Whereas, the principal named in the said bond has been permitted to enter merchandise subject to the provisions of section 402 of the Federal Property and Administrative Services Act of 1949, which has been imported for reexport:

The obligors named in the above-mentioned bond stipulate and agree that there shall be delivered to the Collector of Customs at the port of entry named in this bond or to the Collector of Customs at another port of entry; in accordance with the provisions of law and regulations pertaining to the entry and exportation of merchandise, all the above-described merchandise for customs inspection and identification prior to exportation; and if such merchandise shall not be used for any gainful purpose in the United States; and if all the merchandise shall be actually so exported within two years from the date of importation, or within any lawful extension of such period, and if the said merchandise shall not be relanded in the United States; or, in default thereof, the obligors shall pay to the Collector of Customs such amounts as liquidated damages as may be demanded by him in accordance with the law and regulations, not exceeding the amount of this obligation.

Then this added condition shall be void, otherwise to remain in full force and effect.

(c) No extensions of time for reexportation shall be granted by the Bureau of Customs without the prior written approval of the FEPO.

(d) The Commissioner of Customs may promulgate such regulations not inconsistent herewith as he deems appropriate with respect to applications for importation of foreign excess property in bond for reexport, and procedures of the Bureau of Customs in respect to such applications.

(e) Persons making applications to import foreign excess property in bond for reexport shall comply with regulations promulgated by the Commissioner of Customs. The provisions of § 401.11 shall not apply thereto.

§ 401.10 Entries in bond other than for

reexport.

(a) If an applicant for an FEP Import Determination or FEP Import Authorization elects to do so, he may specify in his application that the foreign excess property which he proposes to import will be processed, reprocessed, disposed of, or otherwise dealt with in a stated manner. If the FEPO determines that importation of the property under the specified conditions would relieve a domestic shortage or otherwise be bene

ficial to the economy of this country, but that importation of such property for any different use or purpose would not satisfy these criteria, he may authorize importation of such property upon condition that the applicant, prior to or concurrently with entry of the property, furnish a bond with sufficient surety to the Collector of Customs at the port of entry of such property. Such bond shall conform to Bureau of Customs Forms 7551 or 7555, and shall contain such added special condition or conditions as may be appropriate to the case. The penal sum of any such bond shall be three times the value of the property to be imported.

(b) The special condition or conditions of each different type bond proposed to be authorized under paragraph (a) of this section shall be submitted by the FEPO to the Commissioner of Customs for his concurrence. No conditional FEP Import Determination or conditional FEP Import Authorization shall be issued with respect to any property unless and until the concurrence of the Commissioner of Customs with respect to the special condition or conditions of the bond applicable thereto shall have been received by the FEPO.

(c) Upon receipt of concurrence of the Commissioner of Customs in the special condition or conditions of a proposed bond, the FEPO may issue a conditional FEP Import Determination or conditional FEP Import Authorization as provided in this section. Such conditional FEP Import Determination or conditional FEP Import Authorization shall specify the condition or conditions under which the foreign excess property described therein may be imported into the United States, and shall set forth the special condition or conditions of the bond provided for in this section. The property described therein may thereupon be imported only upon presentation of a conditional FEP Import Authorization in due form, accompanied by an appropriate surety bond, to the Collector of Customs at the port of entry of such property.

(d) The Bureau of Customs shall retain custody of bonds furnished under this section and may take appropriate measures to secure compliance with the conditions and obligations of such bonds, and for the enforcement thereof.

(a) Any person proposing to import foreign excess property (other than property exempted from the requirement of an FEP Import Authorization pursuant to § 401.7, 401.8, or § 401.9), shall make application in duplicate to the FEPO for an FEP Import Determination with respect to the property involved. Such application shall be made on Form FEPF-1 set forth below as Annex I. Form FEPF-1 may be obtained from the FEPO, Department of Commerce Field Offices, Collectors of Customs or it may be reproduced by an applicant. The instructions contained in Form FEPF-1 are made a part of this Order. Where the applicant is the owner of the foreign excess property which is the subject of the application, and submits proof of ownership thereof as prescribed in § 401.13, the application shall also be treated as a request for an FEP Import Authorization.

(b) When it is intended to import property into Alaska, Hawaii, Puerto Rico or the Virgin Islands, the following statement must be entered in Box 5 of Part II of application form FEPF-1, in addition to the other information called for therein: "It is proposed to enter the property covered by this application into (Alaska, Hawaii, Puerto Rico or Virgin Islandsenter one only). In the absence of such a statement it will be assumed that entry into the remaining continental United States is intended.

(c) An application which is incomplete in any material respect, or which is not executed in the manner prescribed in the Instructions contained in Form FEPF-1, or which does not lie within the jurisdiction of the FEPO, shall be returned without action by the FEPO to the applicant.

(d) In order to permit time for investigation and consideration 15 days will ordinarily be required for processing applications for unused property and 20 days for used property.

[FEPO No. 1, 27 F.R. 5937, June 23, 1962, as amended at 33 F.R. 11024, Aug. 8, 1968]

§ 401.12 Issuance of FEP Import Determinations.

