cfr_sections
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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
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| 14:14:4.0.2.7.1.0.24.1 | 14 | Aeronautics and Space | III | A | 400 | PART 400—BASIS AND SCOPE | § 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—BASIS AND SCOPE | § 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— (a) Space activities carried out by the United States Government on behalf of the United States Government; (b) The launch of an amateur rocket as defined in § 1.1 of chapter I of this title; or (c) A launch of a tethered launch vehicle that meets all the following criteria: (1) Launch vehicle. The launch vehicle must— (i) Be unmanned; (ii) Be powered by a liquid or hybrid rocket motor; (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 (iv) Carry no more than 5,000 pounds of propellant. (2) Tether system. The tether system must— (i) Not yield or fail under— (A) The maximum dynamic load on the system; or (B) A load equivalent to two times the maximum potential engine thrust. (ii) Have a minimum safety factor of 3.0 for yield stress and 5.0 for ultimate stress. (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. (iv) Display no damage prior to the launch. (v) Be insulated or located such that it will not experience thermal damage due to the launch vehicle's exhaust. (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. Table A—Separation Distances for Tethered Launches | |||||
| 15:15:2.1.2.2.1.1.1.1 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | A | Subpart A—Scope, Definitions and Authority | § 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 “expedite and encourage foreign commerce, and other purposes.” 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. (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. (c) To the extent zones are “activated” 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) … | |||||
| 15:15:2.1.2.2.1.1.1.2 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | A | Subpart A—Scope, Definitions and Authority | § 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). (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. (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). (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. (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. (f) CBP means U.S. Customs and Border Protection. (g) Executive Secretary is the Executive Secretary of the Foreign-Trade Zones Board. (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 § 400.11(b)(2)) to a CBP port of entry, operated as a public utility (within the meaning of § 400.42), with zone operations under the supervision of CBP. (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… | ||||
| 15:15:2.1.2.2.1.1.1.3 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | A | Subpart A—Scope, Definitions and Authority | § 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: (1) Prescribe rules and regulations concerning zones; (2) Issue grants of authority for zones, and approve subzones and modifications to the original zone; (3) Authorize production activity in zones and subzones as described in this part; (4) Make determinations on matters requiring Board decisions under this part; (5) Decide appeals in regard to certain decisions of the Commerce Department's Assistant Secretary for Enforcement and Compliance or the Executive Secretary; (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); (7) Require zone grantees and operators to report on zone operations; (8) Report annually to the Congress on zone operations; (9) Restrict or prohibit zone operations; (10) Terminate reviews of applications under certain circumstances pursuant to § 400.36(g); (11) Authorize under certain circumstances the entry of “zone-restricted merchandise” (19 CFR 146.44) into the customs territory pursuant to § 400.48; (12) Impose fines for violations of the Act and this part; (13) Instruct CBP to suspend activated status pursuant to § 400.62(h); (14) Revoke grants of authority for cause; (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 (16) Issue and discontinue waivers pursuant to § 400.43(f). (b) Authority of the Chairman of the Board. The Chairman of the Board (Secretary of the Department of Commerce) has the authority to: (1) Appoint the Executive Secretary of the Board; (2) Call meetings of the Board, with reasonable notice given to each member; and (3) Submit to the Congress the Board's annual report as prepared by the Executive Secretary. (c) Alternates. Each member of the Board shall designate an alternate with authority to act in an official capaci… | |||||
| 15:15:2.1.2.2.1.1.1.4 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | A | Subpart A—Scope, Definitions and Authority | § 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: (a) Represent the Board in administrative, regulatory, operational, and public affairs matters; (b) Serve as director of the Commerce Department's Foreign-Trade Zones staff; (c) Execute and implement orders of the Board; (d) Arrange meetings and direct circulation of action documents for the Board; (e) Arrange with other sections of the Department of Commerce and other governmental agencies for studies and comments on zone issues and proposals; (f) Maintain custody of the seal, records, files and correspondence of the Board, with disposition subject to the regulations of the Department of Commerce; (g) Issue notices on zone matters for publication in the Federal Register ; (h) Direct processing of applications and reviews, including designation of examiners and scheduling of hearings, under various sections of this part; (i) Make determinations on questions pertaining to grantees' applications for subzones as provided in § 400.12(d); (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 § 400.5; (k) Determine questions of scope under § 400.14(d); (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 §§ 400.21-400.25; (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 §§ 400.21(b), 400.29, 400.43(f), and 400.44; (n) Determine whether proposed modifications are major modifications or minor modifications under § 400.24(a)(2); (o) Determine whether applications meet pre-docketing requirements under § 400.31(b); (p) Terminate reviews of applications under certain circumstances pursuant to § 400… | ||||
