400.1402 Availability of materials for inspection and copying.

400.1403 Requests for identifiable records. 400.1404 Determinations of availability of records.

400.1405 Requests for reconsideration of nonavailability.

400.1406 Security information.

AUTHORITY: The provisions of this Part 400 issued under sec. 8, 48 Stat. 1000; 19 U.S.C. 81h, unless otherwise noted.

SOURCE: The provisions of this Part 400 contained in Regulations, June 29, 1935, unless otherwise noted.

DEFINITIONS

§ 400.100 Act.

The term "Act" means the Foreign-Trade Zones Act of June 18, 1934 (48 Stat. 998-1003; 19 U.S.C. 81a-81u), as amended by Public Law 566, 81st Congress, approved June 17, 1950.

[Order 29, 17 F. R. 5316, June 11, 1952] § 400.101

Zone.

The term "zone" means a "foreigntrade zone." It is an isolated, enclosed, and policed area, operated as a public utility, in or adjacent to a port of entry, furnished with facilities for lading, unlading, handling, storing, mainipulating, manufacturing, and exhibiting goods, and for reshipping them by land, water, or air. Any foreign and domestic merchandise, except such as is prohibited by law or such as the Board may order to be excluded as detrimental to the public interest, health, or safety may be brought into a zone without being subject to the customs laws of the United States governing the entry of goods or the

payment of duty thereon; and such merchandise permitted in a zone may be stored, exhibited, manufactured, mixed or manipulated in any manner, except as provided in the act and other applicable laws or regulations. The merchandise may be exported, destroyed, or sent into customs territory from the zone, in the original package or otherwise. It is subject to customs duties if sent into customs territory, but not if reshipped to foreign points.

[Order 29, 17 F. R. 5316, June 11, 1952]

CROSS REFERENCES: For immigration regulations, see 8 CFR Chapter I. Regulations of Bureau of Customs, see 19 CFR Chapter I. Postal Service, see 39 CFR Chapter I. Public Health, see 42 CFR Chapter I.

§ 400.102 Secretary of Commerce.

The term "Secretary" means the Secretary of Commerce.

The term "corporation” means a public or a private corporation:

(a) "Public corporation" means 8 State, political subdivision thereof, a municipality, a public agency of a State, political subdivision thereof, or municipality, or a corporate municipal instrumentality of one or more States.

(b) "Private corporation" means any corporation (other than a public corporation) which is organized for the purpose of establishing, operating, and maintaining a foreign-trade zone and which is chartered under a special act (enacted after June 18, 1934) of the State or States within which it is to operate such zone.

(Sec. 1, 48 Stat. 998; 19 U. S. C. 81a)

§ 400.106 Applicant.

The term "applicant" means à corporation applying for the right to estab

The term "grantee" means a corporation to which the privilege of establishing, operating, and maintaining a foreign-trade zone has been granted. (Sec. 1, 48 Stat. 998; 19 U. 8. C. 818) 400.108 District Director of Customs.

The term "District Director of Customs" means the director of customs in whose district the zone is located. [Regulations, June 29, 1935, as amended by Order 74, 32 F.R. 13714, Sept. 30, 1967] § 400.109 District Engineer.

The term "District Engineer" means the engineer of the Department of the Army in whose district the zone is located.

[Order 17, 14 F. R. 3671, July 2, 1949] § 400.110 Examiner.

The term "examiner" means an employee of the Board, an expert, officer, engineer, or any other person who is designated by the Board to conduct an investigation concerning the establishment, operation, maintenance, or administration of a zone.

JURISDICTION AND AUTHORITY OF BOARD $400.200 Duties of the Board.

The Board is authorized, subject to the provisions of the act, the laws governing the navigable waters of the United States, the laws governing foreign and interstate commerce, those controlling the revenue, the Shipping Act of 1916, as amended (46 U.S.C. secs. 801 et seq.), the Interstate Commerce Act (49 U.S.C. secs. 1 et seq.), and other laws of the United States applicable to zones:

(a) To grant to corporations, subject to the conditions and restrictions of the act and of the rules and regulations made thereunder, the privilege of establishing, operating, and maintaining foreign-trade zones in or adjacent to ports of entry under the jurisdiction of the United States, if it finds that the proposed plans and location are suitable for the accomplishment of the purpose of the foreign-trade zone under the act, and that the facilities and appurtenances which it is proposed to provide are sufficient.

(b) To prescribe such rules and regulations as may be necessary to establish and conduct such zones.

(c) To approve rates and charges for all services or privileges within the zone, and to assure uniform treatment under like conditions to users of the zone or to merchandise within the zone subject to such treaties or commercial conventions in force at the time.

(d) To require compliance with lawful regulations of the Board and of other Government departments, State or municipal agencies, which may be applicable to the zone.

(e) To prescribe the form and manner of keeping the accounts of the zone.

(f) To require the submission annually, and at such other times as the Board may prescribe, of reports containing full statements of the operations, receipts, and expenditures, and such other information as the Board may require.

(g) To inspect and examine at such times as the Board may deem advisable the premises, operations, or accounts of the grantee.

(h) To impose fines of not to exceed $1,000 per day for violations of the act or of the regulations in this part.

(1) Ta revoke the grant of any corporation after due notice and public hearing for repeated and willful violations of the act.

(j) To prescribe reasonable and uniform regulations for like conditions and circumstances for the erection of buildings within the zone by other than the grantee.

(k) To make a report to the Congress on the first day of each regular session, containing a summary of the operation and fiscal condition of each zone, and to transmit therewith copies of the annual report of each grantee.

(1) To perform such other duties as may be necessary to administer the provisions of the act.

