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CHAPTER IV-FOREIGN-TRADE ZONES BOARD
ELIGIBLE APPLICANTS PART 400-GENERAL REGULATIONS
Sec. GOVERNING FOREIGN-TRADE
400.500 Grants made to corporations. ZONES IN THE UNITED STATES, 400.501 Requirements for grant where har
bor facilities owned and con. WITH RULES OF PROCEDURE
trolled by State and by muniDEFINITIONS
400.502 Act of State legislature necessary 400.100 Act.
In case of private corporations. 400.101 Zone.
400.503 Preference to public corporations. 400.102 Secretary of Commerce.
APPLICATIONS FOR GRANTS 400.103 Board. 400.104 State.
400.600 Address. 400.105 Corporation.
400.601 Number of copies. 400.106 Applicant.
400.602 Form and content. 400.107 Grantee.
400.603 Exhibits. 400.108 District Director of Customs.
400.604 Additional information. 400.109 District Engineer.
400.605 Public notice of application, 400.110 Examiner.
400.607 JURISDICTION AND AUTHORITY OF BOARD
Applications for expansion of zone.
400.608 Determining filing date. 400.200 Duties of the Board.
400.609 Information exempt from public 400.201 Cooperation with other agencies.
inspection, 400.202 Cooperation with Board of other
GRANTS SUBJECT TO CONDITIONS agencies of the Government. 400.203 Executive Order No. 7104,
400.700 Penalty for delay.
400.701 NUMBER AND LOCATION OF ZONES
Disposition of grant prohibited.
400.702 Special conditions. 400.300 Each port of entry entitled to at least one zone.
OPERATION OF ZONE 400.801 Port of entry located in more than 400.800 Operations in zone, and forms and one State entitled to a zone in
procedures. each such State.
400.801 Merchandise permitted in a zone. 400.802
Zone may be authorized in each of 400.802 Disposition of merchandise in a two cities separated by water in
zone. one port of entry.
400.803 Manipulation, manufacture, and 400.303 Additional zones in port of entry
exhibition of merchandise. may be authorized by Board. 400.804 Status of merchandise in a zone. 400.304 Zones for specialized purposes.
400.805 Use of zone by carriers.
400.806 ECONOMIC, FINANCIAL, AND PHYSICAL REQUIRE
Subsequent importation of zone
merchandise. MENTS FOR ESTABLISHMENT OF ZONE
400.807 Exclusion from zone of goods or 400.400 Economic survey of proposed zone.
process of treatment. 400.401 Proof of ability of applicant ade- 400.808 Retail trade within zone. quately to finance zone.
400.809 Residence within zone. 400.402 Physical facilities required in the 400.810 Employees and persons entering operation of a zone.
and leaving zone. 400.403
Construction and operation of 400.811 All persons entering zone bound equipment for segregation from
by regulations. customs territory and quarters 400.812 Identification of employees within for personnel.
Sec. 400.813 Hours of business and service. 400.1316 Object of hearing. 400.814 Payment of customs officers and 400.1317 Notice of hearing. employees.
400.1318 Procedure at hearing. 400.816 Erection of buildings within zono 400.1319 Adjournment of hearing.
by persons other than grantee. 400.1320 Record of proceedings.
400.1321 Additional rules of practice. 400.900 Structures and facilities to be
PUBLIC INFORMATION maintained in good order.
400.1400 Policy. 400.901 Penalty for failure to make repairs 400.1401 Public information activities. or alterations.
400.1402 Availability of materials for inADMINISTRATION OF ZONE
spection and copying.
400.1403 Requests for identifiable records. 400.1000 Operation, maintenance and ad- 400.1404 Determinations of availability of ministration.
records. 400.1001 Regulations promulgated by gran- 400.1405 Requests for reconsideration of tee, and posting of regulations
nonavailability. within zone.
400.1406 Security information. 400.1002 Grantee's reports to Board.
AUTHORITY: The provisions of this Part 400 400.1002& Uniform system of accounts, roo
issued under sec. 8, 48 Stat. 1000; 19 U.B.C. ords, and reports. 400.1003 Zones to be operated as public
81h, unless otherwise noted. utilities,
SOURCE: The provisions of this Part 400 400.1004 Inspection of zones.
contained in Regulations, June 29, 1936, un400.1005 Separability of regulations in event less otherwise noted.
of invalidity. 400.1006 Changes in regulations.
