{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where part_number = 400 sorted by section_id", "rows": [["14:14:4.0.2.7.1.0.24.1", 14, "Aeronautics and Space", "III", "A", "400", "PART 400\u2014BASIS AND SCOPE", "", "", "", "\u00a7 400.1 Basis.", "FAA", "", "", "", "The basis for the regulations in this chapter is the Commercial Space Launch Act of 1984, and applicable treaties and international agreements to which the United States is party."], ["14:14:4.0.2.7.1.0.24.2", 14, "Aeronautics and Space", "III", "A", "400", "PART 400\u2014BASIS AND SCOPE", "", "", "", "\u00a7 400.2 Scope.", "FAA", "", "", "[Doc. No. FAA-2012-0045, 80 FR 31834, June 4, 2015]", "The regulations in this chapter set forth the procedures and requirements applicable to the authorization and supervision under 51 U.S.C. subtitle V, chapter 509, of commercial space transportation activities conducted in the United States or by a U.S. citizen. The regulations in this chapter do not apply to\u2014\n\n(a) Space activities carried out by the United States Government on behalf of the United States Government;\n\n(b) The launch of an amateur rocket as defined in \u00a7 1.1 of chapter I of this title; or\n\n(c) A launch of a tethered launch vehicle that meets all the following criteria:\n\n(1)  Launch vehicle.  The launch vehicle must\u2014\n\n(i) Be unmanned;\n\n(ii) Be powered by a liquid or hybrid rocket motor;\n\n(iii) Not use any of the toxic propellants of Table I417-2 and Table I417-3 in Appendix I of part 417 of this chapter; and\n\n(iv) Carry no more than 5,000 pounds of propellant.\n\n(2)  Tether system.  The tether system must\u2014\n\n(i) Not yield or fail under\u2014\n\n(A) The maximum dynamic load on the system; or\n\n(B) A load equivalent to two times the maximum potential engine thrust.\n\n(ii) Have a minimum safety factor of 3.0 for yield stress and 5.0 for ultimate stress.\n\n(iii) Constrain the launch vehicle within 75 feet above ground level as measured from the ground to the attachment point of the vehicle to the tether.\n\n(iv) Display no damage prior to the launch.\n\n(v) Be insulated or located such that it will not experience thermal damage due to the launch vehicle's exhaust.\n\n(3)  Separation distances.  The launch operator must separate its launch from the public and the property of the public by a distance no less than that provided for each quantity of propellant listed in Table A of this section.\n\nTable A\u2014Separation Distances for Tethered Launches"], ["15:15:2.1.2.2.1.1.1.1", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "A", "Subpart A\u2014Scope, Definitions and Authority", "", "\u00a7 400.1 Scope.", "FTZ", "", "", "", "(a) This part sets forth the regulations, including the rules of practice and procedure, of the Foreign-Trade Zones Board with regard to foreign-trade zones (FTZs or zones) in the United States pursuant to the Foreign-Trade Zones Act of 1934, as amended (19 U.S.C. 81a-81u). It includes the substantive and procedural rules for the authorization of zones and for the Board's regulation of zone activity. The purpose of zones as stated in the Act is to \u201cexpedite and encourage foreign commerce, and other purposes.\u201d The regulations provide the legal framework for accomplishing this purpose in the context of evolving U.S. economic and trade policy, and economic factors relating to international competition.\n\n(b) Part 146 of the customs regulations (19 CFR part 146) governs zone operations, including the admission of merchandise into zones, zone activity involving such merchandise, and the transfer of merchandise from zones.\n\n(c) To the extent zones are \u201cactivated\u201d under U.S. Customs and Border Protection (CBP) procedures in 19 CFR part 146, and only for the purposes specified in the Act (19 U.S.C. 81c), zones are treated for purposes of the tariff laws and customs entry procedures as being outside the customs territory of the United States. Under zone procedures, foreign and domestic merchandise may be admitted into zones for operations such as storage, exhibition, assembly, manufacture and processing, without being subject to formal customs entry procedures and payment of duties, unless and until the foreign merchandise enters customs territory for domestic consumption. At that time, the importer ordinarily has a choice of paying duties either at the rate applicable to the foreign material in its condition as admitted into a zone, or if used in production activity, to the emerging product. Quota restrictions do not normally apply to foreign goods in zones. The Board can deny or limit the use of zone procedures in specific cases on public interest grounds. Merchandise moved into zones for export (zone-restricted status) may be considered exported for purposes such as federal excise tax rebates and customs drawback. Foreign merchandise (tangible personal property) admitted to a zone and domestic merchandise held in a zone for exportation are exempt from certain state and local  ad valorem  taxes (19 U.S.C. 81o(e)). Articles admitted into zones for purposes not specified in the Act shall be subject to the tariff laws and regular entry procedures, including the payment of applicable duties, taxes, and fees."], ["15:15:2.1.2.2.1.1.1.2", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "A", "Subpart A\u2014Scope, Definitions and Authority", "", "\u00a7 400.2 Definitions.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8527, Feb. 8, 2024]", "(a)  Act  means the Foreign-Trade Zones Act of 1934, as amended (19 U.S.C. 81a-81u).\n\n(b)  Activation limit  is the size of the physical area of a particular zone or subzone authorized by the Board to be simultaneously in activated status with CBP pursuant to 19 CFR 146.6. The activation limit for a particular zone/subzone is a figure explicitly specified by the Board in authorizing the zone (commonly 2,000 acres) or subzone or, in the absence of a specified figure, the total of the sizes of the approved sites of the zone/subzone.\n\n(c)  Alternative site framework  (ASF) is an optional approach to designation and management of zone sites allowing greater flexibility and responsiveness to serve single-operator/user locations. The ASF was adopted by the Board as a matter of practice in December 2008 (74 FR 1170, January 12, 2009; correction 74 FR 3987, January 22, 2009) and modified by the Board in November 2010 (75 FR 71069, November 22, 2010).\n\n(d)  Board  means the Foreign-Trade Zones Board, which consists of the Secretary of the Department of Commerce (chairman) and the Secretary of the Treasury, or their designated alternates.\n\n(e)  Board Order  is a type of document that indicates a final decision of the Board. Board Orders are generally published in the  Federal Register  after issuance.\n\n(f)  CBP  means U.S. Customs and Border Protection.\n\n(g)  Executive Secretary  is the Executive Secretary of the Foreign-Trade Zones Board.\n\n(h)  Foreign-trade zone  (FTZ or zone) includes all sites/subzones designated under the sponsorship of a zone grantee, in or adjacent (as defined by \u00a7 400.11(b)(2)) to a CBP port of entry, operated as a public utility (within the meaning of \u00a7 400.42), with zone operations under the supervision of CBP.\n\n(i)  Grant of authority  is a document issued by the Board that authorizes a zone grantee to establish, operate and maintain a zone, subject to limitations and conditions specified in this part and in 19 CFR part 146. The authority to establish a zone includes the responsibility to manage it.\n\n(j)  Magnet site  means a site intended to serve or attract multiple operators or users under the ASF.\n\n(k)  Modification:  A major modification is a proposed change to a zone that requires action by the FTZ Board; a minor modification is a proposed change to a zone that may be authorized by the Executive Secretary.\n\n(l)  Person  includes any individual, corporation, or entity.\n\n(m)  Port of entry  means a port of entry in the United States, as defined by part 101 of the customs regulations (19 CFR part 101), or a user fee airport authorized under 19 U.S.C. 58b and listed in part 122 of the customs regulations (19 CFR part 122).\n\n(n)  Private corporation  means any corporation, other than a public corporation, which is organized for the purpose of establishing, operating and maintaining a zone and which is chartered for this purpose under a law of the state in which the zone is located.\n\n(o)  Production,  as used in this part, means activity involving the substantial transformation of a foreign article resulting in a new and different article having a different name, character, and use, or activity involving a change in the condition of the article which results in a change in the customs classification of the article or in its eligibility for entry for consumption.\n\n(p)  Public corporation  means a state, a political subdivision (including a municipality) or public agency thereof, or a corporate municipal instrumentality of one or more states.\n\n(q)  Service area  means the jurisdiction(s) within which a grantee proposes to be able to designate sites via minor boundary modifications under the ASF.\n\n(r)  State  includes any state of the United States, the District of Columbia, and Puerto Rico.\n\n(s)  Subzone  means a site (or group of sites) established for a specific use.\n\n(t)  Usage-driven site  means a site established for a single operator or user under the ASF.\n\n(u)  Zone grantee  is the corporate recipient of a grant of authority for a zone. Where used in this part, the term \u201cgrantee\u201d means \u201czone grantee\u201d unless otherwise indicated.\n\n(v)  Zone operator  is a person that operates within a zone or subzone under the terms of an agreement with the zone grantee (or third party on behalf of the grantee), with the concurrence of CBP.\n\n(w)  Zone participant  is a current or prospective zone operator, zone user, or property owner.\n\n(x)  Zone plan  includes all the zone sites that a single grantee is authorized to establish.\n\n(y)  Zone site  (site) means a physical location of a zone or subzone. A site is composed of one or more generally contiguous parcels of land organized and functioning as an integrated unit, such as all or part of an industrial park or airport facility.\n\n(z)  Zone user  is a party using a zone under agreement with a zone operator."], ["15:15:2.1.2.2.1.1.1.3", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "A", "Subpart A\u2014Scope, Definitions and Authority", "", "\u00a7 400.3 Authority of the Board.", "FTZ", "", "", "", "(a)  In general.  In accordance with the Act and procedures of this part, the Board has authority to:\n\n(1) Prescribe rules and regulations concerning zones;\n\n(2) Issue grants of authority for zones, and approve subzones and modifications to the original zone;\n\n(3) Authorize production activity in zones and subzones as described in this part;\n\n(4) Make determinations on matters requiring Board decisions under this part;\n\n(5) Decide appeals in regard to certain decisions of the Commerce Department's Assistant Secretary for Enforcement and Compliance or the Executive Secretary;\n\n(6) Inspect the premises, operations and accounts of zone grantees, operators and users (and persons undertaking zone-related functions on behalf of grantees, where applicable);\n\n(7) Require zone grantees and operators to report on zone operations;\n\n(8) Report annually to the Congress on zone operations;\n\n(9) Restrict or prohibit zone operations;\n\n(10) Terminate reviews of applications under certain circumstances pursuant to \u00a7 400.36(g);\n\n(11) Authorize under certain circumstances the entry of \u201czone-restricted merchandise\u201d (19 CFR 146.44) into the customs territory pursuant to \u00a7 400.48;\n\n(12) Impose fines for violations of the Act and this part;\n\n(13) Instruct CBP to suspend activated status pursuant to \u00a7 400.62(h);\n\n(14) Revoke grants of authority for cause;\n\n(15) Determine, as appropriate, whether zone activity is or would be in the public interest or detrimental to the public interest, health or safety; and\n\n(16) Issue and discontinue waivers pursuant to \u00a7 400.43(f).\n\n(b)  Authority of the Chairman of the Board.  The Chairman of the Board (Secretary of the Department of Commerce) has the authority to:\n\n(1) Appoint the Executive Secretary of the Board;\n\n(2) Call meetings of the Board, with reasonable notice given to each member; and\n\n(3) Submit to the Congress the Board's annual report as prepared by the Executive Secretary.\n\n(c)  Alternates.  Each member of the Board shall designate an alternate with authority to act in an official capacity for that member.\n\n(d)  Authority of the Assistant Secretary for Enforcement and Compliance (Alternate Chairman).  The Commerce Department's Assistant Secretary for Enforcement and Compliance has the authority to:\n\n(1) Terminate reviews of applications under certain circumstances pursuant to \u00a7 400.36(g);\n\n(2) Mitigate and assess fines pursuant to \u00a7\u00a7 400.62(e) and (f) and instruct CBP to suspend activated status pursuant to \u00a7 400.62(h); and\n\n(3) Restrict the use of zone procedures under certain circumstances pursuant to \u00a7 400.49(c).\n\n(e)  Determinations of the Board.  Determinations of the Board shall be by the unanimous vote of the members (or alternate members) of the Board, which shall be recorded."], ["15:15:2.1.2.2.1.1.1.4", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "A", "Subpart A\u2014Scope, Definitions and Authority", "", "\u00a7 400.4 Authority and responsibilities of the Executive Secretary.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8527, Feb. 8, 2024]", "The Executive Secretary has the following responsibilities and authority:\n\n(a) Represent the Board in administrative, regulatory, operational, and public affairs matters;\n\n(b) Serve as director of the Commerce Department's Foreign-Trade Zones staff;\n\n(c) Execute and implement orders of the Board;\n\n(d) Arrange meetings and direct circulation of action documents for the Board;\n\n(e) Arrange with other sections of the Department of Commerce and other governmental agencies for studies and comments on zone issues and proposals;\n\n(f) Maintain custody of the seal, records, files and correspondence of the Board, with disposition subject to the regulations of the Department of Commerce;\n\n(g) Issue notices on zone matters for publication in the  Federal Register ;\n\n(h) Direct processing of applications and reviews, including designation of examiners and scheduling of hearings, under various sections of this part;\n\n(i) Make determinations on questions pertaining to grantees' applications for subzones as provided in \u00a7 400.12(d);\n\n(j) Make recommendations in cases involving questions as to whether zone activity should be prohibited or restricted for public interest reasons, including proceedings and reviews under \u00a7 400.5;\n\n(k) Determine questions of scope under \u00a7 400.14(d);\n\n(l) Determine whether additional information is needed for evaluation of applications and other requests for decisions under this part, as provided for in various sections of this part, including \u00a7\u00a7 400.21-400.25;\n\n(m) Issue instructions, guidelines, forms and related documents specifying time, place, manner and formats for applications, notifications, application fees and zone schedules in various sections of this part, including \u00a7\u00a7 400.21(b), 400.29, 400.43(f), and 400.44;\n\n(n) Determine whether proposed modifications are major modifications or minor modifications under \u00a7 400.24(a)(2);\n\n(o) Determine whether applications meet pre-docketing requirements under \u00a7 400.31(b);\n\n(p) Terminate reviews of applications under certain circumstances pursuant to \u00a7 400.36(g);\n\n(q) Authorize minor modifications to zones under \u00a7 400.38, commencement of production activity under \u00a7 400.37(d) and subzone designation under \u00a7 400.36(f);\n\n(r) Review notifications for production authority under \u00a7 400.37;\n\n(s) Direct monitoring and reviews of zone operations and activity under \u00a7 400.49;\n\n(t) Review zone schedules and determine their sufficiency under \u00a7 400.44(c);\n\n(u) Assess potential issues and make recommendations pertaining to uniform treatment under \u00a7 400.43 and review and decide complaint cases under \u00a7 400.45;\n\n(v) Make certain determinations and authorizations pertaining to retail trade under \u00a7 400.47;\n\n(w) Authorize under certain circumstances the entry of \u201czone-restricted merchandise\u201d into the customs territory under \u00a7 400.48;\n\n(x) Determine the format and deadlines for the annual reports of zone grantees to the Board and direct preparation of an annual report from the Board to Congress under \u00a7 400.51(c);\n\n(y) Make recommendations and certain determinations regarding violations and fines, and undertake certain procedures related to the suspension of activated status, as provided in \u00a7 400.62; and\n\n(z) Designate an acting Executive Secretary."], ["15:15:2.1.2.2.1.1.1.5", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "A", "Subpart A\u2014Scope, Definitions and Authority", "", "\u00a7 400.5 Authority to restrict or prohibit certain zone operations.", "FTZ", "", "", "", "The Board may conduct a proceeding, or the Executive Secretary a review, to consider a restriction or prohibition on zone activity. Such proceeding or review may be either self-initiated or in response to a complaint made to the Board by a person directly affected by the activity in question and showing good cause. After a proceeding or review, the Board may restrict or prohibit any admission of merchandise or process of treatment in an activated FTZ site when it determines that such activity is detrimental to the public interest, health or safety."], ["15:15:2.1.2.2.1.1.1.6", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "A", "Subpart A\u2014Scope, Definitions and Authority", "", "\u00a7 400.6 Board headquarters.", "FTZ", "", "", "", "The headquarters of the Board are located within the U.S. Department of Commerce (Herbert C. Hoover Building), 1401 Constitution Avenue NW., Washington, DC 20230, within the office of the Foreign-Trade Zones staff."], ["15:15:2.1.2.2.1.1.1.7", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "A", "Subpart A\u2014Scope, Definitions and Authority", "", "\u00a7 400.7 CBP officials as Board representatives.", "FTZ", "", "", "", "CBP officials with oversight responsibilities for a port of entry represent the Board with regard to the zones adjacent to the port of entry in question and are responsible for enforcement, including physical security and access requirements, as provided in 19 CFR part 146."], ["15:15:2.1.2.2.1.2.1.1", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "B", "Subpart B\u2014Ability To Establish Zone; Limitations and Restrictions on Authority Granted", "", "\u00a7 400.11 Number and location of zones and subzones.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8527, Feb. 8, 2024]", "(a)  Number of zones\u2014port of entry entitlement.  (1) Provided that the other requirements of this part are met:\n\n(i) Each port of entry is entitled to at least one zone;\n\n(ii) If a port of entry is located in more than one state, each of the states in which the port of entry is located is entitled to a zone; and\n\n(iii) If a port of entry is defined to include more than one city separated by a navigable waterway, each of the cities is entitled to a zone.\n\n(2) Applications pertaining to zones in addition to those approved under the entitlement provision of paragraph (a)(1) of this section may be approved by the Board if it determines that the existing zone(s) will not adequately serve the convenience of commerce.\n\n(b)  Location of zones and subzones\u2014port of entry adjacency requirements.  (1) The Board may approve \u201czones in or adjacent to ports of entry\u201d (19 U.S.C. 81b).\n\n(2) The \u201cadjacency\u201d requirement is satisfied if:\n\n(i) A zone site is located within 60 statute miles or 90 minutes' driving time (as determined or concurred upon by CBP) from the outer limits of a port of entry boundary as defined in 19 CFR 101.3.\n\n(ii) A subzone meets the following requirements relating to CBP supervision:\n\n(A) Proper CBP oversight can be accomplished with physical and electronic means;\n\n(B) All electronically produced records are maintained in a format compatible with the requirements of CBP for the duration of the record period; and\n\n(C) The operator agrees to present merchandise for examination at a CBP site selected by CBP when requested, and further agrees to present all necessary documents directly to the relevant CBP oversight office."], ["15:15:2.1.2.2.1.2.1.2", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "B", "Subpart B\u2014Ability To Establish Zone; Limitations and Restrictions on Authority Granted", "", "\u00a7 400.12 Eligible applicants.", "FTZ", "", "", "", "(a)  In general.  Subject to the other provisions of this section, public or private corporations may apply for grants of authority to establish zones. The Board shall give preference to public corporations.\n\n(b)  Public corporations and private non-profit corporations.  The eligibility of public corporations and private non-profit corporations to apply for a grant of authority shall be supported by enabling legislation of the legislature of the state in which the zone is to be located, indicating that the corporation, individually or as part of a class, is authorized to so apply. Any application must not be inconsistent with the charter or organizational papers of the applying entity.\n\n(c)  Private for-profit corporations.  The eligibility of private for-profit corporations to apply for a grant of authority shall be supported by a special act of the state legislature naming the applicant corporation and by evidence indicating that the corporation is chartered for the purpose of establishing a zone.\n\n(d)  Applicants for subzones (except pursuant to \u00a7 400.24(c)) \u2014(1)  Eligibility.  The following entities are eligible to apply to establish a subzone:\n\n(i) The grantee of the closest zone in the same state;\n\n(ii) The grantee of another zone in the same state, which is a public corporation (or a non-public corporation if no such other public corporation exists), if the Board, or the Executive Secretary, finds that such sponsorship better serves the public interest; or\n\n(iii) A state agency specifically authorized to submit such an application by an act of the state legislature.\n\n(2)  Notification of closest grantee.  If an application is submitted under paragraph (d)(1)(ii) or (iii) of this section, the Executive Secretary shall:\n\n(i) Notify, in writing, the grantee specified in paragraph (d)(1)(i) of this section, which may, within 30 days, object to such sponsorship, in writing, with supporting information as to why the public interest would be better served by its acting as sponsor;\n\n(ii) Review such objections prior to docketing the application to determine whether the proposed sponsorship is in the public interest, taking into account:\n\n(A) The objecting zone's structure and operation;\n\n(B) The views of state and local public agencies; and\n\n(C) The views of the proposed subzone operator;\n\n(iii) Notify the applicant and objecting zone in writing of the Executive Secretary's determination;\n\n(iv) If the Executive Secretary determines that the proposed sponsorship is in the public interest, docket the application (see \u00a7 400.63 regarding appeals of decisions of the Executive Secretary)."], ["15:15:2.1.2.2.1.2.1.3", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "B", "Subpart B\u2014Ability To Establish Zone; Limitations and Restrictions on Authority Granted", "", "\u00a7 400.13 General conditions, prohibitions and restrictions applicable to authorized zones.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8527, Feb. 8, 2024]", "(a)  In general.  Grants of authority issued by the Board for the establishment of zones and any authority subsequently approved for such zones, including those already issued, are subject to the Act and this part and the following general conditions or limitations:\n\n(1) Prior to activation of a zone, the zone grantee or operator shall obtain all necessary permits from federal, state and local authorities, and except as otherwise specified in the Act or this part, shall comply with the requirements of those authorities.\n\n(2) A grant of authority approved under this part includes authority for the grantee to permit the erection of buildings necessary to carry out the approved zone (subject to concurrence of CBP for an activated area of a zone).\n\n(3) Approvals from the grantee (or other party acting on behalf of the grantee, where applicable) and CBP, pursuant to 19 CFR part 146, are required prior to the activation of any portion of an approved zone.\n\n(4) Authority for a zone or a subzone shall lapse unless the zone (in case of subzones, the subzone facility) is activated, pursuant to 19 CFR part 146, and in operation not later than five years from the authorization of the zone or subzone, subject to the provisions of Board Order 849 (61 FR 53305, October 11, 1996).\n\n(5) Zone grantees, operators, and users (and persons undertaking zone-related functions on behalf of grantees, where applicable) shall permit federal government officials acting in an official capacity to have access to the zone and records during normal business hours and under other reasonable circumstances.\n\n(6) Activity involving production is subject to the specific provisions in \u00a7 400.14.\n\n(7) A grant of authority may not be sold, conveyed, transferred, set over, or assigned (FTZ Act, section 17; 19 U.S.C. 81q).\n\n(8) Private ownership of zone land and facilities is permitted, provided the zone grantee retains the control necessary to implement the approved zone. Such permission shall not constitute a vested right to zone designation, nor interfere with the Board's regulation of the grantee or the permittee, nor interfere with or complicate the revocation of the grant by the Board. Grantees shall retain a level of control which allows the grantee to carry out its responsibilities as grantee. The sale of zone-designated land/facility for more than its fair market value without zone designation could, depending on the circumstances, be subject to the prohibitions set forth in section 17 of the Act (19 U.S.C. 81q).\n\n(b)  Board authority to restrict or prohibit activity.  Pursuant to section 15(c) of the Act (19 U.S.C. 81o(c)), the Board has authority to \u201corder the exclusion from [a] zone of any goods or process of treatment that in its judgment is detrimental to the public interest, health, or safety.\u201d In approvals of proposed production authority pursuant to \u00a7 400.14(a), the Board may adopt restrictions to protect the public interest, health, or safety. When evaluating production activity, either as proposed in an application or as part of a review of an operation, the Board shall determine whether the activity is in the public interest by reviewing it in relation to the evaluation criteria contained in \u00a7 400.27.\n\n(c)  Restrictions on items subject to antidumping and countervailing duty actions \u2014(1)  Board policy.  Zone procedures shall not be used to circumvent antidumping duty (AD) and countervailing duty (CVD) actions under 19 CFR part 351.\n\n(2)  Admission of items subject to AD/CVD actions.  Items subject to AD/CVD orders, or items which would be otherwise subject to suspension of liquidation under AD/CVD procedures if they entered U.S. customs territory, shall be placed in privileged foreign status (19 CFR 146.41) upon admission to a zone or subzone. Upon entry for consumption, such items shall be subject to duties under AD/CVD orders or to suspension of liquidation, as appropriate, under 19 CFR part 351.\n\n(d)  Additional conditions, prohibitions and restrictions.  Other conditions/requirements, prohibitions and restrictions under Federal, State or local law may apply to authorized zones and subzones."], ["15:15:2.1.2.2.1.2.1.4", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "B", "Subpart B\u2014Ability To Establish Zone; Limitations and Restrictions on Authority Granted", "", "\u00a7 400.14 Production\u2014requirement for prior authorization.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8527, Feb. 8, 2024]", "(a)  In general.  Production activity in zones shall not be conducted without prior authorization from the Board. To obtain authorization, the notification process provided for in \u00a7\u00a7 400.22 and 400.37 shall be used. If Board review of a notification under \u00a7 400.37 results in a determination that further review is warranted for all or part of the notified activity, the application process pursuant to \u00a7\u00a7 400.23, 400.31 through 400.32, 400.34, and 400.36 shall apply to the activity. Notifications and applications requesting production authority may be submitted by the zone's grantee or by the operator that proposes to undertake the activity (provided the operator at the same time furnishes a copy of the notification or application to the grantee and that submissions by the operator are consistent with the grantee's zone schedule).\n\n(b)  Scope of authority.  Production activity that may be conducted in a particular zone operation is limited to the specific foreign-status materials and components and specific finished products described in notifications and applications that have been authorized pursuant to paragraph (a) of this section, including any applicable prohibitions or restrictions. A determination may be requested pursuant to paragraph (d) of this section as to whether particular activity falls within the scope of authorized activity. Unauthorized activity could be subject to penalties pursuant to the customs regulations on foreign-trade zones (19 CFR part 146).\n\n(c)  Information about authorized production activity.  The Board shall make available via its Web site information regarding the materials, components, and finished products associated with individual production operations authorized under these and previous regulations, as derived from applications and notifications submitted to the Board.\n\n(d)  Scope determinations.  Determinations may be made by the Executive Secretary as to whether changes in activity are within the scope of the production activity already authorized under this part. When warranted, the procedures of \u00a7\u00a7 400.32 and 400.34 shall be followed."], ["15:15:2.1.2.2.1.2.1.5", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "B", "Subpart B\u2014Ability To Establish Zone; Limitations and Restrictions on Authority Granted", "", "\u00a7 400.15 Production equipment.", "FTZ", "", "", "", "(a)  In general.  