| 15:15:2.1.2.2.1.1.1.5 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | A | Subpart A—Scope, Definitions and Authority | § 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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | A | Subpart A—Scope, Definitions and Authority | § 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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | A | Subpart A—Scope, Definitions and Authority | § 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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | B | Subpart B—Ability To Establish Zone; Limitations and Restrictions on Authority Granted | § 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—port of entry entitlement. (1) Provided that the other requirements of this part are met: (i) Each port of entry is entitled to at least one zone; (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 (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. (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. (b) Location of zones and subzones—port of entry adjacency requirements. (1) The Board may approve “zones in or adjacent to ports of entry” (19 U.S.C. 81b). (2) The “adjacency” requirement is satisfied if: (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. (ii) A subzone meets the following requirements relating to CBP supervision: (A) Proper CBP oversight can be accomplished with physical and electronic means; (B) All electronically produced records are maintained in a format compatible with the requirements of CBP for the duration of the record period; and (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | B | Subpart B—Ability To Establish Zone; Limitations and Restrictions on Authority Granted | § 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. (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. (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. (d) Applicants for subzones (except pursuant to § 400.24(c)) —(1) Eligibility. The following entities are eligible to apply to establish a subzone: (i) The grantee of the closest zone in the same state; (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 (iii) A state agency specifically authorized to submit such an application by an act of the state legislature. (2) Notification of closest grantee. If an application is submitted under paragraph (d)(1)(ii) or (iii) of this section, the Executive Secretary shall: (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; (ii) Review such objections pri… | |||||
| 15:15:2.1.2.2.1.2.1.3 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | B | Subpart B—Ability To Establish Zone; Limitations and Restrictions on Authority Granted | § 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: (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. (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). (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. (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). (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. (6) Activity involving production is subject to the specific provisions in § 400.14. (7) A grant of authority may not be sold, conveyed, transferred, set over, or assigned (FTZ Act, section 17; 19 U.S.C. 81q). (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 interfe… | ||||
| 15:15:2.1.2.2.1.2.1.4 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | B | Subpart B—Ability To Establish Zone; Limitations and Restrictions on Authority Granted | § 400.14 Production—requirement 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 §§ 400.22 and 400.37 shall be used. If Board review of a notification under § 400.37 results in a determination that further review is warranted for all or part of the notified activity, the application process pursuant to §§ 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). (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). (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. (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 warra… | ||||
| 15:15:2.1.2.2.1.2.1.5 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | B | Subpart B—Ability To Establish Zone; Limitations and Restrictions on Authority Granted | § 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. (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 § 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. (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 § 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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | B | Subpart B—Ability To Establish Zone; Limitations and Restrictions on Authority Granted | § 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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | C | Subpart C—Applications To Establish and Modify Authority | § 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 (§ 400.2(c))) shall consist of an application letter and detailed contents to meet the requirements of this part. (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. (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 § 400.21(d)(1)(iii)). The application letter shall also describe: (1) The relationship of the proposal to the state enabling legislation and the applicant's charter; (2) The specific authority requested from the Board; (3) The proposed zone site(s) and facility(ies) and any larger project of which the zone is a part; (4) The project background; (5) The relationship of the project to the community's and state's international trade-related goals and objectives; and (6) Any additional pertinent information needed for a complete summary description of the proposal. (d) Detailed contents. (1) Legal authority for the application shall be documented with: (i) A current copy of the state enabling legislation described in §§ 400.12(b) and (c); (ii) A copy of the relevant sections of the applicant's charter or organization papers; and (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. (2… | ||||
| 15:15:2.1.2.2.1.3.1.2 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | C | Subpart C—Applications To Establish and Modify Authority | § 400.22 Notification for production authority. | FTZ | Notifications requesting production authority pursuant to § 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: (a) Identity of the user and its location; (b) Materials, components and finished products associated with the proposed activity, including the tariff schedule categories (6-digit HTSUS) and tariff rates; and (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | C | Subpart C—Applications To Establish and Modify Authority | § 400.23 Application for production authority. | FTZ | In addition to any applicable requirements set forth in § 400.21, an application requesting production authority pursuant to § 400.37(c) shall include: (a) A summary as to the reasons for the application and an explanation of its anticipated economic effects; (b) Identity of the user and its corporate affiliation; (c) A description of the proposed activity, including: (1) Finished products; (2) Imported (foreign-status) materials and components; (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); (4) Domestic inputs, foreign inputs, and plant value added as percentages of finished product value; (5) Projected shipments to domestic market and export market (percentages); (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; (7) Annual production capacity (current and planned) for the proposed FTZ activity, in units; (8) Information to assist the Board in making a determination under § 400.27(a)(3) and 400.27(b); (9) Information as to whether alternative procedures have been considered as a means of obtaining the benefits sought; (10) Information on the industry involved and extent of international competition; and (11) Economic impact of the operation on the area; and (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | C | Subpart C—Applications To Establish and Modify Authority | § 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 (§ 400.2(c))). (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: (i) Substantially modify the plan originally approved by the Board; or (ii) Expand the physical dimensions of the approved zone area as they relate to the scope of operations envisioned in the original plan. (b) Major modification to zone. An application for a major modification of an approved zone shall be submitted in accordance with the requirements of § 400.21, except that the content submitted pursuant to § 400.21(d)(4) (economic justification) shall relate specifically to the proposed change. (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 § 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 § 400.2(b)) for the zone in question. (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 f… | ||||
