general determination he may issue. The Deputy Assistant Secretary may make such general determination, subject to such conditions as he may deem appropriate, and shall publish notice thereof in the FEDERAL REGISTER.

(b) Upon publication in the FEDERAL REGISTER of a notice of general determination that the importation of particular foreign excess property would relieve domestic shortages or would otherwise be beneficial to the economy of this country, and until such general determination is amended or withdrawn by notice published in the FEDERAL REGISTER, the FEPO will issue FEP Import Authorizations for such property upon the receipt of applications for FEP Import Determinations provided: (1) Each such application is complete in all material respects as prescribed in the instructions contained in form DIB-302P (formerly form FEPF-1); (2) the following statement is entered in part I, box 8 of form DIB-302P in lieu of the information called for the heading thereof;

This application is filed in accordance with and subject to the provisions of § 302.4 General determinations of shortage or benefit. (3) proof of ownership of the property is attached to the application; and (4) the application otherwise complies with the regulations of this part.

§ 302.5 Entries in bond for reexport.

(a) Applications for importation of foreign excess property in bond for reexport will not be entertained by the FEPO. The procedures set forth in this section shall be applicable to such applications and importations.

(b) The Bureau of Customs, Department of the Treasury, shall have authority to permit the entry into the United States of foreign excess property in bond for reexport. Bonds accepted for this purpose by the Bureau of Customs shall conform to Bureau of Customs Form 7551 or 7555, with the added condition:

There is incorporated in and made a part of the bond No. dated in the amount of

executed by

as principal, and as surety, the following added condition: 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, as amended, which has been imported for reexport:

The obligors named in the above-mentioned bond stipulate and agree that there shall be delivered to the District Director

of Customs for the port of entry named in this bond or to the District Director 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 2 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 District Director 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) Requests for extension of time for reexportation shall be made to the appropriate District Director of Customs.

(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 § 302.7 of this part shall not apply thereto. § 302.6

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 domestic shortages or otherwise be beneficial to the economy of this country, he may authorize importation of such property upon condition that the applicant, prior to or concurrently with entry of the property, furnish a bond to assure compliance with the conditions of the FEP Import Authorization with sufficient surety to the District Director of Customs for the port of entry of such property. Such bond shall conform to Bureau

of Customs form 7551 or 7555, and shall contain such added special condition or conditions as may be appropriate. The penal sum of any such bond shall be three times the value of the property to be imported as determined by the District Director of Customs.

(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 concurrrence 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 District Director of Customs for 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.

of the District Directors of the Bureau of Customs, Department of the Treasury. The applicant should answer all applicable questions appearing on form DIB302P in accordance with the regulations of this part and the instructions set forth in the form. Terms used in the form have the meanings defined in § 302.2.

(b) 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 § 302.9, the application shall also be treated as a request for an FEP Import Authorization.

(c) An application which is incomplete in any material respect, or which is not executed in accordance with the instructions set forth in form DIB-302P, and the applicable provisions of the regulations of this part, or which does not lie within the jurisdiction of the FEPO, shall be returned without action to the applicant.

(d) From the time of receipt of a completed form DIB-302P, processing of an application to import unused foreign excess property by the FEPO will generally be limited to 15 days, and 20 days for used foreign excess property.

[38 FR 11068, May 4, 1973, as amended at 38 FR 14748, June 5, 1973]

§ 302.8 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 DIB-303. An FEP Import Determination is not an authorization to import foreign excess property.

(b) FEP Import Determinations shall be serially numbered, and shall be dated and signed by the FEPO. Affirmative FEP Import Determinations shall remain in effect for a period not to exceed 6 months from the date of issuance. Negative FEP Import Determinations shall remain in effect for a period of 30 days from the date of issuance.

(c) A copy of each FEP Import Determination shall be transmitted to the applicant, to a person acting on the applicant's behalf, or to any other person upon request.

§ 302.9 Issuance of FEP Import Author

izations.

