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ments, the request shall be reviewed by the Executive Secretary of the Board to initially determine its availability. If he determines, as provided by law, that the record is not to be made available to the requesting person, said party shall be informed in writing of the specific reason(s) why the record is not being disclosed.

(c) If an identifiable record is to be made available for public inspection and copying, the person who requested access to the record shall be promptly advised of the availability of the record. $ 400.1405 Requests for reconsideration

of nonavailability. (a) Any person whose request to inspect a record has been denied because the record was not to be made available for stated reason(s), may request a reconsideration of the initial denial in accordance with procedures set forth in Part 4 of this title.

(b) The decision upon such review shall be made by the Chairman of the Foreign-Trade Zones Board, and shall be based upon the original request, the

denial, and any written argument submitted by the person requesting the review.

(c) The decision upon review shall be promptly made in writing and transmitted to the person requesting the review. If the decision is wholly or partly in favor of said person, the requested record to such extent shall be made available for inspection in accordance with $ 400.1404(c). To the extent that the decision is adverse to the request, the reason(s) for the denial shall be stated.

(d) A decision upon review completed as provided herein shall constitute the final decision and action of the Board as to the availability of a requested record, except as may be required by court proceedings initiated pursuant to 5 U.S.C. 552(a) (3). $ 400.1406 Security information.

Nothing in the regulations in $ $ 400.1400-400.1406 should be construed to modify or supersede laws, rules, and regulations governing the release of information classified as security information.



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Subpart F-Procedures Sec. 500.60 Forms. 500.61 Submissions. 500.62 Reconsideration and appeals. 500.63 Public access to information,

Subpart B-Eligibility of Firms To Apply for

Adjustment Assistance 500.20 General. 500.21 Statutory criteria. 500.22 Certification of eligibility to apply

under section 302(b) (1) of the

Act. 500.23 Certification of eligibility to apply

under section 302 (c) of the Act. 500.24 Material change in conditions; denial

or revocation of eligibility certification.

Subpart C—Adjustment Proposal 500.30 Application for adjustment assist

ance. 500.31 Adjustment proposal. 500.32 Certification of adjustment proposal. 500.33 Material change in conditions. 500.34 Modification of a certified adjust

ment proposal; revocation of certification.

Subpart G—Investigation and Audit; Penalties 500.70 Investigation and audit. 500.71 Penalties. 500.72 Effect on lenders.

AUTHORITY: The provisions of this part 500 issued under sec. 401, 76 Stat. 902, 19 U.S.C. 1802; E.O. 11075, 28 F.R. 473; and E.O. 11106, 28 F.R. 3911.

SOURCE: The provisions of this part 500 appear at 37 F.R. 11530, June 8, 1972, unless otherwise noted.

Subpart A-General 8 500.10 Scope and purpose.

This part, which replaces in its entirety Part 610 of Chapter VI, Title 15, Code of Federal Regulations, sets forth regulations implementing responsibilities of the Secretary of Commerce under chapters 1 and 2 of title III, Trade Expansion Act of 1962, and section 7 of Executive Order 11075, as amended by Executive Order 11106, with respect to djustment assistance for firms. $ 500.11 Definitions.

(a) “Act” means the Trade Expansion Act of 1962, 76 Stat. 872, 19 U.S.C. 1801 et seq.

(b) "Secretary" means the Secretary of Commerce or his delegate.

Subpart D-Adjustment Assistance 500.40 Referral of certified adjustment pro

posals; providing adjustment as

sistance. 500.41 Technical assistance. 600.42 Financial assistance. 500.43 Tax assistance.

Subpart Records and Reports 500.50 Records. 500.51 Reports.

137 F.R. 11530, June 8, 1972.


(c) “Department” means the Depart- (3) the applicant firm is a part of such ment of Commerce.

industry; (d) “OTAA” means the Office of Trade (b) The Tariff Commission has made Adjustment Assistance, Department of an affirmative finding pursuant to secCommerce.

tion 301(c)(1) of the Act that, as a re(e) "Director" means the Director of sult in major part of concessions granted OTAA.

under trade agreements, an article like (f) "Agency" includes any agency, de- or directly competitive with an article partment, board, wholly or partly owned produced by the firm is being imported corporation, instrumentality, commis- into the United States in such increased sion or establishment of the United quantities as to cause, or threaten to States.

cause, serious injury to such firm; or (g) "Firm” includes individual (c) (1) One half of the Tariff Commisproprietorship, partnership, joint ven- sioners voting in a case under section ture, association, corporation (including 301(b) (1) or 301(c) (1) of the Act have a development corporation), business made an affirmative finding and (2) the trust, cooperative, trustees in bank- President has decided to accept the findruptcy, and receivers under decree of any ing of those Commissioners voting in the court. Where determined necessary by affirmative as the finding of the Comthe Secretary to prevent unjustifiable mission: Provided, That in a case arising benefits, a firm, together with any prede- under section 301(b) (1) of the Act the cessor, successor or affiliated firm con- President shall also have provided, purtrolled or substantially beneficially suant to section 302(a) of the Act, that owned by substantially the same person firms in the industry may request the or persons may be considered a single Secretary for certification of eligibility, firm.

and the applicant firm is a part of such (h) "Person" means an individual, industry. firm, trust or estate. (i) “Adjustment proposal” means a

$ 500.22 Certification of eligibility to proposal for economic adjustment of a

apply under section 302(b)(1) of

the Act. firm filed under Subpart C of this part.