| 15:15:2.1.2.2.1.3.1.5 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | C | Subpart C—Applications To Establish and Modify Authority | § 400.25 Application for subzone designation. | FTZ | In addition to the requirements of §§ 400.21(d)(1)(i) and (ii) pertaining to legal authority, § 400.21(d)(2)(vii) pertaining to environmental aspects of the proposal, and § 400.21(d)(3)(i) and (iii) pertaining to operation, a grantee's application for subzone designation shall contain the following information: (a) The name of the operator/user for which subzone designation is sought; (b) The nature of the activity at the proposed subzone; (c) The address(es) and physical size (acreage or square feet) of the proposed subzone location(s); and (d) One or more maps conforming to the requirements of section § 400.21(d)(5)(ii). For any production activity to be conducted at a proposed subzone, the separate requirements of § 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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | C | Subpart C—Applications To Establish and Modify Authority | § 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: (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; (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; (c) The specific need and justification for each proposed site, taking into account existing sites and/or other proposed sites; (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 (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | C | Subpart C—Applications To Establish and Modify Authority | § 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 § 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: (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 § 400.27(b), the Board shall deny or restrict authority for proposed or ongoing activity if it determines that: (1) The activity is inconsistent with U.S. trade and tariff law, or policy which has been formally adopted by the Executive branch; (2) Board approval of the activity under review would seriously prejudice U.S. tariff and trade negotiations or other initiatives; or (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. (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: (1) Overall employment impact; (2) Exports and re-exports; (3) Retention or creation of value-added … | ||||
| 15:15:2.1.2.2.1.3.1.8 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | C | Subpart C—Applications To Establish and Modify Authority | § 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. (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. (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. (d) Responses to comments on applications. Submissions in response to comments received during the public comment period or pursuant to § 400.33(e)(1) or § 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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | C | Subpart C—Applications To Establish and Modify Authority | § 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. (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. (1) Additional zones (§ 400.21; § 400.11(a)(2))—$3,200. (2) Subzones (§ 400.25): (i) Not involving production activity or involving production activity with fewer than three products—$4,000. (ii) Production activity with three or more products—$6,500. (3) Expansions (§ 400.24(b))—$1,600. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | D | Subpart D—Procedures for Application Evaluation and Reviews | § 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 §§ 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 § 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. (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 §§ 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… | ||||
| 15:15:2.1.2.2.1.4.1.2 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | D | Subpart D—Procedures for Application Evaluation and Reviews | § 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 § 400.29 have been paid, the Executive Secretary shall within 15 days: (1) Formally docket the application, thereby initiating the proceeding or review; (2) Assign a case-docket number; and (3) Notify the applicant of the formal docketing action. (b) After initiating a proceeding based on an application under §§ 400.21 and 400.23 through 400.25, the Executive Secretary shall: (1) Designate an examiner to conduct a review and prepare a report or memorandum with recommendations for the Board; (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 § 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 § 400.28(c). Submissions must meet the requirements of § 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 o… | ||||
| 15:15:2.1.2.2.1.4.1.3 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | D | Subpart D—Procedures for Application Evaluation and Reviews | § 400.33 Examiner's review—application 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 § 400.26 and other appropriate sections of this part, which shall include: (a) Conducting or participating in hearings scheduled by the Executive Secretary; (b) Reviewing case records, including public comments; (c) Requesting information and evidence from parties of record; (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 (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 § 400.32): (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. (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. (3) If the factors considered for an examiner's recommendation(s) change as a result of new ev… | ||||
| 15:15:2.1.2.2.1.4.1.4 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | D | Subpart D—Procedures for Application Evaluation and Reviews | § 400.34 Examiner's review—application 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, § 400.27, and other appropriate sections of this part, which shall include: (1) Conducting or participating in hearings scheduled by the Executive Secretary; (2) Reviewing case records, including public comments; (3) Requesting information and evidence from parties of record and others, as warranted; (4) Developing information and evidence necessary for analysis of the threshold factors and the economic factors enumerated in § 400.27; and (5) Conducting an analysis to include: (i) An evaluation of policy considerations pursuant to §§ 400.27(a)(1) and (2); (ii) An evaluation of the economic factors enumerated in §§ 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; (iii) Conducting appropriate industry research and surveys, as necessary; and (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): (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. (B) If the response contains new evidence on which there has not been an opportunity for publi… | ||||