Pursuant to section 81c(e) of the FTZ Act, merchandise that is admitted into a foreign-trade zone for use within such zone as production equipment or as parts for such equipment, shall not be subject to duty until such merchandise is completely assembled, installed, tested, and used in the production for which it was admitted. Payment of duty may be deferred until such equipment goes into use as production equipment as part of zone production activity, at which time the equipment shall be entered for consumption as completed equipment.\n\n(b)  Definition of production equipment.  Eligibility for this section is limited to equipment and parts of equipment destined for use in zone production activity as defined in \u00a7 400.2(o) of this part. Ineligible for treatment as production equipment under this section are general materials (that are used in the installation of production equipment or in the assembly of equipment) and materials used in the construction or modification of the plant that houses the production equipment.\n\n(c)  Equipment not destined for zone activity.  Production equipment or parts that are not destined for use in zone production activity shall be treated as normal merchandise eligible for standard zone-related benefits ( i.e.,  benefits not subject to the requirements of \u00a7 400.14(a)), provided the equipment is entered for consumption or exported prior to its use."], ["15:15:2.1.2.2.1.2.1.6", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "B", "Subpart B\u2014Ability To Establish Zone; Limitations and Restrictions on Authority Granted", "", "\u00a7 400.16 Exemption from state and local", "FTZ", "", "", "[89 FR 8528, Feb. 8, 2024]", "Foreign merchandise (tangible personal property) imported from outside the United States and held in the activated area of a zone for the purpose of storage, sale, exhibition, repackaging, assembly, distribution, sorting, grading, cleaning, mixing, display, manufacturing, or processing, and tangible personal property produced in the United States and held in the activated area of a zone for exportation, either in its original form or as altered by any of the processes set out in this section, shall be exempt from state and local  ad valorem  taxation."], ["15:15:2.1.2.2.1.3.1.1", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "C", "Subpart C\u2014Applications To Establish and Modify Authority", "", "\u00a7 400.21 Application to establish a zone.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8528, Feb. 8, 2024]", "(a)  In general.  An application for a grant of authority to establish a zone (including pursuant to the ASF procedures adopted by the Board (\u00a7 400.2(c))) shall consist of an application letter and detailed contents to meet the requirements of this part.\n\n(b)  Application format.  Applications pursuant to this part shall comply with any instructions, guidelines, and forms or related documents, published in the  Federal Register  and made available on the Board's Web site, as established by the Executive Secretary specific to the type of application in question. An application submitted that uses a superseded format shall be processed unless the format has not been current for a period in excess of one year.\n\n(c)  Application letter.  The application letter shall be dated within six months prior to the submission of the application and signed by an officer of the corporation authorized in the resolution for the application (see \u00a7 400.21(d)(1)(iii)). The application letter shall also describe:\n\n(1) The relationship of the proposal to the state enabling legislation and the applicant's charter;\n\n(2) The specific authority requested from the Board;\n\n(3) The proposed zone site(s) and facility(ies) and any larger project of which the zone is a part;\n\n(4) The project background;\n\n(5) The relationship of the project to the community's and state's international trade-related goals and objectives; and\n\n(6) Any additional pertinent information needed for a complete summary description of the proposal.\n\n(d)  Detailed contents.  (1) Legal authority for the application shall be documented with:\n\n(i) A current copy of the state enabling legislation described in \u00a7\u00a7 400.12(b) and (c);\n\n(ii) A copy of the relevant sections of the applicant's charter or organization papers; and\n\n(iii) A certified copy of a resolution of the applicant's governing body specific to the application authorizing the official signing the application letter. The resolution must be dated no more than six months prior to the submission of the application.\n\n(2) Site descriptions (including a table with site designations when more than one site is involved) shall be documented with:\n\n(i) A detailed description of the zone site, including size, location, and address (and legal description or its equivalent in instances where the Executive Secretary determines it is needed to supplement the maps in the application), as well as dimensions and types of existing and proposed structures, master planning, and timelines for construction of roads, utilities and planned buildings;\n\n(ii) Where applicable, a summary description of the larger project of which the site is a part, including type, size, location and address;\n\n(iii) A statement as to whether the site is within or adjacent to a CBP port of entry (including distance from the limits of the port of entry and, if the distance exceeds 60 miles, driving time from the limits of the port of entry);\n\n(iv) A description of existing or proposed site qualifications, including appropriate land-use zoning (with environmentally sensitive areas avoided) and physical security;\n\n(v) A description of current and planned activities associated with the site;\n\n(vi) A statement regarding the environmental aspects of the proposal;\n\n(vii) The estimated time schedules for construction and activation; and\n\n(viii) A statement as to the possibilities and plans for future expansion of the site.\n\n(3) Operation and financing shall be documented with:\n\n(i) A statement as to site ownership (if not owned by the applicant or proposed operator, evidence as to their legal right to use the site);\n\n(ii) A discussion of plans for operations at the site;\n\n(iii) A commitment to satisfy the requirements for CBP automated systems; and\n\n(iv) A summary of the plans for financing the project.\n\n(4) Economic justification shall be documented with:\n\n(i) A statement of the community's overall economic and trade-related goals and strategies in relation to those of the region and state, including a reference to the plan or plans on which the goals are based and how they relate to the zone project;\n\n(ii) An economic profile of the community including discussion of:\n\n(A) Dominant sectors in terms of employment or income;\n\n(B) Area strengths and weaknesses;\n\n(C) Unemployment rates; and\n\n(D) Area foreign trade statistics;\n\n(iii) A statement as to the role and objective of the zone project and a discussion of the anticipated economic impact, direct and indirect, of the zone project, including references to public costs and benefits, employment, and U.S. international trade;\n\n(iv) A separate justification for each proposed site, including a specific explanation addressing the degree to which the site may duplicate types of facilities at other proposed or existing sites in the zone;\n\n(v) A statement as to the need for zone services in the community, with specific expressions of interest from proposed zone users and letters of intent from those firms that are considered prime prospects for each specific proposed site; and\n\n(vi) For any production activity to be conducted at a proposed site, the separate requirements of \u00a7 400.14(a) must also be met.\n\n(5) Maps and site plans shall include the following documents:\n\n(i) State and county maps showing the general location of the proposed site(s) in terms of the area's transportation network;\n\n(ii) For any proposed site, a legible, detailed site plan of the zone area showing zone boundaries in red, with street name(s), and showing existing and proposed structures; and\n\n(iii) For proposals involving a change in existing zones, one or more maps showing the relationship between existing zone sites and the proposed changes.\n\n(e)  ASF applications.  In addition to the general application requirements of this section, applications under the ASF shall include the following, where applicable:\n\n(1) Service area.\n\n(2) Appropriate information regarding magnet sites.\n\n(3) Appropriate information regarding usage-driven sites or ASF subzones.\n\n(f)  Additional information.  The Board or the Executive Secretary may require additional information needed to evaluate proposals adequately.\n\n(g)  Amendment of application.  The Board or the Executive Secretary may allow amendment of an application. Amendments which substantively expand the scope of an application shall be subject to comment period requirements such as those of \u00a7 400.32(c)(2) with a minimum comment period of 30 days.\n\n(h)  Drafts.  Applicants are encouraged to submit a draft application to the Executive Secretary for review. A draft application must be complete with the possible exception of the application letter and/or resolution from the applicant.\n\n(i)  Submission of completed application.  The applicant shall submit the complete application, including all attachments, via email or by the method prescribed by the Executive Secretary pursuant to \u00a7 400.4(m)."], ["15:15:2.1.2.2.1.3.1.2", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "C", "Subpart C\u2014Applications To Establish and Modify Authority", "", "\u00a7 400.22 Notification for production authority.", "FTZ", "", "", "", "Notifications requesting production authority pursuant to \u00a7 400.14(a) shall comply with any instructions, guidelines, and forms or related documents, published in the  Federal Register  and made available on the Board's Web site, as established by the Executive Secretary. Notifications shall contain the following information:\n\n(a) Identity of the user and its location;\n\n(b) Materials, components and finished products associated with the proposed activity, including the tariff schedule categories (6-digit HTSUS) and tariff rates; and\n\n(c) Information as to whether any material or component is subject to a trade-related measure or proceeding (e.g., AD/CVD order or proceeding, suspension of liquidation under AD/CVD procedures)."], ["15:15:2.1.2.2.1.3.1.3", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "C", "Subpart C\u2014Applications To Establish and Modify Authority", "", "\u00a7 400.23 Application for production authority.", "FTZ", "", "", "", "In addition to any applicable requirements set forth in \u00a7 400.21, an application requesting production authority pursuant to \u00a7 400.37(c) shall include:\n\n(a) A summary as to the reasons for the application and an explanation of its anticipated economic effects;\n\n(b) Identity of the user and its corporate affiliation;\n\n(c) A description of the proposed activity, including:\n\n(1) Finished products;\n\n(2) Imported (foreign-status) materials and components;\n\n(3) For each finished product and imported material or component, the tariff schedule category (6-digit HTSUS), tariff rate, and whether the material or component is subject to a trade-related measure or proceeding (e.g., AD/CVD order or proceeding, suspension of liquidation under AD/CVD procedures);\n\n(4) Domestic inputs, foreign inputs, and plant value added as percentages of finished product value;\n\n(5) Projected shipments to domestic market and export market (percentages);\n\n(6) Estimated total or range of annual value of benefits to proposed user (broken down by category), including as a percent of finished product value;\n\n(7) Annual production capacity (current and planned) for the proposed FTZ activity, in units;\n\n(8) Information to assist the Board in making a determination under \u00a7 400.27(a)(3) and 400.27(b);\n\n(9) Information as to whether alternative procedures have been considered as a means of obtaining the benefits sought;\n\n(10) Information on the industry involved and extent of international competition; and\n\n(11) Economic impact of the operation on the area; and\n\n(d) Any additional information requested by the Board or the Executive Secretary in order to conduct the review."], ["15:15:2.1.2.2.1.3.1.4", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "C", "Subpart C\u2014Applications To Establish and Modify Authority", "", "\u00a7 400.24 Application for expansion or other modification to zone.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8528, Feb. 8, 2024]", "(a)  In general.  (1) A grantee may apply to the Board for authority to expand or otherwise modify its zone (including pursuant to the ASF procedures adopted by the Board (\u00a7 400.2(c))).\n\n(2) The Executive Secretary, in consultation with CBP as appropriate, shall determine whether the proposed modification involves a major change in the zone plan and is thus subject to paragraph (b) of this section, or is minor and subject to paragraph (c) of this section. In making this determination the Executive Secretary shall consider the extent to which the proposed modification would:\n\n(i) Substantially modify the plan originally approved by the Board; or\n\n(ii) Expand the physical dimensions of the approved zone area as they relate to the scope of operations envisioned in the original plan.\n\n(b)  Major modification to zone.  An application for a major modification of an approved zone shall be submitted in accordance with the requirements of \u00a7 400.21, except that the content submitted pursuant to \u00a7 400.21(d)(4) (economic justification) shall relate specifically to the proposed change.\n\n(c)  Minor modification to zone.  Other applications or requests under this subpart shall be submitted in letter form with information and documentation necessary for analysis, as determined by the Executive Secretary, who shall determine whether the proposed change is a minor one subject to this paragraph (c) instead of paragraph (b) of this section ( see  \u00a7 400.38). Such applications or requests include those for minor revisions of zone or subzone boundaries based on immediate need, as well as for designation as a subzone of all or part of an existing zone site(s) (or site(s) that qualifies for usage-driven status), where warranted by the circumstances and so long as the subzone remains subject to the activation limit ( see  \u00a7 400.2(b)) for the zone in question.\n\n(d)  Applications for other revisions to authority.  Applications or requests for other revisions to authority, such as for Board action to establish or modify an activation limit for a zone, modification of a restriction, reissuance of a grant of authority or request for a voluntary termination shall be submitted in letter form with information and documentation necessary for analysis, as determined by the Executive Secretary. If the change involves the removal or significant modification of a restriction included by the Board in its approval of authority or the reissuance of a grant of authority, the review procedures of \u00a7\u00a7 400.31 through 400.34 and 400.36 shall be followed, where relevant. If not, the procedure set forth in \u00a7 400.38 shall generally apply (although the Executive Secretary may elect to follow the procedures of \u00a7\u00a7 400.31 through 400.34 and 400.36 when warranted)."], ["15:15:2.1.2.2.1.3.1.5", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "C", "Subpart C\u2014Applications To Establish and Modify Authority", "", "\u00a7 400.25 Application for subzone designation.", "FTZ", "", "", "", "In addition to the requirements of \u00a7\u00a7 400.21(d)(1)(i) and (ii) pertaining to legal authority, \u00a7 400.21(d)(2)(vii) pertaining to environmental aspects of the proposal, and \u00a7 400.21(d)(3)(i) and (iii) pertaining to operation, a grantee's application for subzone designation shall contain the following information:\n\n(a) The name of the operator/user for which subzone designation is sought;\n\n(b) The nature of the activity at the proposed subzone;\n\n(c) The address(es) and physical size (acreage or square feet) of the proposed subzone location(s); and\n\n(d) One or more maps conforming to the requirements of section \u00a7 400.21(d)(5)(ii). For any production activity to be conducted at a proposed subzone, the separate requirements of \u00a7 400.14(a) must be met."], ["15:15:2.1.2.2.1.3.1.6", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "C", "Subpart C\u2014Applications To Establish and Modify Authority", "", "\u00a7 400.26 Criteria for evaluation of proposals, including for zones, expansions, subzones, or other modifications of zones.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8528, Feb. 8, 2024]", "The Board shall consider the following factors in determining whether to approve an application pertaining to a zone:\n\n(a) The need for zone services in the port of entry area, taking into account existing as well as projected international trade-related activities and employment impact;\n\n(b) The suitability of each proposed site and its facilities based on the plans presented for the site, including existing and planned buildings, zone-related activities, and the timeframe for development of the site;\n\n(c) The specific need and justification for each proposed site, taking into account existing sites and/or other proposed sites;\n\n(d) The extent of state and local government support, as indicated by the compatibility of the zone project with the community's master plan or stated goals for economic development and the views of state and local public officials involved in economic development. Such officials shall avoid commitments that anticipate the outcome of Board decisions; and\n\n(e) The views of persons likely to be materially affected by proposed zone activity."], ["15:15:2.1.2.2.1.3.1.7", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "C", "Subpart C\u2014Applications To Establish and Modify Authority", "", "\u00a7 400.27 Criteria applicable to evaluation of applications for production authority.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8528, Feb. 8, 2024]", "The Board shall apply the criteria set forth in this section in determining whether to approve an application for authority to conduct production activity pursuant to \u00a7 400.23. The Board's evaluation shall take into account information such as pertains to market conditions, price sensitivity, degree and nature of foreign competition, intra-industry and intra-firm trade, effect on exports and imports, ability to conduct the proposed activity outside the United States with the same U.S. tariff impact, analyses conducted in connection with prior Board actions, and net effect on U.S. employment and the U.S. economy:\n\n(a)  Threshold factors.  It is the policy of the Board to authorize zone activity only when it is consistent with public policy and, in regard to activity involving foreign merchandise subject to quotas or inverted tariffs, when zone procedures are not the sole determining cause of imports. Thus, without undertaking a review of the economic factors enumerated in \u00a7 400.27(b), the Board shall deny or restrict authority for proposed or ongoing activity if it determines that:\n\n(1) The activity is inconsistent with U.S. trade and tariff law, or policy which has been formally adopted by the Executive branch;\n\n(2) Board approval of the activity under review would seriously prejudice U.S. tariff and trade negotiations or other initiatives; or\n\n(3) The activity involves items subject to quantitative import controls or inverted tariffs, and the use of zone procedures would be the direct and sole cause of imports that, but for such procedures, would not likely otherwise have occurred, taking into account imports both as individual items and as components of imported products.\n\n(b)  Economic factors.  After its review of threshold factors, if there is a basis for further consideration of the application, the Board shall consider the following factors in determining the net economic effect of the proposed activity:\n\n(1) Overall employment impact;\n\n(2) Exports and re-exports;\n\n(3) Retention or creation of value-added activity;\n\n(4) Extent of value-added activity;\n\n(5) Overall effect on import levels of relevant products;\n\n(6) Extent and nature of foreign competition in relevant products;\n\n(7) Impact on related domestic industry, taking into account market conditions; and\n\n(8) Other relevant information relating to the public interest and net economic impact considerations, including technology transfers and investment effects.\n\n(c) The significant public benefit(s) that would result from the production activity, taking into account the factors in paragraphs (a) and (b) of this section.\n\n(d)  Contributory effect.  In assessing the significance of the economic effect of the proposed zone activity as part of the consideration of economic factors, and considering whether it would result in a significant public benefit(s), the Board may consider the contributory effect zone savings have as an incremental part of cost-effectiveness programs adopted by companies to improve their international competitiveness."], ["15:15:2.1.2.2.1.3.1.8", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "C", "Subpart C\u2014Applications To Establish and Modify Authority", "", "\u00a7 400.28 Burden of proof.", "FTZ", "", "", "", "(a)  In general.  An applicant must demonstrate to the Board that its application meets the criteria set forth in these regulations. Applications for production-related authority shall contain evidence regarding the positive economic effect(s) and significant public benefit(s) that would result from the proposed activity and may submit evidence and comments concerning policy considerations.\n\n(b)  Comments on applications.  Comments submitted regarding applications should provide information that is probative and substantial in addressing the matter at issue relative to the nature of the proceeding, including any evidence of the projected direct impact of the proposed authority.\n\n(c)  Requests for extensions of comment periods.  Requests for extensions of comment periods shall include a description of the potential impact of the proposed authority and the specific actions or steps for which additional time is necessary.\n\n(d)  Responses to comments on applications.  Submissions in response to comments received during the public comment period or pursuant to \u00a7 400.33(e)(1) or \u00a7 400.34(a)(5)(iv)(A) should contain evidence that is probative and substantial in addressing the matter at issue."], ["15:15:2.1.2.2.1.3.1.9", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "C", "Subpart C\u2014Applications To Establish and Modify Authority", "", "\u00a7 400.29 Application fees.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8528, Feb. 8, 2024]", "(a)  In general.  This section sets forth a uniform system of charges in the form of fees to recover some costs incurred by the Foreign-Trade Zones staff of the Department of Commerce in processing the applications listed in paragraph (b) of this section. The legal authority for the fees is 31 U.S.C. 9701, which provides for the collection of user fees by agencies of the Federal Government.\n\n(b)  Uniform system of user fee charges.  The following fee schedule establishes fees for certain types of applications and requests for authority on the basis of their estimated average processing time.\n\n(1) Additional zones (\u00a7 400.21; \u00a7 400.11(a)(2))\u2014$3,200.\n\n(2) Subzones (\u00a7 400.25):\n\n(i) Not involving production activity or involving production activity with fewer than three products\u2014$4,000.\n\n(ii) Production activity with three or more products\u2014$6,500.\n\n(3) Expansions (\u00a7 400.24(b))\u2014$1,600.\n\n(c)  Timing and manner of payment.  Application fees shall be paid prior to the FTZ Board docketing an application and in a manner specified by the Executive Secretary."], ["15:15:2.1.2.2.1.4.1.1", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "D", "Subpart D\u2014Procedures for Application Evaluation and Reviews", "", "\u00a7 400.31 General application provisions and pre-docketing review.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8528, Feb. 8, 2024]", "(a)  In general.  Sections 400.31-400.36 and 400.38 outline the procedures to be followed in docketing and processing applications submitted under \u00a7\u00a7 400.21, 400.23, 400.24(b), and 400.25. In addition, these sections set forth the time schedules which will ordinarily apply in processing applications. The schedules will guide applicants with respect to the time frames for each of the procedural steps involved in the Board's review. Under these schedules, applications for subzone designation will generally be processed within 5 months (3 months for applications subject to \u00a7 400.36(f)) and applications to establish or expand zones will generally be processed within 10 months. The general timeframe to process applications for production authority is 12 months, but additional time is most likely to be required for applications requesting production authority when a complex or controversial issue is involved or when the applicant or other party has obtained a time extension for a particular procedural step. The timeframes specified apply from the time of docketing. Each applicant is responsible for submitting an application that meets the docketing requirements in a timeframe consistent with the applicant's need for action on its request.\n\n(b)  Pre-docketing review.  The applicant shall submit a complete copy of an application for pre-docketing review. The Executive Secretary shall determine whether the application satisfies the requirements of \u00a7\u00a7 400.12, 400.21, and 400.23 through 400.25 and other applicable provisions of this part such that the application is sufficient for docketing. The applicant shall be notified within 30 days whether the pre-docketing copy of the application is sufficient. If the application is not sufficient, the applicant will be notified of the specific deficiencies. An affected zone participant may also be contacted regarding relevant application elements requiring additional information or clarification. If the applicant does not correct the deficiencies and submit a corrected pre-docketing application copy within 30 days of notification, the pre-docketing application shall be discarded. For applications subject to \u00a7 400.29, the fees shall be paid in accordance with \u00a7 400.29 once the application is determined to be sufficient."], ["15:15:2.1.2.2.1.4.1.2", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "D", "Subpart D\u2014Procedures for Application Evaluation and Reviews", "", "\u00a7 400.32 Procedures for docketing applications and commencement of case review.", "FTZ", "", "", "[89 FR 8529, Feb. 8, 2024]", "(a) Once the pre-docketing copy of the application is determined to be sufficient and any fees under \u00a7 400.29 have been paid, the Executive Secretary shall within 15 days:\n\n(1) Formally docket the application, thereby initiating the proceeding or review;\n\n(2) Assign a case-docket number; and\n\n(3) Notify the applicant of the formal docketing action.\n\n(b) After initiating a proceeding based on an application under \u00a7\u00a7 400.21 and 400.23 through 400.25, the Executive Secretary shall:\n\n(1) Designate an examiner to conduct a review and prepare a report or memorandum with recommendations for the Board;\n\n(2) Publish in the  Federal Register  a notice of the formal docketing of the application and initiation of the review. The notice shall include the name of the applicant, a description of the proposal, and an invitation for public comment. If the application requests authority for production activity and indicates that a component to be used in the activity is subject to a trade-related measure or proceeding (e.g., AD/CVD order or proceeding, suspension of liquidation under AD/CVD procedures), the notice shall include that information. For applications to establish or expand a zone or for production authority, the comment period shall normally close 60 days after the date the notice appears. For applications for subzone designation, the comment period shall normally close 40 days after the date the notice appears. However, if a hearing is held ( see  \u00a7 400.52), the comment period shall not close prior to 15 days after the date of the hearing. The closing date for general comments shall ordinarily be followed by an additional 15-day period for rebuttal comments. Requests for extensions of a comment period will be considered, subject to the standards of \u00a7 400.28(c). Submissions must meet the requirements of \u00a7 400.28(b). With the exception of submissions by the applicant, any new evidence or new factual information and any written arguments submitted after the deadlines for comments shall not be considered by the examiner or the Board. Submission by the applicant of new evidence or new factual information may result in the (re)opening of a comment period. A comment period may otherwise be opened or reopened for cause;\n\n(3) Transmit or otherwise make available copies of the docketing notice and the application to CBP;\n\n(4) Arrange for hearings, as appropriate;\n\n(5) Transmit the report and recommendations of the examiner and any comments by CBP to the Board for appropriate action; and\n\n(6) Notify the applicant in writing (via electronic means, where appropriate) and publish notice in the  Federal Register  of the Board's determination.\n\n(c) Any comments by CBP pertaining to the application shall be submitted to the Executive Secretary by the conclusion of the public comment period described in paragraph (b)(2) of this section."], ["15:15:2.1.2.2.1.4.1.3", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "D", "Subpart D\u2014Procedures for Application Evaluation and Reviews", "", "\u00a7 400.33 Examiner's review\u2014application to establish or modify a zone.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8529, Feb. 8, 2024]", "An examiner assigned to review an application to establish, reorganize or expand a zone shall conduct a review taking into account the factors enumerated in \u00a7 400.26 and other appropriate sections of this part, which shall include:\n\n(a) Conducting or participating in hearings scheduled by the Executive Secretary;\n\n(b) Reviewing case records, including public comments;\n\n(c) Requesting information and evidence from parties of record;\n\n(d) Developing information and evidence necessary for evaluation and analysis of the application in accordance with the criteria of the Act and this part; and\n\n(e) Developing recommendations to the Board and submitting a report to the Executive Secretary, generally within 150 days of the close of the period for public comment (75 days for reorganizations under the ASF) (see \u00a7 400.32):\n\n(1) If the recommendations are unfavorable to the applicant, they shall be considered preliminary and the applicant shall be notified in writing (via electronic means, where appropriate) of the preliminary recommendations and the factors considered in their development. The applicant shall be given 30 days from the date of notification, subject to extensions upon request by the applicant, which shall not be unreasonably withheld, in which to respond to the recommendations and submit additional evidence pertinent to the factors considered in the development of the preliminary recommendations. Public comment may be invited on preliminary recommendations when warranted.