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prohibition only, for example, articles which are subject to permits or licenses for the protection of economic or national security or which may be reconditioned to bring them into compliance with the laws administered by various Federal agencies. District Directors of Customs are required to exclude the first class of articles and may not permit them to be transferred to a zone if they are aware of their prohibited status, except that the collector may permit the temporary deposit of any such merchandise in the zone pending final determination of its status. The transfer of articles of the second class to a zone is subject to any requirements of the Federal agency concerned. There is no prohibition against placing over-quota merchandise in a zone pending its right to transfer to customs territory pursuant to the applicable quota provisions.

(b) The application for the admission of merchandise into a zone shall be approved or disapproved by the District Director of Customs, as the representative of the Board, where the merchandise is not excluded by any other Federal agency having jurisdiction over the merchandise. [Order 29, 17 F.R. 5316, June 11, 1952, as amended by Order 74, 32 F.R. 13714, Sept. 30, 1967] § 400.802 Disposition of merchandise in

a zone. In general, merchandise lawfully brought into a zone may, in accordance with these and other regulations made under the provisions of the act be exported, destroyed, or sent into customs territory of the United States therefrom, in the original package or otherwise; but when foreign merchandise, and domestic merchandise whose identity has been lost, is so sent from a zone into customs territory of the United States it shall be subject to the laws and regulations of the United States affecting imported merchandise. (Order 29, 17 F. R. 5316, June 11, 1952) 8 400.803 Manipulation, manufacture,

and exhibition of merchandise. In general, merchandise, lawfully brought into a zone may, in accordance with these and other regulations made under the provisions of the act, be stored, sold, exhibited, broken up, repacked, assembled, distributed, sorted, graded, cleaned, mixed with foreign and domestic merchandise, or otherwise manipu

lated, or be manufactured, except as otherwise provided by the act.

(a) Permission for any manipulation, manufacture, or exhibition in a zone shall be obtained from the District Director of Customs, as the representative of the Board, subject to such application and procedure prescribed by the Secretary of the Treasury for the protection of the revenue.

(b) In the event of the denial of any application by the District Director of Customs for any reason, the applicant, the grantee, or the operator of the zone may appeal the adverse ruling to the Board. If any revenue-protection considerations are involved in such an application, the Board shall be guided by the determinations of the Secretary of the Treasury with respect to them. [Order 29, 17 F.R. 5316, June 11, 1952, as amended by Order 74, 32 F.R. 13714, Sept. 30, 1967] $ 400.804 Status of merchandise in a

zone. (a) For the purposes of the act and the regulations of this part, all merchandise within a zone, except merchandise in transit through a zone as provided in § 30.5 of Customs regulation, and except merchandise temporarily transferred to a zone for manipulation as provided in paragraph (b) of this section, shall be given a zone status as:

(1) Privileged foreign merchandise,
(2) Privileged domestic merchandise,

(3) Non-privileged foreign merchan. dise,

(4) Non-privileged domestic merchandise, or

(5) Zone-restricted merchandise, in accordance with $$ 30.6, 30.7, 30,8, 30.9, and 30.10 of Customs regulations.

(b) Imported merchandise which has been entered and which has remained in continuous customs custody may be temporarily transferred to a zone for manipulation under customs supervision pursuant to section 562, Tariff Act of 1930, as amended, and for return to customs territory. Any such merchandise shall not be considered within the pur. view of the Foreign-Trade Zones Act, but shall be treated in all respects as though remaining in customs territory. Therefore no zone form or procedure shall be considered applicable, but the merchan. dise shall remain subject in the zone to

the BE

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*19 CFR Part 80..

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such requirements as are necessary for
the enforcement of section 562 and other
pertinent customs laws.
[Order 29, 17 F. R. 6316, June 11, 1952)
§ 400.805 Use of zone by carriers.

The water area, docking facilities, and
loading or unloading stations of a zone
are intended primarily for the use of
vessels, vehicles, or aircraft unlading
merchandise into the zone or lading
merchandise from the zone, and their use
for other purposes may be terminated by
the Secretary of the Treasury if found to
endanger the revenue, or by the Board
if found to interfere with the primary
uses of the zone.
[Order 29, 17 F. R. 6317, June 11, 1952)
$ 400.806 Subsequent importation of

zone merchandise. Articles produced or manufactured in a zone and exported therefrom shall, on subsequent importation into the customs territory of the United States, be subject to the import laws applicable to like articles manufactured in a foreign country, except that articles produced or manufactured in a zone exclusively with the use of domestic merchandise, the identity of which has been maintained in accordance with the second proviso of section 3 of the act, as amended, may, on such importation, be entered as American goods returned. [Order 29, 17 F. R. 5317, June 11, 1952) $ 400.807 Exclusion from zone of goods

or process of treatment. When it shall be reported to the Board that any goods or process of treatment is detrimental to the public interest, health, or safety, the Board shall cause such investigation to be made as it may deem necessary. The Board may order the exclusion from the zone of any goods or process of treatment that in its judg. ment is detrimental to the public interest, health, or safety. (Sec. 15, 48 Stat. 1002; 19 U. 8. C. 810) (Redesignated by Order 29, 17 F. R. 5316, June 11, 1952) $ 400.808 Retail trade within zone.