| 15:15:2.1.2.2.1.4.1.5 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | D | Subpart D—Procedures for Application Evaluation and Reviews | § 400.35 Examiner's review—application 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 § 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. (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. (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. (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. (d) The CBP adviser shall be requested, when necessary, to provide further comments, which shall be … | ||||
| 15:15:2.1.2.2.1.4.1.6 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | D | Subpart D—Procedures for Application Evaluation and Reviews | § 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. (b) In its advisory role to the Board, CBP headquarters staff shall provide any comments within 15 days for applications under § 400.25 and within 30 days for all other applications. (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, § 400.3(b)). (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. (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. (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. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | D | Subpart D—Procedures for Application Evaluation and Reviews | § 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 §§ 400.14(a) and 400.22 shall be submitted simultaneously to the Board's Executive Secretary and to CBP. (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 § 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 § 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 § 400.27. (c) Determ… | ||||
| 15:15:2.1.2.2.1.4.1.8 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | D | Subpart D—Procedures for Application Evaluation and Reviews | § 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 § 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 § 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. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | E | Subpart E—Operation of Zones and Administrative Requirements | § 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. (b) Requirements for commencement of operations in a zone. The following actions are required before operations in a zone may commence: (1) The grantee shall submit the zone schedule to the Executive Secretary, as provided in § 400.44. (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 (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | E | Subpart E—Operation of Zones and Administrative Requirements | § 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. (b) [Reserved] | ||||
| 15:15:2.1.2.2.1.5.1.3 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | E | Subpart E—Operation of Zones and Administrative Requirements | § 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. (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. (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. (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. (d) Avoidance of non-uniform treatment. To avoid non-uniform treatment of zone participants, persons (as defined in § 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). (1) Key functions are: (i) Taking action on behalf of a grantee, or making recommendations to a grantee, regarding th… | ||||
| 15:15:2.1.2.2.1.5.1.4 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | E | Subpart E—Operation of Zones and Administrative Requirements | § 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. (b) Each zone schedule shall include: (1) A title page, which shall include the name of the zone grantee and the date of the current schedule; (2) A table of contents; (3) Internal rules/regulations and policies for the zone; (4) All rates or charges assessed by or on behalf of the grantee; (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 (6) An appendix with definitions of any FTZ-related terms used in the zone schedule (as needed). (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). (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 sec… | ||||
| 15:15:2.1.2.2.1.5.1.5 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | E | Subpart E—Operation of Zones and Administrative Requirements | § 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. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | E | Subpart E—Operation of Zones and Administrative Requirements | § 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. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | E | Subpart E—Operation of Zones and Administrative Requirements | § 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. (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. (c) Criteria. In evaluating requests under this section, the Executive Secretary and CBP shall consider factors that may include: (1) Whether any public benefits would result from approval; and (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | E | Subpart E—Operation of Zones and Administrative Requirements | § 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). (b) Criteria. In making the determination described in paragraph (a) of this section, the Board shall consider: (1) The intent of the parties; (2) Why the merchandise cannot be exported; (3) The public benefit involved in allowing entry of the merchandise; and (4) The recommendation of CBP. (c) Procedure. (1) A request for authority to enter “zone-restricted” 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. (2) The Executive Secretary shall investigate the request and prepare a report for the Board. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | E | Subpart E—Operation of Zones and Administrative Requirements | § 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 § 400.27. The Board may prescribe special monitoring requirements in its decisions when appropriate. (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. (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 § 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 § 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 fina… | |||||
| 15:15:2.1.2.2.1.6.1.1 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | F | Subpart F—Records, Reports, Notice, Hearings and Information | § 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. (b) Maps and drawings. Zone grantees or operators, and CBP, shall keep current layout drawings of approved sites as described in § 400.21(d)(5), showing activated portions, and a file showing required activation approvals. The zone grantee shall furnish necessary maps to CBP. (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. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | F | Subpart F—Records, Reports, Notice, Hearings and Information | § 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, §§ 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 §§ 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. (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. (2) The request must be made within 30 days of the beginning of the initial period for public comment ( see § 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. (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. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | F | Subpart F—Records, Reports, Notice, Hearings and Information | § 400.53 Official records; public access. | FTZ | (a) Content. The Executive Secretary shall maintain at the location stated in § 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. (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. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | F | Subpart F—Records, Reports, Notice, Hearings and Information | § 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. (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 §§ 400.21-400.25 is inherently public information to allow meaningful public evaluation pursuant to those sections and § 400.32. (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, “business proprietary.” Any business proprietary document submitted for a proceeding other than pursuant to § 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 “public version.” 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. (d) Disclosure of information… | |||||