\n\n(2) If the response contains new evidence on which there has been no opportunity for public comment, the Executive Secretary shall publish a notice in the  Federal Register  after completion of the review of the response. The new material shall be made available for public inspection and the  Federal Register  notice shall invite further public comment for a period of not less than 30 days, with an additional 15-day period for rebuttal comments.\n\n(3) If the factors considered for an examiner's recommendation(s) change as a result of new evidence, the applicable procedures of paragraphs (e)(1) and (2) of this section shall be followed.\n\n(4) When necessary, a request may be made to CBP to provide further comments, which shall be submitted within 45 days after the request."], ["15:15:2.1.2.2.1.4.1.4", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "D", "Subpart D\u2014Procedures for Application Evaluation and Reviews", "", "\u00a7 400.34 Examiner's review\u2014application for production authority.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8529, Feb. 8, 2024]", "(a) The examiner shall conduct a review taking into account the factors enumerated in this section, \u00a7 400.27, and other appropriate sections of this part, which shall include:\n\n(1) Conducting or participating in hearings scheduled by the Executive Secretary;\n\n(2) Reviewing case records, including public comments;\n\n(3) Requesting information and evidence from parties of record and others, as warranted;\n\n(4) Developing information and evidence necessary for analysis of the threshold factors and the economic factors enumerated in \u00a7 400.27; and\n\n(5) Conducting an analysis to include:\n\n(i) An evaluation of policy considerations pursuant to \u00a7\u00a7 400.27(a)(1) and (2);\n\n(ii) An evaluation of the economic factors enumerated in \u00a7\u00a7 400.27(a)(3) and 400.27(b), which shall include an evaluation of the economic impact on domestic industry, considering both producers of like products and producers of components/materials used in the production activity;\n\n(iii) Conducting appropriate industry research and surveys, as necessary; and\n\n(iv) Developing recommendations to the Board and submitting a report to the Executive Secretary, generally within 150 days of the close of the period for public comment (although additional time may be required in circumstances such as when the applicant or other party has obtained a time extension for a particular procedural step):\n\n(A) If the recommendations are unfavorable to the applicant, they shall be considered preliminary and the applicant shall be notified in writing (via electronic transmission where appropriate) of the preliminary recommendations and the factors considered in their development. The applicant shall be given 45 days from the date of notification in which to respond to the recommendations and submit additional evidence pertinent to the factors considered in the development of the preliminary recommendations. Public comment may be invited on preliminary recommendations when warranted.\n\n(B) If the response contains new evidence on which there has not been an opportunity for public comment, the Executive Secretary shall publish notice in the  Federal Register  after completion of the review of the response. The new material shall be made available for public inspection and the  Federal Register  notice shall invite further public comment for a period of not less than 30 days, with an additional 15-day period for rebuttal comments.\n\n(C) If the factors considered for an examiner's recommendation(s) change as a result of new evidence, the applicable procedures of paragraphs (a)(5)(iv)(A) and (B) of this section shall be followed.\n\n(b)  Methodology and evidence.  The evaluation of an application for production authority shall include the following steps:\n\n(1) The first phase (\u00a7 400.27(a)) involves consideration of threshold factors. If an examiner or reviewer makes a negative finding on any of the factors in \u00a7 400.27(a) in the course of a review, the applicant shall be informed pursuant to \u00a7 400.34(a)(5)(iv)(A). When threshold factors are the basis for a negative recommendation in a review of ongoing activity, the zone grantee and directly affected party shall be notified and given an opportunity to submit evidence pursuant to \u00a7 400.34(a)(5)(iv)(A). If the Board determines in the negative regarding any of the factors in \u00a7 400.27(a), it shall deny or restrict authority for the proposed or ongoing activity.\n\n(2) The second phase (\u00a7 400.27(b)) involves consideration of the enumerated economic factors, taking into account their relative weight and significance under the circumstances. Previous evaluations in similar cases shall be considered."], ["15:15:2.1.2.2.1.4.1.5", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "D", "Subpart D\u2014Procedures for Application Evaluation and Reviews", "", "\u00a7 400.35 Examiner's review\u2014application for subzone designation.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8529, Feb. 8, 2024]", "The examiner shall develop a memorandum with a recommendation on whether to approve the application, taking into account the criteria enumerated in \u00a7 400.26. To develop that memorandum, the examiner shall review the case records including public comments, and may request information and evidence from parties of record, as necessary. The examiner's memorandum shall generally be submitted to the Board within 30 days of the close of the period for public comment. However, additional time may be taken as necessary for analysis of any public comment in opposition to the application or if other complicating factors arise.\n\n(a) If the examiner's recommendation is unfavorable to the applicant, it shall be considered preliminary and the applicant shall be notified in writing (via electronic means, where appropriate) of the preliminary recommendation and the factors considered in its development. The applicant shall be given 30 days from the date of notification, subject to extensions upon request by the applicant, which shall not be unreasonably withheld, in which to respond to the recommendation and submit additional evidence pertinent to the factors considered in the development of the preliminary recommendations. Public comment may be invited on preliminary recommendations when warranted.\n\n(b) If the response contains new evidence on which there has not been an opportunity for public comment, the Executive Secretary shall publish notice in the  Federal Register  after completion of the review of the response. The new material shall be made available for public inspection and the  Federal Register  notice shall invite further public comment for a period of not less than 30 days, with an additional 15-day period for rebuttal comments.\n\n(c) If the factors considered for an examiner's recommendation(s) change as a result of new evidence, the applicable procedures of paragraphs (a) and (b) of this section shall be followed.\n\n(d) The CBP adviser shall be requested, when necessary, to provide further comments, which shall be submitted within 45 days after the request."], ["15:15:2.1.2.2.1.4.1.6", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "D", "Subpart D\u2014Procedures for Application Evaluation and Reviews", "", "\u00a7 400.36 Completion of case review.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8529, Feb. 8, 2024]", "(a) The Executive Secretary shall circulate the examiner's report (memorandum in the case of subzone applications) with recommendations to CBP headquarters staff and to the Treasury Board member for review and action.\n\n(b) In its advisory role to the Board, CBP headquarters staff shall provide any comments within 15 days for applications under \u00a7 400.25 and within 30 days for all other applications.\n\n(c) The vote of the Treasury Board member shall be returned to the Executive Secretary within 30 days, unless a formal meeting is requested (see, \u00a7 400.3(b)).\n\n(d) The Commerce Department shall complete the decision process within 15 days of receiving the vote of the Treasury Board member, and the Executive Secretary shall publish the Board decision.\n\n(e) If the Board is unable to reach a unanimous decision, the applicant shall be notified and provided an opportunity to meet with the Board members or their delegates.\n\n(f) The Board delegates to the Executive Secretary authority to approve applications requesting subzone designation, on the condition that such approved subzones will be subject to the activation limit for the zone in question.\n\n(g) The Board or the Commerce Department's Assistant Secretary for Enforcement and Compliance may opt to terminate review of an application with no further action if the applicant has failed to provide in a timely manner information needed for evaluation of the application. A request from an applicant for an extension of time to provide information needed for evaluation of an application shall not be unreasonably withheld. The Executive Secretary may terminate review of an application where the overall circumstances presented in the application no longer exist as a result of a material change, and shall notify the applicant in writing of the intent to terminate review and allow 30 days for a response prior to completion of any termination action. The Executive Secretary shall confirm the termination in writing (by electronic means, where appropriate) to the applicant."], ["15:15:2.1.2.2.1.4.1.7", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "D", "Subpart D\u2014Procedures for Application Evaluation and Reviews", "", "\u00a7 400.37 Procedure for notification of proposed production activity.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8529, Feb. 8, 2024]", "(a)  Submission of notification.  A notification for production authority pursuant to \u00a7\u00a7 400.14(a) and 400.22 shall be submitted simultaneously to the Board's Executive Secretary and to CBP.\n\n(b)  Initial processing of notification.  Upon receipt of a complete notification conforming to the requirements of the notification format established by the Executive Secretary pursuant to \u00a7 400.22, the Executive Secretary shall commence processing the notification. Unless the Executive Secretary determines, based on the content of the notification, to recommend further review to the Board without inviting public comment on the notification, the Executive Secretary shall transmit to the  Federal Register  a notice inviting public comment on the notification (with such comment subject to the standards of \u00a7 400.28(b)). The notice shall be transmitted to the  Federal Register  within 15 days of the commencement of the processing of the notification, and the comment period shall normally close 40 days after the date the notice appears. If the notification indicates that a material or component to be used in the activity is subject to an AD/CVD order or proceeding, or suspension of liquidation under AD/CVD procedures, the notice shall include that information. Evidence, factual information and written arguments submitted in response to the notice must be submitted by the deadline for comments. Any comments by CBP pertaining to the notification shall be submitted to the Executive Secretary by the end of the comment period. Within 80 days of receipt of the notification, the Executive Secretary shall submit to the Board a recommendation on whether further review of all or part of the activity subject to the notification is warranted. The Executive Secretary's recommendation shall consider comments submitted during the comment period, any guidance from specialists within government, and other relevant factors based on the Board staff's assessment of the notification, in the context of the factors set forth in \u00a7 400.27.\n\n(c)  Determinations regarding further review.  Within 30 days of receipt of the Executive Secretary's recommendation, the Board members shall provide to the Executive Secretary their determinations on whether further review is warranted concerning all or part of the activity that is the subject of the notification. If either Board member makes a determination that further review is warranted, the activity that is subject to further review (which may constitute all or part of the notified activity) shall not be conducted without authorization pursuant to the application requirements of \u00a7 400.23 and the procedural requirements of \u00a7\u00a7 400.31-400.34 and 400.36 (or the provisions of paragraph (d) of this section, where applicable). Within 120 days of receipt of the notification, the Executive Secretary shall notify the party that submitted the notification (and the zone grantee, if it did not submit the notification) that:\n\n(1) Further review is not needed for all or part of the activity that is the subject of the notification, and that the activity in question may be conducted; or\n\n(2) Further review is needed for all or part of the activity that is the subject of the notification, with such activity precluded absent specific authorization.\n\n(d)  Authorization for commencement of an activity on an interim basis.  For an activity notified pursuant to \u00a7 400.14(a), the Executive Secretary may authorize the commencement of some or all of the activity on an interim basis. Such authorization shall only be made based on a showing that commencement of the activity is time-sensitive, with such showing to include comments from CBP that specifically address the projected timeframe for commencement of the activity. Interim authorization shall not apply to materials or components subject to an AD/CVD order or proceeding or suspension of liquidation under AD/CVD procedures. As warranted, a determination that further review is needed for all or some of the notified activity pursuant to \u00a7 400.37(c) may also revoke the interim authorization until the Board makes a determination after conduct of that further review."], ["15:15:2.1.2.2.1.4.1.8", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "D", "Subpart D\u2014Procedures for Application Evaluation and Reviews", "", "\u00a7 400.38 Procedure for request for minor modification of zone.", "FTZ", "", "", "[89 FR 8529, Feb. 8, 2024]", "(a) The Executive Secretary shall make a determination in cases under \u00a7 400.24(c) involving minor modifications of zones that do not require Board action, such as boundary modifications, including certain relocations, and shall notify the requestor in writing of the decision on the request within 30 days of the Executive Secretary's receipt of the complete request and the CBP comments under paragraph (b) of this section. Depending on the specific request, the decision could be that the request cannot be processed under \u00a7 400.24(c). The requestor shall submit a copy of its request to CBP no later than the time of the requestor's submission of the request to the Executive Secretary.\n\n(b) If not previously provided to the requestor for inclusion with the requestor's submission of the request to the Executive Secretary, any CBP comments on the request shall be provided to the Executive Secretary within 20 days of the requestor's submission of the request to the Executive Secretary."], ["15:15:2.1.2.2.1.5.1.1", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "E", "Subpart E\u2014Operation of Zones and Administrative Requirements", "", "\u00a7 400.41 General operation of zones; requirements for commencement of operations.", "FTZ", "", "", "", "(a)  In general.  Zones shall be operated by or under the general management of zone grantees, subject to the requirements of the FTZ Act and this part, as well as those of other federal, state and local agencies having jurisdiction over the site(s) and operation(s). Zone grantees shall ensure that the reasonable zone needs of the business community are served by their zones. CBP officials with oversight responsibilities for a port of entry represent the Board with regard to the zones adjacent to the port of entry in question and are responsible for enforcement, including physical security and access requirements, as provided in 19 CFR part 146.\n\n(b)  Requirements for commencement of operations in a zone.  The following actions are required before operations in a zone may commence:\n\n(1) The grantee shall submit the zone schedule to the Executive Secretary, as provided in \u00a7 400.44.\n\n(2) Approval or concurrence from the grantee and approval from CBP, pursuant to 19 CFR part 146, are required prior to the activation of any portion of an approved zone; and\n\n(3) Prior to activation of a zone, the operator shall obtain all necessary permits from federal, state and local authorities, and except as otherwise specified in the Act or this part, shall comply with the requirements of those authorities."], ["15:15:2.1.2.2.1.5.1.2", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "E", "Subpart E\u2014Operation of Zones and Administrative Requirements", "", "\u00a7 400.42 Operation as public utility.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8530, Feb. 8, 2024]", "(a)  In general.  Pursuant to Section 14 of the FTZ Act (19 U.S.C. 81n), each zone shall be operated as a public utility, and all rates and charges for all services or privileges within the zone shall be fair and reasonable. A rate or charge (fee) may be imposed on zone participants to recover costs incurred by or on behalf of the grantee for the performance of the grantee function. Such a rate or charge must be directly related to the service provided by the grantee (for which the fee recovers some or all costs incurred) to the zone participants. Rates or charges may incorporate a reasonable return on investment. Rates or charges may not be tied to the level of benefits derived by zone participants. Other than the uniform rates and charges assessed by, or on behalf of, the grantee, zone participants shall not be required (either directly or indirectly) to utilize or pay for a particular provider's zone-related products or services.\n\n(b) [Reserved]"], ["15:15:2.1.2.2.1.5.1.3", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "E", "Subpart E\u2014Operation of Zones and Administrative Requirements", "", "\u00a7 400.43 Uniform treatment.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8530, Feb. 8, 2024]", "Pursuant to Section 14 of the FTZ Act (19 U.S.C. 81n), a grantee shall afford to all who may apply to make use of or participate in the zone uniform treatment under like conditions. Treatment of zone participants within a zone (including application of rates and charges) shall not vary depending on whether a zone participant has procured any zone-related product or service or engaged a particular supplier to provide any such product or service.\n\n(a)  Agreements to be made in writing.  Any agreement or contract related to one or more grantee function(s) and involving a zone participant (e.g., agreements with property owners and agreements with zone operators) must be in writing.\n\n(b)  Evaluation of proposals.  A grantee (or person undertaking a zone-related function(s) on behalf of a grantee, where applicable) shall apply uniform treatment in the evaluation of proposals from zone participants. Uniform treatment does not require acceptance of all proposals by zone participants, but the bases for a grantee's decision on a particular proposal must be consistent with the uniform treatment requirement.\n\n(c)  Justification for differing treatment.  Given the requirement for uniform treatment under like conditions, for any instance of different treatment of different zone participants, a grantee (or person undertaking a zone-related function(s) on behalf of a grantee, where applicable) must be able to provide upon request by the Executive Secretary a documented justification for any difference in treatment.\n\n(d)  Avoidance of non-uniform treatment.  To avoid non-uniform treatment of zone participants, persons (as defined in \u00a7 400.2(l)) within key categories set out in paragraph (d)(2) of this section shall not undertake any of the key functions set out in paragraph (d)(1) of this section (except in specific circumstances where the Board has authorized a waiver pursuant to paragraph (f) of this section).\n\n(1) Key functions are:\n\n(i) Taking action on behalf of a grantee, or making recommendations to a grantee, regarding the disposition of proposals or requests by zone participants pertaining to FTZ authority or activity (including activation by CBP);\n\n(ii) Approving, or being a party to, a zone participant's agreement with the grantee (or person acting on behalf of the grantee) pertaining to FTZ authority or activity (including activation by CBP); or\n\n(iii) Overseeing zone participants' operations on behalf of a grantee.\n\n(2) Key categories of persons are:\n\n(i) A person that currently engages in, or which has during the preceding twelve months engaged in, offering/providing a zone-related product/service to or representing a zone participant in the grantee's zone;\n\n(ii) Any person that stands to gain from a person's offer/provision of a zone-related product/service to or representation of a zone participant in the zone; or\n\n(iii) Any person related, as defined in paragraph (e) of this section, to the person identified in paragraphs (d)(2)(i) and (ii) of this section.\n\n(e)  Definition of related persons.  For purposes of this section, persons that are related include:\n\n(1) Members of a family or members of a household. The term members of a family means spouses, parents, grandparents, children, grandchildren, siblings (including half-siblings and step-siblings), aunts, uncles, nieces, nephews, and first cousins, as well as the parents, children, and siblings of a spouse, and the spouse of a sibling, child or parent;\n\n(2) Organizations that are wholly or majority-owned by members of the same family or members of the same household;\n\n(3) An officer or director of an organization and that organization;\n\n(4) Partners;\n\n(5) Employers and their employees;\n\n(6) An organization and any person directly or indirectly owning, controlling, or holding with power to vote, 20 percent or more of the outstanding voting stock or shares of that organization;\n\n(7) Any person that controls any other person and that other person (the term control means the power, direct or indirect, whether or not exercised, through any means, to determine, direct, or decide important matters affecting an entity); or\n\n(8) Any two or more persons who directly control, are controlled by, or are under common control with, any person (see definition of control in paragraph (e)(7) of this section).\n\n(f)  Waivers.  The grantee or other person subject to paragraph (d) of this section may submit an application requesting that the Board issue a waiver exempting from the prohibition of that paragraph a person's undertaking a specific key function(s) listed in paragraph (d)(1) of this section. Using the format developed by the Executive Secretary, an application for a waiver shall explain in detail how the person falls within a key category(ies) set out in paragraph (d)(2) of this section, and the specific key function(s) listed in paragraph (d)(1) of this section that would be undertaken by the person. After receipt of an application requesting a waiver, the Executive Secretary may solicit additional information or clarification, as necessary, including from the person submitting the application and from the grantee. Based on the information presented in the application, the Executive Secretary shall make a recommendation to the Board. A waiver shall be authorized only by an affirmative vote by the Board. If the Board votes not to authorize a waiver or to discontinue a waiver, the applicant shall be notified in writing and allowed 30 days to present evidence in response. In deciding whether to grant a waiver, the Board shall determine whether there is an unacceptable risk that the waiver would result in non-uniform treatment being afforded by the person undertaking a key function(s) listed in paragraph (d)(1) of this section. In its assessment, the Board shall consider the specific circumstances presented, including the nature and extent of the person's involvement in undertaking a key function(s) listed in paragraph (d)(1) of this section. In general, the more significant the requester's involvement or interest in the undertaking of a key function(s) listed in paragraph (d)(1) of this section or activity(ies) identified in paragraph (d)(2)(i) of this section, the greater the risk will be that non-uniform treatment will be afforded and, thus, the less likely it will be that a waiver will be granted. The Board may attach to individual waivers such conditions or limitations (including, for example, the length of time a waiver is to be effective) as it deems necessary.\n\n(g)  Requests for determinations.  A grantee or other party may request a determination by the Executive Secretary regarding the consistency of an actual or potential arrangement with the requirements of this section.\n\n(h)  Identification of person undertaking function(s) on behalf of grantee.  The Board, the Commerce Department's Assistant Secretary for Enforcement and Compliance, or the Executive Secretary, may require a zone grantee to identify any person undertaking a zone-related function(s) on behalf of the grantee."], ["15:15:2.1.2.2.1.5.1.4", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "E", "Subpart E\u2014Operation of Zones and Administrative Requirements", "", "\u00a7 400.44 Zone schedule.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8530, Feb. 8, 2024]", "(a) The zone grantee shall submit to the Executive Secretary (electronic copy or as specified by the Executive Secretary) a zone schedule which sets forth the elements required in this section. No element of a zone schedule (including any amendment to the zone schedule) may be considered to be in effect until such submission has occurred. If warranted, the Board may subsequently amend the requirements of this section by Board Order.\n\n(b) Each zone schedule shall include:\n\n(1) A title page, which shall include the name of the zone grantee and the date of the current schedule;\n\n(2) A table of contents;\n\n(3) Internal rules/regulations and policies for the zone;\n\n(4) All rates or charges assessed by or on behalf of the grantee;\n\n(5) Information identifying any operator which offers services to the public and which has requested that its information be included in the zone schedule; and\n\n(6) An appendix with definitions of any FTZ-related terms used in the zone schedule (as needed).\n\n(c) The Executive Secretary may review the zone schedule (or any amendment to the zone schedule) to determine whether it contains sufficient information for zone participants concerning the operation of the zone and the grantee's rates and charges as provided in paragraphs (b)(3) and (b)(4) of this section. If the Executive Secretary determines that the zone schedule (or amendment) does not satisfy these requirements, the Executive Secretary shall notify the zone grantee. The Executive Secretary may also conduct a review under 400.45(b).\n\n(d) Amendments to the zone schedule shall be prepared and submitted in the manner described in paragraph (a) of this section, and listed in the concluding section of the zone schedule, with dates. No rates/charges or other provisions required for the zone schedule may be applied by, or on behalf of, the grantee unless those specific rates/charges or provisions are included in the most recent zone schedule submitted to the Board and made available to the public in compliance with paragraph (e) of this section.\n\n(e) A complete copy of the zone schedule shall be freely available for public inspection at the offices of the zone grantee. The Board shall make copies of zone schedules available on its website."], ["15:15:2.1.2.2.1.5.1.5", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "E", "Subpart E\u2014Operation of Zones and Administrative Requirements", "", "\u00a7 400.45 Complaints related to public utility and uniform treatment.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8530, Feb. 8, 2024]", "(a)  In general.  A zone participant may submit to the Executive Secretary a complaint regarding conditions or treatment that the complaining party believes are inconsistent with the public utility and uniform treatment requirements of the FTZ Act and these regulations. Complaints may be made on a confidential basis, if necessary. Grantees (and persons undertaking zone-related functions on behalf of grantees, where applicable) shall not enter into or enforce provisions of agreements or contracts with zone participants that would require zone participants to disclose to other parties, including the grantee (or person undertaking a zone-related function(s) on behalf of a grantee, where applicable), any confidential communication with the Board under this section.\n\n(b)  Objections to rates and charges.  A zone participant showing good cause may object to any rate or charge related to the zone on the basis that it is not fair and reasonable by submitting to the Executive Secretary a complaint in writing with supporting information. If necessary, such a complaint may be made on a confidential basis pursuant to paragraph (a) of this section. The Executive Secretary shall review the complaint and issue a report and decision, which shall be final unless appealed to the Board within 30 days. The Board or the Executive Secretary may otherwise initiate a review for cause. The primary factor considered in reviewing fairness and reasonableness is the cost of the specific services rendered. Where those costs incorporate charges to the grantee by one or more parties undertaking functions on behalf of the grantee, the Board may consider the costs incurred by those parties or evidence regarding market rates for the undertaking of those functions. The Board may rely on best estimates, as necessary. The Board will also give consideration to any extra costs incurred relative to non-zone operations, including return on investment and reasonable out-of-pocket expenses."], ["15:15:2.1.2.2.1.5.1.6", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "E", "Subpart E\u2014Operation of Zones and Administrative Requirements", "", "\u00a7 400.46 Grantee liability.", "FTZ", "", "", "", "(a)  Exemption from liability.  A grant of authority,  per se,  shall not be construed to make the zone grantee liable for violations by zone participants. The role of the zone grantee under the FTZ Act and the Board's regulations is to provide general management of the zone to ensure that the reasonable needs of the business community are served. It would not be in the public interest to discourage public entities from zone sponsorship because of concern about liability without fault.