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Sec. 400.811


400.813 400.814




400.1009 400.1010




400.1000 Operation, maintenance and administration.

400.1001 Regulations promulgated by grantee, and posting of regulations within zone.

Grantee's reports to Board.

400.1002 400.1002a Uniform system of accounts, records, 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.

Changes in regulations.

400.1006 400.1007 Authority for publishing, posting, and filing of schedules of rates and charges.

400.1008 Adoption and issuance of sched

ules. Definitions.

Designation of agent for issuance of schedules.

Uniformity of schedules.

Construction of schedules.

400.1013 400.1014

All persons entering zone bound by regulations. Identification of employees within


Hours of business and service. Payment of customs officers and employees.

Erection of buildings within zone by persons other than grantee.


400.1201 400.1202


Structures and facilities to be maintained in good order. Penalty for failure to make repairs or alterations.

Additional instructions.
Requirements for accounts, rec-

ords, and reports.

USE OF GOVERNMENT PROPERTY 400.1100 Use of Government property.


400.1200 Fine imposed for violation of act or regulations. Revocation of grant.

Procedure for revocation.

Appeal from revocation order.

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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

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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. 5316, 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. Public Health, see 42 CFR Chapter I.

§ 400.102

Secretary of Commerce.

The term "Secretary" means the Secretary of Commerce.

§ 400.103


The term "Board" means the Board created by the act to carry out the provisions thereof. The Board shall consist of the Secretary of Commerce, who shall be chairman and executive officer, the Secretary of the Treasury, and the Secretary of the Army.

[Order 17, 14 F. R. 3671, July 2, 1949] § 400.104 State.

The term "State" includes any State, the District of Columbia, and Puerto Rico.

[Order 74, 32 F.R. 13714, Sept. 30, 1967] § 400.105 Corporation.

The term "corporation" means a public or a private corporation:

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(a) "Public corporation" State, political subdivision thereof, a municipality, a public agency of a State, political subdivision thereof, or municipality, or a corporate municipal instrumentality of one or more States.

(b) "Private corporation" means any corporation (other than a public corporation) which is organized for the purpose of establishing, operating, and maintaining a foreign-trade zone and which is chartered under a special act (enacted after June 18, 1934) of the State or States within which it is to operate such zone.

(Sec. 1, 48 Stat. 998; 19 U. S. C. 81a) § 400.106 Applicant.

The term "applicant" means a corporation applying for the right to establish, operate, and maintain a foreigntrade zone.

(Sec. 1, 48 Stat. 998; 19 U. S. C. 81a) § 400.107 Grantee.

The term "grantee" means a corporation to which the privilege of establish

ing, operating, and maintaining a foreign-trade zone has been granted. (Sec. 1, 48 Stat. 998; 19 U. 8. C. 81a) 400.108 District Director of Customs.

The term "District Director of Customs" means the director of customs in whose district the zone is located. [Regulations, June 29, 1935, as amended by Order 74, 32 F.R. 13714, Sept. 30, 1967]

§ 400.109 District Engineer.

The term "District Engineer" means the engineer of the Department of the Army in whose district the zone is located.

[Order 17, 14 F. R. 3671, July 2, 1949]

§ 400.110 Examiner.

The term "examiner" means an employee of the Board, an expert, officer, engineer, or any other person who is designated by the Board to conduct an investigation concerning the establishment, operation, maintenance, or administration of a zone. JURISDICTION AND AUTHORITY OF BOARD § 400.200 Duties of the Board.

The Board is authorized, subject to the provisions of the act, the laws governing the navigable waters of the United States, the laws governing foreign and interstate commerce, those controlling the revenue, the Shipping Act of 1916, as amended (46 U.S.C. secs. 801 et seq.), the Interstate Commerce Act (49 U.S.C. secs. 1 et seq.), and other laws of the United States applicable to zones:

(a) To grant to corporations, subject to the conditions and restrictions of the act and of the rules and regulations made thereunder, the privilege of establishing, operating, and maintaining foreign-trade zones in or adjacent to ports of entry under the jurisdiction of the United States, if it finds that the proposed plans and location are suitable for the accomplishment of the purpose of the foreign-trade zone under the act, and that the facilities and appurtenances which it is proposed to provide are sufficient.

(b) To prescribe such rules and regulations as may be necessary to establish and conduct such zones.

(c) To approve rates and charges for all services or privileges within the zone, and to assure uniform treatment under like conditions to users of the zone or

to merchandise within the zone subject to such treaties or commercial conventions in force at the time.

(d) To require compliance with lawful regulations of the Board and of other Government departments, State or municipal agencies, which may be applicable to the zone.

(e) To prescribe the form and manner of keeping the accounts of the zone.

(f) To require the submission annually, and at such other times as the Board 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.

(1) 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. [Regulations, June 29, 1935, as amended by Order 86, 36 F.R. 24930, Dec. 24, 1971]

§ 400.201 agencies.

Cooperation with other

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.S.C. 811)

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.S.C. 81j)

§ 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. 81a-81u), for carrying out the purposes thereof, and at the request of the said Board 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]

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§ 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

§ 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


(Sec. 2, 48 Stat. 999; 19 U. S. C. 81b) § 400.304 poses.


§ 400.400


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 commerce with respect to the proposed purposes.


Zones for specialized pur

Economic survey of proposed

Before a grant is made, an economic survey must demonstrate to the satisfaction of the Board that the anticipated commerce, benefits, and returns, both direct and indirect, will justify its construction to expedite and encourage foreign commerce. In considering the economic impact of the proposal, the Board will take into account its impact on the U.S. balance of payments, as well as its environmental impact in the light of national policy. [Regulations, June 29, 1935, as amended by Order 86, 36 F.R. 24929, Dec. 24, 1971]

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