| 15:15:2.1.2.2.1.7.1.1 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | G | Subpart G—Penalties and Appeals to the Board | § 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 § 400.2(h)) whenever it determines that the zone grantee has violated, repeatedly and willfully, the provisions of the Act. (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: (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; (2) Conduct a hearing, if requested or otherwise if appropriate; (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 (4) If the Board's determination is affirmative, publish a notice of revocation of authority, in whole or in part, in the Federal Register. (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—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | G | Subpart G—Penalties and Appeals to the Board | § 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 §§ 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 § 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). (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 § 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 § 400.62(j)). Further, each day during which a zone operator fails to submit to the zone's grantee the information … | |||||
| 15:15:2.1.2.2.1.7.1.3 | 15 | Commerce and Foreign Trade | IV | 400 | PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD | G | Subpart G—Penalties and Appeals to the Board | § 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. (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—RULES OF GENERAL APPLICATION | § 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) (“Act”) 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. (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 (“Commission”). Regulations concerning registration are at § 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 § 240.15Ca2-1 et seq. (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 § 240.15Ca1-1 of this title. (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 § 449.1 of this cha… | |||||
| 17:17:5.0.2.1.1.0.43.2 | 17 | Commodity and Securities Exchanges | IV | A | 400 | PART 400—RULES OF GENERAL APPLICATION | § 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. (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. (2) Interpretations. Although the appropriate regulatory agencies, as defined in § 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, §§ 449.1 and 449.2 of this chapter, which are the responsibility of the Board of Governors of the Federal Reserve System [“Board”]). (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. (2) Exemptions and classifications under sections 15C (a), (b) and (d) of the Act (15 U.S.C. 78o-5 (a), (b), and (d))… | |||||
| 17:17:5.0.2.1.1.0.43.3 | 17 | Commodity and Securities Exchanges | IV | A | 400 | PART 400—RULES OF GENERAL APPLICATION | § 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: Act means the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. chapter 2B, as amended); Appropriate 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; Associated person means a person other than a person whose functions are solely clerical or ministerial: (1) Directly engaged in any of the following activities in either a supervisory or non-supervisory capacity: (i) Underwriting, trading or sales of government securities; (ii) Financial advisory or consultant services for issuers in connection with the issuance of government securities; (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; (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 (2) Directly engaged in the following activities in a supervisory capacity: (i) Processing and clearance activities with respect to government securities; (ii) Maintenance of records involving any of the activities described in paragraph (c)(1) of this section; (3) That in the case of a financial institution, (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 “associated … | |||||
| 17:17:5.0.2.1.1.0.43.4 | 17 | Commodity and Securities Exchanges | IV | A | 400 | PART 400—RULES OF GENERAL APPLICATION | § 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 (§ 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). (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. (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. (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: (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 (2) File with the appropriate regulatory agency within 30 day… | |||||
| 17:17:5.0.2.1.1.0.43.5 | 17 | Commodity and Securities Exchanges | IV | A | 400 | PART 400—RULES OF GENERAL APPLICATION | § 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 § 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 (§ 249.501 of this title) correcting such information, in accordance with the instructions provided therein. (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 (§ 249.501 of this title) correcting such information, in accordance with the instructions provided therein. (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 (§ 449.1 of this chapter) correcting such information, in accordance with the instructions provided therein. (c) Every amendment filed pursuant to this section shall constitute a “report” 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—RULES OF GENERAL APPLICATION | § 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 § 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 (§ 449.2 of this chapter) in accordance with the instructions contained therein. (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. (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. § 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. (d) Every notice filed pursuant to this section shall constitute a “report” 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—GENERAL ADMINISTRATIVE REGULATIONS | O | Subpart O—Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years | § 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—GENERAL ADMINISTRATIVE REGULATIONS | O | Subpart O—Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years | § 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. ). Actively 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. Actual 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. Assigned yield means units of crop production per acre administratively assigned by the Corporation for the purpose of determining insurance coverage. Corporation means the Federal Crop Insurance Corporation. Cumulative 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. Cumulative loss ratio means the ratio of total indemnities to total earned premiums during the base period expressed as a decimal. Earned 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. Earned premium rate —means premium earned divided by liability and expressed as a percentage. Entity —means a person as defined in this subpart other than an individual. Indemnified 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. Insurance experience means earned premiums, indemnities paid (but not including replant payments), and other data… | ||||
