suitable provisions for ingress and egress of persons, conveyances, and merchandise.

(8) Sanitary facilities and appliances to conform to Federal and local requirements.

(9) Adequate facilities for the disinfection and fumigation of merchandise as required.

(10) Such other facilities as may be required by the Board.

(c) Ratproofing and sanitation. All buildings and other structures within the zone, whether it is adjacent to water or not, shall be so constructed or altered, and maintained, as may be required by the Surgeon General, United States Public Health Service, to prevent the harborage of rodents. Water supply, sewage disposal, and provision for general sanitation (including adequate facilities for disinfection and fumigation) shall be as required by the Surgeon General, United States Public Health Service. (Sec. 12, 48 Stat. 1001; 19 U.S.C. 817) § 400.403 Construction and operation of equipment for segregation from customs territory and quarters for personnel.

(a) All zones shall be segregated from the land area of adjacent customs territory by a fence of woven galvanizedwire netting, of not less than No. 6 gage wire, with a mesh not exceeding 2 inches, and an over-all height of at least 10 feet above the concrete base in which the posts are set. The netting shall be securely attached to the insides of the posts and shall be set sufficiently low so as to be flush with the ground at all times. The fence shall be topped by at least three strands of galvanized barbed wire, fourpoint type, each strand consisting of two strands of No. 121⁄2 gage wire. The three strands shall be secured to metal brackets affixed to the top of each post, the brackets inclining at approximately 45° inward and upward. The strands shall be parallel and from 3 to 4 inches apart. Suitable concrete or metal posts shall be set in concrete footings, not less than 3 feet deep by 10 inches square, and with centers not more than 10 feet apart. Proper anchors and braces shall be installed at corners and gates. The gates shall be of the same material and height as the fence and shall be topped by three strands of the barbed wire above described, such strands to be affixed to metal brackets perpendicular with the gate. Suitable attachments shall be se

cured to the gates for the purpose of affixing locks. Alternate proposals for barriers of equal efficiency may be approved by the Board.

(b) If, according to the terrain or other factors adjacent to the fence surrounding the enclosure, or for other reasons, the height of the fence as provided for herein is not sufficient for proper protection to the revenue, the height shall be suitably increased at the direction of the Board or the District Director of Customs.

(c) If sides of buildings situated within a zone form a part of the zone enclosure in lieu of the fence prescribed above, all openings in such sides of the buildings shall be securely closed by heavy metal netting, grills, or other effective barriers.

(d) Fences and other exterior lines of the zone shall be equipped with electric lights and shall be illuminated to the satisfaction of the collector during such times as he may deem necessary.

(e) Such additional protection against the unauthorized transit of persons, goods, or conveyances to or from a zone shall be provided as may be deemed necessary by the District Director of Customs.

(f) Adequate living quarters, administrative and other facilities for officers and employees of the United States, State, and municipality whose duties may require their presence within the zone, shall be provided by the grantee. The requirements and extent of these facilities will be fixed by the Board.

(g) Each grantee shall provide and maintain such other facilities as may be required from time to time by the Board. (Sec. 12, 48 Stat. 1001; 19 U.S.C. 817) [Regulations, June 29, 1935, as amended by Order 74, 32 F.R. 13714, Sept. 30, 1967] ELIGIBLE APPLICANTS

§ 400.500

Grants made to corporations. Grants may be made to public or private corporations.

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

§ 400.501 Requirements for grant where harbor facilities owned and controlled by State and by municipality. Where harbor facilities of any port of entry in the State are owned and controlled by the State, and where harbor facilities of any other port of entry in the State are owned and controlled by a municipality, grants to public corporations will not be approved by the Board

unless such applications have been authorized by an act of the State legislature (enacted after June 18, 1934). (Sec. 2, 48 Stat. 999; 19 U.S.C. 81b)

§ 400.502 Act of State legislature necessary in case of private corporations. Grants to private corporations will not be approved by the Board unless such corporations have been authorized by an act of the State legislature (enacted after June 18, 1934).

(Sec. 2, 48 Stat. 999; 19 U.S.C. 81b) § 400.503

tions.

