The requirements of the regulation shall not apply to―

(a) Articles imported by or for the account of any agency of the U.S. Government.

(b) Articles with an aggregate value not over $10 in any shipment, if imported as samples for taking orders, for the personal use of the importer, or for research.

(c) Articles imported for exhibition, display, or sampling at a trade fair, or for research, if written approval of the Licensing Authority is obtained.

§ 6.24 Applications for licenses.

Applications to the Licensing Authority for the issuance of licenses to import articles shall be addressed to the Chief, Import Branch, Foreign Agricultural Service, U.S. Department of Agriculture, Washington, D.C. 20250, Ref. IR-1 (Agricultural Imports). Each application must state the article (including type thereof in the case of cheese), the country of origin from which importation is to be made, and the port or ports of entry at which importations are to be made.

(a) Historical eligibility. Any person shall be eligible for a license to import a quota share of any article who imported such article during the specified base period or has been recognized by the Licensing Authority as a successor-ininterest of such person: Provided, That any person shall be eligible for a license to import from New Zealand a quota share of cheese subject to the quota provided for in TSUS 950.10D if such person was by reason of base period imports, a licensee in the first 6 months of the 1969 quota year for the importation from New Zealand of cheese subject to the quotas provided for in TSUS Items 950.08A and 950.08B (Cheddar and American cheese other than Cheddar). Eligibility shall be established upon the submission of evidence, satisfactory to the Licensing Authority, of such importations and that such person is actively operating an indi

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vidual business of importing such article.

(b) Nonhistorical eligibility. (b) (1) Any person who is not eligible under paragraph (a) of this section to receive a license to import a particular article listed in Groups II through VI of appendix I and who meets the requirements of this paragraph shall be eligible to obtain a license to import a quota share of such article for which nonhistorical set-asides have been established as shown in appendix 1, except that a person may establish such eligibility for only one of the types of cheese listed under Group II of the appendix. Eligibility shall be established upon submission of (1) evidence satisfactory to the Licensing Authority that such person during the quota year preceding that for which application for license is made, was and continues to be actively engaged in the commercial importation in his own name of cheese or cheese products, and (2) a certification by such person that he is not a part of or an affiliate of the business of any other person eligible for an import license for the cheese for which application for license is made and is not an officer, member, partner, associate, or employee of such business.

(2) Any person who is not eligible under paragraph (a) of this section to receive a license to import chocolate provided for in Group VII of appendix I shall be eligible to obtain a license to import a quota share thereof upon submission of (i) evidence satisfactory to the Licensing Authority that such person, during the quota year preceding that for which application is made, imported for commercial processing chocolate provided for in items 156.25 or 156.47 of part 10, schedule 1, of the Tariff Schedules of the United States and (ii) a certification by such person that he is not a part of or an affiliate of the business of any other person eligible for an import license for chocolate provided for in Group VII of appendix I and is not an officer, member, partner, associate, or employee of such business.

(c) Establishment of eligibility. Evidence required to establish the eligibility of a person making application to receive an article must be received and approved by the licensing authority no later than 30 days preceding the quota year for which the license to import such commodity is first requested, except as may otherwise be provided by notice published in the FEDERAL REGISTER or approved by the Administrator for good cause shown.

(d) Continuation of eligibility. The eligibility of a person to receive a license to import a quota share of any article established under the regulation will be continued for subsequent quota years unless suspended or revoked pursuant to § 6.29.

(e) Transfer of eligibility. Upon receipt of evidence acceptable to the Licensing Authority that the entire dairy products and milk chocolate crumb business of a person who has established eligibility for a quota share has been sold or otherwise transferred to a person who is assuming the operation of the entire business involving dairy products and milk chocolate crumb, the Licensing Authority will recognize the successorin-interest as having eligibility for such quota share: Provided, however, That, in the event of the merger of the businesses of two or more persons, the successor-ininterest, with the historical eligibility of all persons for whom he is successor-ininterest, shall be considered only as one person for the purpose of determining eligibility for non-historical quota shares. [34 F.R. 9743, June 24, 1969, as amended by Amdt. 1, 34 F.R. 18895, Nov. 27, 1969]

§ 6.26 Allocation of annual quota and

issuance of licenses.

(2) A quota share may not be less than 2,500 pounds and may be imported from only one country of origin, Provided, That such limitation shall not be applicable to a quota share for which 1969 quota year eligibility was established.