| 7:7:6.1.1.1.1.10.1.3 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | O | Subpart O—Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years | § 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 § 400.303(d)) for the crop have been met: (1) Three (3) or more indemnified losses during the NCS base period; (2) Cumulative indemnities in the NCS base period that exceed cumulative premiums during the same period by at least $500; (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 (4) Either of the following apply: (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 (ii) Five (5) or more indemnified losses have occurred during the NCS base period and the cumulative loss ratio equals or exceeds 1.50. (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. (c) Selection criteria may be applied on the basis of insurance experience of a person, insured acreage, or the combination of both. (1) Insurance experience of a person will include: (i) Insurance experience of the person; (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; (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 § 400.306. (2) Insurance experience of insured … | ||||
| 7:7:6.1.1.1.1.10.1.4 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | O | Subpart O—Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years | § 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. (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. (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: (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 (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. (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: (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 (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. (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 § 400.304(f). In determining whether further changes are necessary, the eligibility criteria will be recomputed e… | |||||
| 7:7:6.1.1.1.1.10.1.5 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | O | Subpart O—Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years | § 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. (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. (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: (1) Classifications assigned to identified insurable acreage apply to all acres of the insured crop grown on the identified acreage; (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 (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—GENERAL ADMINISTRATIVE REGULATIONS | O | Subpart O—Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years | § 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: (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; (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: (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; (ii) The minor has established and maintains a separate household from the parent; (iii) The minor personally carries out the farming activities with respect to the minor's farming operation; and (iv) The minor establishes separate accounting and recordkeeping for the minor's farming operation. (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—GENERAL ADMINISTRATIVE REGULATIONS | O | Subpart O—Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years | § 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—GENERAL ADMINISTRATIVE REGULATIONS | O | Subpart O—Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years | § 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. (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: (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 (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—GENERAL ADMINISTRATIVE REGULATIONS | O | Subpart O—Non-Standard Underwriting Classification System Regulations for the 1991 and Succeeding Crop Years | § 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. (b) Upon receipt of a timely request for reconsideration from the person to whom the classification will be assigned, the Corporation will: (1) Review all information supplied by, and respond to all questions raised by the individual, or (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. (c) Upon review of a request for reconsideration, the classification to be assigned will be corrected for: (1) Errors and omissions in insurance experience; (2) Incorrect calculations under procedures in this subpart, and (3) Typographical errors. (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. (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—GENERAL ADMINISTRATIVE REGULATIONS | P | Subpart P—Preemption of State Laws and Regulations | § 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—GENERAL ADMINISTRATIVE REGULATIONS | P | Subpart P—Preemption of State Laws and Regulations | § 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. (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: (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; (2) Tax premiums associated with policies issued hereunder; (3) Exercise approval authority over policies issued; (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 (5) Assess any tax, fee, or amount for the funding or maintenance of any State or local insolvency pool or other similar fund. The preceding list does not… | ||||
| 7:7:6.1.1.1.1.12.1.1 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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. (b) These regulations are applicable to: (1) All holders of crop insurance policies issued by FCIC under the Act and sold and serviced by local FSA offices. (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. (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 (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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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: (a) Mailing a signed written request to the headquarters office of FCIC; the FCIC Regional Service Office, or the insurance provider; or (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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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. (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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 400.413 [Reserved] | RMA | ||||||