[Regulations, June 29, 1935, as amended by Order 86, 36 F.R. 24930, Dec. 24, 1971] § 400.201 Cooperation with other agencies.

The Board is authorized to cooperate: (a) With other Government departments or other Federal agencies having jurisdiction in or adjacent to ports of entry.

(b) With State and local authorities in the exercise of their police, sanitary, and other powers in connection with the

zone.

(Sec. 9, 48 Stat. 1000; 19 U.S.C. 811)

$400.202 Cooperation with Board of

other agencies of the Government. By authority of the act and Executive Order No. 7104, the executive departments and other establishments of the Government will furnish to the Board such records, papers, and information in their possession as may be required by the Board, and temporarily detail to the service of the Board such officers, experts, or engineers as may be necessary to enable the Board to carry out its duties under the act.

(Sec. 10. 48 Stat. 1001; 19 U.S.C. 811) § 400.203 Executive Order No. 7104. Executive departments and other establishments of the Government are hereby ordered and directed to cooperate with the Board established by the act of June 18, 1934 (48 Stat. 998-1003; 19 U.S.C. 81a-81u), for carrying out the purposes thereof, and at the request of the said Board to furnish it such records, papers, and information in their possession, as it may require, and to temporarily detail to its service such officers, experts, or engineers as may be necessary for the purpose of facilitating the investigation of the Board and its work in connection with the establishment, operation, and maintenance of foreigntrade zones.

[E. O. 7104, July 18, 1935]

NUMBER AND LOCATION OF ZONES

§ 400.300 Each port of entry entitled to at least one zone.

Subject to the provisions of the act and of the regulations in this part, each port of entry shall be entitled to at least one zone.

(Sec. 2, 48 Stat. 999; 19 U. 8. C. 81b)

§ 400.301 Port of entry located in more than one State entitled to a zone in each such State.

When a port of entry is located within the confines of more than one State, such port of entry shall be entitled to a zone in each of such States.

(Sec. 2, 48 Stat. 999; 19 U. 8. C. 81b)

§ 400.302 Zone may be authorized in each of two cities separated by water in one port of entry.

When two cities separated by water are embraced in one port of entry, a zone may be authorized in each of said cities, or in territory adjacent thereto. (Sec. 2, 48 Stat. 999; 19 U. §. C. 81b)

§ 400.303 Additional zones in_port of entry may be authorized by Board.

Zones in addition to those to which a port of entry is entitled shall be authorized only if the Board finds that existing or authorized zones will not serve adequately the convenience of

commerce.

(Sec. 2, 48 Stat. 999; 19 U. 8. C. 81b)

§ 400.304 Zones for specialized purposes.

The establishment of a zone, or a sub-zone in an area separate from an existing zone, for one or more of the specialized purposes of storing, manipulating, manufacturing, or exhibiting goods, may be authorized if the Board finds that existing or authorized zones will not serve adequately the convenience of commerce with respect to the proposed purposes.

[Order 29, 17 F.R. 5316, June 11, 1952]

ECONOMIC, FINANCIAL, AND PHYSICAL REQUIREMENTS FOR ESTABLISHMENT OF ZONE

§ 400.400 Economic survey of proposed

zone.

Before a grant is made, an economic survey must demonstrate to the satisfaction of the Board that the anticipated commerce, benefits, and returns, both direct and indirect, will justify its construction to expedite and encourage foreign commerce. In considering the economic impact of the proposal, the Board will take into account its impact on the U.S. balance of payments, as well as its environmental impact in the light of national policy.

[Regulations, June 29, 1935, as amended by Order 86, 36 F.R. 24929, Dec. 24, 1971] § 400.401 Proof of ability of applicant adequately to finance zone.

The ability of the applicant adequately to finance and conduct the undertaking must be demonstrated to the complete satisfaction of the Board.

$400.402 Physical facilities required in the operation of a zone.

(a) Where zone will be adjacent to water. (1) Adequate slips to accommodate vessels engaged in foreign trade.

(2) Wharves and docks suitably constructed for the needs of the specific commodities to be handled over them.

(3) Mooring facilities for the protection of vessels while loading, unloading, or awaiting berth.

(4) Transit sheds on the wharves for the protection of goods accumulated for shipment or unloaded and awaiting disposition.

(5) Warehouses so constructed and located as to meet the requirements of goods to be stored and the special regulations of the Treasury Department to safeguard the revenue.

(6) Transportation connections with systems serving surrounding territory and other parts of the United States, so arranged as to permit of proper guarding and inspection for the protection of the

revenue.

(7) Fuel facilities for servicing vessels with coal or other fuel, with adequate reserve storage spaces.

(8) Light and power facilities throughout the zone, on the wharves and docks, and to meet any special requirements of the Treasury Department in safeguarding revenue.

(9) Water and sewer mains constructed to meet approved plans for service and health protection

(10) Fire protection suitable for proper protection of zone and goods in storage.

(11) Administrative and living quarters and facilities for the officers and employees of the United States, State, and municipality, whose duties may require their presence within the zone.

(12) Adequate enclosures to segregate the zone from customs territory for the protection of the revenue, together with suitable provisions for ingress and egress of persons, conveyances, vessels, and merchandise.

(13) Sanitary facilities and appliances to conform to Federal and local requirements.

(14) Adequate facilities for the disinfection and fumigation of merchandise as required.

(15) Such other facilities as may be required by the Board.

(b) Where zone will not be adjacent to water. (1) Warehouses so constructed and located as to meet the requirements of goods to be stored and the special regulations of the Treasury Department to safeguard the revenue.

(2) Transportation connections with systems serving surrounding territory and other parts of the United States, so arranged as to permit of proper guarding and inspection for the protection of the

revenue.

(3) Light and power facilities throughout the zone, and to meet any special