\n\n(b)  Exception to exemption from liability.  A grantee could create liability for itself that otherwise would not exist if the grantee undertakes detailed operational oversight of or direction to zone participants. Examples of detailed operational oversight or direction include review of an operator's inventory-control or record-keeping systems, specifying requirements for such a system to be used by an operator, and review of CBP documentation related to an operator's zone receipts and shipments."], ["15:15:2.1.2.2.1.5.1.7", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "E", "Subpart E\u2014Operation of Zones and Administrative Requirements", "", "\u00a7 400.47 Retail trade.", "FTZ", "", "", "", "(a)  In general.  Retail trade is prohibited in activated areas of zones, except that 1) sales or other commercial activity involving domestic, duty-paid, and duty-free goods may be conducted within an activated area of a zone under a permit issued by the zone grantee and approved by the Board, and 2) no permits shall be necessary for sales involving domestic, duty-paid or duty-free food and non-alcoholic beverage products sold within the zone or subzone for consumption on premises by individuals working therein. The Executive Secretary shall determine whether an activity is retail trade, subject to review by the Board when the zone grantee requests such a review with a good cause. Determinations on whether an activity constitutes retail trade shall be based on precedent established through prior rulings by CBP, as appropriate. Such prior rulings shall remain effective unless a determination is issued to modify their effect (after a notice-and-comment process, as appropriate). Determinations made by the Executive Secretary pursuant to this section shall be made available to the public via the Board's Web site.\n\n(b)  Procedure.  Requests for Board approval under this section shall be submitted in letter form, with supporting documentation, to the Executive Secretary, who is authorized to act for the Board in these cases, after consultation with CBP as necessary.\n\n(c)  Criteria.  In evaluating requests under this section, the Executive Secretary and CBP shall consider factors that may include:\n\n(1) Whether any public benefits would result from approval; and\n\n(2) The economic effect such activity would have on the retail trade outside the zone in the port of entry area."], ["15:15:2.1.2.2.1.5.1.8", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "E", "Subpart E\u2014Operation of Zones and Administrative Requirements", "", "\u00a7 400.48 Zone-restricted merchandise.", "FTZ", "", "", "", "(a)  In general.  Merchandise in zone-restricted status (19 CFR 146.44) may be entered into the customs territory of the United States only when the Board determines that the entry would be in the public interest. Such entries are subject to the customs laws and the payment of applicable duties and excise taxes (19 U.S.C. 81c(a), 4th proviso).\n\n(b)  Criteria.  In making the determination described in paragraph (a) of this section, the Board shall consider:\n\n(1) The intent of the parties;\n\n(2) Why the merchandise cannot be exported;\n\n(3) The public benefit involved in allowing entry of the merchandise; and\n\n(4) The recommendation of CBP.\n\n(c)  Procedure.  (1) A request for authority to enter \u201czone-restricted\u201d merchandise into U.S. customs territory shall be made to the Executive Secretary in letter form by the zone grantee or by the operator responsible for the merchandise (with copy to the grantee), with supporting information and documentation.\n\n(2) The Executive Secretary shall investigate the request and prepare a report for the Board.\n\n(3) The Executive Secretary may act for the Board under this section with respect to requests that involve merchandise valued at 500,000 dollars or less and that are accompanied by a letter of concurrence from CBP."], ["15:15:2.1.2.2.1.5.1.9", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "E", "Subpart E\u2014Operation of Zones and Administrative Requirements", "", "\u00a7 400.49 Monitoring and reviews of zone operations and activity.", "FTZ", "", "", "", "(a)  In general.  Ongoing zone operation(s) and activity may be reviewed by the Board or the Executive Secretary at any time to determine whether they are in the public interest and in compliance and conformity with the Act and regulations, as well as authority approved by the Board. Reviews involving production activity may also be conducted to determine whether there are changed circumstances that raise questions as to whether the activity is detrimental to the public interest, taking into account the factors enumerated in \u00a7 400.27. The Board may prescribe special monitoring requirements in its decisions when appropriate.\n\n(b)  Conduct of reviews.  Reviews may be initiated by the Board, the Commerce Department's Assistant Secretary for Enforcement and Compliance, or the Executive Secretary; or, they may be undertaken in response to requests from parties directly affected by the activity in question showing good cause based on the provision of information that is probative and substantial in addressing the matter in issue. After initiation of a review, any affected party shall provide in a timely manner any information requested as part of the conduct of the review. If a party fails to timely provide information requested as part of such a review, a presumption unfavorable to that party may be made.\n\n(c)  Prohibition or restriction.  Upon review, if a finding is made that zone activity is no longer in the public interest (taking into account the factors enumerated in \u00a7 400.27 where production activity is involved), the Board or the Commerce Department's Assistant Secretary for Enforcement and Compliance may prohibit or restrict the activity in question. Such prohibitions or restrictions may be put in place after a preliminary review (e.g., prior to potential steps such as a public comment period) if circumstances warrant such action until further review can be completed. The procedures of \u00a7 400.34(a)(5)(iv)(A) shall be followed to notify the grantee of the affected zone and allow for a response prior to the final imposition of a prohibition or restriction. The appropriateness of a delayed effective date shall be considered."], ["15:15:2.1.2.2.1.6.1.1", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "F", "Subpart F\u2014Records, Reports, Notice, Hearings and Information", "", "\u00a7 400.51 Records and reports.", "FTZ", "", "", "", "(a)  Records and forms.  Zone records and forms shall be prepared and maintained in accordance with the requirements of CBP and the Board, consistent with documents issued by the Board specific to the zone in question, and the zone grantee shall retain copies of applications/requests it submits to the Board in electronic or paper format.\n\n(b)  Maps and drawings.  Zone grantees or operators, and CBP, shall keep current layout drawings of approved sites as described in \u00a7 400.21(d)(5), showing activated portions, and a file showing required activation approvals. The zone grantee shall furnish necessary maps to CBP.\n\n(c)  Annual reports.  (1) Each zone grantee shall submit a complete and accurate annual report to the Board within 90 days after the end of the reporting period. Each zone operator shall submit a complete and accurate annual report to the zone grantee in a timeframe that will enable the grantee's timely submission of a complete and accurate annual report to the Board. A zone grantee may request an extension of the deadline for its report, as warranted. The Executive Secretary may authorize such extensions, with decisions on such authorizations taking into account both the circumstances presented and the importance of the Board submitting its annual report to Congress in a timely manner. Annual reports must be submitted in accordance with any instructions, guidelines, forms and related documents specifying place, manner and format(s) prescribed by the Executive Secretary. In the event that a grantee has not received all necessary annual report information from an operator in a timely manner, the grantee may submit its annual report on time and note the absence of the missing information.\n\n(2) The Board shall submit an annual report to Congress."], ["15:15:2.1.2.2.1.6.1.2", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "F", "Subpart F\u2014Records, Reports, Notice, Hearings and Information", "", "\u00a7 400.52 Notices and hearings.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8530, Feb. 8, 2024]", "(a)  In general.  The Executive Secretary shall publish notice in the  Federal Register  inviting public comment on applications and notifications for Board action (see, \u00a7\u00a7 400.32 and 400.37(b)), and with regard to other reviews or matters considered under this part when public comment is necessary. An applicant under \u00a7\u00a7 400.21, 400.24(b) and 400.25 shall give appropriate notice of its proposal in a local, general-circulation newspaper at least 15 days prior to the close of the public comment period for the proposal in question. The Board, the Secretary of Commerce, the Commerce Department's Assistant Secretary for Enforcement and Compliance, or the Executive Secretary, as appropriate, may schedule and/or hold hearings during any proceedings or reviews conducted under this part whenever necessary or appropriate.\n\n(b)  Requests for hearings.  (1) A party who may be materially affected by the zone activity in question and who shows good cause may request a hearing during a proceeding or review.\n\n(2) The request must be made within 30 days of the beginning of the initial period for public comment ( see  \u00a7 400.32) and must be accompanied by information establishing the need for the hearing and the basis for the requesting party's interest in the matter.\n\n(3) A determination as to the need for the hearing shall be made by the Commerce Department's Assistant Secretary for Enforcement and Compliance within 15 days after the receipt of such a request.\n\n(c)  Procedure for public hearings.  The Board shall publish notice in the  Federal Register  of the date, time and location of a public hearing. All participants shall have the opportunity to make a presentation. Applicants and their witnesses shall ordinarily appear first. The presiding officer may adopt time limits for individual presentations."], ["15:15:2.1.2.2.1.6.1.3", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "F", "Subpart F\u2014Records, Reports, Notice, Hearings and Information", "", "\u00a7 400.53 Official records; public access.", "FTZ", "", "", "", "(a)  Content.  The Executive Secretary shall maintain at the location stated in \u00a7 400.54(e) an official record of each proceeding within the Board's jurisdiction. The Executive Secretary shall include in the official record all timely evidence, factual information, and written argument, and other material developed by, presented to, or obtained by the Board in connection with the proceeding. While there is no requirement that a  verbatim  record shall be kept of public hearings, the proceedings of such hearings shall ordinarily be recorded and transcribed when significant opposition to a proposal is involved.\n\n(b)  Opening and closing of official record.  The official record opens on the date the Executive Secretary dockets an application or receives a request or notification that satisfies the applicable requirements of this part and closes on the date of the final determination in the proceeding or review, as applicable.\n\n(c)  Protection of the official record.  Unless otherwise ordered in a particular case by the Executive Secretary, the official record shall not be removed from the Department of Commerce. A certified copy of the record shall be made available to any court before which any aspect of a proceeding is under review, with appropriate safeguards to prevent disclosure of business proprietary or privileged information."], ["15:15:2.1.2.2.1.6.1.4", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "F", "Subpart F\u2014Records, Reports, Notice, Hearings and Information", "", "\u00a7 400.54 Information.", "FTZ", "", "", "", "(a)  Request for information.  The Executive Secretary, on behalf of the Board, may request submission of any information, including business proprietary information, and written argument necessary or appropriate to the proceeding.\n\n(b)  Public information.  Except as provided in paragraph (c) of this section, the Board shall consider all information submitted in a proceeding to be public information, and if the person submitting the information does not agree to its public disclosure, the Board shall return the information and not consider it in the proceeding. Information to meet the basic requirements of \u00a7\u00a7 400.21-400.25 is inherently public information to allow meaningful public evaluation pursuant to those sections and \u00a7 400.32.\n\n(c)  Business proprietary information.  Persons submitting business proprietary information and requesting that it be protected from public disclosure shall mark the cover page, as well as the top of each page on which such information appears, \u201cbusiness proprietary.\u201d Any business proprietary document submitted for a proceeding other than pursuant to \u00a7 400.45 shall contain brackets at the beginning and end of each specific piece of business proprietary information contained in the submission. Any such business proprietary submission shall also be accompanied by a public version that contains all of the document's contents except the information bracketed in the business proprietary version, with the cover page and the top of each additional page marked \u201cpublic version.\u201d Any information for which business proprietary treatment is claimed must be ranged ( i.e.,  presented as a number or upper and lower limits that approximate the specific business proprietary figure) or summarized in the public version. If a submitting party maintains that certain information is not susceptible to summarization or ranging, the public version must provide a full explanation specific to each such piece of information regarding why summarization or ranging is not feasible.\n\n(d)  Disclosure of information.  Disclosure of public information shall be governed by 15 CFR part 4.\n\n(e)  Availability of information.  Public information in the official record shall be available at the Office of the Executive Secretary, Foreign-Trade Zones Board, U.S. Department of Commerce Building, 1401 Constitution Avenue NW., Washington, DC 20230 and may also be available electronically over the Internet via  http://www.trade.gov/ftz  (or a successor Internet address)."], ["15:15:2.1.2.2.1.7.1.1", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "G", "Subpart G\u2014Penalties and Appeals to the Board", "", "\u00a7 400.61 Revocation of authority.", "FTZ", "", "", "[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8530, Feb. 8, 2024]", "(a)  In general.  As provided in this section, the Board can revoke in whole or in part authority for a zone ( see  \u00a7 400.2(h)) whenever it determines that the zone grantee has violated, repeatedly and willfully, the provisions of the Act.\n\n(b)  Procedure.  When the Board has reason to believe that the conditions for revocation, as described in paragraph (a) of this section, are met, the Board shall:\n\n(1) Notify the grantee of the zone in question in writing stating the nature of the alleged violations, provide the grantee an opportunity to request a hearing on the proposed revocation, and notify any known operators in the zone;\n\n(2) Conduct a hearing, if requested or otherwise if appropriate;\n\n(3) Make a determination on the record of the proceeding not earlier than four months after providing notice to the zone grantee under paragraph (b)(1) of this section; and\n\n(4) If the Board's determination is affirmative, publish a notice of revocation of authority, in whole or in part, in the  Federal Register.\n\n(c)  Appeals.  As provided in section 18 of the Act (19 U.S.C. 81r(c)), the grantee of the zone in question may appeal an order of the Board revoking authority."], ["15:15:2.1.2.2.1.7.1.2", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "G", "Subpart G\u2014Penalties and Appeals to the Board", "", "\u00a7 400.62 Fines, penalties and instructions to suspend activated status.", "FTZ", "", "", "", "(a)  In general.  Fines are authorized solely for specific violations of the FTZ Act or the Board's regulations as detailed in \u00a7\u00a7 400.62(b) and (c). Each specific violation is subject to a fine of not more than 1,000 dollars (as adjusted for inflation pursuant to \u00a7 400.62(j)), with each day during which a violation continues constituting a separate offense subject to imposition of such a fine (FTZ Act, section 19; 19 U.S.C. 81s). This section also establishes the party subject to the fine which, depending on the type of violation, would be the zone operator, grantee, or a person undertaking one or more zone-related functions on behalf of the grantee, where applicable. In certain circumstances, the Board or the Assistant Secretary for Enforcement and Compliance could instruct CBP to suspend the activated status of all or part of a zone or subzone. Violations of the FTZ Act or the Board's regulations (including the sections pertaining to uniform treatment and submission of annual reports), failure to pay fines, or failure to comply with an order prohibiting or restricting activity may also result in the Executive Secretary's suspending the processing of any requests to the Board and staff relating to the zone or subzone in question. In circumstances where non-compliance pertains to only a subset of the operations in a zone, suspensions of activated status and suspensions of the processing of requests shall be targeted to the specific non-compliant operation(s).\n\n(b)  Violations involving requirement to submit annual report.  A grantee's failure to submit a complete and accurate annual report pursuant to section 16 of the FTZ Act (19 U.S.C. 81p(b)) and \u00a7 400.51(c)(1) of these regulations constitutes a violation subject to a fine, with each day of continued failure to submit the report constituting a separate offense subject to a fine of not more than 1,000 dollars (as adjusted for inflation pursuant to \u00a7 400.62(j)). Further, each day during which a zone operator fails to submit to the zone's grantee the information required for the grantee's timely submission of a complete and accurate annual report to the Board shall constitute a separate offense subject to a fine of not more than 1,000 dollars (as adjusted for inflation pursuant to \u00a7 400.62(j)). Consistent with \u00a7 400.46, if the grantee submits a timely report to the Board identifying any operator that has not provided complete and timely information in response to a timely request(s) by the grantee, the grantee shall not be subject to a fine-assessment action stemming from the operator's failure to timely provide its report.\n\n(c)  Violations involving uniform treatment.  Failure by a grantee or a person undertaking one or more zone-related functions on behalf of the grantee to comply with the uniform treatment requirement of section 14 of the FTZ Act (19 U.S.C. 81n) or the provisions of \u00a7 400.43 of these regulations constitutes a violation, with each day of continued violation constituting a separate offense subject to a fine of not more than 1,000 dollars (as adjusted for inflation pursuant to \u00a7 400.62(j)).\n\n(d)  Procedures for determination of violations and imposition of fines.  When the Board or the Executive Secretary has reason to believe that a violation pursuant to \u00a7\u00a7 400.62(b) and (c) has occurred and that the violation warrants the imposition of a fine (such as a situation where a party has previously been notified of action required for compliance and has failed to take such action within a reasonable period of time), the following steps shall be taken:\n\n(1) The Executive Secretary shall notify the party or parties responsible for the violation and the zone grantee in writing stating the nature of the alleged violation, and provide the party(ies) a specified period (no less than 30 days, with consideration given to any requests for an extension, which shall not be unreasonably withheld) to respond in writing;\n\n(2) The Executive Secretary shall conduct a hearing, if requested or otherwise if appropriate. Parties may be represented by counsel at the hearing, and any evidence and testimony of witnesses in the proceeding shall be presented. A transcript of the hearing shall be produced and a copy shall be made available to the parties;\n\n(3) The Executive Secretary shall make a recommendation on the record of the proceeding not earlier than the later of 15 days after the deadline for the party(ies)'s response under paragraph (d)(1) of this section or 15 days after the date of a hearing held under paragraph (d)(2) of this section. If the recommendation is for an affirmative determination of a violation, the Executive Secretary shall also recommend the amount of the fine to be imposed; and\n\n(4) The Board shall make a determination regarding the finding of a violation and imposition of a fine based on the Executive Secretary's recommendation under paragraph (d)(3) of this section. For related actions where the total sum of recommended fines is no more than 10,000 dollars (50,000 dollars in the case of violations pursuant to paragraph (b) of this section), the Board delegates to the Executive Secretary the authority to make a determination.\n\n(e)  Mitigation \u2014(1)  In general.  The Commerce Department's Assistant Secretary for Enforcement and Compliance may approve the mitigation (reduction or elimination) of an imposed fine based on specific evidence presented by the affected party. Authority is delegated to the Executive Secretary to mitigate a fine where the total sum of fines imposed on a party for related actions does not exceed 10,000 dollars (50,000 dollars in the case of violations pursuant to paragraph (b) of this section). Mitigating evidence and argument pertaining to mitigating factors must be submitted within 30 days of the determination described in paragraph (d)(4) of this section, subject to requests for extension for cause, the granting of which shall not be unreasonably withheld.\n\n(2)  Mitigating factors.  Factors to be taken into account in evaluating potential mitigation include:\n\n(i) A good record of a violator over the preceding five years with regard to the type of violation(s) at issue;\n\n(ii) The violation was due to the action of another party despite violator's adherence to the requirements of the FTZ Act and the Board's regulations;\n\n(iii) Immediate remedial action by the violator to avoid future violations;\n\n(iv) A violator's cooperation with the Board (beyond the degree of cooperation expected from a person under investigation for a violation) in ascertaining the facts establishing the violation;\n\n(v) A violation's resulting from a clerical error or similar unintentional negligence; and\n\n(vi) Such other factors as the Board, or the Executive Secretary, deems appropriate to consider in the specific circumstances presented.\n\n(f)  Assessment of fines.  After evaluating submitted mitigating evidence and argument, where applicable, the Commerce Department's Assistant Secretary for Enforcement and Compliance may assess an imposed fine (in whole or in part). Authority is delegated to the Executive Secretary to assess a fine where the total sum of the imposed fines for related actions does not exceed 10,000 dollars (50,000 dollars in the case of violations pursuant to paragraph (b) of this section).\n\n(g)  Time for payment.  Full payment of an assessed fine must be made within 30 days of the date of the assessment or within such longer period of time as may be specified. Payment shall be made in the manner specified by the Commerce Department's Assistant Secretary for Enforcement and Compliance or the Executive Secretary.\n\n(h)  Procedures for instruction to suspend activated status.  If a fine assessed pursuant to \u00a7\u00a7 400.62(d) through (g) has not been paid within 90 days of the specified deadline for payment, if there is a repeated and willful failure to comply with a requirement of the FTZ Act or the Board's regulations, or if there is a repeated and willful failure to comply with a prohibition or restriction on activity imposed by an order of the Board or an order of the Commerce Department's Assistant Secretary for Enforcement and Compliance pursuant to \u00a7 400.49(c), the Board or the Commerce Department's Assistant Secretary for Enforcement and Compliance may instruct CBP to suspend the activated status of the zone operation(s) in question (or, if appropriate, the suspension may be limited to a particular activity of a zone operator, such as suspension of the privilege to admit merchandise), and the suspension shall remain in place until the failure to pay a fine, failure to comply with a requirement of the FTZ Act or the Board's regulations, or failure to comply with an order's prohibition or restriction on activity has been remedied. In determining whether to instruct CBP to suspend the activated status of a zone operation in the circumstances noted, the following steps shall be taken:\n\n(1)  Notification of party(ies).  The Executive Secretary shall notify the responsible party(ies) in writing stating the nature of the failure to timely pay a fine, to comply with a requirement of the FTZ Act or the Board's regulations or to comply with a prohibition or restriction on activity imposed by an order of the Board or an order of the Commerce Department's Assistant Secretary for Enforcement and Compliance. If the grantee is not one of the responsible parties notified, the Executive Secretary shall also provide a copy of the notification to the grantee. The responsible party(ies) shall be provided a specified period (of not less than 15 days) to respond in writing to the notification;\n\n(2)  Hearing.  If the notified responsible party(ies) or the zone's grantee requests a hearing (or if a hearing is determined to be warranted by the Board, the Commerce Department's Assistant Secretary for Enforcement and Compliance or the Executive Secretary), it shall be held before the Executive Secretary (or a member of the Board staff designated by the Executive Secretary) within 30 days following the request for a hearing (or the determination by the Board, the Commerce Department's Assistant Secretary for Enforcement and Compliance or the Executive Secretary). Parties may be represented by counsel at the hearing, and any evidence and testimony of witnesses in the proceeding shall be presented. A transcript of the hearing shall be produced and a copy shall be made available to the parties;\n\n(3) The Executive Secretary shall make a recommendation on the record of the proceeding not earlier than 15 days after the later of:\n\n(i) The deadline for the party(ies)'s response under paragraph (h)(1) of this section; or\n\n(ii) The date of a hearing held under paragraph (h)(2) of this section; and\n\n(4) The Board or the Commerce Department's Assistant Secretary for Enforcement and Compliance shall determine whether to instruct CBP to suspend the activated status of the zone operation(s) in question. If the determination is affirmative, the Executive Secretary shall convey the instruction to CBP, with due consideration to allow for the transfer of any affected merchandise from the applicable zone site(s).\n\n(i)  Enforcement of assessment.  Upon any failure to pay an assessed fine, the Board may request the U.S. Department of Justice to recover the amount assessed in any appropriate district court of the United States or may commence any other lawful action.\n\n(j)  Adjustment for inflation.  The maximum dollar value of a fine for a violation of the FTZ Act or the Board's regulations is subject to adjustment for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410), as amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104-134)."], ["15:15:2.1.2.2.1.7.1.3", 15, "Commerce and Foreign Trade", "IV", "", "400", "PART 400\u2014REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD", "G", "Subpart G\u2014Penalties and Appeals to the Board", "", "\u00a7 400.63 Appeals to the Board of decisions of the Assistant Secretary for Enforcement and Compliance and the Executive Secretary.", "FTZ", "", "", "", "(a)  In general.  Decisions of the Commerce Department's Assistant Secretary for Enforcement and Compliance and the Executive Secretary made pursuant to this part may be appealed to the Board by adversely affected parties showing good cause.\n\n(b)  Procedures.  Parties appealing a decision under paragraph (a) of this section shall submit a request for review to the Board in writing, stating the basis for the request, and attaching a copy of the decision in question, as well as supporting information and documentation. After a review, the Board shall notify the appealing party of its decision in writing."], ["17:17:5.0.2.1.1.0.43.1", 17, "Commodity and Securities Exchanges", "IV", "A", "400", "PART 400\u2014RULES OF GENERAL APPLICATION", "", "", "", "\u00a7 400.1 Scope of regulations.", "SEC", "", "", "[52 FR 27926, July 24, 1987, as amended at 61 FR 48348, Sept. 12, 1996; 71 FR 54410, Sept. 15, 2006]", "(a) Title I of the Government Securities Act of 1986 (Pub. L. 99-571, 100 Stat. 3208) amends the Securities Exchange Act of 1934 (48 Stat. 881-905; 15 U.S.C. chapter 2B) (\u201cAct\u201d) by adding section 15C, authorizing the Secretary of the Treasury to promulgate regulations concerning the financial responsibility, protection of customer securities and balances, recordkeeping and reporting of brokers and dealers in government securities. Those regulations constitute subchapter A of this chapter. Unless otherwise explicitly provided, all regulations in this subchapter apply to all government securities brokers or dealers, including registered brokers or dealers and financial institutions. Registered brokers or dealers include OTC derivatives dealers.\n\n(b) Section 15C(a)(1)(A) of the Act (15 U.S.C. 78o-5(a)(1)(A)) requires all government securities brokers and government securities dealers, except those who are brokers or dealers registered pursuant to section 15 or section 15B of the Act or financial institutions, to register with the Securities and Exchange Commission (\u201cCommission\u201d). Regulations concerning registration are at \u00a7 240.15Ca2-1  et seq.  of this title. The Commission is responsible for the interpretation of the definitions of government securities broker and government securities dealer and of the regulations at \u00a7 240.15Ca2-1  et seq.\n\n(c) Section 15C(a)(1)(B)(i) of the Act (15 U.S.C. 78o-5(a)(1)(B)(i)) requires all government securities brokers or dealers that are also registered brokers or dealers to notify the Commission of their status as government securities brokers or dealers. Regulations concerning notice are at \u00a7 240.15Ca1-1 of this title.