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] § 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 merchandise,

(4) Non-privileged chandise, or

domestic mer

(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 purview 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 merchandise shall remain subject in the zone to

19 CFR Part 80.

such requirements as are necessary for the enforcement of section 562 and other pertinent customs laws.

[Order 29, 17 F. R. 5316, 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. 5317, 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 judgment is detrimental to the public interest, health, or safety.

(Sec. 15, 48 Stat. 1002; 19 U. S. 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

No

proval shall be accompanied by a sworn statement, subscribed to by the applicant before a duly authorized officer to administer oaths, setting forth in detail the nature of the retail trade to be conducted, and containing an agreement that such applicant will sell no goods, except of the kinds specifically authorized by the act, which are brought into the zone from customs territory. 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 immediately report such action to the Board.

(Sec. 15, 48 Stat. 1002; 19 U.S.C. 810) [Redesignated by Order 29, 17 F.R. 5316, June 11, 1952]

[Re

(Sec. 15, 48 Stat. 1002; 19 U.S.C. 810) designated by Order 29, 17 F.R. 5317, June 11, 1952]

§ 400.810 Employees and persons entering and leaving zone.

Employees and other persons entering or leaving a zone shall pass through the designated entrances and exits in the enclosure surrounding 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 departing 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 entering and leaving a zone as the collector may deem necessary for the protection of the revenue.

All persons on duty within, and in connection with the operation of, a zone, with the exception of Federal employees and uniformed employees of the zone shall be required while within the zone to carry identification cards or wear appropriate identification badges to be provided by the operator of the zone. [Redesignated by Order 29, 17 F. R. 5317, June 11, 1952]

§ 400.813 Hours of business and service. Hours of business and service, for customs purposes, shall be the same as those prescribed in Customs regulations. (19 CFR Chapter 1)

[Order 29, 17 F. R. 5317, June 11, 1952]

§ 400.814 Payment of customs officers and employees.

(a) The cost of maintaining the customs service in a zone shall be paid monthly by the grantee of such zone to the District Director of Customs.

(b) Customs officers and employees performing services in a zone at night, or on Sundays and holidays, shall receive extra compensation, to be computed as and under the conditions prescribed by Customs regulations.

(c) For the purpose of computing extra compensation the word "night" shall be construed to mean the time from 5:00 p. m. to 8:00 a. m. and the word "holiday" shall include only national holidays, viz., January 1, February 22, May 30, July 4, the first Monday in September, November 11, the fourth Thursday in November, and December 25, and such other days as may be made national holidays.

(d) In a zone at a port where customary working hours are other than those herein mentioned, the District Director of Customs is authorized to regulate the hours of customs officers and employees assigned to the zone so as to agree with prevailing working hours in said port, but nothing herein shall be construed in any manner to affect or alter the length of a working day for customs

officers or employees, or the overtime pay. [Order 29, 17 F.R. 5317, June 11, 1952, as amended by Order 74, 32 F.R. 13714, Sept. 30, 1967]

§ 400.815

Erection of buildings within zone by persons other than grantee. The grantee may, with the approval of the Board, and under reasonable and uniform regulations for like conditions and circumstances to be prescribed by it, permit other persons, firms, corporations, or associations to erect such buildings and other structures within the zone as will meet their particular requirement: Provided, (a) That such permission shall not constitute a vested right as against the United States, nor interfere with the regulation of the grantee or the permittee by the United States, nor interfere with or complicate the revocation of the grant by the United States; (b) that in the event of the United States or the grantee desiring to acquire the property of the permittee, no good will shall be considered as accruing from the privilege granted to the zone; and (c) that such permits shall not be granted on terms that conflict with the public use of the zone as set forth in the act: And provided further, That accepted sanitary practices be followed in the construction, equipment, and operation of such buildings and other structures.

§ 400.900

MAINTENANCE OF ZONE

Structures and facilities to be maintained in good order.

The grantee shall at all times maintain the structures and other facilities within the zone in good condition and so as not to endanger the life and health of employees of the United States and others who may be required to enter the zone.

§ 400.901 Penalty for failure to make repairs or alterations.

Should the grantee fail to make such repairs or alterations as may be ordered by the Board, action will be taken as provided in §§ 400.1200-400.1203.

ADMINISTRATION OF ZONE

§ 400.1000 Operation, maintenance and

administration.

The zone shall be operated, maintained, and administered by the grantee under (a) the supervision, direction, and

control of the Board in accordance with the provisions of the act and the regulations of the Board in this part, (b) the regulations relating to foreign-trade zones of the Bureau of Customs for the protection of the revenue (19 CFR Part 30) and any other law, regulation, or instruction the Customs Service is required or authorized to enforce, (c) such other applicable laws and regulations thereunder of other Federal agencies, and (d) the regulations and schedules of rates and charges made and fixed by the grantee and approved by the Board. The District Director of Customs in whose district the zone is located shall, in addition to his duties as District Director of Customs, be in local charge of the zone as the resident representative of the Board. He may call upon the district engineer and local representatives of other governmental departments and agencies for advice in matters of operation, maintenance, and administration.

