in "Uniform System of Accounts, Records, and Reports", approved February 6, 1939.

[Order 29, 17 F. R. 5317, June 11, 1952]

NOTE: The Executive Director of ForeignTrade Zones Operations may, from time to time, upon appropriate notice, modify the requirements as set forth in Part "B" of the Uniform System of Accounts, Records, and Reports for the annual reports of the Zone Grantees as necessary to eliminate duplication of information separately required for Customs purposes and so as to minimize the cost of complying with such requirements. [Order 38, 20 F. R. 1130, Feb. 24, 1955]

§ 400.1003 Zones to be operated as public utilities.

(a) All rates and charges for all services or privileges within the zone shall be fair and reasonable, and the grantee shall afford to all who may apply for the use of the zone and its facilities and appurtenances uniform treatment under like conditions, subject to such treaties or commercial conventions as are now in force or may hereafter be made from time to time by the United States with foreign governments.

(b) Schedules containing all the rates and charges shall be published, posted, and filed with, and subject to the approval of the Board. Full instructions concerning the publication, posting, and filing of such schedules will be issued by the Board. One copy of each tariff required to be filed with any State regulatory body shall also be filed with the Board.

(c) Where applicable, the operator of the zone will remain subject to the requirements of the Shipping Act, 1916, as amended (39 Stat. 728, as amended; 46 U. S. C., Chapters 23, 24, 24A, 27) and to the provisions of the Interstate Commerce Act (24 Stat. 379, as amended; 49 U.S. C.).

(Sec. 14, 48 Stat. 1001; 19 U.S.C. 81n)

*See $ 400.1007-400.1013.

§ 400.1004 Inspection of zones.

Representatives of the Board will inspect, from time to time, the operations of the zones for the purpose of informing the Board whether the provisions of the act and the regulations in this part are being met. The operators of the zones shall comply fully with the requirements of such representatives, and make available to them such records and reports as the representatives may find necessary for a proper and thorough inspection of zone activities.

§ 400.1005 Separability of regulations in event of invalidity.

If any provision of the regulations in this part, or the application thereof to any person or circumstances, be held invalid, the remainder of the regulations in this part and their application to other persons or circumstances shall not be affected thereby.

§ 400.1006 Changes in regulations.

Regulations issued pursuant to the provisions of the act may be amended, supplemented, suspended or revoked, from time to time, as may be deemed necessary. Regulations shall not be construed as conferring privileges or interests which may not be adversely affected by subsequent regulations or by any changes whatsoever in existing regulations.

That there may be no misunderstanding the following definitions are to be followed in the preparation of the schedules:

(a) Grantee. The term "grantee" means a corporation to which the privilege of establishing, operating, and maintaining a foreign-trade zone has been granted, in accordance with the ForeignTrade Zones Act of June 18, 1934, as amended (48 Stat. 998-1003; 19 U. S. C. 81n).

(b) Schedule. The term "schedule" means a publication stating rates and charges of a foreign-trade zone, and all rules and regulations applying in connection therewith and to general operating procedure.

(c) Publication. Should be construed as the act of constructing, or compiling and publishing a schedule which will include all pertinent information in connection with the rates, charges, rules, and regulations applicable thereto within a foreign-trade zone, and also such other schedules as may be inaugurated from time to time.

(d) Posting. Should be construed as the act of posting all effective schedules within a foreign-trade zone, and the general offices of the grantee, in such a manner that they will be accessible to the public, and can be conveniently inspected. Requests may originate from the public for copies of effective schedules, and this also comes under the general heading of "posting" as such requests should be complied with to every reasonable degree.

(e) Filing. All schedules must be filed with the Foreign-Trade Zones Board and such other States or Federal regulating bodies as may subsequently exercise any jurisdiction in connection with the operation of foreign-trade zones. All original schedules so filed are, of course, considered as the effective schedules, unless otherwise cancelled or revised.

[Par. 3, Instr., Feb. 7, 1988]

§ 400.1010 Designation of agent for issuance of schedules.

(a) The obligation to compile and publish, post and file schedules naming rates, charges, rules and regulations, ap

plying at foreign-trade zones is a direct responsibility of the grantee. The grantee should place such obligation and authority, through a power of attorney, with a member of its organization specifically designated to perform such work, thereby definitely fixing the responsibility for publishing, posting, and filing schedules on behalf of the grantee. The granting of such authority to a specifically designated person would ratify and confirm the lawful action of such an agent of the grantee with respect to the responsibility imposed by law in connection with publishing, filing, and posting of schedules. In other words, the granting of such a power of attorney to a designated person would serve the following purposes insofar as the grantee is concerned:

(1) Would give the person so designated the authority to publish, post and file schedules, and all revisions thereto on behalf of the grantee.