(a) Upon presentation to the FEPO of request for FEP Import Authorization

(Form DIB-304P (formerly Form FEPF3)), or of application for FEP Import Determination (Form DIB-302P), 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 country, the FEPO shall issue an FEP Import Authorization (Form DIB-305). The original of the FEP Import Authorization shall be transmitted to the applicant and two copies of each FEP Import Authorization shall be furnished to the District Director of Customs at the proposed port of entry.

(b) Proof of ownership shall consist of a photocopy of the notice of award (bill of sale) of the property involved or other evidence of title satisfactory to the FEPO. If the person, submitting a request for FEP Import Authorization or Application for FEP Import Determination executed as described in paragraph (a) of this section, did not purchase the foreign excess property directly from the Federal agency which disposed of such property, a photocopy of the notice of award (bill of sale) for such property to the original purchaser, or other evidence satisfactory to the FEPO that such property was disposed of by Federal agency sale, shall be provided to the FEPO together with the proof of ownership.

(c) FEP Import Authorizations shall expire upon the expiration date of the FEP Import Determinations with respect to the same property, and shall constitute the sole authority for the importation thereof into the United States within such period pursuant to the regulations of this part.

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

§ 302.10 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 ex

cess 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 a photocopy of the bill of sale of the property transferred and Request for FEP Import Authorization (Form DIB-304P) executed by the transferee. The 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.

(b) The FEPO shall notify the District Director of Customs at the proposed port of entry of any such cancellation of an FEP Import Authorization, and shall furnish to such District Director copies of new FEP Import Authorizations issued as a result of any such transfer and request.

§ 302.11 Time extensions.

A person who has received from the FEPO an FEP Import Authorization may file with the FEPO, prior to the expiration date thereof, a request for an extension of time. Such request shall state the reasons why the extension is needed, and the duration of the extension requested. The FEPO may allow the request in whole or in part, if he determines that unusual circumstances, beyond the control of the applicant, prevented the applicant from importing the foreign excess property prior to the expiration date of the FEP Importation Authorization. The FEPO shall promptly notify the applicant of his decision, and, if he grants an extension of time, he shall promptly inform the District Director of Customs at the proposed port of entry.

(a) The Appeals Board of the Department of Commerce shall consider appeals by persons affected by the regulations of this part that fall within the limits of the jurisdiction specified in subparagraphs (1) to (5) of this paragraph.

(1) FEP Import Determinations 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;

(2) Applications returned without action where the FEPO found that such applications do not lie within the jurisdiction of the FEPO;

(3) Terminations under § 302.14(a) of any person's rights to submit applications to the FEPO;

(4) Cancellations under § 302.14(a) of FEP Import Determinations and FEP Import Authorizations issued to any person; and

(5) Determinations that a request for a time extension under § 302.11 should not be granted.

(b) Appeals from actions of the FEPO must be filed within 30 days of the date of such action. Appeals shall be made by letter (in triplicate) addressed to the Appeals Board, Department of Commerce, Washington, D.C. 20230, reference: FEP Appeal. If the applicant so requests, the Appeals Board shall grant him a hearing at the office of the Board at the Department of Commerce, in Washington, D.C.

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

(a) Nothing in the regulations of this part shall be construed as limiting the authority of any Federal agency to import Government owned property into the United States.

(b) The regulations of this part are not applicable to the importation of personal property into the United States sold by a foreign government not acting as an agent of the U.S. Government. (See appendix A to this part.)

§ 302.14 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 or after such importation or attempted importation, with the regulations of this part is subject to administrative action by the FEPO terminating his right to submit applications to the FEPO and/or canceling any FEP Import Determinations and FEP Import Authorizations issued to such person.

(b) Any person who fraudulently or knowingly imports or brings into the United States any foreign excess property contrary to the Federal Property and Administrative Services Act of 1949, as amended, or receives, conceals, buys, sells, or in any manner facilitates the transportation, concealment, or sale of such property 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 5 years, or both. Foreign excess property 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 willfully makes any false, fictitious, or fraudulent statements or representations or makes or uses any false writing or document knowing the same to contain false, fictitious, or fraudulent statement or entry, to an employee of the Department of Commerce, or of the Bureau of Customs, Department of the Treasury, 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 5 years, or both (18 U.S.C. 1001).