| 7:7:6.1.1.1.1.12.1.2 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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. ). Applicant. A person who has submitted an application for crop insurance coverage under the Act. Authorized 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. Disposition of records. The act of removing and disposing of records containing a participant's SSN or EIN by FCIC, or the insurance provider. FCIC. The Federal Crop Insurance Corporation of the United States Department of Agriculture or any successor agency. FSA. The Farm Service Agency of the United States Department of Agriculture, or a successor agency. Insurance 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. Past 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. Person. An individual, partnership, association, corporation, estate, trust, or other legal entity, and whenever applicable, a state, political subdivision, or an agency of a state. Policyholder. An applicant whose application for insurance under the crop insurance program has been accepted by FCIC or the insurance provider. Retrieval of records. Retrieval of a person's records by that person's SSN or EIN, or name. Safeguards. 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. Storage. 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. Substantial beneficial interest. Any person having an interest of at least 10 percent in the applicant or policyho… | ||||
| 7:7:6.1.1.1.1.12.1.3 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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: (1) Determining the correct parties to the agreement or contract; (2) Collecting premiums or other amounts due FCIC or the insurance provider; (3) Determining the amount of indemnities; (4) Establishing actuarial data on an individual policyholder basis; and (5) Determining eligibility for crop insurance program participation or other United States Department of Agriculture benefits. (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. (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: (1) holding or acquiring a substantial beneficial interest in such policyholder or applicant; or (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. (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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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: (1) Identifying agents and loss adjusters on an individual basis; (2) Evaluating agents and loss adjusters to determine level of performance; (3) Determining eligibility for program participation; and (4) Collection of any amount which may be owed by the agent and loss adjuster to the United States. (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. (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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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—GENERAL ADMINISTRATIVE REGULATIONS | Q | Subpart Q—General Administrative Regulations; Collection and Storage of Social Security Account Numbers and Employer Identification Numbers | § 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—GENERAL ADMINISTRATIVE REGULATIONS | R | Subpart R—Administrative Remedies for Non-Compliance | § 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). (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. (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. (d) This rule is applicable to any violation occurring on and after January 20, 2009. (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—GENERAL ADMINISTRATIVE REGULATIONS | R | Subpart R—Administrative Remedies for Non-Compliance | § 400.452 Definitions. | RMA | [73 FR 76887, Dec. 18, 2008] | For purposes of this subpart: Act. Has the same meaning as the term in section 1 of the Common Crop Insurance Policy Basic Provisions (7 CFR 457.8). Affiliate. 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. Agency. 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. Agent. Has the same meaning as the term in 7 CFR 400.701. Agricultural commodity. Has the same meaning as the term in section 1 of the Common Crop Insurance Policy Basic Provisions (7 CFR 457.8). Approved insurance provider. Has the same meaning as the term in 7 CFR 400.701. Benefit. 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. FCIC. Has the same meaning as the term in 7 CFR 400.701. Key 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. Knows or has reason to know. When a person, with respect to a claim or statement: (1)(i) Has actual knowledge that the claim or statement is false, fictitious, or fraudulent; (ii) Acts in deliberate ignorance of the truth or falsity of the claim or statement; or (iii) Acts in reckless disregard of the truth or falsity of the claim or state… | ||||
| 7:7:6.1.1.1.1.13.1.3 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | R | Subpart R—Administrative Remedies for Non-Compliance | § 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—GENERAL ADMINISTRATIVE REGULATIONS | R | Subpart R—Administrative Remedies for Non-Compliance | § 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. (1) Proceedings will be initiated when the Manager of FCIC files a complaint with the Hearing Clerk, United States Department of Agriculture. (2) Disqualifications become effective: (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. (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. (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 § 400.454(b). FCIC has the burden of proving that the standards in § 400.454(b) have been met. (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 § 400.454(c). (b) Disqualification and civil fines may be imposed on any participant or person who willfully and intentionally: (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 (2) Fails to comply with a requirement of FCIC. (c) When imposing any disqualification or civil fine: (1) The gravity of the violation must be considered when determining: (i) Whether to disqualify a participant or other person; (ii) The amount of time that a participant or other person should be… | ||||
| 7:7:6.1.1.1.1.13.1.5 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | R | Subpart R—Administrative Remedies for Non-Compliance | § 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. (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—GENERAL ADMINISTRATIVE REGULATIONS | R | Subpart R—Administrative Remedies for Non-Compliance | § 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. (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. (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—GENERAL ADMINISTRATIVE REGULATIONS | R | Subpart R—Administrative Remedies for Non-Compliance | § 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. (b) Proceedings under this section will be in accordance with subpart L of 7 CFR part 1, “Procedures Related to Administrative Hearings Under the Program Fraud Civil Remedies Act of 1986.” (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. (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—GENERAL ADMINISTRATIVE REGULATIONS | R | Subpart R—Administrative Remedies for Non-Compliance | § 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. (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: (1) Suspension, debarment, or disqualification from participation in the program; or (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—GENERAL ADMINISTRATIVE REGULATIONS | R | Subpart R—Administrative Remedies for Non-Compliance | §§ 400.459-400.500 [Reserved] | RMA | ||||||