(3) Beginning with the 1970 quota year no new applications for nonhistorical licenses will be accepted for an article listed in Group II or for an article listed in Groups III, IV, V, VI, and VII to be imported from a specified country, if such acceptance would result in quota shares of less than 2,500 pounds.

(4) Subject to (i), (ii), and (iii) the amount set aside for nonhistorical licensees shall be allocated proportionately among eligible applicants for such licenses. Any amounts unallocated on this basis shall be made available for distribution to historical licensees.

(b) Historical licensees. The annual quota amounts, less the quantities allocated to nonhistorical licensees, shall be allocated among historical eligible applicants on the basis of their average imports during the respective base periods as shown in appendix 1, Provided, That the annual quota quantity for cheese from New Zealand specified in TSUS Item 950 10D, less the quantity allocated for nonhistorical licensees, shall be allocated first to historical licensees in an amount equivalent to that net total quantity of cheese for which they formerly received licenses and for which they are no longer eligible due to the elimination of the 30 percent rule previously provided in section 6.26, Revision 4 of the regulation, and the remainder of such quota shall be allocated among eligible applicants therefor (as provided in § 6.25) on the basis of their historical licensed quota shares of cheese from New Zealand subject to the quotas provided for in TSUS Items 950.08A and 950.08B (Cheddar and American cheese other than Cheddar). The quantity of an article imported during the base period by a person who is not as of the beginning of a quota year actively operating an independent business of importing such articles shall, for the purpose of determining the quota shares of eligible applicants, be deemed to have been imported by his successor-in-interest, if any, to whom such business has been sold or otherwise transferred (which transfer has been recognized by the licensing authority) and who is actively operating such business as of the beginning of the quota year.

(c) Reduction of quota share. The quota share of a person or firm, who has imported during each of the preceding 2 quóta years less than 85 percent of his authorized quota share, shall be reduced in the following quota year to 110 percent of his average imports during the preceding 3 quota years, unless the licensee establishes that he was unable to import the quota share either due to the lack of supply in the country of origin or other reasons acceptable to the licensing authority: Provided, (1) That once such reduced quota share has been established the quota share of the licensee in each of the following quota years shall be no less than 110 percent of his imports during the quota year immediately preceding; (2) Thát a reduced quota share of an article shall not be less than one-half of the initial maximum nonhistorical quota share for that article except that such minimum shall not apply in case of further failures to import the quota share; (3) That once a reduced quota share has again reached 85 percent of the average of the quota shares during the quota years on which the reduced quota share was based, the original quota base shall be reestablished.

(d) Licenses. (1) Annual basis. Licenses to import quota shares of articles, other than cheese and milk chocolate crumb, may be issued on an annual basis.

(2) Semiannual basis. In the absence of specific circumstances which the licensing authority determines would warrant an annual quota share license, quota shares of cheese and milk chocolate crumb shall be divided into two parts, as nearly equal as practicable, each to be covered by a license valid on the first day of the first and seventh month of each calendar year: Provided, That licenses shall not be issued which would permit the importation of any such article during the first 6 months of the quota year in excess of one-half the annual quota therefor.

(e) Advance against next period license. Notwithstanding any other provision herein, any person eligible for a license to import a quota share of any article may be given an advance against his next period license in order to permit him to import an additional quantity of such article upon a determination by the licensing authority that not to grant the advance against his next period li

[34 F.R. 9743, June 24, 1969, as amended by Amdt. 1, 34 F.R. 18896, Nov. 27, 1969] 8.6.27 Use of licenses.

(a) The article imported must be a product of the country of origin specified in the license under which it is entered. (b) Notwithstanding any other rules, regulations, or procedures for the importation of goods, the article entered under license shall be accompanied by a through bill of lading from the country of origin named in the license and may be entered or withdrawn from warehouse only in the name of the licensee either by him or by his agent acting in the licensee's name under power of attorney, and the quantity so entered must be charged against the license in effect on the date of entry.

(c) In the event of a sale in transit, an article may be entered as a consumption entry under a license issued to an authorized person to whom the sale has been made against a properly endorsed through bill of lading and a certified copy of the bill of sale from the original consignee showing the amount paid and the date of purchase;

(d) In the event of the loss of the original through bill of lading, an article may be entered as a consumption entry under a license issued to the authorized person named as consignee on a carrier's certificate which certifies the shipment is a through shipment;

(e) An article may be entered as a warehouse entry under bond only in the manner prescribed above for consumption entries. Withdrawal of goods from bond may be made only under license issued to the authorized person who made the entry; or, in the event of a sale in bond, under license issued to an authorized person or firm to whom the sale has been made and only upon the presentation of a properly endorsed Customs Form 7505 and a certified copy of the bill of sale, showing the amount and date of sale.