No retail trade shall be conducted within a zone except under permits issued by the grantee and approved by the Board. Such permittees shall sell no goods except such domestic or duty-paid or duty-free goods as are brought into the zone from customs territory. Permits which are sent to the Board for ap

proval shall be accompanied by a sworn
statement, subscribed to by the applicant
before a duly authorized officer to ad-
minister oaths, setting forth in detail
the nature of the retail trade to be con-
ducted, and containing an agreement
that such applicant will sell no goods,
except of the kinds specifically author-
ized by the act, which are brought into
the zone from customs territory. No
goods shall be offered for sale or sold in
a zone which are not of the same kind
and quality permitted to be offered for
sale or sold in the political jurisdiction
in which the zone is located. If the
permittee violates any provision of the
regulations in this part, his permit shall
be revoked by the grantee, who shall im-
mediately report such action to the
Board.
(Sec. 15, 48 Stat. 1002; 19 U.S.C. 810) (Re-
designated by Order 29, 17 F.R. 5316, June 11,
1952)
§ 400.809 Residence within zone.

No person shall be allowed to reside
within a zone except Federal, State, or
municipal officers or agents whose resi-
dent presence is deemed necessary by
the Board.
(Sec. 15, 48 Stat. 1002; 19 U.S.C. 810) (Re-
designated by Order 29, 17 F.R. 5317, June
11, 1952]
§ 400.810 Employees and persons enter.

ing and leaving zone.
Employees and other persons en-
tering or leaving a zone shall pass
through the designated entrances
and exits in the

enclosure
rounding the zone, except that ships'
crews and passengers, duly authorized
pilots and helmsmen, and employees of
the Federal Government may enter or
leave aboard vessels arriving at or de.
parting from the zone; and except that
crews of service vessels, such as ship
chandlers' boats, tug boats, water boats,
fuel barges, cargo lighters, and barges,
and crews of floating equipment for use
in connection with vessel repairs or
maintenance, or for maintenance of
structures of the zone or its channels or
slips, may enter or leave a zone by way
of prescribed water routes or courses.
Employees and other persons shall be
subject to such examination upon enter-
ing and leaving a zone as the collector
may deem necessary for the protection
of the revenue.
(Sec. 15, 48 Stat. 1002; 19 U.S.C. 810) (Re-
designated by Order 29, 17 F.R. 5317, June

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11, 1952]

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§ 400.811 All persons entering zone officers or employees, or the overtime pay. bound by regulations.

[Order 29, 17 F.R. 5317, June 11, 1952, as All persons entering a zone for any

amended by Order 74, 32 F.R. 13714, Sept. 30,

1967] reason whatsoever shall be bound by the regulations promulgated by the Board § 400.815 Erection of buildings within and by the operator of the zone,

zone by persons other than grantee. [Redesignated by Order 29, 17 F. R. 6917,

The grantee may, with the approval of June 11, 1952)

the Board, and under reasonable and $ 400.812 Identification of employees uniform regulations for like conditions within zone.

and circumstances to be prescribed by it, All persons on duty within, and in

permit other persons, firms, corporations, connection with the operation of, a

or associations to erect such buildings

and other structures within the zone as zone, with the exception of Federal employees and uniformed employees of the

will meet their particular requirement: zone shall be required while within the

Provided, (a) That such permission shall zone to carry identification cards or wear

not constitute a vested right as against

the United States, nor interfere with the appropriate identification badges to be provided by the operator of the zone.

regulation of the grantee or the permit

tee by the United States, nor interfere (Redesignated by Order 29, 17 F. R. 6317, June 11, 1952)

with or complicate the revocation of the

grant by the United States; (b) that in § 400.813 Hours of business and service. the event of the United States or the Hours of business and service, for

grantee desiring to acquire the property customs purposes, shall be the same

of the permittee, no good will shall be as those prescribed in Customs regula

considered as accruing from the privitions. (19 CFR Chapter 1)

lege granted to the zone; and (c) that [Order 29, 17 F. R. 5317, June 11, 1952]

such permits shall not be granted on

terms that conflict with the public use of $ 400.814 Payment of customs officers the zone as set forth in the act: And and employees.

provided further, That accepted sanitary (a) The cost of maintaining the cus

practices be followed in the construction, toms service in a zone shall be paid

equipment, and operation of such buildmonthly by the grantee of such zone to

ings and other structures. the District Director of Customs.