[38 FR 11068, May 4, 1973, as amended at 38 FR 14748, June 5, 1973]

§ 302.15 Communications.

All communications concerning the regulations of this part shall, unless otherwise set forth, be addressed to the Foreign Excess Property Officer, Office of Import Programs, Department of Commerce, Washington, D.C. 20230.

§ 302.16 Transitional provisions.

(a) All FEP Import Determinations and FEP Import Authorizations issued prior to the effective date of the regulations of this part, are hereby ratified, adopted, and confirmed by the Deputy Assistant Secretary, and shall remain in effect in accordance with their terms.

(b) All applications pending before the FEPO prior to the effective date of the regulations of this part shall be considered in accordance with the provisions hereof.

§ 302.17 Revocation of previous order. The regulations of this part supersede Foreign Excess Property Order No. 1 (44 CFR part 401), as amended.

APPENDIX A

PROPERTY NOT SUBJECT TO THE REGULATIONS OF THIS PART

A. Personal property sold by a foreign government not acting as an agent for the U.S. Government, provided there is no evidence that the property is foreign excess, may be imported into the United States without presentation of an FEP Import Authorization. This includes (i) property of lend-lease

program

origin, (ii) Military assistance (MAP) transfers, and (iii) other Government transfers of property not deemed to be surplus to the needs of the Federal agency at the time of transfer to the foreign government, unless the property described in (i), (ii), or (iii) above has been reacquired or transferred back to a Federal agency and subsequently disposed of under section 402 of the Federal Property and Administrative Services Act of 1949, as amended.

B. A person attempting to import property claimed to fall within categories (1), (ii), and (iii) above shall be asked to provide to the District Director of Customs evidence that the property is not foreign excess property. Such evidence may include:

1. A copy of the sales brochure issued by the foreign government which identifies the property presented for importation;

2. A copy of the notice of award or contract of sale issued by the foreign government to the purchaser of the property which identifies the property being presented for entry as being the same as that listed in the sales brochure;

3. An affidavit by the importer of record that to the best of his knowledge and belief the property was never sold as foreign excess property by the U.S. Government or agency thereof; and

an

4. The chain of ownership from the importer to the foreign government (if importer of record does not procure the property directly from the foreign government).

SOURCE: The provisions of this Part 363 appear at 13 F.R. 7633, Dec. 9, 1948, unless otherwise noted.

§ 363.1 Authority and effective date.

Whereas the Secretary of Commerce is authorized by the China Trade Act of 1922, as amended, to make such regulations as may be necessary to carry into effect the functions vested in him or in the Registrar by said act, the regulations in this part are hereby approved and adopted and shall become effective July 1, 1935.

§ 363.2 Definitions.

When used in this part, unless the context otherwise indicates,

(a) The term "Secretary" means the Secretary of Commerce;

(b) The term "Registrar" means the Registrar of the China Trade Act; and

(c) The term "corporation" means a corporation organized under the provisions of the China Trade Act (42 Stat. 849, 43 Stat. 995; 15 U.S.C. 141-162). § 363.3 Articles of incorporation.

(a) Articles of incorporation shall be filed in quintuplicate (accompanied by Application Form No. 1, in duplicate) with the Secretary of Commerce at Washington, D.C., direct, when emanating within the United States, or with the Registrar for transmission to the Secretary when emanating within China.

(b) The original articles of incorporation shall be signed and acknowledged by all of the incorporators.

(c) The articles of incorporation shall state the names, addresses, and nationalities of the incorporators; the particular business in which the corporation is to engage so as to clearly show how the corporation will aid in developing markets in China for goods produced in the United States; and otherwise conform to the requirements of section 4 (b), subheadings (1) to (7), inclusive, of the China Trade Act.

(d) Said articles shall also state the name and address of the corporation's accredited agent, who shall reside within the District of Columbia. Any successor to said agent shall be appointed as provided for by § 363.12, without amendment to Articles of Incorporation (see sec. 20 (b) of the act.

(Secs. 4, 20 (b), 42 Stat. 850, 855, as amended; 15 U.S.C. 144, 160)