DEFINITIONS 400.1007 Authority for publishing, posting,
The term “Act” means the Foreign400.1008 Adoption and issuance of sched. Trade Zones Act of June 18, 1934 (48 ules.
Stat. 998–1003; 19 U.S.C. 81a-81u), 88 400.1009 Definitions.
amended by Public Law 566, 81st Con400.1010 Designation of agent for 1ssuance
gress, approved June 17, 1950. of schedules. 400.1011 Uniformity of schedules.
(Order 29, 17 F. R. 6316, June 11, 1982) 400.1012 Construction of schedules.
$ 400.101 Zone. 400.1013 Additional instructions.
The term “zone" means a “foreign-
trade zone.” It is an isolated, enclosed, 400.1100 Use of Government property. and policed area, operated as a public VIOLATION OF PROVISIONS OF ACT OR
utility, in or adjacent to a port of entry, REGULATIONS
furnished with facilities for lading, un
lading, handling, storing, mainipulating, 400.1200 Fine imposed for yiolation of act or regulations.
manufacturing, and exhibiting goods, 400.1201 Revocation of grant.
and for reshipping them by land, water, 400.1202 Procedure for revocation.
or air. Any foreign and domestic mer400.1203 Appeal from revocation order.
chandise, except such as is prohibited by RULES OF PROCEDURE AND PRACTICE
law or such as the Board may order to 400.1800 Headquarters.
be excluded as detrimental to the public 400.1301 Executive Secretary of the Board. interest, health, or safety may be brought 400.1302 Committee of Alternates.
into a zone without being subject to 400.1303 Meetings and proceedings of the
the customs laws of the United States Board. 400.1804 Order of business.
governing the entry of goods or the 400.1305 Authorization for hearings.
payment of duty thereon; and such 400.1306 Orders of Board.
merchandise permitted in a zone may be 400.1307 Applications.
stored, exhibited, manufactured, mixed 400.1308 Examiners Committee. 400.1309 Hearings before Examiners com- or manipulated in any manner, except as mittee.
provided in the act and other applicable 400.1310 Submission of further evidence.
laws or regulations. The merchandise 400.1311 Rehearing on application. 400.1312 Action of Board on application.
may be exported, destroyed, or sent into 400.1313 Payment for inspection.
customs territory from the zone, in the 400.1314 Construction of zone.
original package or otherwise. It is 400.1915 Evidence.
subject to customs duties ir sent into
customs territory, but not if reshipped to 400.108 District Director of Customs. foreign points.
The term "District Director of Cus(Order 29, 17 F. R. 6316, June 11, 1952)
toms” means the director of customs in
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 The term “Secretary” means the Secre
Army in whose district the zone is tary of Commerce.
located. $ 400.103 Board.
[Order 17, 14 F. R. 3671, July 2, 1949)
$ 400.110 Examiner.
The term "examiner” means an emsist of the Secretary of Commerce, who ployee of the Board, an expert, oficer, shall be chairman and executive oficer,
engineer, or any other person who is the Secretary of the Treasury, and the
designated by the Board to conduct an Secretary of the Army.
investigation concerning the establish
ment, operation, maintenance, or admin(Order 17, 14 F. R. 3871, July 2, 1949)
istration of a zone. $ 400.104 State.
JURISDICTION AND AUTHORITY OF BOARD The term “State" includes any State, the District of Columbia, and Puerto 8 400.200 Duties of the Board.
The Board is authorized, subject to the (Order 74, 32 F.R. 13714, Sept. 30, 1967] provisions of the act, the laws governing 8 400.105 Corporation.
the navigable waters of the United
States, the laws governing foreign and The term “corporation" means a pub- interstate commerce, those controlling lic or a private corporation:
the revenue, the Shipping Act of 1916, (a) "Public corporation" means as amended (39 Stat. 728, as amended; State, political subdivision thereof, &
46 U.S.C. Chapters 23, 24, 24A, and 27), municipality, a public agency of a State, the Interstate Commerce Act (24 Stat. political subdivision thereof, or munici
379, as amended; 49 U.S.C.), and other pality, or a corporate municipal instru
laws of the United States applicable to mentality of one or more States.