Preference to public corpora

Every application, exhibit, or enclosure, except where specifically excepted, shall be in quadruplicate duly authenticated and referenced.

(Sec. 6, 48 Stat. 1000; 19 U.S.C. 811)

§ 400.602 Form and content.

Every application shall be in letter form on letter-size paper and shall contain the date, official designation of the applicant, and shall show whether the application is for the establishment or expansion of the zone, be signed by an authorized officer of the corporation, and bear the corporate seal.

(Sec. 6, 48 Stat. 1000; 19 U.S.C. 811)

(2) the means of segregation from customs territory, as required by §§ 400.402, 400.403; (3) the fitness of the area for a zone; and (4) the possibilities of expansion of the zone area.

(b) Exhibit No. 2. A statement as to whether the port is within the confines of more than one State, and whether the zone will be in or adjacent to a port of entry.

(c) Exhibit No. 3. A statement giving full details as to the applicant's plans for acquiring title to, or the right to occupy and use, lands other than those owned by the applicant or by the United States, which are essential for carrying out the project or projects covered by the application. If the applicant, at the time of filing the application, has, by easement, lease, franchise, or otherwise, acquired the right to occupy and use lands owned by others, the statement must show, with respect to each separate right of occupancy and use: (1) From whom acquired; (2) the date acquired; (3) nature and extent of the right acquired; (4) whether perpetual or of limited term; and (5) if of limited term, when such term expires.

(d) Exhibit No. 4. A statement showing in detail the method proposed to finance the undertaking, accompanied by proof of the ability of the applicant to finance the construction and operation of the zone.

(e) Exhibit No. 5. An economic survey showing in detail the potential commerce and revenue of the proposed zone and other direct and indirect benefits accruing therefrom; present foreign trade of the port area, including transshipment, re-export, and reconsignment trade; present steamship services, and possible increases in such services where necessary; comparative study of export rates on domestic commodities for mixing with foreign goods; analysis of ocean freight rates where applicable to zone activity; potential new markets for zone business; activities best suited to particular zone; and such other data as may be necessary to a determination of whether the establishment of the zone is justified to expedite and encourage foreign commerce.

(f) Exhibit No. 6. (1) A description of the proposed project, where zone will be adjacent to water, to include:

(1) Slips and docks, giving number and for each the dimensions and depth of water below a stated datum;

(11) Wharves, giving number and for each the type of construction, width, area, sheds, loading and unloading facilities, trackage, fire protection, motoring facilities, and an estimate of the number of ocean-going ships which could be accommodated;

(iii) Warehouses, giving type of construction, floor area, and fire protection;

(iv) Transportation connections by rail and highway, giving the number of tracks and routes by which they would be connected with existing rail and highway systems;

(v) Facilities for coal and other fuel, and for light and power;

(vi) Water and sewer mains;

(vii) Administrative and living quarters and facilities to be provided for the officers and employees of the United States, State, and municipality, whose duties may require their presence within the zone (as required by §§ 400.800400.812);

(viii) Enclosure to segregate the zone from customs territory, together with the provisions for ingress and egress of persons, conveyances, vessels, and merchandise, showing in detail compliance with §§ 400.800-400.812, and including a description of openings and, if buildings form part of the enclosure line, a full description of the construction of the buildings and any openings therein on the line side.

(2) A description of the proposed project, where zone will not be adjacent to water, to include:

(1) Loading and unloading facilities; (ii) Warehouses, giving type of construction, floor area, and fire protection;

(iii) Transportation connections by rail and highway, giving the number of tracks and routes by which they would be connected with existing rail and highway systems;

(iv) Facilities for coal and other fuel, and for light and power;

(v) Water and sewer mains;

(vi) Administrative and living quarters and facilities to be provided for the officers and employees of the United States, State, and municipality, whose duties may require their presence within the zone

400.812);

(as required by §§ 400.800

(vii) Enclosure to segregate the zone from customs territory, together with the provisions for ingress and egress of persons, conveyances, and merchandise, showing in detail compliance with §§ 400.800-400.812, and including a de

scription of openings and, if buildings form part of the enclosure line, a full description of the construction of the buildings and any openings therein on the line side.

