cfr_sections
Data license: Public Domain (U.S. Government data) · Data source: Federal Register API & Regulations.gov API
46 rows where part_number = 400 and title_number = 15 sorted by section_id
This data as json, CSV (advanced)
Suggested facets: subpart, subpart_name, amendment_citations
| 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. |
Advanced export
JSON shape: default, array, newline-delimited, object
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,
authority TEXT,
source_citation TEXT,
amendment_citations TEXT,
full_text TEXT
);
CREATE INDEX idx_cfr_title ON cfr_sections(title_number);
CREATE INDEX idx_cfr_part ON cfr_sections(part_number);
CREATE INDEX idx_cfr_agency ON cfr_sections(agency);