| 7:7:6.1.1.1.1.15.1.1 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | T | Subpart T—Federal Crop Insurance Reform, Insurance Implementation | § 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—GENERAL ADMINISTRATIVE REGULATIONS | T | Subpart T—Federal Crop Insurance Reform, Insurance Implementation | § 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. ). Additional coverage. A level of coverage greater than catastrophic risk protection. Administrative 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. Approved 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. Approved 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. Catastrophic 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. Catastrophic Risk Protection Endors… | ||||
| 7:7:6.1.1.1.1.15.1.3 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | T | Subpart T—Federal Crop Insurance Reform, Insurance Implementation | § 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. (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. (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. (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. (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—GENERAL ADMINISTRATIVE REGULATIONS | T | Subpart T—Federal Crop Insurance Reform, Insurance Implementation | § 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 § 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. (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 § 400.655. Failure to execute such a waiver will require the producer to refund any benefits already received under a program specified in § 400.655. (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: (1) Multiply the acres planted to the crop times the producer's share, times the approved yield, and times the price; (2) Add the values of all crops grown by the producer (in the county); and (3) Divide the value of the specific crop by the result of paragraph (b)(2). (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. (d) The producer may be required to justify the calculation and provide… | ||||
| 7:7:6.1.1.1.1.15.1.5 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | T | Subpart T—Federal Crop Insurance Reform, Insurance Implementation | § 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. (b) In order to remain eligible for certain farm programs, as specified in § 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. (c) Notwithstanding the requirements of § 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: (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. (2) Conditions must exist to warrant allowing a producer to insure crops other than the intended crop. (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. (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 § 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. (5) The substitute crop must be planted on or before the final planting date or within the late planting period, if applicable, for the su… | ||||
| 7:7:6.1.1.1.1.15.1.6 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | T | Subpart T—Federal Crop Insurance Reform, Insurance Implementation | § 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: (a) Benefits under the Agricultural Market Transition Act; (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 (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—GENERAL ADMINISTRATIVE REGULATIONS | T | Subpart T—Federal Crop Insurance Reform, Insurance Implementation | §§ 400.656-400.657 [Reserved] | RMA | ||||||
| 7:7:6.1.1.1.1.16.1.1 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | U | Subpart U—Ineligibility for Programs Under the Federal Crop Insurance Act | § 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—GENERAL ADMINISTRATIVE REGULATIONS | U | Subpart U—Ineligibility for Programs Under the Federal Crop Insurance Act | § 400.684 Effect of ineligibility. | RMA | (a) The effect of ineligibility depends on the basis for the determination. (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 § 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 § 400.684(b)(1). (2) Persons who are ineligible as a result of a suspension or debarment are precluded from: (i) Participating in all programs authorized under the Act, including but not limited to: (A) Obtaining crop insurance; (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; (C) Entering into any contracts with FCIC under sections 506(l) and section 522(c) of the Act; and (D) Entering into any cooperative agreements or partnerships under sections 506(l), 522(d) and 524(a) of the Act; and (ii) Participating in any other covered transaction as specified in 2 CFR part 180 and 2 CFR part 417. (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. (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. (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. (b) Once a person has been determined to be ineligible: (1) The ineligible person will be placed on the ITS and may be reporte… | |||||
| 7:7:6.1.1.1.1.16.1.11 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | U | Subpart U—Ineligibility for Programs Under the Federal Crop Insurance Act | § 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 § 400.683 has ended, the ineligible person is eligible to participate in programs authorized under the Act, provided the person meets all eligibility requirements. (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. (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—GENERAL ADMINISTRATIVE REGULATIONS | U | Subpart U—Ineligibility for Programs Under the Federal Crop Insurance Act | § 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). (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. (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. (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. (b) Information may be entered into the ITS by FCIC employees or contractors, or insurance providers. (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. (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, … | |||||
| 7:7:6.1.1.1.1.16.1.2 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | U | Subpart U—Ineligibility for Programs Under the Federal Crop Insurance Act | § 400.676 [Reserved] | RMA | ||||||
| 7:7:6.1.1.1.1.16.1.3 | 7 | Agriculture | IV | 400 | PART 400—GENERAL ADMINISTRATIVE REGULATIONS | U | Subpart U—Ineligibility for Programs Under the Federal Crop Insurance Act | § 400.677 Definitions. | RMA | [79 FR 2079, Jan. 13, 2014, as amended at 81 FR 42472, June 30, 2016] | As used in this subpart: Act means the Federal Crop Insurance Act (7 U.S.C. 1501-1524). Applicant means a person who has submitted an application for crop insurance coverage under the Act. Authorized 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. Controlled substance has the same meaning provided in 7 CFR 3021.610. Conviction 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. Date 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. Debt 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… |
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CREATE TABLE cfr_sections (
section_id TEXT PRIMARY KEY,
title_number INTEGER,
title_name TEXT,
chapter TEXT,
subchapter TEXT,
part_number TEXT,
part_name TEXT,
subpart TEXT,
subpart_name TEXT,
section_number TEXT,
section_heading TEXT,
agency TEXT,
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source_citation TEXT,
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CREATE INDEX idx_cfr_agency ON cfr_sections(agency);