(g) Exhibit No. 7. A preliminary estimate of the cost of the proposed project, sufficiently detailed to be subject to verification.

(h) Exhibit No. 8. A statement of the time after the date of the approval of the application within which the applicant proposes to commence and complete the construction of the zone and the facilities and appurtenances, and to set up and commence operation of the zone.

(i) Exhibit No. 9. The largest scale charts of the United States Coast and Geodetic Survey of the locality, showing in red the boundaries of the proposed zone (four copies); or if an interior zone, four copies of a map on an appropriate scale, showing in red the boundaries of the proposed zone.

(j) Exhibit No. 10. A detailed map, on tracing linen and three blue line prints, showing the proposed lay-out of the zone.

(1) The map shall be not smaller than 24 inches by 36 inches and not larger than 28 inches by 40 inches; shall have a clear border of one-half inch on three sides and 21⁄2 inches on the left-hand shorter side; shall have a numerical scale and a graphical scale, the latter not less than 6 inches in length; shall have the true meridian indicated thereon; and shall have a space 4 inches by 7 inches in the lower right-hand corner, the upper half of which shall bear the title, scale, etc., and the lower half shall be left clear.

(2) The map shall show, in land areas, all existing structures and improvements, and, on water areas, by soundings, the present depths below a plane of reference stated on the map. The outline of the proposed slips, docks, wharves, warehouses, streets and highways, railroads, facilities for fuel, light, power, water and sewer mains; quarters and enclosures shall be shown by suitable heavy lines and these features designated clearly by lettering. The depths to be provided in water areas below the noted datum plane shall be shown by figures.

(3) The scale of the map shall be such as to show the complete zone on one sheet of the size prescribed.

(4) If rail connections to existing railroad systems cannot be shown on the map of the zone, an additional map or

maps on tracing linen and three blue line prints, showing the proposed rights-ofway therefor and all structures, streets, and other improvements affected thereby shall be furnished. These maps shall be subject to the same requirements as to size, border, scale, meridian, and title as the map of the zone.

(k) Exhibit No. 11. (1) If the applicant is a State, the application for a grant shall be accompanied, as evidence of the applicant's qualifications to make application, by a copy of the law or laws under authority of which the application is made, duly certified by the Governor or secretary of state of the State under seal, and three uncertified copies of such law or laws (enacted after June 18, 1934).

(2) If the applicant is a public corporation, other than a State, as defined in section 1 (e) of the act, the application for a grant shall be accompanied by evidence of the applicant's qualifications to make the application, as follows:

(i) A copy of its charter or other organization papers duly certified by the secretary of state of the State in which it is located, or by the officer having legal custody of the record of municipal and other public corporations (one copy only);

(11) A statement under seal of the secretary of state of the State or other officer charged by State laws with supervision of harbor facilities, setting forth whether the State owns and controls harbor facilities of any port of entry and whether harbor facilities of any other port of entry in the State are owned and controlled by a municipality, with three uncertified copies of such statement.

(3) If the applicant is a private corporation, the application for a grant shall be accompanied by evidence of the applicant's qualifications to make the application, as follows:

(1) A copy of its charter or articles of incorporation duly certified by the secretary of state of the State where organized or other officer having legal custody of a record of incorporation (one certified and three uncertified copies);

(ii) A statement, under corporate seal, setting forth that the organization of the corporation is completed, showing that the corporation is authorized to proceed with the establishment of a foreign-trade zone under the laws of the State, and giving a true list of the principal officers of the corporation, with

the full names and official designation of each, with three copies of such statement;

(iii) A certified copy of the special act or acts of the State or States in which the zone is located (enacted after June 18, 1934) and providing for the chartering of the corporation for the specific purpose of establishing a zone, with three uncertified copies of such act or acts.

(1) Exhibit No. 12. Evidence satisfactory to the Board that permits for construction have been obtained from Federal, State, or municipal authorities.

(m) Exhibit No. 13. Duly authenticated copies of the proceedings of the governing body of the corporation authorizing the official signing the application to make such application.