\n\n(d) Section 15C(a)(1)(B)(i) of the Act also requires all government securities brokers or dealers that are financial institutions to notify the appropriate regulatory agency, as defined in section 3(a)(34)(G) of the Act (15 U.S.C. 78c(a)(34)(G)), of their status as government securities brokers or dealers. The form of notice, Form G-FIN, is at \u00a7 449.1 of this chapter. Forms are available from the appropriate regulatory agency.\n\n(e) Section 104 of the Government Securities Act Amendments of 1993 (Pub. L. 103-202, 107 Stat. 2344) amended Section 15C of the Act (15 U.S.C. 78 o -5) by adding a new subsection (f), authorizing the Secretary of the Treasury to adopt rules to require specified persons holding, maintaining or controlling a large position in to-be-issued or recently-issued Treasury securities to report such a position and make and keep records related to such a position. Part 420 of this subchapter contains the rules governing large position reporting."], ["17:17:5.0.2.1.1.0.43.2", 17, "Commodity and Securities Exchanges", "IV", "A", "400", "PART 400\u2014RULES OF GENERAL APPLICATION", "", "", "", "\u00a7 400.2 Office responsible for regulations; filing of requests for exemptions, for interpretations and of other materials.", "SEC", "", "", "[52 FR 27926, July 24, 1987, as amended at 53 FR 28984, Aug. 1, 1988; 72 FR 54410, Sept. 15, 2006; 79 FR 38454, July 8, 2014]", "(a)  Office responsible.  The regulations in this chapter are promulgated by the Assistant Secretary (Domestic Finance) pursuant to a delegation of authority from the Secretary of the Treasury. The office responsible for implementing the regulations, including interpretations and action on requests for exemption, classification, or modification, is the Office of the Commissioner, Bureau of the Fiscal Service.\n\n(b)(1)  Exemptions and classifications.  Section 15C(a)(4) of the Act (15 U.S.C. 78o-5(a)(4)) authorizes the Secretary to exempt any government securities broker or dealer or class thereof, conditionally or unconditionally, from the requirements of registration or regulations promulgated under section 15C. In addition, section 15C(b)(3) of the Act (15 U.S.C. 78o-5(b)(3)) provides for classification, by the Secretary, of government securities brokers or dealers and authorizes the whole or partial exemption of classes from rules under section 15C or the application of different standards to different classes.\n\n(2)  Interpretations.  Although the appropriate regulatory agencies, as defined in \u00a7 400.3, and the self-regulatory organizations, as defined in section 3(a)(26) of the Act (15 U.S.C. 78c(a)(26)), have enforcement responsibility under section 15C of the Act, Treasury is responsible for interpretation of section 15C(b) of the Act (15 U.S.C. 78o-5(b)) and related sections and for interpretation and amendment of the regulations under this chapter (with the exception of Forms G-FIN and G-FINW, \u00a7\u00a7 449.1 and 449.2 of this chapter, which are the responsibility of the Board of Governors of the Federal Reserve System [\u201cBoard\u201d]).\n\n(c)  Requests for interpretations, exemptions, classifications.  (1) Interpretations under this chapter may be provided, at the discretion of the Department, to firms or individuals actually or potentially affected by the Act or regulations, or to their representatives.\n\n(2) Exemptions and classifications under sections 15C (a), (b) and (d) of the Act (15 U.S.C. 78o-5 (a), (b), and (d)) and related sections and Treasury regulations thereunder may be provided at the discretion of the Department and after consultation with the SEC and the Board, to firms or individuals actually or potentially affected by the Act or regulations, or to their representatives.\n\n(3) All requests for exemptions and classifications, and all requests for binding interpretations, shall be in writing, and shall conform to the following procedures.\n\n(i) The names of the company or companies and all other persons involved shall be stated. Letters pertaining to unnamed companies or persons or hypothetical situations will not be answered.\n\n(ii) The letter must contain a concise but complete statement of all material facts, a complete and accurate description of the entire transaction if the request is transactional (even though a request may apply to only a portion of a transaction), and a concise and unambiguous statement of the request, including precise statutory and regulatory citations.\n\n(iii) The letter shall indicate why the writer believes a problem exists or interpretation is needed, the writer's opinion on the matter, and the basis for such opinion.\n\n(iv) In addition to requests for confidential treatment under paragraph (c)(7)(ii) of this section, a person may request confidential treatment of information that is submitted as part of, or in support of, a request for interpretation, exemption, or classification. A separate request for confidential treatment and the basis for such request shall be submitted at the time the information for which confidential treatment is requested is submitted. The request for confidential treatment must specifically identify the information for which such confidential treatment is requested. To the extent practicable, the information should be segregated from information for which confidential treatment is not requested and should be clearly marked as confidential.\n\n(v) Information designated as confidential in accordance with paragraph (c)(3)(iv) of this section shall not be disclosed to a person requesting such information other than in accordance with the procedures outlined in the Department's regulations published at 31 CFR 1.6.\n\n(vi) An original and two copies of each request letter shall be submitted to the Office of the Commissioner, Government Securities Regulations Staff, Bureau of the Fiscal Service, 5th Floor, 401 14th Street SW., Washington, DC 20227. The envelope shall be marked \u201cGovernment Securities Act Request.\u201d The letter shall indicate in the upper right hand corner of the first page the particular sections of the Act and of the regulations at issue.\n\n(4) A written response by the Department to a request filed as stated in paragraph (c)(3) of this section shall be binding, with respect to the requester, on the Department, but shall cease to be binding if the facts are not as stated in the request or, prospectively, if the Department issues a superseding interpretation. In responding to such a request, the Department will, where appropriate, consult with and may obtain the formal concurrence of the appropriate regulatory agencies or their staffs. The Department understands that even if formal concurrence is not received the appropriate regulatory agencies and self-regulatory organizations will give appropriate deference to binding interpretations of the Department. The Department also expects the SEC staff to reflect such interpretations in responding, pursuant to the established procedures of the Commission, to no-action requests concerning rules the SEC enforces.\n\n(5) The Department may decline to issue an interpretation for any reason and, in particular, may require that a requester make inquiry of its appropriate regulatory agency, the Commission or designated examining authority before the Department responds to a request.\n\n(6) The Department will also provide informal oral and written advice, but such advice is not binding on the Department or on any other agency or organization.\n\n(7)(i) Except as provided in paragraphs (c)(3)(iv) and (c)(7)(ii) of this section, every letter or other written communication requesting the Department to provide interpretive legal advice under the Act or to grant, deny or modify an exemption, classification or modification of the regulations, together with any written response thereto, shall be made available for inspection and copying as soon as practicable after the response has been sent or given to the person requesting it. These documents will be made available at the following location: Treasury Department Library, 1500 Pennsylvania Avenue NW., Annex, Room 1020, Washington, DC 20220.\n\n(ii) Any person submitting a letter or communication may also simultaneously submit a request that the letter or communication and the Department's response be accorded confidential treatment for a specified period of time not to exceed 120 days from the date the response has been made or given to such person. The request shall state the basis upon which the request for confidential treatment has been made. If the Department determines that the request for confidential treatment should be denied, the requester will be given 30 days to withdraw either the request for confidential treatment or the letter or communication requesting an interpretation, classification, or exemption.\n\n(d)  Effect of Commission interpretations.  Interpretations of the Commission and its staff (including no-action positions) and of the designated examining authorities, of any Commission regulation expressly adopted by reference in these regulations shall be of the same effect as if the regulation being interpreted were solely the Commission's regulation. However, in the event the Treasury has issued a formal interpretation on the subject, the Treasury understands that the Commission will give that interpretation appropriate deference, particularly with respect to both subsequent no-action positions and the continued validity of prior no-action positions."], ["17:17:5.0.2.1.1.0.43.3", 17, "Commodity and Securities Exchanges", "IV", "A", "400", "PART 400\u2014RULES OF GENERAL APPLICATION", "", "", "", "\u00a7 400.3 Definitions.", "SEC", "", "", "[52 FR 27926, July 24, 1987, as amended at 55 FR 6604, Feb. 26, 1990; 71 FR 54410, Sept. 15, 2006; 79 FR 38455, July 8, 2014]", "Unless otherwise explicitly provided, in this subchapter and for the purposes of these regulations:\n\nAct  means the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. chapter 2B, as amended);\n\nAppropriate regulatory agency  has the meaning set out in section 3(a)(34)(G) of the Act (15 U.S.C. 78c(a)(34)(G)), and, with respect to a financial institution for which an appropriate regulatory agency is not explicitly designated, the appropriate regulatory agency is the SEC;\n\nAssociated person  means a person other than a person whose functions are solely clerical or ministerial:\n\n(1) Directly engaged in any of the following activities in either a supervisory or non-supervisory capacity:\n\n(i) Underwriting, trading or sales of government securities;\n\n(ii) Financial advisory or consultant services for issuers in connection with the issuance of government securities;\n\n(iii) Research or investment advice, other than general economic information or advice, with respect to government securities in connection with the activities described in paragraphs (c)(1)(i) and (c)(1)(ii) of this section;\n\n(iv) Activities other than those specifically mentioned which involve communication, directly or indirectly, with public investors in government securities in connection with the activities described in paragraphs (c)(1)(i) and (c)(1)(ii) of this section; or\n\n(2) Directly engaged in the following activities in a supervisory capacity:\n\n(i) Processing and clearance activities with respect to government securities;\n\n(ii) Maintenance of records involving any of the activities described in paragraph (c)(1) of this section;\n\n(3) That in the case of a financial institution,\n\n(i) Persons whose government securities functions: (A) Consist solely of carrying out the financial institution's activities in a fiduciary capacity and (B) are subject to examination by the appropriate regulatory agency for compliance with requirements applicable to activities by the financial institution in a fiduciary capacity, shall not be considered \u201cassociated persons\u201d;\n\n(ii) Persons whose sole government securities activities are, without exercising any investment discretion and solely at the direction of customers, to receive and/or transmit customer orders to purchase or sell government securities, but who do not give investment advice or receive transaction-based compensation shall not be considered \u201cassociated persons\u201d; and\n\n(iii) Directors and senior officers of the financial institution who may from time to time set broad policy guidelines affecting the financial institution as a whole that are not directly related to the conduct of the financial institution's government securities business are not considered to be \u201cdirectly engaged\u201d in the activities described in this paragraph (c);\n\nBoard  means the Board of Governors of the Federal Reserve System;\n\nBranch or agency of a foreign bank  means a Federal branch or Federal agency of a foreign bank or a State branch or State agency of a foreign bank as such terms are used in the International Banking Act of 1978, Pub. L. 95-369, 92 Stat. 607;\n\nCFTC  means the Commodity Futures Trading Commission;\n\nCommission  or  SEC  means the Securities and Exchange Commission;\n\nDesignated examining authority  and  Examining Authority  mean (1) in the case of a registered government securities broker or dealer that belongs to only one self-regulatory organization, such self-regulatory organization, and (2) in the case of a registered government securities broker or dealer that belongs to more than one self-regulatory organization, the self-regulatory organization designated by the Commission pursuant to section 17(d) of the Act (15 U.S.C. 78q(d)) as the entity with responsibility for examining such registered government securities broker or dealer;\n\nFiduciary capacity  includes trustee, executor, administrator, registrar, transfer agent, guardian, assignee, receiver, managing agent, and any other similar capacity involving the sole or shared exercise of discretion by a financial institution having fiduciary powers that is supervised by a Federal or state financial institution regulatory agency;\n\nFinancial institution  has the meaning set out in section 3(a)(46) of the Act (15 U.S.C. 78c(a)(46)), and such term explicitly does not include a subsidiary or affiliate of an institution described in such section unless such subsidiary or affiliate is itself described in such section;\n\nGovernment securities broker  has the meaning set out in section 3(a)(43) of the Act (15 U.S.C. 78c(a)(43)), and explicitly includes not only registered government securities brokers, but also registered brokers and financial institutions;\n\nGovernment securities dealer  has the meaning set out in section 3(a)(44) of the Act (15 U.S.C. 78c(a)(44)), and explicitly includes not only registered government securities dealers, but also registered dealers and financial institutions;\n\nGovernment securities  has the meaning set out in section 3(a)(42) of the Act (15 U.S.C. 78c(a)(42));\n\nOTC derivatives dealer  has the same meaning set out in 17 CFR 240.3b-12.\n\nRegistered broker or dealer  means a broker or dealer registered pursuant to section 15 or section 15B of the Act (15 U.S.C. 78o, 78o-4)) but does not include a municipal securities dealer that is a bank or a separately identifiable department or division of a bank;\n\nRegistered government securities broker or dealer  means a government securities broker or dealer registered pursuant to section 15C(a)(1)(A) of the Act (15 U.S.C. 78o-5(a)(1)(A));\n\nSecretary  means the Secretary of the Treasury; and\n\nTreasury  or  Department  means the Department of the Treasury, including in particular the Bureau of the Fiscal Service."], ["17:17:5.0.2.1.1.0.43.4", 17, "Commodity and Securities Exchanges", "IV", "A", "400", "PART 400\u2014RULES OF GENERAL APPLICATION", "", "", "", "\u00a7 400.4 Information concerning associated persons of financial institutions that are government securities brokers or dealers.", "SEC", "", "", "[52 FR 27926, July 24, 1987, as amended at 60 FR 11026, Mar. 1, 1995]", "(a) Every associated person of a financial institution that is a government securities broker or dealer that is not exempt pursuant to Part 401 of this chapter shall file with such financial institution a completed Form G-FIN-4 (\u00a7 449.4 of this chapter) unless such person has on file with such financial institution a completed and current Form U-4 (promulgated by a self-regulatory organization) or Form MSD-4 (as required for associated persons of bank municipal securities dealers).\n\n(b) To the extent any information furnished by an associated person pursuant to paragraph (a) of this section (including information on a Form U-4 or Form MSD-4) is or becomes materially inaccurate or incomplete, such associated person shall promptly furnish in writing to such financial institution, in a form acceptable to the appropriate regulatory agency for such financial institution, a statement correcting such information.\n\n(c) For the purpose of verifying the information furnished by an associated person pursuant to paragraph (a) of this rule, every government securities broker or dealer that is a financial institution shall make inquiry of all other employers of such associated person during the immediately preceding three years concerning the accuracy and completeness of such information.\n\n(d) Every government securities broker or dealer that is a financial institution not exempt from this section pursuant to Part 401 of this chapter shall:\n\n(1) Promptly obtain and, within 10 days thereafter, file with the appropriate regulatory agency, in a form acceptable to such appropriate regulatory agency, the information required by paragraph (a) of this section (which shall consist of all Forms G-FIN-4 filed and a list of all associated persons who have filed Forms MSD-4 or U-4 with the financial institution since the last such filing, designating whether the associated person is serving in a supervisory or non-supervisory capacity) and by paragraph (b) of this section; and\n\n(2) File with the appropriate regulatory agency within 30 days after the termination of the status of an individual as an associated person a Form G-FIN-5 (\u00a7 449.4 of this chapter), unless\u2014\n\n(i) The financial institution is required to and has filed a Form U-5 or Form MSD-5 with respect to such person; or\n\n(ii) The financial institution notifies the appropriate regulatory agency that the individual will remain in the financial institution's employment and the financial institution will continue to update the information about such individual as provided in paragraph (b) of this section and will file a Form G-FIN-5 within 30 days after the termination of such individual's employment with the financial institution.\n\n(e) Every notice and form filed pursuant to this section shall constitute a \u201creport\u201d within the meaning of sections 15, 15C and 32(a) of the Act (15 U.S.C. 78o, 78o-5, 78ff(a))."], ["17:17:5.0.2.1.1.0.43.5", 17, "Commodity and Securities Exchanges", "IV", "A", "400", "PART 400\u2014RULES OF GENERAL APPLICATION", "", "", "", "\u00a7 400.5 Amendments to application for registration and to notice of status as a government securities broker or dealer.", "SEC", "", "", "[52 FR 27926, July 24, 1987, as amended at 60 FR 11026, Mar. 1, 1995]", "(a)(1) If the information contained in any application for registration as a government securities broker or dealer (other than the statements required by \u00a7 240.15Ca2-2 of this title) or in any amendment thereto, becomes inaccurate for any reason, the registered government securities broker or dealer shall file within 30 days thereafter an amendment on Form BD (\u00a7 249.501 of this title) correcting such information, in accordance with the instructions provided therein.\n\n(2) If the information contained in any notice of status as a government securities broker or dealer filed by a registered broker or dealer, or in any amendment thereto, becomes inaccurate for any reason, the registered broker or dealer shall file within 30 days an amendment on Form BD (\u00a7 249.501 of this title) correcting such information, in accordance with the instructions provided therein.\n\n(b) If the information contained in any notice of status as a government securities broker or dealer filed by a financial institution, or any amendment thereto, becomes inaccurate for any reason, the financial institution shall file within 30 days an amendment on Form G-FIN (\u00a7 449.1 of this chapter) correcting such information, in accordance with the instructions provided therein.\n\n(c) Every amendment filed pursuant to this section shall constitute a \u201creport\u201d within the meaning of sections 15, 15C and 32(a) of the Act (15 U.S.C. 78o, 78o-5, 78ff(a))."], ["17:17:5.0.2.1.1.0.43.6", 17, "Commodity and Securities Exchanges", "IV", "A", "400", "PART 400\u2014RULES OF GENERAL APPLICATION", "", "", "", "\u00a7 400.6 Notice of withdrawal from business as a government securities broker or dealer by a financial institution.", "SEC", "", "", "[52 FR 27926, July 24, 1987, as amended at 60 FR 18734, Apr. 13, 1995]", "(a) Whenever a financial institution that is a government securities broker or dealer that is not exempt from the notice requirements of section 15C(a)(1)(B)(i) of the Act (15 U.S.C. 78o-5(a)(1)(B)(i)) and of \u00a7 400.5 pursuant to part 401 of this chapter, ceases to act as a government securities broker or dealer, it shall file with the appropriate regulatory agency notice of such cessation on Form G-FINW (\u00a7 449.2 of this chapter) in accordance with the instructions contained therein.\n\n(b) Except as provided in paragraph (c) of this section, a notice that a financial institution has ceased to act as a government securities broker or dealer shall become effective for all purposes on the 60th day after the filing thereof with the appropriate regulatory agency or within such shorter period of time as the appropriate regulatory agency determines.\n\n(c) If the notice described in paragraph (a) of this section is filed with the appropriate regulatory agency any time after the date of the issuance of a notice or order by the appropriate regulatory agency instituting proceedings pursuant to section 15C(c)(2)(A) of the Act (15 U.S.C. 78o-5(c)(2)(A)) to censure, suspend, limit, or bar from acting as a government securities broker or government securities dealer the entity filing such notice, or if the appropriate regulatory agency has instituted any action against the entity filing such notice pursuant to section 15C(2)(B) of the Act (15 U.S.C. \u00a7 78o-5(c)(2)(B)), the notice shall become effective pursuant to paragraph (b) of this section at such time and upon such terms and conditions as the appropriate regulatory agency deems necessary or appropriate in the public interest for the protection of investors.\n\n(d) Every notice filed pursuant to this section shall constitute a \u201creport\u201d within the meaning of sections 15, 15C and 32(a) of the Act (15 U.S.C. 78o, 78o-5, 78ff(a))."], ["7:7:6.1.1.1.1.10.1.1", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "O", "Subpart O\u2014Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years", "", "\u00a7 400.301 Basis, purpose, and applicability.", "RMA", "", "", "[62 FR 22876, Apr. 28, 1997]", "The regulations contained in this subpart are issued pursuant to the Federal Crop Insurance Act, as amended (7 U.S.C. 1501  et seq. ), to prescribe the procedures for nonstandard determinations and the assignment of assigned yields or premium rates in conformance with the intent of section 508 of the Act (7 U.S.C. 1508). These regulations are applicable to all policies of insurance insured or reinsured by the Corporation under the Act and on those policies where the insurance coverage or indemnities are based on determinations applicable to the individual insured. These regulations will not be applicable to any policy where the amount of coverage or indemnities are based on the experience of the area."], ["7:7:6.1.1.1.1.10.1.2", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "O", "Subpart O\u2014Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years", "", "\u00a7 400.302 Definitions.", "RMA", "", "", "[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22876, Apr. 28, 1997]", "Act  means Federal Crop Insurance Act as amended (7 U.S.C. 1501  et seq. ).\n\nActively engaged in farming  means a person who, in return for a share of profits and losses, makes a contribution to the production of an insurable crop in the form of capital, equipment, land, personal labor, or personal management.\n\nActual yield  means total harvested production of a crop divided by the number of acres on which the crop was planted. For insured acres, actual yield is the total production to count as defined in the insurance policy, divided by insured acres.\n\nAssigned yield  means units of crop production per acre administratively assigned by the Corporation for the purpose of determining insurance coverage.\n\nCorporation  means the Federal Crop Insurance Corporation.\n\nCumulative earned premium rate  is the total premium earned for all years in the base period, divided by the total liability for all years in the base period with the result expressed as a percentage.\n\nCumulative loss ratio  means the ratio of total indemnities to total earned premiums during the base period expressed as a decimal.\n\nEarned premium  means premium earned (both the amount subsidized and the amount paid by the producer, but excluding any amount of the subsidy attributed to the operating and administrative expenses of the insurance provider) for a crop under a policy insured or reinsured by the Corporation.\n\nEarned premium rate \u2014means premium earned divided by liability and expressed as a percentage.\n\nEntity \u2014means a person as defined in this subpart other than an individual.\n\nIndemnified loss  means a loss applicable for the policy for any year during the NCS base period for which the total indemnity exceeds the total earned premium. If the person has insurance for the crop in more than one county for any crop year, indemnities and premiums will be accumulated for all counties for each crop year to determine an indemnified loss.\n\nInsurance experience  means earned premiums, indemnities paid (but not including replant payments), and other data for the crop (after applicable adjustments), resulting from all of the insured's crop insurance policies insured or reinsured by the Corporation for one or more crop years and will include all information from all counties in which the person was insured.\n\nLoss ratio \u2014means the ratio of indemnity to earned premium expressed as a decimal.\n\nNCS  means nonstandard classification system.\n\nNCS base period  means the 10 consecutive crop years (as defined in the crop policy) ending 2 crop years prior to the crop year in which the NCS classification becomes effective for all crops, except those specified on the Special Provisions. For these excepted crops, the NCS base period means the 10 consecutive crop years ending 3 crop years prior to the crop year in which the NCS classification becomes effective. For example: An NCS classification effective for the 1996 crop year against a producer of citrus production in Arizona, California, and Texas, or sugarcane would have a NCS base period that includes the 1984 through 1993 crop years. An NCS classification effective for the 1996 crop year against a producer of all other crops would have a NCS base period that includes the 1985 through 1994 crop years.\n\nPerson \u2014means an individual, partnership, association, corporation, estate, trust, or other legal entity, and whenever applicable, a State or a political subdivision, or agency of a state.\n\nSubstantial beneficial interest \u2014means an interest of 10 percent or more. In determining whether such an interest equals at least 10 percent, all interests which are owned directly or indirectly through such means as ownership of shares in a corporation which owns the interest will be taken into consideration."], ["7:7:6.1.1.1.1.10.1.3", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "O", "Subpart O\u2014Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years", "", "\u00a7 400.303 Initial selection criteria.", "RMA", "", "", "[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22876, Apr. 28, 1997]", "(a) Nonstandard classification procedures in this subpart initially apply when all of the following insurance experience criteria (including any applicable adjustment in \u00a7 400.303(d)) for the crop have been met:\n\n(1) Three (3) or more indemnified losses during the NCS base period;\n\n(2) Cumulative indemnities in the NCS base period that exceed cumulative premiums during the same period by at least $500;\n\n(3) The result of dividing the number of indemnified losses during the NCS base period by the number of years premium is earned for that period equals .30 or greater; and\n\n(4) Either of the following apply:\n\n(i) The natural logarithm of the cumulative earned premium rate multiplied by the square root of the cumulative loss ratio equals 2.00 or greater; or\n\n(ii) Five (5) or more indemnified losses have occurred during the NCS base period and the cumulative loss ratio equals or exceeds 1.50.\n\n(b) The minimum standards provided in paragraphs (a) (2), (3), and (4) of this section may be increased in a specific county if that county's overall insurance experience for the crop is substantially different from the insurance experience for which the criteria was determined. The increased standard will apply until the conditions requiring the increase no longer apply. Any change in the standards will be contained in the Special Provisions for the crop.\n\n(c) Selection criteria may be applied on the basis of insurance experience of a person, insured acreage, or the combination of both.\n\n(1) Insurance experience of a person will include:\n\n(i) Insurance experience of the person;\n\n(ii) Insurance experience of other insured entities in which the person had substantial beneficial interest if the person was actively engaged in farming of the insured crop by virtue of the person's interest in those insured entities;\n\n(iii) Insurance experience of a spouse and minor children if the person is an individual and the spouse and minor children are considered the same as the individual under \u00a7 400.306.\n\n(2) Insurance experience of insured acreage includes all insurance experience during the base period resulting from the production of the insured crop on the acreage.\n\n(3) Where insurance experience is based on a combination of person and insured acreage, the insurance experience will include the experience of the person as defined in paragraph (b) of this section (1) only on the specific insured acreage during the base period.