zones: (b) "Private corporation" means any (a) To grant to corporations, subject corporation (other than a public corpo- to the conditions and restrictions of the ration) which is organized for the pur- act and of the rules and regulations pose of establishing, operating, and
made thereunder, the privilege of estabmaintaining a foreign-trade zone and lishing, operating, and maintaining which is chartered under a special act
foreign-trade zones in or adjacent to (enacted after June 18, 1934) of the
ports of entry under the jurisdiction of State or States within which it is to op
the United States, if it finds that the proerate such zone.
posed plans and location are suitable (Bec. 1, 48 Stat, 998; 19 U. 8. O. 81a)
for the accomplishment of the purpose $ 400.106 Applicant.
of the foreign-trade zone under the act,
and that the facilities and appurtenances The term "applicant" means & cor- which it is proposed to provide are poration applying for the right to estab
suficient. lish, operate, and maintain a foreign
(b) To prescribe such rules and regutrade zone.
lations as may be necessary to establish (Sec. 1, 48 Stat. 998; 19 U. 8. O. 81a)
and conduct such zones,
(c) To approve rates and charges for
all services or privileges within the zone, The term "grantee" means a corpora- and to assure uniform treatment under tion to which the privilege of establish- like conditions to users of the zone or ing, operating, and maintaining a for- to merchandise within the zone subject eign-trade zone has been granted.
to such treaties or commercial conven(Sec. 1, 48 Stat. 998; 19 U. 8. O. 812)
tions in force at the time.
ED DO Selt
(d) To require compliance with lawful perts, or engineers as may be necessary regulations of the Board and of other to enable the Board to carry out its Government departments, State or mu- duties under the act. nicipal agencies, which may be appli
(Sec. 10, 48 Stat. 1001; 19 U. 8. C. 813) cable to the zone. (e) To prescribe the form and manner
$ 400.203 Executive Order No. 7104. of keeping the accounts of the zone.
Executive departments and other (f) To require the submission annu- establishments of the Government are ally, and at such other times as the Board hereby ordered and directed to cooperate may prescribe, of reports containing full with the Board established by the act of statements of the operations, receipts, June 18, 1934 (48 Stat. 998–1003; 19 and expenditures, and such other infor- U.S.C. 81a-81u), for carrying out the mation as the Board may require.
purposes thereof, and at the request of (g) To inspect and examine at such the said Board to furnish it such records, times as the Board may deem advisable papers, and information in their possesthe premises, operations, or accounts of sion, as it may require, and to tempothe grantee.
rarily detail to its service such officers, (h) To impose fines of not to exceed
experts, or engineers as may be neces$1,000 per day for violations of the act
sary for the purpose of facilitating the or of the regulations in this part.
investigation of the Board and its work (i) To revoke the grant of any corpo- in connection with the establishment, ration after due notice and public hear- operation, and maintenance of foreigning for repeated and willful violations of trade zones. the act.
(E. O. 7104, July 18, 1985] (j) To prescribe reasonable and uniform regulations for like conditions and NUMBER AND LOCATION OF ZONES circumstances for the erection of build
§ 400.300 Each port of entry entitled to ings within the zone by other than the
at least one zone. grantee. (k) To make a report to the Congress
Subject to the provisions of the act on the first day of each regular session,
and of the regulations in this part, each containing a summary of the operation port of entry shall be entitled to at least and fiscal condition of each zone, and to
one zone. transmit therewith copies of the annual (Sec. 2, 48 Stat. 999; 19 U. 8. C. 81b) report of each grantee.
$ 400.301 (1) To perform such other duties as
Port of entry located in more
than one State entitled to a zone in may be necessary to administer the pro
each such State. visions of the act.