[Reg

(Sec. 6, 48 Stat. 1000; 19 U. S. C. 81f) ulations, June 29, 1935, as amended by Order 17, 14 F. R. 3671, July 2, 1949]

§ 400.604 Additional information.

An applicant may be required by the Board to furnish maps, plans, or other data in addition to the requirements specifically set forth in the regulations in this part, if. in the judgment of the Board, such additional data are desirable for a full understanding of the projects, or for the purpose of enabling the Board to review the design thereof, either in whole or in part.

(Sec. 6, 48 Stat. 1000; 19 U. S. C. 811)

§ 400.605 Public notice of application.

Subsequent to determining the filing date of an application to establish a zone, as prescribed by $ 400.608, public notice will be given in the FEDERAL REGISTER and in news releases. Notices will contain the names and addresses of applicants, general description of the project, arrangements for public hearings scheduled, and provisions for interested parties to communicate their views to the Board, in person or in writing. At public hearings upon any application, officials of the Board may require the presentation of such information respecting the application as in their judgment the proper conduct of the hearings or the public interest requires,

[Order 74, 32 F.R. 13714, Sept. 30, 1967] § 400.606

Amendments.

The Board may upon its own initiative or upon request permit the amendment of an application.

(Sec. 6, 48 Stat. 1000; 19 U. S. C. 811)

§ 400.607 Applications for expansion of

zone.

Applications for expansion of an established zone shall be made and approved in the same manner as an original application.

(Sec. 6, 48 Stat. 1000; 19 U. S. C. 811) § 400.608 Determining filing date.

Applications will be considered to have been filed as of the date of receipt by the Board of the information called for in §§ 400.600-400.604. The applicant will be advised of the filing date of his application.

[Order 74, 32 F.R. 13714, Sept. 30, 1967] § 400.609 Information exempt from public inspection.

An application should not contain confidential information, and any part of the application marked clearly as requiring restricted handling will not be accepted. Data which in the opinion of the applicant should be treated as confidential may be so marked and submitted to the Board as a separate supplement. However, the Board reserves the right not to accept for inclusion in the record any papers containing data for which confidential treatment is sought. [Order 74, 32 F.R. 13714, Sept. 30, 1967]

GRANTS SUBJECT TO CONDITIONS

§ 400.700 Penalty for delay.

Should the grantee fail to commence construction, diligently to carry construction to completion, and to set up and commence operation of the zone with zeal and ability, within the time stated in the grant, on a proper showing of negligence before the Board, the grantee shall be considered as having failed to comply with the conditions set forth in its application, and the grant shall become null and void. The grantee may, however, petition the Board for an extension of time for commencing and completing construction and for setting up and commencing operation of the zone, provided such petition shall be filed with the Board before the expiration of the time specified in the grant (or any extension thereof) for which an extension is desired. The Board may grant the petition provided a proper showing has been made that the extension is in the public interest.

The merchandise and operations permitted in a zone, the disposition of merchandise in a zone, the zone status of the merchandise and special provisions applicable to each status, the subsequent importation of merchandise exported from a zone, and other operations in a zone authorized by the act, are hereinafter in this part generally described. The zone forms 1 required are appended to these regulations and made a part thereof, and the procedures required are set forth in Customs regulations relating to foreign-trade zones (19 CFR Part 30), and the regulations and schedules of rates and charges made and fixed by the zone grantee and approved by the Board. [Order 29, 17 F. R. 5316, June 11, 1952] § 400.801

zone.

Merchandise permitted in a

Foreign and domestic merchandise of every description, except such as is prohibited by law, may, without being subject to the customs laws of the United States, except as otherwise provided in the act and the regulations made thereunder, be brought into a zone.

(a) Merchandise which is specifically and absolutely prohibited by law shall not be admitted into a zone. Any merchandise so prohibited by law which is found within a zone shall be disposed of in the manner provided for in the laws and regulations applicable to such merchandise. A distinction is made between (1) merchandise which is specifically and absolutely prohibited by law on the grounds of policy or morals, such as immoral or subversive literature, obscene articles, or lottery matter, and (2) merchandise which is subject to conditional

1 Zone Forms B, C, D, E, F fled, as part of original document.