(f) Consolidated entries or withdrawals from bond may not be made except with the written approval of the licensing authority.

(g) Entries or withdrawals from bond may be made only at the port of entry designated on the license, except when the licensing authority has, upon prior request of the licensee, authorized entry at another port.

(h) Each entry or withdrawal from bonded warehouse for consumption must be accompanied by a copy of Customs entry Form 7501 or Customs warehouse withdrawal Form 7505. The Bureau of Customs will stamp the copy with the "duty paid" stamp, the date of entry and the Customs entry or withdrawal number and submit it to the Import Branch.

§ 6.28 Records and inspection.

Any person making an importation, except as provided in § 6.23 of an article listed in appendix 1 shall retain all records, including invoices, of all purchases, entries, withdrawals, sales, and deliveries of such articles for a period of not less than 2 years subsequent to the end of the quota year during which importation was made. The licensing authority or his designee shall be entitled to make such audit and inspection of such records, to inspect the premises and stocks of articles of such person, and to make such other investigations as may be necessary or appropriate in the enforcement or administration of the regulation.

§ 6.29 Suspension or revocation of eligibility.

(a) Failure to import quota share. (1) The eligibility of a person for a quota share of an article shall, upon his failure to import any of such article in any quota year, be suspended for the following quota year unless application to receive a license to import such article is received and approved by the licensing authority no later than 6 months after the beginning of such following quota year.

(2) The eligibility of a person for a quota share of an article shall, upon his failure to import any of such article during 2 consecutive quota years be revoked unless the licensee establishes that he was unable to import such article due to reasons acceptable to the licensing authority.

(b) Violation of regulations — (1) Charge against licenses. Any quantity of an article imported by any person contrary to this regulation may be charged against any unused import license held by, or to be issued to, such person for such article.

(2) Civil and criminal liability. Any person who violates any provision of the regulation may be prosecuted under any and all applicable laws. Civil action may also be instituted to enforce any liability or duty created by, or enjoin any violation of any provision of the regulation or requirements pursuant hereto.

(3) Withholding of licenses. The Administrator, Foreign Agricultural Service, upon reasonable cause to believe that a licensee has violated the provisions of the regulation or has furnished false or incomplete information in connection therewith, may, after notice to the licensee, withhold for a period of not to exceed 6 months, the issuance of further licenses to the licensee for a quota share of an article.

(4) Suspension and revocation. The Administrator, Foreign Agricultural Service, may suspend or revoke the eligibility of a person for a quota share of an article or article upon written notice to such person and with opportunity for a hearing, if he determines on the basis of information available to him and the records of the administrative hearing, if one is held, that such person has violated the provisions of the regulation or has furnished false or incomplete information in connection therewith.

§ 6.30 Delegation of authority.

(a) The administration of the regulation is vested in the Administrator, Foreign Agricultural Service, or his designee, who may promulgate interpretative rules and procedures and issue statements of policy which he determines necessary for the efficient administration thereof, taking due account of any special factors which may have affected or may be affecting the trade in the article. This authority may include transfer of quota shares to other countries of origin but may not permit the total quantity of any article to be imported in excess of the quota therefor.

(b) The powers vested in the Administrator, FAS, insofar as such powers relate to the functions vested in the licensing authority by the regulation are hereby delegated to the licensing authority.

spect to violations, rights accrued, liabilities incurred, or appeals taken concerning Import Regulations, as amended and revised, prior to the effective date hereof, all provisions of said Import Regulation 1, as amended and as revised, in effect at the time when

such violations occurred, rights accrued, liabilities incurred, or appeals taken shall be deemed to continue in full force and effect for the purpose of sustaining any proper suit, action, or other proceeding with respect to any such violation, right, liability, or appeal.

Group I:

Articles by TSUS item numbers

(a) Butter (Item 950.05).

New Zealand..

Denmark.

Ireland..

Netherlands..

Norway.

West Germany.

Other countries.

Group V:3

Swiss or Emmenthaler cheese with eye formation; Gruyere-process cheese; and cheese and substitutes for cheese containing, or processed from, such cheese; all the foregoing, if shipped otherwise than in pursuance to a purchase, or if having a purchase price under 47 cents per pound.

See footnotes at end of table.