(Sec. 18, 48 Stat. 1001; 19 U. S. C. 81m) (Re(b) Customs officers and employees

designated by Order 29, 17 F. R. 5317, June

11, 1952)
performing services in a zone at night, or
on Sundays and holidays, shall receive

MAINTENANCE OF ZONE
extra compensation, to be computed as

$ 400.900 Structures and facilities to be and under the conditions prescribed by maintained in good order. Customs regulations. (c) For the purpose of computing ex

The grantee shall at all times maintra compensation the word “night” shall

tain the structures and other facilities be construed to mean the time from 5:00

within the zone in good condition and so p. m. to 8:00 a. m. and the word “holi

as not to endanger the life and health day" shall include only national holi

of employees of the United States and days, viz., January 1, February 22, May

others who may be required to enter the 30, July 4, the first Monday in Septem

zone. ber, November 11, the fourth Thursday

$ 400.901 Penalty for failure to make in November, and December 25, and such

repairs or alterations.
other days as may be made national
holidays.

Should the grantee fail to make such (d) In a zone at a port where cus

repairs or alterations as may be ordered tomary working hours are other than

by the Board, action will be taken as those herein mentioned, the District Di

provided in $$ 400.1200-400.1203.
rector of Customs is authorized to regu-

ADMINISTRATION OF ZONE
late the hours of customs officers and em-
ployees assigned to the zone so as to agree

$ 400.1000 Operation, maintenance and

administration. with prevailing working hours in said port, but nothing herein shall be con- The zone shall be operated, mainstrued in any manner to affect or alter tained, and administered by the grantee the length of a working day for customs under (a) the supervision, direction, and

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control of the Board in accordance with tem of Accounts, Records, and Reports”,
the provisions of the act and the regula- approved February 6, 1939.
tions of the Board in this part, (b) the [Order 29, 17 F. R. 5317, June 11, 1952)
regulations relating to foreign-trade

NOTE: The Executive Director of Foreignzones of the Bureau of Customs for

Trade Zones Operations may, from time to the protection of the revenue (19

time, upon appropriate notice, modify the CFR Part 30) and any other law, requirements as set forth in Part "B" of the regulation, or instruction the Cus- Uniform System of Accounts, Records, and toms Service is required or authorized Reports for the annual reports of the Zone to enforce, (c) such other applicable laws

Grantees as necessary to eliminate duplicaand regulations thereunder of other Fed

tion of information separately required for eral agencies, and (d) the regulations

Customs purposes and so as to minimize the and schedules of rates and charges made

cost of complying with such requirements. and fixed by the grantee and approved

(Order 88, 20 F. R. 1130, Feb. 24, 1965) by the Board. The District Director of 8 400.1003 Zones to be operated as pubCustoms in whose district the zone is lo

lic utilities. cated shall, in addition to his duties as District Director of Customs, be in local

(a) All rates and charges for all servcharge of the zone as the resident repre

ices or privileges within the zone shall sentative of the Board. He may call upon

be fair and reasonable, and the grantee

shall afford to all who may apply for the the district engineer and local representatives of other governmental depart

use of the zone and its facilities and apments and agencies for advice in matters

purtenances uniform treatment under of operation, maintenance, and admin

like conditions, subject to such treaties istration.

or commercial conventions as are now

in force or may hereafter be made from [Order 29, 17 F.R. 5317, June 11, 1952, as amended by Order 74, 32 F.R. 13714, Sept. 30,

time to time by the United States with 1967]

foreign governments.

(b) Schedules containing all the rates $ 400.1001 Regulations promulgated by and charges shall be published, posted,

grantee, and posting of regulations and filed with, and subject to the apwithin zone.

proval of the Board. Full Instructions The grantee shall, before begin- concerning the publication, posting, and ning operation of a zone submit to the

Hling of such schedules will be issued by Board its own rules, regulations, and

the Board.' One copy of each tariff repractices for the operation of the zone,

quired to be filled with any State regusubject to disapproval of the Board. latory body shall also be filed with the There shall be posted in a conspicuous

Board. place within the zone copies of the regu

(c) Where applicable, the operator of lations issued by the Board and the ap

the zone will remain subject to the reproved regulations of the grantee, or of quirements of the Shipping Act, 1916, as such extracts from either or both of such

amended (39 Stat. 728, as amended; 46 regulations as the Board may designate.