\n\n(d) Insurance experience for the crop will be adjusted, by county and crop year, to discount the effect of indemnities caused by widespread adverse growing conditions. Adjustments are determined as follows:\n\n(1) Determine the average yield for the county using the annual county crop yields for the previous 20 crop years, unless such data is not available;\n\n(2) Determine the normal variability in the average yield for the county, expressed as the standard deviation;\n\n(3) Subtract the result of \u00a7 400.303(d)(2) from \u00a7 400.303(d)(1);\n\n(4) Divide the annual crop yield for the county for each crop year in the NCS base period by the result of \u00a7 400.303(d)(3), the result of which may not exceed 1.0;\n\n(5) Subtract the result of \u00a7 400.303(d)(4) for each crop year from 1.0;\n\n(6) Multiply the result of \u00a7 400.303(d)(5) by the liability for the crop year; and\n\n(7) Subtract the result of \u00a7 400.303(d)(6) from any indemnity for that crop year.\n\n(e) FCIC may substitute the crop yields of a comparable crop in determining \u00a7 400.303(d) (1) and (2), or may adjust the average yield or the measurement of normal variability for the county crop, or any combination thereof, to account for trends or unusual variations in production of the county crop or if the availability of yield and loss data for the county crop is limited. Information about how these determinations are made is available by submitting a request to the FCIC Regional Service Office for the producer's area. Alternate methods of determining the effects of adverse growing conditions on insurance experience may be implemented by FCIC if allowed in the Special Provisions."], ["7:7:6.1.1.1.1.10.1.4", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "O", "Subpart O\u2014Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years", "", "\u00a7 400.304 Nonstandard Classification determinations.", "RMA", "", "", "", "(a) Nonstandard Classification determinations can affect a change in assigned yields, premium rates, or both from those otherwise prescribed by the insurance actuarial tables.\n\n(b) Changes of assigned yields based on insurance experience of insured acreage (or of a person on specific insured acreage) will be based on the simple average of available actual yields from the insured acreage during the base period.\n\n(c) Changes of assigned yields based on insurance experience of a person without regard to any specific insured acreage will be determined by an assigned yield factor calculated by multiplying excess loss cost ratio by loss frequency and subtracting that product from 1.00 where:\n\n(1) Excess loss cost ratio is total indemnities divided by total liabilities for all years of insurance experience in the base period and the result of which is then reduced by the cumulative earned premium rate, expressed as a decimal, and\n\n(2) Loss frequency is the number of crop years in which an indemnity was paid divided by the number of crop years in which premiums were earned during the base period.\n\n(d) Changes of premium rates will be made to reflect premium rates that would have resulted in insurance experience during the base period with a loss ratio of 1.00 but:\n\n(1) A higher loss ratio than 1.00 may be used for premium rate determinations provided that the higher loss ratio is applied uniformly in a county; and\n\n(2) If a Nonstandard Classification change has been made to current assigned yields, insurance experience during the base period will be adjusted to reflect the affects of changed assigned yields before changes of premium rates are calculated based on that experience.\n\n(e) Once selection criteria have been met in any year, Nonstandard Classification adjustments will be made from year to year until no further changes are necessary in assigned yields or premium rates under the conditions set forth in \u00a7 400.304(f). In determining whether further changes are necessary, the eligibility criteria will be recomputed each subsequent year using the premium rates and yields which would have been applicable had this part not been in effect.\n\n(f) Nonstandard Classification changes will not be made that:\n\n(1) Increase assigned yields or decrease premium rates from those otherwise assigned by the actuarial tables, or\n\n(2) Result in less than a 10 percent decrease in assigned yields or less than a 10 percent increase in premium rates from those otherwise assigned by the actuarial tables."], ["7:7:6.1.1.1.1.10.1.5", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "O", "Subpart O\u2014Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years", "", "\u00a7 400.305 Assignment of Nonstandard Classifications.", "RMA", "", "", "[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22877, Apr. 28, 1997]", "(a) Assignment of a Nonstandard Classification of assigned yields, assigned yield factors, or premium rates shall be made on forms approved by the Corporation and included in the actuarial tables for the county.\n\n(b) Nonstandard classification assignment will be made each year, for the year identified on the assignment forms, and are not subject to change under the provisions of this subpart by the Corporation for that year when included in the actuarial tables for the county, except as a result of a request for reconsideration as provided in section 400.309, or as the result of appeals under 7 CFR part 11.\n\n(c) A nonstandard classification may be assigned to identified insurable acreage; a person; or to a combination of person and identified acreage for a crop or crop practice, type, variety, or crop option or amendment whereby:\n\n(1) Classifications assigned to identified insurable acreage apply to all acres of the insured crop grown on the identified acreage;\n\n(2) Classifications assigned to a person apply to all insurable acres of the insured crop on which the person and any entity in which the person has substantial beneficial interest is actively engaged in farming; and\n\n(3) Classifications assigned to a combination of a person and identified insurable acreage will only apply to those acres of the insured crop grown on the identified acreage on which the named person is actively engaged in producing such crop."], ["7:7:6.1.1.1.1.10.1.6", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "O", "Subpart O\u2014Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years", "", "\u00a7 400.306 Spouses and minor children.", "RMA", "", "", "", "(a) The spouse and minor children of an individual are considered to be the same as the individual for purposes of this subpart except that:\n\n(1) The spouse who was actively engaged in farming in a separate farming operation prior to their marriage will be a separate person with respect to that separate farming operation so long as that operation remains separate and distinct from any farming operation conducted by the other spouse;\n\n(2) A minor child who is actively engaged in farming in a separate farming operation will be a separate person with respect to that separate farming operation if:\n\n(i) The parent or other entity in which the parent has a substantial beneficial interest does not have any interest in the minor's separate farming operation or in any production from such operation;\n\n(ii) The minor has established and maintains a separate household from the parent;\n\n(iii) The minor personally carries out the farming activities with respect to the minor's farming operation; and\n\n(iv) The minor establishes separate accounting and recordkeeping for the minor's farming operation.\n\n(b) An individual shall be considered to be a minor until the age of 18 is reached. Court proceedings conferring majority on an individual under 18 years of age will not change such individual's status as a minor."], ["7:7:6.1.1.1.1.10.1.7", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "O", "Subpart O\u2014Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years", "", "\u00a7 400.307 Discontinuance of participation.", "RMA", "", "", "[62 FR 22877, Apr. 28, 1997]", "If the person has discontinued participation in the crop insurance program, the person will still be included on the NCS list in the county until the person has discontinued participation as a policyholder or a person with a substantial beneficial interest in a policyholder for at least 10 consecutive crop years. The most recent nonstandard classification assigned will be continued from year to year until participation has been renewed for at least one crop year and at least three years of insurance experience have occurred in the current base period. A nonstandard classification will no longer be applicable to the person or the person on identified acreage if the Corporation determines the person is deceased."], ["7:7:6.1.1.1.1.10.1.8", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "O", "Subpart O\u2014Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years", "", "\u00a7 400.308 Notice of Nonstandard Classification.", "RMA", "", "", "", "(a) The Corporation will give written notice to all persons to whom a Nonstandard Classification will be assigned. The notice will give the Nonstandard Classification and the person's rights and responsibilities according to this subpart.\n\n(b) The person, upon receiving notice from the Corporation, will be responsible for giving notice of the Nonstandard Classification to any other person with an insurable interest affected by the classification. The person will give notice to any other affected person:\n\n(1) Prior to the sales closing date if the other affected person has an established insurable interest at the time the classified person is notified by the Corporation; or\n\n(2) Prior to the Classified person's establishing an insurable interest of another person that will be affected by the classification."], ["7:7:6.1.1.1.1.10.1.9", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "O", "Subpart O\u2014Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years", "", "\u00a7 400.309 Requests for reconsideration.", "RMA", "", "", "[55 FR 32595, Aug. 10, 1990, as amended at 62 FR 22877, Apr. 28, 1997]", "(a) Any person to be assigned a nonstandard classification under this subpart will be notified of and allowed not less that 30 days from the date notice is received to request reconsideration before the nonstandard classification becomes effective. The request will be considered to have been made when received, in writing, by the Corporation.\n\n(b) Upon receipt of a timely request for reconsideration from the person to whom the classification will be assigned, the Corporation will:\n\n(1) Review all information supplied by, and respond to all questions raised by the individual, or\n\n(2) In the absence of information and questions, review insurance experience and determinations for compliance with this subpart and report review results to the individual requesting reconsideration.\n\n(c) Upon review of a request for reconsideration, the classification to be assigned will be corrected for:\n\n(1) Errors and omissions in insurance experience;\n\n(2) Incorrect calculations under procedures in this subpart, and\n\n(3) Typographical errors.\n\n(d) If the review finds no cause for change, the classification will be assigned and placed on file in the actuarial tables for the county.\n\n(e) Any person not satisfied by a determination of the Corporation upon reconsideration may further appeal under the provisions of 7 CFR part 11."], ["7:7:6.1.1.1.1.11.1.1", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "P", "Subpart P\u2014Preemption of State Laws and Regulations", "", "\u00a7 400.351 Basis and applicability.", "RMA", "", "", "", "The regulations contained in this subpart are issued pursuant to the Federal Crop Insurance Act, as amended (7 U.S.C. 1501  et seq. ) (the Act), to prescribe the procedures for Federal preemption of State laws and regulations not consistent with the purpose, intent, or authority of the Act. These regulations are applicable to all policies of insurance, insured or reinsured by the Corporation, contracts, agreements, or actions authorized by the Act and entered into or issued by FCIC."], ["7:7:6.1.1.1.1.11.1.2", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "P", "Subpart P\u2014Preemption of State Laws and Regulations", "", "\u00a7 400.352 State and local laws and regulations preempted.", "RMA", "", "", "[55 FR 23069, June 6, 1990, as amended at 69 FR 48730, Aug. 10, 2004]", "(a) No State or local governmental body or non-governmental body shall have the authority to promulgate rules or regulations, pass laws, or issue policies or decisions that directly or indirectly affect or govern agreements, contracts, or actions authorized by this part unless such authority is specifically authorized by this part or by the Corporation.\n\n(b) The following is a non-inclusive list of examples of actions that State or local governmental entities or non-governmental entities are specifically prohibited from taking against the Corporation or any party that is acting pursuant to this part. Such entities may not:\n\n(1) Impose or enforce liens, garnishments, or other similar actions against proceeds obtained, or payments issued in accordance with the Federal Crop Insurance Act, these regulations, or contracts or agreements entered into pursuant to these regulations;\n\n(2) Tax premiums associated with policies issued hereunder;\n\n(3) Exercise approval authority over policies issued;\n\n(4) Levy fines, judgments, punitive damages, compensatory damages, or judgments for attorney fees or other costs against companies, employees of companies including agents and loss adjustors, or Federal employees arising out of actions or inactions on the part of such individuals and entities authorized or required under the Federal Crop Insurance Act, the regulations, any contract or agreement authorized by the Federal Crop Insurance Act or by regulations, or procedures issued by the Corporation (Nothing herein precludes such damages being imposed against the company if a determination is obtained from FCIC that the company, its employee, agent or loss adjuster failed to comply with the terms of the policy or procedures issued by FCIC and such failure resulted in the insured receiving a payment in an amount that is less than the amount to which the insured was entitled); or\n\n(5) Assess any tax, fee, or amount for the funding or maintenance of any State or local insolvency pool or other similar fund.\n\nThe preceding list does not limit the scope or meaning of paragraph (a) of this section."], ["7:7:6.1.1.1.1.12.1.1", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.401 Basis and purpose and applicability.", "RMA", "", "", "[57 FR 46297, Oct. 8, 1992, as amended at 62 FR 28608, May 27, 1997]", "(a) The regulations contained in this subpart are issued pursuant to the Act to prescribe procedures for the collection, use, and confidentiality of Social Security Numbers (SSN) and Employer Identification Numbers (EIN) and related records.\n\n(b) These regulations are applicable to:\n\n(1) All holders of crop insurance policies issued by FCIC under the Act and sold and serviced by local FSA offices.\n\n(2) All holders of crop insurance policies sold by insurance providers and all insurance providers, their contractors and subcontractors, including past and present officers and employees of such companies, their contractors and subcontractors.\n\n(3) Any agent, general agent, or company, or any past or present officer, employee, contractor or subcontractor of such agent, general agent, or company under contract to FCIC or an insurance provider for loss adjustment or any other purpose related to the crop insurance programs insured or reinsured by FCIC; and\n\n(4) All past and present officers, employees, elected officials, contractors, and subcontractors of FCIC and FSA."], ["7:7:6.1.1.1.1.12.1.10", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.410 Penalties.", "RMA", "", "", "[57 FR 46297, Oct. 8, 1992. Redesignated at 62 FR 28608, May 27, 1997]", "Unauthorized disclosure of SSN's or EIN's by any person may subject that person, and the person soliciting the unauthorized disclosure, to civil or criminal sanctions imposed under various Federal statutes, including 26 U.S.C. 7613, 5 U.S.C. 552a, and 42 U.S.C. 408."], ["7:7:6.1.1.1.1.12.1.11", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.411 Obtaining personal records.", "RMA", "", "", "[57 FR 46297, Oct. 8, 1992. Redesignated and amended at 62 FR 28608, 28609, May 27, 1997]", "Policyholders, agents, and loss adjusters in the crop insurance program will be able to review and correct their records as provided by the Privacy Act. Records may be requested by:\n\n(a) Mailing a signed written request to the headquarters office of FCIC; the FCIC Regional Service Office, or the insurance provider; or\n\n(b) Making a personal visit to the above mentioned establishments and showing valid identification."], ["7:7:6.1.1.1.1.12.1.12", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.412 Record retention.", "RMA", "", "", "[62 FR 28609, May 27, 1997]", "(a) FCIC or the insurance provider will retain all records of policyholders for a period of not less than 3 years from the date of final action on a policy for the crop year, unless further maintenance of specific records is requested by FCIC. Final actions on insurance policies include conclusion of insurance events, such as the latest of termination of the policy, completion of loss adjustment, or satisfaction of claim.\n\n(b) The statute of limitations for FCIC contract claims may permit litigation to be instituted after the period of record retention. Destruction of records prior to the expiration of the statute of limitations will not provide a defense to any action by FCIC against any private insurance company."], ["7:7:6.1.1.1.1.12.1.13", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.413 [Reserved]", "RMA", "", "", "", ""], ["7:7:6.1.1.1.1.12.1.2", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.402 Definitions.", "RMA", "", "", "[62 FR 28608, May 27, 1997]", "Act.  The Federal Crop Insurance Act, as amended (7 U.S.C. 1501  et seq. ).\n\nApplicant.  A person who has submitted an application for crop insurance coverage under the Act.\n\nAuthorized person.  Any current or past officer, employee, elected official, general agent, contractor, or loss adjuster of FCIC, the insurance provider, or any other government agency whose duties require access to administer the Act.\n\nDisposition of records.  The act of removing and disposing of records containing a participant's SSN or EIN by FCIC, or the insurance provider.\n\nFCIC.  The Federal Crop Insurance Corporation of the United States Department of Agriculture or any successor agency.\n\nFSA.  The Farm Service Agency of the United States Department of Agriculture, or a successor agency.\n\nInsurance provider.  A private insurance company approved by FCIC, or a local FSA office providing crop insurance coverage to producers participating in any program administered under the Act.\n\nPast officers and employees.  Any officer or employee of FCIC or the insurance provider who leaves the employ of FCIC or the insurance provider subsequent to the effective date of this rule.\n\nPerson.  An individual, partnership, association, corporation, estate, trust, or other legal entity, and whenever applicable, a state, political subdivision, or an agency of a state.\n\nPolicyholder.  An applicant whose application for insurance under the crop insurance program has been accepted by FCIC or the insurance provider.\n\nRetrieval of records.  Retrieval of a person's records by that person's SSN or EIN, or name.\n\nSafeguards.  Methods of security to be employed by FCIC or the insurance provider to protect a participant's SSN or EIN from unlawful disclosure and access.\n\nStorage.  The secured storing of records kept by FCIC or the insurance provider on computer disks or drives, computer printouts, magnetic tape, index cards, microfiche, microfilm, etc.\n\nSubstantial beneficial interest.  Any person having an interest of at least 10 percent in the applicant or policyholder.\n\nSystem of records.  Records established and maintained by FCIC or the insurance provider containing SSN or EIN data, name, address, city and State, applicable policy numbers, and other information related to multiple peril crop insurance policies as required by FCIC, from which information is retrieved by a personal identifier including, but not limited to the SSN, EIN, or name."], ["7:7:6.1.1.1.1.12.1.3", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.403 Required system of records.", "RMA", "", "", "[62 FR 28608, May 27, 1997]", "Insurance providers are required to implement a system of records for obtaining, using, and storing documents containing SSN or EIN data before they accept or receive any applications for insurance. This data should include: name; address; city and state; SSN or EIN; and policy numbers which have been used by FCIC or the insurance provider."], ["7:7:6.1.1.1.1.12.1.4", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.404 Policyholder responsibilities.", "RMA", "", "", "[62 FR 28608, May 27, 1997]", "(a) The policyholder or applicant for crop insurance must provide a correct SSN or EIN to FCIC or the insurance provider to be eligible for insurance. The SSN or EIN will be used by FCIC and the insurance provider in:\n\n(1) Determining the correct parties to the agreement or contract;\n\n(2) Collecting premiums or other amounts due FCIC or the insurance provider;\n\n(3) Determining the amount of indemnities;\n\n(4) Establishing actuarial data on an individual policyholder basis; and\n\n(5) Determining eligibility for crop insurance program participation or other United States Department of Agriculture benefits.\n\n(b) If the policyholder or applicant for crop insurance does not provide the correct SSN or EIN on the application and other forms where such SSN or EIN is required, FCIC or the reinsured company shall reject the application.\n\n(c) The policyholder or applicant is required to provide to FCIC or the insurance provider, the name and SSN or EIN of any individual or other entity:\n\n(1) holding or acquiring a substantial beneficial interest in such policyholder or applicant; or\n\n(2) having any interest in the policyholder or applicant and receiving separate benefits under another United States Department of Agriculture program as a direct result of such interest.\n\n(d) If a policyholder or applicant is using an EIN for a policy in an individual person's name, the SSN of the policyholder or applicant must also be provided."], ["7:7:6.1.1.1.1.12.1.5", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.405 Agent and loss adjuster responsibilities.", "RMA", "", "", "[62 FR 28609, May 27, 1997]", "(a) The agent or loss adjuster shall provide his or her correct SSN to FCIC or the insurance provider, whichever is applicable, to be eligible to participate in the crop insurance program. The SSN will be used by FCIC and the insurance provider in establishing a database for the purposes of:\n\n(1) Identifying agents and loss adjusters on an individual basis;\n\n(2) Evaluating agents and loss adjusters to determine level of performance;\n\n(3) Determining eligibility for program participation; and\n\n(4) Collection of any amount which may be owed by the agent and loss adjuster to the United States.\n\n(b) If the loss adjuster contracting with FCIC to participate in the crop insurance program does not provide his or her correct SSN on forms or contracts where such SSN is required, the loss adjuster's contract will be cancelled effective on the date of refusal and the loss adjuster will be subject to suspension and debarment in accordance with the suspension and debarment regulations of the United States Department of Agriculture.\n\n(c) If the agent or loss adjuster contracting with an insurance provider, who is also a private insurance company, to participate in the crop insurance program does not provide his or her correct SSN on forms or contracts where such SSN is required, the premium subsidy payable for administrative and operating expenses under the Standard Reinsurance Agreement, or any other reinsurance agreement, will not be paid on those policies lacking the correct SSN."], ["7:7:6.1.1.1.1.12.1.6", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.406 Insurance provider responsibilities.", "RMA", "", "", "[62 FR 28609, May 27, 1997]", "The insurance provider is required to collect and record the SSN or EIN on each application or on any other form required by FCIC."], ["7:7:6.1.1.1.1.12.1.7", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.407 Restricted access.", "RMA", "", "", "[62 FR 28609, May 27, 1997]", "The Manager, other officer, or employee of FCIC or an authorized person may have access to the SSNs and EINs obtained pursuant to this subpart, only for the purpose of establishing and maintaining a system of records necessary for the effective administration of the Act."], ["7:7:6.1.1.1.1.12.1.8", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.408 Safeguards and storage.", "RMA", "", "", "[62 FR 28609, May 27, 1997]", "Records must be maintained in secured storage with proper safeguards sufficient to enforce the restricted access provisions of this subpart."], ["7:7:6.1.1.1.1.12.1.9", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "Q", "Subpart Q\u2014General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers", "", "\u00a7 400.409 Unauthorized disclosure.", "RMA", "", "", "[57 FR 46297, Oct. 8, 1992. Redesignated at 62 FR 28608, May 27, 1997]", "Anyone having access to the records identifying a participant's SSN or EIN will abide by the provisions of section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 405(c)(2)(C), and section 6109(f), Internal Revenue Code of 1986 (26 U.S.C. 6109(f) and the Privacy Act of 1974 (5 U.S.C. 552a). All records are confidential, and are not to be disclosed to unauthorized personnel."], ["7:7:6.1.1.1.1.13.1.1", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "R", "Subpart R\u2014Administrative Remedies for Non-Compliance", "", "\u00a7 400.451 General.", "RMA", "", "", "[73 FR 76887, Dec. 18, 2008, as amended at 83 FR 25361, June 1, 2018]", "(a) FCIC has implemented a system of administrative remedies in its efforts to ensure program compliance and prevent fraud, waste, and abuse within the Federal crop insurance program. Such remedies include civil fines and disqualifications under the authority of section 515(h) of the Act (7 U.S.C. 1515(h)); government-wide suspension and debarment under the authority of 48 CFR part 9, 48 CFR part 409, and 2 CFR parts 180 and 417; and civil fines and assessments under the authority of the Program Fraud Civil Remedies Act (31 U.S.C. 3801-3812).\n\n(b) The provisions of this subpart apply to all participants in the Federal crop insurance program, including but not limited to producers, agents, loss adjusters, approved insurance providers and their employees or contractors, as well as any other persons who may provide information to a program participant and meet the elements for imposition of one or more administrative remedies contained in this subpart.\n\n(c) Any remedial action taken pursuant to this subpart is in addition to any other actions specifically provided in applicable crop insurance policies, contracts, reinsurance agreements, or other applicable statutes and regulations.\n\n(d) This rule is applicable to any violation occurring on and after January 20, 2009.\n\n(e) The purpose of the remedial actions authorized in this subpart are for the protection of the public interest from potential harm from persons who have abused the Federal crop insurance program, maintaining program integrity, and fostering public confidence in the program."], ["7:7:6.1.1.1.1.13.1.2", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "R", "Subpart R\u2014Administrative Remedies for Non-Compliance", "", "\u00a7 400.452 Definitions.", "RMA", "", "", "[73 FR 76887, Dec. 18, 2008]", "For purposes of this subpart:\n\nAct.  Has the same meaning as the term in section 1 of the Common Crop Insurance Policy Basic Provisions (7 CFR 457.8).\n\nAffiliate.  Persons are affiliates of each other if, directly or indirectly, either one controls or has the power to control the other, or, a third person controls or has the power to control both. Indicia of control include, but are not limited to: interlocking management or ownership, identity of interests among family members, shared facilities and equipment, common use of employees, or a business entity organized following the disqualification, suspension or debarment of a person which has the same or similar management, ownership, or principal employees as the disqualified, suspended, debarred, ineligible, or voluntarily excluded person.\n\nAgency.  The person authorized by an approved insurance provider, or its designee, to sell and service a crop insurance policy under the Federal crop insurance program.\n\nAgent.  Has the same meaning as the term in 7 CFR 400.701.\n\nAgricultural commodity.  Has the same meaning as the term in section 1 of the Common Crop Insurance Policy Basic Provisions (7 CFR 457.8).\n\nApproved insurance provider.  Has the same meaning as the term in 7 CFR 400.701.\n\nBenefit.  Any advantage, preference, privilege, or favorable consideration a person receives from another person in exchange for certain acts or considerations. A benefit may be monetary or non-monetary.\n\nFCIC.  Has the same meaning as the term in 7 CFR 400.701.\n\nKey employee.  Any person with primary management or supervisory responsibilities or who has the ability to direct activities or make decisions regarding the crop insurance program.\n\nKnows or has reason to know.  When a person, with respect to a claim or statement:\n\n(1)(i) Has actual knowledge that the claim or statement is false, fictitious, or fraudulent;\n\n(ii) Acts in deliberate ignorance of the truth or falsity of the claim or statement; or\n\n(iii) Acts in reckless disregard of the truth or falsity of the claim or statement; and\n\n(2) No proof of specific intent is required.\n\nManaging general agent.  Has the same meaning as the term in 7 CFR 400.701.\n\nMaterial.  A violation that causes or has the potential to cause a monetary loss to the crop insurance program or it adversely affects program integrity, including but not limited to potential harm to the program's reputation or allowing persons to be eligible for benefits they would not otherwise be entitled.\n\nParticipant.  Any person who obtains any benefit that is derived in whole or in part from funds paid by FCIC to the approved insurance provider or premium paid by the producer. Participants include but are not limited to producers, agents, loss adjusters, agencies, managing general agencies, approved insurance providers, and any person associated with the approved insurance provider through employment, contract, or agreement.\n\nPerson.  An individual, partnership, association, corporation, estate, trust or other legal entity, any affiliate or principal thereof, and whenever applicable, a State or political subdivision or agency of a State. \u201cPerson\u201d does not include the United States Government or any of its agencies.\n\nPolicy.  Has the same meaning as the term in section 1 of the Common Crop Insurance Policy Basic Provisions (7 CFR 457.8).