When a port of entry is located within § 400.201 Cooperation with other the confines of more than one State, agencies.
such port of entry shall be entitled to a The Board is authorized to cooperate:
zone in each of such States. (a) With other Government depart- (Sec. 2, 48 Stat. 999; 19 U. 8. C. 81b) ments or other Federal agencies having jurisdiction in or adjacent to ports of
§ 400.302 Zone may be authorized in entry.
each of two cities separated by water (b) With State and local authorities
in one port of entry. in the exercise of their police, sanitary, When two cities separated by water and other powers in connection with the are embraced in one port of entry, a zone zone.
may be authorized in each of said cities, (Sec. 9, 48 Stat. 1000; 19 U. 8. C. 811)
or in territory adjacent thereto. $ 400.202 Cooperation with Board of
(Sec. 2, 48 Stat. 999; 19 U. S. C. 81b) other agencies of the Government. § 400.303 Additional zones in port of By authority of the act and Executive
entry may be authorized by Board. Order No. 7104, the executive depart
Zones in addition to those to which a ments and other establishments of the port of entry is entitled shall be auGovernment will furnish to the Board
thorized only if the Board finds that such records, papers, and information in
existing or authorized zones will not their possession as may be required by the Board, and temporarily detail to the
serve adequately the convenience of
commerce. service of the Board such officers, ex- (Sec. 2, 48 Stat. 999; 19 U. 8. C. 816)
Zones for specialized pur- (7) Fuel facilities for servicing vessels poses.
with coal or other fuel, with adequate reThe establishment of a zone, or a
serve storage spaces. sub-zone in an area separate from an
(8) Light and power facilities throughexisting zone, for one or more of the spe
out the zone, on the wharves and docks, cialized purposes of storing, manipulat
and to meet any special requirements of ing, manufacturing, or exhibiting goods,
the Treasury Department in safeguardmay be authorized if the Board finds ing revenue.
(9) Water and sewer mains
structed to meet approved plans for servcommerce with respect to the proposed
ice and health protection
(10) Fire protection suitable for purposes. (Order 29, 17 F.R. 5316, June 11, 1952]
proper protection of zone and goods in
QUIREMENTS FOR ESTABLISHMENT OF ters and facilities for the officers and em-
ployees of the United States, State, and $ 400.400 Economic survey of proposed
municipality, whose duties may require
their presence within the zone. zone.
(12) Adequate enclosures to segregate Before a grant is made, an economic
the zone from customs territory for the survey must demonstrate to the satis
protection of the revenue, together with faction of the Board that the anticipated
suitable provisions for ingress and egress commerce, benefits, and returns, both
of persons, conveyances, vessels, and direct and indirect, will justify its con
merchandise. struction to expedite and encourage for- (13) Sanitary facilities and appliances eign commerce.
to conform to Federal and local require§ 400.401 Proof of ability of applicant ments. adequately to finance zone.
(14) Adequate facilities for the disin
fection and fumigation of merchandise The ability of the applicant adequately to finance and conduct the undertaking
(15) Such other facilities as may be must be demonstrated to the complete satisfaction of the Board.
required by the Board.
(b) Where zone will not be adjacent to § 400.402 Physical facilities required in water. (1) Warehouses so constructed the operation of a zone.
and located as to meet the requirements (a) Where zone will be adjacent to
of goods to be stored and the special regwater. (1) Adequate slips to accommo
ulations of the Treasury Department to date vessels engaged in foreign trade.
safeguard the revenue. (2) Wharves and docks suitably con
(2) Transportation connections with structed for the needs of the specific
systems serving surrounding territory
and other parts of the United States, so commodities to be handled over them.
arranged as to permit of proper guarding (3) Mooring facilities for the protec
and inspection for the protection of the tion of vessels while loading, unloading,
revenue. or awaiting berth.
(3) Light and power facilities through(4) Transit sheds on the wharves for out the zone, and to meet any special the protection of goods accumulated for requirements of the Treasury Departshipment or unloaded and awaiting dis- ment in safeguarding the revenue. position.
(4) Water and sewer mains con(5) Warehouses so constructed and lo
structed to meet approved plans for serycated as to meet the requirements of
ice and health protection. goods to be stored and the special reg
(5) Fire protection suitable for proper ulations of the Treasury Department to
protection of zone and goods in storage.
(6) Administrative and living quarsafeguard the revenue.
ters and facilities for the officers and em(6) Transportation connections with
ployees of the United States, State, and systems serving surrounding territory municipality, whose duties may require and other parts of the United States, so their presence within the zone. arranged as to permit of proper guarding (7) Adequate enclosures to segregate and inspection for the protection of the the zone from customs territory for the revenue.
protection of the revenue, together with
be nds the