[Order 29, 17 F.R. 5317, June 11, 1952, as amended by Order 74, 32 F.R. 13714, Sept. 30, 1967]

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

The grantee shall, before beginning operation of a zone submit to the Board its own rules, regulations, and practices for the operation of the zone, subject to disapproval of the Board. There shall be posted in a conspicuous place within the zone copies of the regulations issued by the Board and the approved regulations of the grantee, or of such extracts from either or both of such regulations as the Board may designate. [Order 29, 17 F. R. 5317, June 11, 1952]

§ 400.1002 Grantee's reports to Board.

Each grantee shall make to the Board annually, and at such other times as the Board may prescribe, reports containing a full statement of the operations, receipts, expenditures, and such other information as the Board may require. After the establishment of a zone, the Board will prescribe the form and manner of keeping the accounts. (Sec. 16, 48 Stat. 1002; 19 U.S.C. 81p) § 400.1002a Uniform system of counts, records, and reports. Every grantee of a zone shall keep its books, records, and accounts in the form and manner prescribed in "Uniform Sys

ac

tem of Accounts, Records, and Reports", approved February 6, 1939.

[Order 29, 17 F. R. 5317, June 11, 1952]

NOTE: The Executive Director of ForeignTrade Zones Operations may, from time to time, upon appropriate notice, modify the requirements as set forth in Part "B" of the Uniform System of Accounts, Records, and Reports for the annual reports of the Zone Grantees as necessary to eliminate duplication of information separately required for Customs purposes and so as to minimize the cost of complying with such requirements. [Order 88, 20 F. R. 1130, Feb. 24, 1955] § 400.1003 Zones to be operated as public utilities.

(a) All rates and charges for all services or privileges within the zone shall be fair and reasonable, and the grantee shall afford to all who may apply for the use of the zone and its facilities and appurtenances uniform treatment under like conditions, subject to such treaties or commercial conventions as are now in force or may hereafter be made from time to time by the United States with foreign governments.

(b) Schedules containing all the rates and charges shall be published, posted, and filled with, and subject to the approval of the Board. Full instructions concerning the publication, posting, and filing of such schedules will be issued by the Board. One copy of each tariff required to be filed with any State regulatory body shall also be filled with the Board.

(c) Where applicable, the operator of the zone will remain subject to the requirements of the Shipping Act, 1916, as amended (39 Stat. 728, as amended; 46 U. S. C., Chapters 23, 24, 24A, 27) and to the provisions of the Interstate Commerce Act (24 Stat. 379, as amended; 49 U. S. C.).

(Sec. 14, 48 Stat. 1001; 19 U.S.C. 8in) § 400.1004 Inspection of zones.

Representatives of the Board will inspect, from time to time, the operations of the zones for the purpose of informing the Board whether the provisions of the act and the regulations in this part are being met. The operators of the zones. shall comply fully with the requirements of such representatives, and make available to them such records and reports as the representatives may find necessary for a proper and thorough inspection of zone activities.

See 400.1007-400.1018.

§ 400.1005 Separability of regulations

in event of invalidity.

If any provision of the regulations in this part, or the application thereof to any person or circumstances, be held invalid, the remainder of the regulations in this part and their application to other persons or circumstances shall not be affected thereby.

§ 400.1006 Changes in regulations.

Regulations issued pursuant to the provisions of the act may be amended, supplemented, suspended or revoked, from time to time, as may be deemed necessary. Regulations shall not be construed as conferring privileges or interests which may not be adversely affected by subsequent regulations or by any changes whatsoever in existing regulations.

[Order 17, 14 F. R. 8671, July 2, 1949]

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

granted, in accordance with the ForeignTrade Zones Act of June 18, 1934, as amended (48 Stat. 998-1003; 19 U. S. C. 81n).

(b) Schedule. The term "schedule" means a publication stating rates and charges of a foreign-trade zone, and all rules and regulations applying in connection therewith and to general operating procedure.

(c) Publication. Should be construed as the act of constructing, or compiling and publishing a schedule which will include all pertinent information in connection with the rates, charges, rules, and regulations applicable thereto within a foreign-trade zone, and also such other schedules as may be inaugurated from time to time.

(d) Posting. Should be construed as the act of posting all effective schedules within a foreign-trade zone, and the general offices of the grantee, in such a manner that they will be accessible to the public, and can be conveniently inspected. Requests may originate from the public for copies of effective schedules, and this also comes under the general heading of "posting" as such requests should be complied with to every reasonable degree.

(e) Filing. All schedules must be filed with the Foreign-Trade Zones Board and such other States or Federal regulating bodies as may subsequently exercise any jurisdiction in connection with the operation of foreign-trade zones. All original schedules so filed are, of course, considered as the effective schedules, unless otherwise cancelled or revised.

[Par. 3, Instr., Feb. 7, 1988]

§ 400.1010 Designation of agent for issuance of schedules.

(a) The obligation to compile and publish, post and file schedules naming rates, charges, rules and regulations, applying at foreign-trade zones is a direct responsibility of the grantee. The grantee should place such obligation and authority, through a power of attorney, with a member of its organization specifically designated to perform such work, thereby definitely fixing the responsibility for publishing, posting, and filing schedules on behalf of the grantee. The granting of such authority to a specifically designated person would ratify and confirm the lawful action of such an agent of the grantee with respect to the responsibility imposed by law in connec