\n\nPreponderance of the evidence.  Proof by information that, when compared with the opposing evidence, leads to the conclusion that the fact at issue is probably more true than not.\n\nPrincipal.  A person who is an officer, director, owner, partner, key employee, or other person within an entity with primary management or supervisory responsibilities over the entity's federal crop insurance activities; or a person who has a critical influence on or substantive control over the federal crop insurance activities of the entity.\n\nProducer.  A person engaged in producing an agricultural commodity for a share of the insured crop, or the proceeds thereof.\n\nProvides.  Means to make available, supply or furnish with. The term includes any transmission of the information from one person to another person. For example, a producer writes information on forms and gives it to the agent and the agent transmits that information to the insurance provider. In both instances, the information is \u201cprovided\u201d for the purpose of this rule.\n\nReinsurance agreement.  Has the same meaning as the term in 7 CFR 400.161, except that such agreement is only between FCIC and the approved insurance provider.\n\nRequirement of FCIC.  Includes, but is not limited to, formal communications, such as a regulation, procedure, policy provision, reinsurance agreement, memorandum, bulletin, handbook, manual, finding, directive, or letter, signed or issued by a person authorized by FCIC to provide such communication on behalf of FCIC, that requires a particular participant or group of participants to take a specific action or to cease and desist from a taking a specific action (e-mails will not be considered formal communications although they may be used to transmit a formal communication). Formal communications that contain a remedy in such communication in the event of a violation of its terms and conditions will not be considered a requirement of FCIC unless such violation arises to the level where remedial action is appropriate. (For example, multiple violations of the same provision in separate policies or procedures or multiple violations of different provisions in the same policy or procedure.)\n\nViolation.  Each act or omission by a person that satisfies all required elements for the imposition of a disqualification or a civil fine contained in \u00a7 400.454.\n\nWillful and intentional.  To provide false or inaccurate information with the knowledge that the information is false or inaccurate at the time the information is provided; the failure to correct the false or inaccurate information when its nature becomes known to the person who made it; or to commit an act or omission with the knowledge that the act or omission is not in compliance with a \u201crequirement of FCIC\u201d at the time the act or omission occurred. No showing of malicious intent is necessary."], ["7:7:6.1.1.1.1.13.1.3", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "R", "Subpart R\u2014Administrative Remedies for Non-Compliance", "", "\u00a7 400.453 Exhaustion of administrative remedies.", "RMA", "", "", "", "All administrative remedies contained herein or incorporated herein by reference must be exhausted before Judicial Review in the United States Courts may be sought, unless review is specifically required by statute."], ["7:7:6.1.1.1.1.13.1.4", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "R", "Subpart R\u2014Administrative Remedies for Non-Compliance", "", "\u00a7 400.454 Disqualification and civil fines.", "RMA", "", "", "[73 FR 76888, Dec. 18, 2008, as amended at 84 FR 52997, Oct. 4, 2019; 86 FR 67835, Nov. 30, 2021]", "(a) Before any disqualification or civil fine is imposed, FCIC will provide the affected participants and other persons with notice and an opportunity for a hearing on the record in accordance with 7 CFR part 1, subpart H.\n\n(1) Proceedings will be initiated when the Manager of FCIC files a complaint with the Hearing Clerk, United States Department of Agriculture.\n\n(2) Disqualifications become effective:\n\n(i) On the date specified in the order issued by the Administrative Law Judge or Judicial Officer, as applicable, or if no date is specified in the order, the date that the order was issued.\n\n(ii) With respect to a settlement agreement with FCIC, the date contained in the settlement agreement or, if no date is specified, the date that such agreement is executed by FCIC.\n\n(3) Disqualification and civil fines may only be imposed if a preponderance of the evidence shows that the participant or other person has met the standards contained in \u00a7 400.454(b). FCIC has the burden of proving that the standards in \u00a7 400.454(b) have been met.\n\n(4) Disqualification and civil fines may be imposed regardless of whether FCIC or the approved insurance provider has suffered any monetary losses. However, if there is no monetary loss, disqualification will only be imposed if the violation is material in accordance with \u00a7 400.454(c).\n\n(b) Disqualification and civil fines may be imposed on any participant or person who willfully and intentionally:\n\n(1) Provides any false or inaccurate information to FCIC or to any approved insurance provider with respect to a policy or plan of insurance authorized under the Act either through action or omission to act when there is knowledge that false or inaccurate information is or will be provided; or\n\n(2) Fails to comply with a requirement of FCIC.\n\n(c) When imposing any disqualification or civil fine:\n\n(1) The gravity of the violation must be considered when determining:\n\n(i) Whether to disqualify a participant or other person;\n\n(ii) The amount of time that a participant or other person should be disqualified;\n\n(iii) Whether to impose a civil fine; and\n\n(iv) The amount of a civil fine that should be imposed.\n\n(2) The gravity of the violation includes consideration of whether the violation was material and if it was material:\n\n(i) The number or frequency of incidents or duration of the violation;\n\n(ii) Whether there is a pattern or prior history of violation;\n\n(iii) Whether and to what extent the person planned, initiated, or carried out the violation;\n\n(iv) Whether the person has accepted responsibility for the violation and recognizes the seriousness of the misconduct that led to the cause for disqualification or civil fine;\n\n(v) Whether the person has paid all civil and administrative liabilities for the violation;\n\n(vi) Whether the person has cooperated fully with FCIC (In determining the extent of cooperation, FCIC may consider when the cooperation began and whether the person disclosed all pertinent information known to that person at the time);\n\n(vii) Whether the violation was pervasive within the organization;\n\n(viii) The kind of positions held by the persons involved in the violation;\n\n(ix) Whether the organization took prompt, appropriate corrective action or remedial measures, such as establishing ethics training and implementing programs to prevent recurrence;\n\n(x) Whether the principals of the organization tolerated the offense;\n\n(xi) Whether the person brought the violation to the attention of FCIC in a timely manner;\n\n(xii) Whether the organization had effective standards of conduct and internal control systems in place at the time the violation occurred;\n\n(xiii) Whether the organization has taken appropriate disciplinary action against the persons responsible for the violation;\n\n(xiv) Whether the organization had adequate time to eliminate the violation that led to the cause for disqualification or civil fine;\n\n(xv) Other factors that are appropriate to the circumstances of a particular case.\n\n(3) The maximum term of disqualification and civil fines will be imposed against:\n\n(i) Participants and other persons, except insurance providers who:\n\n(A) Commit multiple violations in the same crop year or over several crop years; or\n\n(B) Commit a single violation but such violation results in an overpayment of more than $100,000;\n\n(ii) Approved insurance providers who:\n\n(A) Commit a single violation resulting in an overpayment in excess of $100,000; and\n\n(B) Commit multiple acts of violations resulting in an overpayment in excess of $500,000; and\n\n(iii) Any participant or person who commits such other action or omission of so serious a nature that imposition of the maximum is appropriate.\n\n(d) With respect to the imputing of conduct:\n\n(1) The conduct of any officer, director, shareholder, partner, employee, or other individual associated with an organization, in violation of \u00a7 400.454(b) may be imputed to that organization when such conduct occurred in connection with the individual's performance of duties for or on behalf of that organization, or with the organization's knowledge, approval or acquiescence. The organization's acceptance of the benefits derived from the violation is evidence of knowledge, approval or acquiescence.\n\n(2) The conduct of any organization in violation of \u00a7 400.454(b) may be imputed to an individual, or from one individual to another individual, if the individual to whom the improper conduct is imputed either participated in, knows, or had reason to know of such conduct.\n\n(3) The conduct of one organization in violation of \u00a7 400.454(b) may be imputed to another organization when such conduct occurred in connection with a partnership, joint venture, joint application, association or similar arrangement, or when the organization to whom the improper conduct is imputed has the power to direct, manage, control or influence the activities of the organization responsible for the improper conduct. Acceptance of the benefits derived from the conduct is evidence of knowledge, approval or acquiescence.\n\n(4) If such conduct is imputed, the person to whom the conduct is imputed to may be subject to the same disqualification and civil fines as the person from whom the conduct is imputed. The factors contained in \u00a7 400.454(c)(2) will be taken into consideration with respect to the person to whom the conduct is being imputed.\n\n(e) With respect to disqualifications:\n\n(1) If a person is disqualified and that person is a:\n\n(i) Producer, the producer will be precluded from receiving any monetary or non-monetary benefit provided under all of the following authorities, or their successors:\n\n(A) The Act;\n\n(B) The Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7333  et seq. ) or any successor statute;\n\n(C) The Agricultural Act of 1949 (7 U.S.C. 1421  et seq. ) or any successor statute;\n\n(D) The Commodity Credit Corporation Charter Act (15 U.S.C. 714  et seq. ) or any successor statute;\n\n(E) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281  et seq. ) or any successor statute;\n\n(F) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801  et seq. ) or any successor statute;\n\n(G) The Consolidated Farm and Rural Development Act (7 U.S.C. 1921,  et seq. ) or any successor statute; and\n\n(H) Any federal law that provides assistance to the producer of an agricultural commodity affected by a crop loss or decline in the prices of agricultural commodities.\n\n(ii) Participant or other person, other than a producer, such participant or person will be precluded from participating in any way in the Federal crop insurance program and receiving any monetary or non-monetary benefit under the Act.\n\n(2) With respect to the term of disqualification:\n\n(i) The minimum term will be not less than one year from the effective date determined in \u00a7 400.454(a)(2);\n\n(ii) The maximum term will be not more than five years from the effective date determined in \u00a7 400.454(a)(2); and\n\n(iii) Disqualification is to be imposed only in one-year increments, up to the maximum five years.\n\n(3) Once a disqualification becomes final, the name, address, and other identifying information of the participant or other person shall be entered into the Ineligible Tracking System (ITS) maintained by FCIC in accordance with 7 CFR part 400, subpart U, and this information along with a list of the programs that the person is disqualified from shall be promptly reported to the General Services Administration for listing in the System for Award Management (SAM) in accordance with 2 CFR part 417.\n\n(i) It is a participant's responsibility to periodically review the ITS and EPLS to determine those participants and other persons who have been disqualified.\n\n(ii) No participant may conduct business with a disqualified participant or other person if such business directly relates to the Federal crop insurance program, or if, through the business relationship, the disqualified participant or other person will derive any monetary or non-monetary benefit from a program administered under the Act.\n\n(iii) If a participant or other person does business with a disqualified participant or other person, such participant may be subject to disqualification under this section.\n\n(iv) Continuing to make payments to a disqualified person to fulfill pre-existing contractual or statutory obligations after the business relationship is terminated will not be considered as doing business with a disqualified person unless such payment is used as a means to circumvent the disqualification process.\n\n(f) With respect to civil fines:\n\n(1) A civil fine may be imposed for each violation.\n\n(2) The amount of such civil fine shall not exceed the maximum amount specified in 7 CFR 3.91 (b)(7).\n\n(3) Civil fines are debts owed to FCIC.\n\n(i) A civil fine that is either imposed under with this subpart, or agreed to through an executed settlement agreement with FCIC, must be paid by the specified due date. If the due date is not specified in the order issued by the Administrative Law Judge or Judicial Officer, as applicable, or the settlement agreement, it shall be 30 days after the date the order was issued or the settlement agreement signed by FCIC.\n\n(ii) Any civil fine imposed under this section is in addition to any debt that may be owed to FCIC or to any approved insurance provider, such an overpaid indemnity, underpaid premium, or other amounts owed.\n\n(iii) FCIC, in its sole discretion, may reduce or otherwise settle any civil fine imposed under this section whenever it considers it appropriate or in the best interest of the USDA.\n\n(4) The ineligibility procedures established in 7 CFR part 400, subpart U are not applicable to ineligibility determinations made under this section for nonpayment of civil fines.\n\n(5) If a civil fine has been imposed and the person has not made timely payment for the total amount due, the person is ineligible to participate in the Federal crop insurance program until the amount due is paid in full.\n\n(g) With respect to any person that has been disqualified or is otherwise ineligible due to non-payment of civil fines in accordance with \u00a7 400.454(f):\n\n(1) With respect to producers:\n\n(i) All existing insurance policies will automatically terminate as of the next termination date that occurs during the period of disqualification and while the civil fine remains unpaid;\n\n(ii) No new policies can be purchased, and no current policies can be renewed, between the date that the producer is disqualified and the date that the disqualification ends; and\n\n(iii) New application for insurance cannot be made for any agricultural commodity until the next sales closing date after the period of disqualification has ended and the civil fine is paid in full.\n\n(2) With respect to all other persons:\n\n(i) Such person may not be involved in any function related to the Federal crop insurance program during the disqualification or ineligibility period (including the sale, service, adjustment, data transmission or storage, reinsurance, etc. of any crop insurance policy) or receive any monetary or non-monetary benefit from a program administered under the Act.\n\n(ii) If the person is an agent or insurance agency, the producers may cancel their policies sold and serviced by the disqualified agent and rewrite the policy with another agent. If the producer does not cancel and rewrite the policy with another agent, the approved insurance provider must assign the policies to a different agent or agency to service during the period of disqualification or ineligibility. Policies that have been assigned to another agent or agency by the insurance provider will revert back to the disqualified agent or agency after the period of disqualification has ended provided all civil fines are paid in full and the producer does not cancel and rewrite the policy with a different agent or agency;\n\n(iii) If the person is an approved insurance provider, the approved insurance provider shall not sell, or authorize to be sold, any new policies or may not renew, or authorize the renewal of, existing policies, as determined by FCIC, during the period of disqualification or ineligibility. Nothing in this provision affects the approved insurance provider's responsibilities with respect to the service of existing policies.\n\n(h) Imposition of disqualification or a civil fine under this section is in addition to any other administrative or legal remedies available under this section or other applicable law including, but not limited to, debarment and suspension."], ["7:7:6.1.1.1.1.13.1.5", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "R", "Subpart R\u2014Administrative Remedies for Non-Compliance", "", "\u00a7 400.455 Governmentwide debarment and suspension (procurement).", "RMA", "", "", "[73 FR 76890, Dec. 18, 2008]", "(a) For all transactions undertaken pursuant to the Federal Acquisition Regulations, FCIC will proceed under 48 CFR part 9, subpart 9.4 or 48 CFR part 409 when taking action to suspend or debar persons involved in such transactions, except that the authority to suspend or debar under these provisions will be reserved to the Manager of FCIC, or the Manager's designee.\n\n(b) Any person suspended or debarred under the provisions of 48 CFR part 9, subpart 9.4 or 48 CFR part 409 will not be eligible to contract with FCIC or the Risk Management Agency and will not be eligible to participate in or receive any benefit from any program under the Act during the period of ineligibility. This includes, but is not limited to, being employed by or contracting with any approved insurance provider that sells, services, or adjusts policies offered under the authority of the Act. FCIC may waive this provision if it is satisfied that the person who employs the suspended or debarred person has taken sufficient action to ensure that the suspended or debarred person will not be involved, in any way, with FCIC or receive any benefit from any program under the Act."], ["7:7:6.1.1.1.1.13.1.6", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "R", "Subpart R\u2014Administrative Remedies for Non-Compliance", "", "\u00a7 400.456 Governmentwide debarment and suspension (nonprocurement).", "RMA", "", "", "[73 FR 76890, Dec. 18, 2008, as amended at 83 FR 25361, June 1, 2018]", "(a) FCIC will proceed under 2 CFR parts 180 and 417 when taking action to suspend or debar persons involved in non-procurement transactions.\n\n(b) Any person suspended or debarred under the provisions of 2 CFR parts 180 and 417, will not be eligible to contract with FCIC or the Risk Management Agency and will not be eligible to participate in or receive any benefit from any program under the Act during the period of ineligibility. This includes, but is not limited to, being employed by or contracting with any approved insurance provider, or its contractors, that sell, service, or adjust policies either insured or reinsured by FCIC. FCIC may waive this provision if it is satisfied that the approved insurance provider or contractors have taken sufficient action to ensure that the suspended or debarred person will not be involved in any way with the Federal crop insurance program or receive any benefit from any program under the Act.\n\n(c) The Manager, FCIC, shall be the debarring and suspending official for all debarment or suspension proceedings undertaken by FCIC under the provisions of 2 CFR parts 180 and 417."], ["7:7:6.1.1.1.1.13.1.7", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "R", "Subpart R\u2014Administrative Remedies for Non-Compliance", "", "\u00a7 400.457 Program Fraud Civil Remedies Act.", "RMA", "", "", "[58 FR 53110, Oct. 14, 1993, as amended at 73 FR 76891, Dec. 18, 2008]", "(a) This section is in accordance with the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801-U.S.C. 3831) which provides for civil penalties and assessments against persons who make, submit, or present, or cause to be made, submitted, or presented, false, fictitious, or fraudulent claims or written statements to Federal authorities or to their agents.\n\n(b) Proceedings under this section will be in accordance with subpart L of 7 CFR part 1, \u201cProcedures Related to Administrative Hearings Under the Program Fraud Civil Remedies Act of 1986.\u201d\n\n(c) The Director, Appeals and Litigation Staff, FCIC, or the Director's designee, is authorized to serve as Agency Fraud Claims Officer for the purpose of implementing the requirements of this section.\n\n(d) Civil penalties and assessments imposed pursuant to this section are in addition to any other remedies that may be prescribed by law or imposed under this subpart."], ["7:7:6.1.1.1.1.13.1.8", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "R", "Subpart R\u2014Administrative Remedies for Non-Compliance", "", "\u00a7 400.458 Scheme or device.", "RMA", "", "", "[60 FR 37324, July 20, 1995, as amended at 73 FR 76891, Dec. 18, 2008]", "(a) In addition to the penalties specified in this part, if a person has knowingly adopted a material scheme or device to obtain catastrophic risk protection, other plans of insurance coverage, or noninsured assistance benefits to which the person is not entitled, has evaded the provisions of the Federal Crop Insurance Act, or has acted with the purpose of evading the provisions of the Federal Crop Insurance Act, the person shall be ineligible to receive any and all benefits applicable to any crop year for which the scheme or device was adopted.\n\n(b) A scheme or device may include, but is not limited to, creating or using another entity, or concealing or providing false information with respect to your interest in the policyholder, to evade:\n\n(1) Suspension, debarment, or disqualification from participation in the program; or\n\n(2) Ineligibility for a delinquent debt owed to FCIC or the insurance company."], ["7:7:6.1.1.1.1.13.1.9", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "R", "Subpart R\u2014Administrative Remedies for Non-Compliance", "", "\u00a7\u00a7 400.459-400.500 [Reserved]", "RMA", "", "", "", ""], ["7:7:6.1.1.1.1.15.1.1", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "T", "Subpart T\u2014Federal Crop Insurance Reform, Insurance Implementation", "", "\u00a7 400.650 Purpose.", "RMA", "", "", "[61 FR 42975, Aug. 20, 1996, as amended at 68 FR 37721, June 25, 2003]", "The Reform Act requires FCIC to implement a crop insurance program that offers several levels of insurance coverage for producers. These levels of protection include catastrophic risk protection, and additional coverage insurance. This subpart provides notice of the availability of these crop insurance options and establishes provisions and requirements for implementation of the insurance provisions of the Reform Act."], ["7:7:6.1.1.1.1.15.1.2", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "T", "Subpart T\u2014Federal Crop Insurance Reform, Insurance Implementation", "", "\u00a7 400.651 Definitions.", "RMA", "", "", "[61 FR 42975, Aug. 20, 1996, as amended at 63 FR 40634, July 30, 1998; 64 FR 40742, July 28, 1999; 68 FR 37721, June 25, 2003]", "Act.  The Federal Crop Insurance Act, as amended (7 U.S.C. 1501  et seq. ).\n\nAdditional coverage.  A level of coverage greater than catastrophic risk protection.\n\nAdministrative fee.  An amount the producer must pay for catastrophic, and additional coverage each crop year on a per crop and county basis as specified in the Basic Provisions or the Catastrophic Risk Protection Endorsement.\n\nApproved insurance provider.  A private insurance company, including its agents, that has been approved and reinsured by FCIC to provide insurance coverage to producers participating in the Federal crop insurance program.\n\nApproved yield.  The actual production history (APH) yield, calculated and approved by the verifier, used to determine the production guarantee by summing the yearly actual, assigned, adjusted or unadjusted transitional yields and dividing the sum by the number of yields contained in the database, which will always contain at least four yields. The database may contain up to 10 consecutive crop years of actual or assigned yields. The approved yield may have yield adjustments elected under applicable policy provisions, or other limitations according to FCIC approved procedures applied when calculating the approved yield.\n\nCatastrophic risk protection.  The minimum level of coverage offered by FCIC which is required before a person may qualify for certain other USDA program benefits unless the producer executes a waiver of any eligibility for emergency crop loss assistance in connection with the crop. For the 1995 through 1998 crop years, such coverage will offer protection equal to fifty percent (50%) of the approved yield indemnified at sixty percent (60%) of the expected market price, or a comparable coverage as established by FCIC. For the 1999 and subsequent crop years, such coverage will offer protection equal to fifty percent (50%) of the approved yield indemnified at fifty-five percent (55%) of the expected market price, or a comparable coverage as established by FCIC.\n\nCatastrophic Risk Protection Endorsement.  The part of the crop insurance policy that contains provisions of insurance that are specific to catastrophic risk protection.\n\nCrop of economic significance.  A crop that has either contributed in the previous crop year, or is expected to contribute in the current crop year, ten percent (10%) or more of the total expected value of the producer's share of all crops grown in the county. However, a crop will not be considered a crop of economic significance if the expected liability under the Catastrophic Risk Protection Endorsement is equal to or less than the administrative fee required for the crop.\n\nExpected market price.  (price election) The price per unit of production (or other basis as determined by FCIC) anticipated during the period the insured crop normally is marketed by producers. This price will be set by FCIC before the sales closing date for the crop. The expected market price may be less than the actual price paid by buyers if such price typically includes remuneration for significant amounts of post-production expenses such as conditioning, culling, sorting, packing, etc.\n\nFCIC.  The Federal Crop Insurance Corporation, a wholly owned Government Corporation within USDA.\n\nFSA.  The Farm Service Agency, an agency of the United States Department of Agriculture or any successor agency.\n\nInsurable interest.  The value of the producer's interest in the crop that is at risk from an insurable cause of loss during the insurance period. The maximum indemnity payable to the producer may not exceed the indemnity due on the producer's insurable interest at the time of loss.\n\nIntended crop.  A crop stated on the application as submitted on or before the sales closing date for the crop which the producer intended to plant in the crop year for which application is made.\n\nLinkage requirement.  The legal requirement that a producer must obtain at least catastrophic risk protection coverage for any crop of economic significance as a condition of receiving benefits for such crop from certain other USDA programs in accordance with \u00a7 400.655, unless the producer executes a waiver of any eligibility for emergency crop loss assistance in connection with the crop.\n\nPerson.  An individual, partnership, association, corporation, estate, trust, or other legal entity, and wherever applicable, a state or a political subdivision or agency of a state.\n\nReform Act.  The Federal Crop Insurance Reform Act of 1994, Public Law 103-354.\n\nSecretary.  The Secretary of the United States Department of Agriculture.\n\nSubstitute crop.  An alternative crop whose sales closing date has passed and that is planted on acreage that is prevented from being planted to an intended crop or where an intended crop is planted and fails.\n\nZero acreage report.  An acreage report filed by the producer that certifies that the producer does not have a share in the crop for that crop year."], ["7:7:6.1.1.1.1.15.1.3", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "T", "Subpart T\u2014Federal Crop Insurance Reform, Insurance Implementation", "", "\u00a7 400.652 Insurance availability.", "RMA", "", "", "[61 FR 42975, Aug. 20, 1996, as amended at 68 FR 37721, June 25, 2003]", "(a) If sufficient actuarial data are available, FCIC will offer catastrophic risk protection, and additional coverage plans of insurance to indemnify persons for FCIC insured or reinsured crop loss due to loss of yield or prevented planting, if the crop loss or prevented planting is due to an insured cause of loss specified in the applicable crop insurance policy.\n\n(b) Catastrophic risk protection coverage may be offered through approved insurance providers and through local offices of the Farm Service Agency specified by the Secretary. Additional coverage will only be offered through approved insurance providers unless there is not a sufficient number of approved insurance providers that offer such insurance within a service area.\n\n(c) A person must obtain at least catastrophic risk protection for the crop on all insurable acreage in the county in which the person has a share on or before the sales closing date designated by FCIC for the crop in the county in order to satisfy the linkage requirements unless the producer executes a waiver of any eligibility for emergency crop loss assistance in connection with the crop.\n\n(d) For additional coverage, in areas where insurance is not available for a particular agricultural commodity that is insurable elsewhere, FCIC may enter into a written agreement with a person to insure the commodity, provided that the person has actuarially sound data relating to the production of the commodity that is acceptable to FCIC and that such written agreement is specifically allowed by the crop insurance regulations applicable to the crop.\n\n(e) Failure to comply with all provisions of the policy constitutes a breach of contract and may result in ineligibility for certain other farm program benefits for that crop year and any benefit already received must be refunded. If a producer breaches the insurance contract, the execution of a waiver of eligibility for emergency crop loss assistance will not be effective for the crop year in which the breech occurred."], ["7:7:6.1.1.1.1.15.1.4", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "T", "Subpart T\u2014Federal Crop Insurance Reform, Insurance Implementation", "", "\u00a7 400.653 Determining crops of economic significance.", "RMA", "", "", "[61 FR 42975, Aug. 20, 1996, as amended at 64 FR 40742, July 28, 1999]", "To be eligible for certain other program benefits under \u00a7 400.655 the following conditions will apply with respect to crops of economic significance if the producer does not execute a waiver of any eligibility for emergency crop loss assistance in connection with the crop.