U. S. C., Chapters 23, 24, 24A, 27) and (Order 29, 17 F. R. 5317, June 11, 1952)

to the provisions of the Interstate Com§ 400.1002 Grantee's reports to Board.

merce Act (24 Stat. 379, as amended; 49

U. S. C.).
Each grantee shall make to the Board (Sec. 14, 48 Stat. 1001; 19 U.S.C. 810)
annually, and at such other times as the
Board may prescribe, reports containing

§ 400.1004 Inspection of zones. a full statement of the operations, re

Representatives of the Board will inceipts, expenditures, and such other in

spect, from time to time, the operatione formation as the Board may require.

of the zones for the purpose of informing After the establishment of a zone, the

the Board whether the provisions of the Board will prescribe the form and man

act and the regulations in this part are ner of keeping the accounts.

being met.

The operators of the zones. (Sec. 16, 48 Stat. 1002; 19 U.S.C. 81p)

shall comply fully with the requirements 8 400.1002a Uniform system of

of such representatives, and make avail

able to them such records and reports counts, records, and reports,

as the representatives may find necessary Every grantee of a zone shall keep its

for a proper and thorough inspection of books, records, and accounts in the form

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zone activities. and manner prescribed in “Uniform Sys- • See $8 400.1007-400.1013.

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$ 400.1005 Separability of regulations granted, in accordance with the Foreignin event of invalidity.

Trade Zones Act of June 18, 1934, as

amended (48 Stat. 998–1003; 19 U. S. C. If any provision of the regulations in

81n). this part, or the application thereof to

(b) Schedule. The term "schedule" any person or circumstances, be held invalid, the remainder of the regulations

means a publication stating rates and in this part and their application to

charges of a foreign-trade zone, and all other persons or circumstances shall not

rules and regulations applying in conbe affected thereby.

nection therewith and to general op.

erating procedure. $ 400.1006 Changes in regulations.

(c) Publication. Should be conRegulations issued pursuant to the strued as the act of constructing, or provisions of the act may be amended, compiling and publishing & schedule supplemented, suspended or revoked, which will include all pertinent informafrom time to time, as may be deemed tion in connection with the rates, necessary. Regulations shall not be charges, rules, and regulations applicable construed as conferring privileges or in

thereto within a foreign-trade zone, and terests which may not be adversely af- also such other schedules as may be fected by subsequent regulations or by inaugurated from time to time. any changes whatsoever in existing (d) Posting. Should be construed as regulations.

the act of posting all effective schedules (Order 17, 14 F. R. 8671, July 2, 1949)

within a foreign-trade zone, and the gen

eral offices of the grantee, in such a § 400.1007 Authority for publishing, manner that they will be accessible to posting, and filing of schedules of

the public, and can be conveniently inrates and charges.

spected. Requests may originate from Section 14 of the act of June 18, 1934 the public for copies of effective sched(48 Stat. 998; 19 U.S.C. 81n), provides ules, and this also comes under the gen

* all rates and charges for all eral heading of "posting" as such reservices or privileges within the zone quests should be complied with to every shall be fair and reasonable *

reasonable degree. $ 400.1003(b) provides that “*

(e) Filing. All schedules must be filed instructions concerning the publication, with the Foreign-Trade Zones Board posting, and filing of such schedules will and such other States or Federal regube issued by the Board *

lating bodies as may subsequently exer(Par. 1, Instr., Feb. 7, 1988)

cise any jurisdiction in connection with § 400.1008 Adoption and issuance of

the operation of foreign-trade zones. schedules.

All original schedules so filed are, of

course, considered as the effective sched-
In accordance with the authority con- ules, unless otherwise cancelled or re-
tained in g 400.1007, the Foreign-Trade vised.
Zones Board on February 7, 1938, adopted

[Par. 3, Instr., Feb. 7, 1988)
and issued the following instructions
concerning the publication, posting, and

$ 400.1010 Designation of agent for isfiling of schedules containing all the

suance of schedules. rules, regulations, rates and charges for (a) The obligation to compile and all services and privileges within foreign- publish, post and file schedules naming trade

zones. Additional instructions, rates, charges, rules and regulations, apand an elaboration or extension of those plying at foreign-trade zones is a direct set forth herein, may be issued from responsibility of the grantee. The time to time.

grantee should place such obligation and (Par. 2, Instr., Feb. 7, 1938]

authority, through a power of attorney, § 400.1009 Definitions.

with a member of its organization specif

ically designated to perform such work, That there may be no misunderstand- thereby definitely fixing the responsiing the following definitions are to be bility for publishing, posting, and filing followed in the preparation of the sched- schedules on behalf of the grantee. The ules:

granting of such authority to a specifi(a) Grantee. The term "grantee" cally designated person would ratify and means a corporation to which the privi- confirm the lawful action of such an lege of establishing, operating, and main- agent of the grantee with respect to the taining a foreign-trade zone has been responsibility imposed by law in connec

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