(a) The determination made by the FEPO that importation of foreign excess property would or would not relieve domestic shortages or otherwise be beneficial to the economy of this country shall be issued on Form FEPF-2, "FEP Import Determination". An FEP Import Determination is not an authorization for the importation of foreign excess property.

(b) FEP Import Determination shall be serially numbered, and shall be dated and signed by the FEPO. FEP Import Determinations shall remain in effect for a period of six months from the date thereof.

(c) A copy of each FEP Import Determination shall be transmitted to the original applicant and to any other person upon request.

§ 401.13

Issuance of FEP Import Authorizations.

(a) Upon presentation to the FEPO of a Request for FEP Import Authorization (Form FEPF-3), or of Application for FEP Import Determination (From FEPF-1) completely executed including Part II thereof, and proof of ownership of foreign excess property described therein concerning which the FEPO has made a determination that its importation would relieve domestic shortages or otherwise be beneficial to the economy of this county, the FEPO shall issue an FEP Import Authorization (Form FEPF-4). The original of the FEP Import Authorization shall be transmitted to the owner of the property and two copies of each FEP Import Authorization shall be furnished to the Collector of Customs at the proposed port of entry.

(b) Proof of ownership shall consist of a photocopy of bill of sale of the property involved or other evidence of title satisfactory to the FEPO.

(c) FEP Import Authorizations shall expire upon the expiration date of the FEPO Import Determination with respect to the same property, and shall

(d) Each original FEP Import Authorization shall be presented to the Collector of Customs for his indorsement at the time of entry of any property described therein.

§ 401.14 Transfer of FEP Import Authorizations.

(a) The holder of an FEP Import Authorization may transfer it to a transferee of the foreign excess property specified therein. If such transfer shall be of all the foreign excess property specified in the FEP Import Authorization, the FEP Import Authorization may be transferred by assignment to the transferee of the property. If such transfer shall be of a part of the foreign excess property specified in the FEP Import Authorization, the holder of the FEP Import Authorization shall return the original FEP Import Authorization to the FEPO together with photocopy of bill of sale of the property transferred and Request for an FEP Import Authorization executed by the transferee. FEPO shall thereupon cancel the original FEP Import Authorization and issue new FEP Import Authorizations to the original holder and the transferee as their respective interests appear.

The

(a) A person aggrieved by the issuance of an FEP Import Determination that the importation of specified and identified foreign excess property would not relieve domestic shortages or otherwise be beneficial to the economy of this country may appeal to the Appeals Board for the Department of Commerce as provided in this section. The Appeals Board shall also have jurisdiction to decide appeals from persons to whom an application has been returned without action pursuant to § 401.11 (c), from persons whose Request for FEP Import Authorization shall have been denied, and from persons whose request for an extension of time pursuant to § 401.15 has been denied.

(b) The only grounds for appeal which the Appeals Board will consider are that the FEPO erred:

(1) In determining that an application should be returned without action (§ 401.11 (c)).

(2) In applying the criteria and principles prescribed in § 401.4 to the facts of the case.

(3) In failing or refusing to issue an FEP Import Authorization as provided in § 401.13.

(4) In determining that a request for a time extension pursuant to § 401.15 should not be granted.

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(5) In determining that an application under the Small Lot Procedure established by § 401.6 has failed to meet the conditions specified therein.

(c) The Appeals Board shall have jurisdiction of appeals with respect to actions taken pursuant to § 401.19(a).

(d) Appeals from actions of the FEPO must be filed within 30 days of the date of the action appealed from. Such appeals shall be by letter in triplicate addressed to the Appeals Board, Department of Commerce, Washington 25, D.C., Ref: FEP Order No. 1. If the applicant so requests, the Appeals Board shall grant him a hearing at the office of the Board at the Department of Commerce, Washington, D.C.

(e) Decisions of the Appeals Board shall be communicated in writing to the FEPO and to the appellant and shall be carried out by an appropriate action of the FEPO.

§ 401.18 Exemption of Governmentowned property.

Nothing in this part shall be construed as limiting the authority of any Government agency to import Governmentowned property into the United States. § 401.19 Violations and penalties.

(a) Any person who imports, or attempts to import, foreign excess property into the United States and who fails to comply, both before and after such importation or attempted importation, with the provisions of this part is subject to administrative action terminating his right to submit applications to the FEPO and cancelling any FEP Import Determinations and FEP Import Authorizations issued to such person.

(b) Any person who fraudulently or knowingly imports into the United States any merchandise contrary to law, or receives, conceals, buys, sells, or in any manner facilitates the transportation, concealment or sale of such merchandise after importation, knowing the same to

have been imported or brought into the United States contrary to law, shall upon conviction, be fined not more than $10,000 or imprisoned not more than five years, or both. Proof of defendant's possession of such goods, unless explained to the satisfaction of the jury, shall be deemed evidence sufficient to authorize conviction. Merchandise introduced into the United States in violation of this provision, or the value thereof, to be recovered from any person described in this paragraph, shall be forfeited to the United States (18 U.S.C. 545).

(c) Any person who knowingly and wilfully makes any false, fictitious or fraudulent statement or representation to an employee of the Department of Commerce or of the Bureau of Customs in any matter concerning the importation of foreign excess property shall, upon conviction, be fined not more than $10,000 or imprisoned not more than five years, or both (18 U.S.C. 1001).