\n\n(a) If a producer planted a crop of economic significance in the preceding crop year, and does not intend to plant the same crop in the present crop year, the producer does not have to obtain insurance coverage or execute a waiver of any eligibility for emergency crop loss assistance in connection with the crop in the present crop year to comply with the linkage requirements. However, if the producer later decides to plant that crop, the producer will be unable to obtain insurance after the sales closing date and must execute a waiver of any eligibility for emergency crop loss assistance in connection with the crop to be eligible for benefits as specified in \u00a7 400.655. Failure to execute such a waiver will require the producer to refund any benefits already received under a program specified in \u00a7 400.655.\n\n(b) The producer is initially responsible to determine the crops of economic significance in the county. The insurance provider may assist the producer in making these initial determinations. However, these determinations will not be binding on the insurance provider. To determine the percentage value of each crop:\n\n(1) Multiply the acres planted to the crop times the producer's share, times the approved yield, and times the price;\n\n(2) Add the values of all crops grown by the producer (in the county); and\n\n(3) Divide the value of the specific crop by the result of paragraph (b)(2).\n\n(c) The producer may use the type of price, such as the current local market price, futures price, established price, highest amount of insurance, etc., for the price when calculating the value of each crop, provided that the producer uses the same type of price for all crops in the county.\n\n(d) The producer may be required to justify the calculation and provide adequate records to enable the insurance provider to verify whether a crop is of economic significance."], ["7:7:6.1.1.1.1.15.1.5", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "T", "Subpart T\u2014Federal Crop Insurance Reform, Insurance Implementation", "", "\u00a7 400.654 Application and acreage report.", "RMA", "", "", "[61 FR 42975, Aug. 20, 1996, as amended at 64 FR 40742, July 28, 1999; 68 FR 37721, June 25, 2003]", "(a) To participate in catastrophic risk protection, or additional coverage plans of insurance, a producer must submit an application for insurance on or before the applicable sales closing date.\n\n(b) In order to remain eligible for certain farm programs, as specified in \u00a7 400.655, a producer must obtain at least catastrophic risk protection on all crops of economic significance, if catastrophic risk protection is available in the county, unless the producer executes a waiver of any eligibility for emergency crop loss assistance in connection with the crop.\n\n(c) Notwithstanding the requirements of \u00a7 400.654(a) that applications for insurance be submitted on or before the applicable sales closing date, FCIC may permit a producer to insure crops other than those specified on the application under the following conditions:\n\n(1) The producer must be unable to plant the intended crop or it is not practical to replant a failed crop before the final planting date. FCIC will take into consideration marketing windows when determining whether it was not practical to replant.\n\n(2) Conditions must exist to warrant allowing a producer to insure crops other than the intended crop.\n\n(3) The producer must submit an application for the substitute crop on or before the acreage reporting date for the substitute crop and pay any applicable administrative fee. A producer may not substitute a crop that the producer planted in the preceding crop year unless that crop was listed on a timely filed application for the current crop year.\n\n(4) If the producer plants a substitute crop that is a crop of economic significance, the producer must obtain CAT coverage, if available, to comply with the linkage requirements specified in \u00a7 400.655. The producer may not substitute a crop under this provision if the producer has signed or intends to sign a waiver for emergency crop loss assistance for the crop year.\n\n(5) The substitute crop must be planted on or before the final planting date or within the late planting period, if applicable, for the substitute crop.\n\n(6) Under no circumstances may a producer submit an application for additional coverage after the sales closing date for the substitute crop.\n\n(d) For all coverages, including catastrophic risk protection, and additional coverages, the producer must file a signed acreage report on or before the acreage reporting date. Any person may sign any document relative to crop insurance coverage on behalf of any other person covered by such a policy, provided that the person has a properly executed power of attorney or other legally sufficient document authorizing such person to sign.\n\n(e) Under catastrophic risk protection, unless the other person with an insurable interest in the crop objects in writing prior to the acreage reporting date and provides a signed acreage report on their own behalf an operator may sign the acreage report for all other persons with an insurable interest in the crop without a power of attorney. All persons with an insurable interest in the crop, and for whom the operator purports to sign and represent, are bound by the information contained in that acreage report."], ["7:7:6.1.1.1.1.15.1.6", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "T", "Subpart T\u2014Federal Crop Insurance Reform, Insurance Implementation", "", "\u00a7 400.655 Eligibility for other program benefits.", "RMA", "", "", "[61 FR 42975, Aug. 20, 1996. Redesignated at 63 FR 40634, July 30, 1998]", "The producer must obtain at least catastrophic coverage for each crop of economic significance in the county in which the producer has an insurable share, if insurance is available in the county for the crop, unless the producer executes a waiver of any eligibility for emergency crop loss assistance in connection with the crop, to be eligible for:\n\n(a) Benefits under the Agricultural Market Transition Act;\n\n(b) Loans or any other USDA provided farm credit, including: guaranteed and direct farm ownership loans, operating loans, and emergency loans under the Consolidated Farm and Rural Development Act provided after October 13, 1994; and\n\n(c) Benefits under the Conservation Reserve Program derived from any new or amended application or contract executed after October 13, 1994."], ["7:7:6.1.1.1.1.15.1.7", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "T", "Subpart T\u2014Federal Crop Insurance Reform, Insurance Implementation", "", "\u00a7\u00a7 400.656-400.657 [Reserved]", "RMA", "", "", "", ""], ["7:7:6.1.1.1.1.16.1.1", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "U", "Subpart U\u2014Ineligibility for Programs Under the Federal Crop Insurance Act", "", "\u00a7 400.675 Purpose.", "RMA", "", "", "", "This subpart prescribes conditions under which a person may be determined to be ineligible to participate in any program administered under the authority of the Federal Crop Insurance Act. This subpart also establishes the criteria for regaining eligibility."], ["7:7:6.1.1.1.1.16.1.10", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "U", "Subpart U\u2014Ineligibility for Programs Under the Federal Crop Insurance Act", "", "\u00a7 400.684 Effect of ineligibility.", "RMA", "", "", "", "(a) The effect of ineligibility depends on the basis for the determination.\n\n(1) Persons who are ineligible as a result of a delinquent debt are ineligible for crop insurance authorized under the Act for a certain time period in accordance with \u00a7 400.683. Filing for bankruptcy does not make the person eligible for crop insurance or preclude the ineligible person from being placed on the ITS in accordance with \u00a7 400.684(b)(1).\n\n(2) Persons who are ineligible as a result of a suspension or debarment are precluded from:\n\n(i) Participating in all programs authorized under the Act, including but not limited to:\n\n(A) Obtaining crop insurance;\n\n(B) Acting as an agent, loss adjuster, insurance provider, or affiliate, as defined in the Standard Reinsurance Agreement or Livestock Price Reinsurance Agreement, or successor agreements;\n\n(C) Entering into any contracts with FCIC under sections 506(l) and section 522(c) of the Act; and\n\n(D) Entering into any cooperative agreements or partnerships under sections 506(l), 522(d) and 524(a) of the Act; and\n\n(ii) Participating in any other covered transaction as specified in 2 CFR part 180 and 2 CFR part 417.\n\n(3) Persons who are ineligible because of disqualification under section 515(h) of the Act are precluded from participating in all programs authorized under the Act indicated in paragraph (a)(2)(i) of this section, and those listed in section 515(h)(3)(B) and (C) of the Act.\n\n(4) Individuals who are ineligible because of a conviction of a violation of the controlled substance provisions or are not a United States citizen, United States non-citizen national, or a qualified alien are precluded from participating in any program authorized under the Act indicated in paragraph (a)(2)(i) of this section.\n\n(5) Persons who are ineligible as a result of a conviction falling under 7 U.S.C. 2209j, are precluded from participating in any program offered by USDA.\n\n(b) Once a person has been determined to be ineligible:\n\n(1) The ineligible person will be placed on the ITS and may be reported to other government agencies, unless the ineligible person is an individual and the sole reason for ineligibility is because the individual is not a United States citizen, United States non-citizen national, or qualified alien.\n\n(2) If the ineligible person is an individual:\n\n(i) All crop insurance policies in which the ineligible person is the sole insured will terminate if the person is ineligible for any reason other than a controlled substance violation, or be void if the person is ineligible due to conviction of a controlled substance violation according to \u00a7 400.680, and the person will remain ineligible for crop insurance for the applicable period specified in \u00a7 400.683; and\n\n(ii) The ineligible person must be reported on all policies in which the ineligible person has a substantial beneficial interest in the applicant or insured, and the insured share under such policy will be reduced commensurate with the ineligible person's substantial beneficial interest in the applicant or insured for as long as the ineligible person remains ineligible in accordance with \u00a7 400.683.\n\n(3) If the ineligible person is a general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture and is ineligible as a result of:\n\n(i) A delinquent debt:\n\n(A) All partners or members of the ineligible general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture will be ineligible;\n\n(B) The ineligible general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture and all partners and members of the ineligible general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture will remain ineligible for crop insurance for the applicable period specified in \u00a7 400.683;\n\n(C) All crop insurance policies in which the ineligible general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture is the sole insured will terminate;\n\n(D) All crop insurance policies in which the ineligible partner or member is the sole insured will terminate; and\n\n(E) The ineligible general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture and all ineligible partners or members must be reported on any other policy in which they have a substantial beneficial interest in the applicant or insured, and the insured share under such policies will be reduced commensurate with the ineligible general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture or the ineligible partners' or members' substantial beneficial interest in the applicant or insured for as long as they remain ineligible in accordance with \u00a7 400.683; or\n\n(ii) Meeting the criteria specified in \u00a7 400.679(c), (e) or (f):\n\n(A) All crop insurance policies in which the ineligible general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture is the sole insured will terminate, and the ineligible general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture will remain ineligible for crop insurance for the applicable period specified in \u00a7 400.683; and\n\n(B) The ineligible general partnership, limited partnership, limited liability partnership, limited liability company, or joint venture must be reported on any other policy in which it has a substantial beneficial interest in the applicant or insured, and the insured share under such policies will be reduced commensurate with the ineligible general partnership's, limited partnership's, limited liability partnership's, limited liability company's, or joint venture's substantial beneficial interest in the applicant or insured for as long as it remains ineligible in accordance with \u00a7 400.683.\n\n(4) If the ineligible person is an association, estate, trust, corporation, or other similar entity, and is ineligible as a result of:\n\n(i) A delinquent debt:\n\n(A) Any partners, members, shareholders, administrators, executors, trustees, or grantors may be individually ineligible if the delinquent debt occurred as a result of their actions or inactions, as determined by the insurance provider or FCIC;\n\n(B) All policies in which the ineligible association, estate, trust, corporation, or other similar entity is the sole insured will terminate, and it will remain ineligible for crop insurance for the applicable period specified in \u00a7 400.683.\n\n(C) The ineligible association, estate, trust, corporation, or other similar entity must be reported on any other policy in which it has a substantial beneficial interest in the applicant or insured, and the insured share under such policies will be reduced commensurate with the ineligible entity's substantial beneficial interest in the applicant or insured for as long as the person remains ineligible in accordance with \u00a7 400.683;\n\n(D) All policies in which a partner, member, shareholder, administrator, executor, trustee, or grantor determined ineligible according to \u00a7 400.684(b)(4)(i)(A) is the sole insured will terminate, and the person will remain ineligible for crop insurance for the applicable period specified in \u00a7 400.683; and\n\n(E) The ineligible partner, member, shareholder, administrator, executor, trustee, or grantor must be reported on any other policy in which they have a substantial beneficial interest in the applicant or insured, and the insured share under such policies will be reduced commensurate with the ineligible person's substantial beneficial interest in the applicant or insured for as long as the person remains ineligible in accordance with \u00a7 400.683; or\n\n(ii) Meeting the criteria specified in \u00a7 400.679(c), (e) or (f):\n\n(A) All crop insurance policies in which the ineligible association, estate, trust, corporation, or other similar entity is the sole insured will terminate, and the ineligible association, estate, trust, corporation, or other similar entity will remain ineligible for crop insurance for the applicable period specified in \u00a7 400.683; and\n\n(B) The ineligible association, estate, trust, corporation, or other similar entity must be reported on any other policy in which it has a substantial beneficial interest in the applicant or insured, and the insured share under such policies will be reduced commensurate with the ineligible association, estate, trust, corporation, or other similar entity's substantial beneficial interest in the applicant or insured for as long as it remains ineligible in accordance with \u00a7 400.683.\n\n(5) If an applicant or insured is a corporation, partnership, joint venture, trust, corporation, limited liability company, limited liability partnership, limited partnership, or other similar entity that was created to conceal the interest of an ineligible person or to evade the ineligibility determination of a person with a substantial beneficial interest in the applicant or insured, the policy will be void.\n\n(6) All crop insurance policies in which the ineligible person is insured as landlord/tenant will terminate on the next termination date. The other person(s) on such policy may submit a new application for crop insurance coverage on or before the applicable sales closing date to obtain insurance coverage for the crop, if they are otherwise eligible for such coverage.\n\n(c) The spouse and minor child of an individual insured is considered to be the same as the individual for purposes of this subpart and subject to the same ineligibility, except when:\n\n(1) The individual is ineligible due to a conviction of a controlled substance violation in accordance with \u00a7 400.680;\n\n(2) The individual is ineligible as a result of a felony conviction for knowingly defrauding the United States in connection with any program administered by USDA;\n\n(3) The individual is ineligible because they are not a United States citizen, United States non-citizen national, or a qualified alien;\n\n(4) The individual is ineligible as a result of a disqualification, debarment, or suspension;\n\n(5) The spouse can prove they are legally separated or otherwise legally separate under the applicable State dissolution of marriage laws; or\n\n(6) The minor child has a separate legal interest in such person or is engaged in a separate farming operation from the individual.\n\n(d) Notwithstanding \u00a7 400.684(f), when a policy is voided in accordance with this subpart:\n\n(1) No indemnities or payments will be paid for the voided policy;\n\n(2) Any indemnities or payments already made for the voided policy will be declared overpayments and must be repaid in full; and\n\n(3) No premiums will be due and any premium paid will be refunded except when the policy is void due to a conviction of a controlled substance violation according to \u00a7 400.680, in which case the insured will still be required to pay 20 percent of the premium the insured would otherwise be required to pay to offset costs in the servicing of the policy.\n\n(e) When the insured share of a policy is reduced in accordance with this subpart:\n\n(1) Any indemnities or payments commensurate with the share reduced already made will be declared overpayments and must be repaid in full; and\n\n(2) Any premiums paid by the insured commensurate with the share reduced will be refunded.\n\n(f) Any insurance written by an insurance provider to any person who is ineligible under the provisions of this subpart is not eligible for reinsurance by FCIC. All premium subsidies, expenses, or other payments made by FCIC for insurance written for any person who is ineligible under the provisions of this subpart must be immediately refunded to FCIC. However, with regard to policies that would be void due to a conviction of a controlled substance violation according to \u00a7 400.680, if the insurance provider follows the procedures of FCIC and the requirements of the regulations, reinsurance will continue to be provided under the reinsurance agreement on the policy unless it is shown that the agent or insurance provider had knowledge of the facts which would indicate ineligibility on the part of the insured and failed to act on that knowledge."], ["7:7:6.1.1.1.1.16.1.11", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "U", "Subpart U\u2014Ineligibility for Programs Under the Federal Crop Insurance Act", "", "\u00a7 400.685 Criteria for regaining eligibility.", "RMA", "", "", "[79 FR 2079, Jan. 13, 2014, as amended at 79 FR 37161, July 1, 2014]", "After the period of ineligibility as specified in \u00a7 400.683 has ended, the ineligible person is eligible to participate in programs authorized under the Act, provided the person meets all eligibility requirements.\n\n(a) After a person regains eligibility for crop insurance when their policy was terminated or voided, the person must submit a new application for crop insurance coverage on or before the applicable sales closing date to obtain insurance coverage for the crop. If the date of regaining eligibility occurs after the applicable sales closing date for the crop, the person may not participate until the following year unless that crop policy allows for applications to be accepted after the sales closing date.\n\n(b) If a person who was determined ineligible according to this subpart is subsequently determined to be an eligible person for crop insurance through reinstatement, mediation, arbitration, appeal, or judicial review, such person's policies will be reinstated effective at the beginning of the crop year for which the producer was determined ineligible, and such person will be entitled to all applicable benefits under such policies, provided the person meets all eligibility requirements and complies with the terms of the policy."], ["7:7:6.1.1.1.1.16.1.12", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "U", "Subpart U\u2014Ineligibility for Programs Under the Federal Crop Insurance Act", "", "\u00a7 400.686 Administration and maintenance.", "RMA", "", "", "", "(a) Ineligible producer data will be maintained in a system of records established and maintained by the Risk Management Agency in accordance with the Privacy Act (5 U.S.C. 552a).\n\n(1) The ITS contains identifying information of the ineligible person, including but not limited to, name, address, telephone number, SSN or EIN, reason for ineligibility, and time period of ineligibility.\n\n(2) Information in the ITS may be used by an authorized person. The information may be furnished to other users as may be appropriate or required by law or regulation, including but not limited to, FCIC contracted agencies, other government agencies, credit reporting agencies, and collection agencies, and in response to judicial orders in the course of litigation. The individual information may be made available in the form of various reports and notices.\n\n(3) Supporting documentation regarding the determination of ineligibility and reinstatement or regaining of eligibility will be maintained by FCIC, or its contractors, insurance providers, Federal agencies, and State agencies. This documentation will be maintained and retained consistent with the electronic information contained within the ITS.\n\n(b) Information may be entered into the ITS by FCIC employees or contractors, or insurance providers.\n\n(c) All persons applying for crop insurance policies or with an existing policy, issued or reinsured by FCIC, will be subject to validation of their eligibility status against the ITS. Applications, transfers, or benefits approved and accepted are considered approved or accepted subject to review of eligibility status in accordance with this subpart.\n\n(d) Insurance providers, partners, cooperators, and contractors must check to ensure that the persons with whom they are doing business are eligible to participate in the programs authorized under the Act. Insurance providers, partners, cooperators, and contractors must check the ITS but the ITS may not include all persons ineligible to receive government benefits, such as persons debarred, disqualified or suspended from receiving government benefits by an agency other than FCIC. Insurance providers, partners, cooperators, and contractors must check other sources that contain ineligible persons, including but not limited to EPLS, or successor list, provide data on persons ineligible to participate in programs authorized under the Act."], ["7:7:6.1.1.1.1.16.1.2", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "U", "Subpart U\u2014Ineligibility for Programs Under the Federal Crop Insurance Act", "", "\u00a7 400.676 [Reserved]", "RMA", "", "", "", ""], ["7:7:6.1.1.1.1.16.1.3", 7, "Agriculture", "IV", "", "400", "PART 400\u2014GENERAL ADMINISTRATIVE REGULATIONS", "U", "Subpart U\u2014Ineligibility for Programs Under the Federal Crop Insurance Act", "", "\u00a7 400.677 Definitions.", "RMA", "", "", "[79 FR 2079, Jan. 13, 2014, as amended at 81 FR 42472, June 30, 2016]", "As used in this subpart:\n\nAct  means the Federal Crop Insurance Act (7 U.S.C. 1501-1524).\n\nApplicant  means a person who has submitted an application for crop insurance coverage under the Act.\n\nAuthorized person  means any current or past officer, employee, elected official, managing general agent, agent, or contractor of an insurance provider, FCIC, or any other government agency whose duties require access to the ITS to administer the Act.\n\nControlled substance  has the same meaning provided in 7 CFR 3021.610.\n\nConviction  means a judgment or any other determination of guilt of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or plea, including a plea of no contest.\n\nDate of delinquency  means: The termination date specified in the applicable policy for administrative fees and premiums owed for insurance issued under the authority of the Act, and any interest and penalties on those amounts, if applicable; and the due date specified in the notice to the person of the amount due for any other amounts due the insurance provider or FCIC for insurance issued under the authority of the Act. Other amounts due include, but are not limited to, indemnities, prevented planting payments, or replant payments found not to have been earned or that were overpaid, premium billed with a due date after the termination date for the crop year in which premium is earned, and any interest, administrative fees, and penalties on such amounts, if applicable. Payments postmarked or received before the date of delinquency by the insurance provider or its agent for debts owed to the insurance provider, or by FCIC for debts owed to FCIC, are not delinquent.\n\nDebt  means an amount of money that has been determined to be owed by any person to FCIC or an insurance provider, excluding money owed to an insurance provider's agent, under any program administered under the Act. The debt may have arisen from nonpayment of interest, penalties, premium, or administrative fee; overpayment of indemnity, prevented planting or replant payment; cost of collection; or other causes. A debt does not include debts discharged in bankruptcy.\n\nDebtor  means a person who owes a debt and that debt is delinquent.\n\nDelinquent debt  means a debt that is not satisfied on or before the date of delinquency. To avoid delinquency or ineligibility due to a delinquent debt, a debtor may enter into a written payment agreement acceptable to the insurance provider or FCIC to pay any such debt as long as all payments are made by the due dates specified in such written payment agreement. A delinquent debt does not include debts discharged in bankruptcy or any debt to an insurance provider's agent.\n\nEmployer Identification Number (EIN)  means a Tax Identification Number issued by the Internal Revenue Service used to identify a business entity, and may also be referred to as a Federal Tax Identification Number.\n\nExcluded Parties List System (EPLS)  means a list maintained by the General Services Administration that provides a source of current information about persons who are excluded or disqualified from covered transactions, including the date the person was determined ineligible and the date the period of ineligibility ends.\n\nFederal Crop Insurance Corporation (FCIC)  means a wholly owned government corporation within the USDA.\n\nIneligible person  means a person who is denied participation in any program administered under the authority of the Act.\n\nIneligible Tracking System (ITS)  means an electronic system to identify persons who are ineligible to participate in any program pursuant to this subpart.\n\nInsurance Provider  means a legal entity which has entered into a Standard Reinsurance Agreement, Livestock Price Reinsurance Agreement, or other reinsurance agreement, as applicable, with FCIC for the applicable reinsurance year.\n\nLivestock Price Reinsurance Agreement  means a cooperative financial assistance agreement between FCIC and an insurance provider to deliver eligible livestock price insurance contracts under the authority of the Act and establishes the terms and conditions under which FCIC will provide subsidy and reinsurance on eligible livestock price insurance policies sold.\n\nMeaningful opportunity to contest  means the opportunity for the insured to resolve disagreements with a decision by the insurance provider through requesting a review of the decision by the insurance provider, mediation, arbitration, or judicial review, as applicable.\n\nPerson  means an individual, partnership, association, corporation, estate, trust, or other legal entity, and wherever applicable, a State or political subdivision or agency of a State. \u201cPerson\u201d does not include the United States Government or any agency thereof.\n\nQualified alien  has the same meaning provided in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641).\n\nReinstatement  means that the policy will retain the same plan of insurance, coverage levels, price percentages, endorsements and options the person had prior to termination, provided the person continues to meet all eligibility requirements, comply with the terms of the policy, and there is no evidence of misrepresentation or fraud.\n\nSocial Security Number (SSN)  means an individual's Social Security Number as issued under the authority of the Social Security Act.\n\nStandard Reinsurance Agreement (SRA)  means a cooperative financial assistance agreement between FCIC and an insurance provider to deliver eligible crop insurance contracts under the authority of the Act and establishes the terms and conditions under which FCIC will provide subsidy and reinsurance on eligible crop insurance policies sold.\n\nSubstantial beneficial interest  has the same meaning as contained in the applicable policy.\n\nUSDA  means the United States Department of Agriculture.\n\nUnited States non-citizen national  has the same meaning provided in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. \u00a7 1408).\n\nWritten payment agreement  means a written document between a debtor and the insurance provider, or FCIC, that is signed and dated by all applicable parties to satisfy financial obligations of the debtor with scheduled installment payments under conditions that modify the terms of the original debt in accordance with \u00a7 400.681."]], "truncated": false, "filtered_table_rows_count": 151, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", 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