(2) Avoid duplication of this responsibility and possible conflict with respect to the material contained in schedules, by placing with one person the authority to carry out the provisions of the act with relation to publishing, posting and filling schedules.

(3) Would also place the responsibility for the unification and dissemination of information contained within schedules to the interested public, and the many other incidental details with regard to this important subject, upon the person granted the power of attorney.

(b) The granting of such authority to a specifically designated person could be limited in the following respects:

(1) By defining the period of time such power of attorney is to run.

(2) By stating the exact nature of responsibility for which the power of attorney is issued, for instance "to publish, post, and file schedules, and all incidental duties in relation thereto."

(c) From the above it will be seen that one of the main objectives to be accomplished thereby would be to limit the responsibility on behalf of the grantee to one person, a specifically designated authority, to handle all matters in relation to the publication, posting, and filling of schedules. Future developments of foreign-trade zones will undoubtedly reveal the numbers and kinds of schedules and revisions necessary to the conduct of such organizations.

[Par. 4, Instr., Feb. 7, 1938]

§ 400.1011 Uniformity of schedules.

In order that all original schedules and revisions embracing matters pertaining to foreign-trade zones, such as rates, charges, rules and regulations, and any additional schedules and revisions that may be subsequently issued, will be constructed as uniformly as possible, the following is prescribed:

(a) All schedules shall be compiled and published in loose-leaf form, both the original schedule and subsequent revised pages conforming to a size of approximately 8 inches wide by 11 inches long.

(b) Schedules and revised pages shall be plainly printed, mimeographed or reproduced by other similar durable process on paper of good quality.

(c) The loose-leaf pages of the schedule shall be printed upon one side only, and each page consecutively numbered, beginning with "original page No. 1." etc., etc.

(d) A margin of not less than one (1) inch shall surround the schedule page, especially at the binding edge.

(e) No alteration in writing or erasure shall be made in any part of the schedule.

(f) A hard cardboard front and back cover shall be used in binding schedules, and allowance made for conveniently fastening and unfastening the schedule to permit insertion of revised pages from time to time.

(g) The front cover and back cover of schedules may be in any color which may be determined upon, but the pages within the schedule shall be white, at least commencing with original page number one up to and including the last page, and all revisions thereof.

[Par. 5, Instr., Feb. 7, 1938]

§ 400.1012

Construction of schedules.

All schedules should be constructed as simply as possible, but accuracy and comprehensiveness should not be sacrificed. The Board, therefore, instructs that the following general outline of the schedule be followed as closely as possible:

(a) Title page. The title page shall generally bear such items as:

(1) The name of the grantee or operator.

(2) The schedule number.

(3) Descriptive statement of the contents named within schedule.

(4) Location of zone.

(5) The date the schedule is issued and effective date.

(6) The name of the person by whom the schedule is issued.

This information may be given on the cover of the schedule as well as on the page constituting original page No. 1 of the schedule.

(b) Administrative organization page. On this page, which will form original page No. 2, shall be listed the public officials and managing officers connected directly with the operation of the zone.

(c) Checking sheet for schedule. This standard method of noting corrections and additions to the schedule shall be used and followed by the grantee. The checking sheet shall carry an explanation for its use to all who are in possession of the original schedule.

(d) Table of contents. The table of contents shall follow the general outline as given in this section and shall include all major references by pages.

(e) Explanation of abbreviations and symbols. A complete list of abbreviations and symbols used in the schedule shall be explained.

(f) Definitions. There shall be given definitions of all terms used in this schedule relating to rules, regulations, rates and charges, also of any terms relating to the physical construction of this schedule. Where the Foreign-Trade Zones Board has supplied definitions for terms to be used herein, those definitions shall be used.

(g) Rules and regulations. Special care should be taken in the compilation of rules and regulations that they may be complete and self-explanatory with respect to their general application. It is suggested that rules and regulations of general application be segregated from those of specific or special application. It is also suggested that rules and regulations be grouped in their application, that is, concerning carriers, concerning cargo, concerning persons, concerning rates and charges, etc.

(h) Prohibited merchandise. There shall be listed all merchandise which has been excluded from the privileges of the zone for any reason.

(i) Rates and charges. (1) Applying to carriers: Herein shall be listed all charges applicable to carriers, their owners or agents, in the following manner: Vessels: towage, dockage, loading and discharging, running lines, fumigation, etc. Rail cars: switching charge, demurrage, etc. Motortrucks; property privilege, loading and unloading, etc.

(2) Applying to cargo: All rates and charges collectible by the grantee against cargo shall be listed in separate tariffs