(a) Following an affirmative finding Subpart B-Eligibility of Firms To

with respect to an industry by the Tariff Apply for Adjustment Assistance Commission pursuant to section 301(b)

(1) of the Act (or by the President in $ 500.20 General.

cases involving an affirmative finding by No firm may apply for adjustment as- one half of the Commissioners voting) sistance unless first certified by the Di- and provision by the President pursuant rector as eligible to apply pursuant to to section 302(a) of the Act that firms in the requirements of section 302(b) (1) or such industry may request the Secretary 302(c) of the Act and of this subpart.

for certification of eligibility to apply

for adjustment assistance, any firm in $ 500.21 Statutory criteria.

such industry may apply for such assistA firm may seek certification of eligi- ance by completing and filing an applicability to apply for adjustment assistance tion as specified in paragraph (b) of this only if:

section. Such application must be filed (a) (1) The Tariff Commission has

within 1 year of the date of the Presimade an affirmative finding pursuant to

dent's action under section 302(a) of section 301(b) (1) of the Act that, as a

the Act, or such other period of time as

he President may specify at the time of result in major part of concessions

such action: Provided, That the Director granted under trade agreements, an ar

may grant an extension of time for filing ticle is being imported into the United

such application upon a showing to his States in such increased quantities as to satisfaction that timely submission of cause or threaten to cause serious in

the application could not reasonably have jury to the domestic industry producing been made: And provided further, That an article that is like or directly com- any request for extension of time herepetitive with the imported article, (2) under must be made prior to expiration the President has provided, pursuant to of the time within which such application section 302(a) of the Act, that firms in would otherwise be required to be filed. such industry may request the Secretary (b) An application for certification of for such certification of eligibility, and eligibility to apply for adjustment assistance under this section must be made in impact on its economic condition from accordance with the provisions of the which it cannot reasonably be expected Act, this part and instructions on the to recover without adjustment assistance appropriate OTAA form (see $ 500.60), provided under this part, and (ii) “threat and must be accurate and complete. In of serious injury” means that an ecomaking such applications, a firm should nomic trend has been established that accurately set forth all facts and con- can reasonably be expected to continue ditions that are material to its claim and to result in serious injury to the firm for such assistance, including the ex- in the foreseeable future. A long-range tent to which the affirmative finding of possibility of serious injury is not suffithe Tariff Commission (with respect to cient to demonstrate a threat thereof. the industry of which the firm is a part) (3) Causation. Increased imports of applies to the firm and the extent of the the article in question shall be considered firm's injury (or threatened injury) re- to have caused serious injury, or threat sulting from increased imports of the thereof, to the applicant firm if the Secproduct that was the subject of the retary finds that such imports have been Tariff Commission's investigation. If in- the major factor in causing such injury suficient or inconsistent information is or threat thereof. submitted in support of such application, (e) While OTAA will provide all practhe firm will be required to provide addi- ticable counsel and assistance in the tional information or otherwise correct preparation of applications under this its submission. However, every effort will section for certification of eligibility to be made by OTAA to proceed with proc- apply for adjustment assistance, the essing of the application to the extent

burden is on each firm to establish its feasible in the interim.

own case, (c) The Secretary will certify a firm that has made a timely application under

$ 500.23 Certification of eligibility to this section as eligible to apply for ad

apply under section 302(c) of the justment assistance upon a finding that:

Act. (1) The article like or directly com- Following an affirmative finding with petitive with the imported article that respect to a firm by the Tariff Comwas the subject of the Tariff Commis- mission pursuant to section 301(c) (1) of sion's investigation is or was a signifi- the Act (or by the President in cases incant part of the applicant firm's line of volving an affirmative finding by one half production; and

of the Commissioners voting), such firm (2) The serious injury or threat may apply for certification of eligibility thereof found by the Tariff Commission to apply for adjustment assistance by to exist with respect to the industry in filing with the Director a sworn statequestion is likewise applicable to the ment, subscribed by the owners, partners applicant firm.

or officers of such firm that no material (d) In making the finding called for

facts were omitted from, and there has in paragraph (c) of this section the Sec

occurred no significant change in ecoretary will, among other pertinent con- nomic circumstances affecting the firm siderations, give due regard to the follow- since presentation of the firm's case to ing factors which applicants should the Tariff Commission. Following receipt document in detail

of such statement, the Secretary ordi(1) Economic factors. In determining

narily will certify promptly that such whether increased imports of the article

firm is eligible to apply for adjustment in question have caused serious injury

assistance. or threat thereof to such firm, economic factors that are considered relevant in

$ 500.24 Material change in conditions ; clude: (i) Idling of the firm's productive

denial or revocation of eligibility facilities capable of producing the like

certification. or directly competitive article, (ii) in- (a) A firm that has applied for certifiability of the firm to operate at a level cation of eligibility to apply for adjustof reasonable profit, (iii) unemployment ment assistance under $ 500.22 or $ 500.23 or underemployment in the firm, and must promptly inform the Director in (iv) competitive position of such firm in writing of any material change in ecoreiation to other firms in the industry. nomic conditions affecting such firm, in

(2) Injury or threat thereof. For the cluding any change in the principal purpose of this section, (i) "serious in- ownership of such firm and any change jury” to a firm means a major adverse that has occurred in the facts contained

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