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FOREIGN-TRADE ZONES BOARD ORDER NO. 86 Part 400 - General Regulations Governing Foreign-Trade Zones in the United States, With Rules of Procedure Miscellaneous Amendments
Pursuant to provisions of section 8 of the Foreign-Trade Zones Act of June 18, 1934 (48 Stat. 1000; 19 USC 81h), and to implement the provisions of 5 USC 552, as amended by Public Law 90-23, June 5, 1967 (81 Stat. 54), the General Regulations Governing Foreign-Trade Zones in the United States, with Rules of Procedure (15 CFR Part 400), are hereby amended as follows: 1. Section 400.400 is amended by adding after the last sentence a new sentence to read as follows: Sec. 400.400 Economic Survey of proposed zone. * * * In considering the economic impact of the proposal, the Board will take into account its impact on the US balance of payments, as well as its environmental impact in the light of national policy. 2. Section 400.600 is amended to read as follows: Sec. 400.600 Address. Applications for grants should be filed with, and all other communications in connection therewith addressed to the Secretary of Commerce, Chairman and Executive Officer of the Foreign-Trade Zones Board, Washington, DC 20230. 3. Section 400.601 is amended to read as follows: Sec. 400.601 Number of copies. Every application, and attachment, shall be submitted with 12 true copies in addition to the original, unless the Executive Secretary determines that fewer copies are needed. 4. Section 400.603(e) is amended to read as follows: Sec. 400.603 Exhibits. * * * * * * (e)Exhibit No. 5. An economic survey showing in detail the potential commerce and revenue of the proposed zone and other direct and indirect benefits accruing therefrom; present foreign trade of the port area, including transshipment, reexport, and reconsignment trade; present transportation services, and possible increases in such services where necessary; comparative study of export rates on domestic commodities for mixing with foreign goods; analysis of transportation rates where applicable to zone activity; potential new markets for zone business; activities best suited to the particular zone; the impact that the operation of the zone is expected to have on the US balance of payments and balance of trade; the expected environmental impact of the zone with details as to control measures not otherwise described in the next exhibit; and such other data as may be necessary to a determination of whether the establishment of the zone is justified to expedite and encourage foreign commerce in a manner compatible with domestic and foreign economic policy. * * * * * * 5. Section 400.607 is amended to read as follows: Sec. 400.607 Applications for expansion of zone and modification of zone boundaries. Applications for expansion of an established zone shall be made and approved in the same manner as an original application. In cases of requests for minor modifications in zone boundaries which are not designed to expand zone operations and will not result in such an expansion, the Executive Secretary is authorized to determine the requirements for the exhibits to such applications. Among the exhibits there shall be a report from the District Director of Customs and of the District Engineer. If the latter two officials recommend that the requested modification be approved, the Executive Secretary shall have the authority to approve the application. 6. Section 400.700 is amended to read as follows: Sec. 400.700 Failure to comply with conditions of grant. Should the grantee fail to comply with any of the conditions of a zone or subzone grant issued by the Board, including the provisions concerning construction and commencement of operations, the Board may revoke the grant or declare it null and void. In such cases the Board may issue an order to show cause why the action it contemplates should not be taken, and the grantee shall have 30 days in which to answer. Sec. 400.800 (Amended) 7. Section 400.800 is amended by striking the citation to the Bureau of Customs' regulations and inserting in lieu thereof "(19 CFR Part 146)". Sec. 400.801 (Amended) 8. Section 400.801 is amended by striking the first eight words in paragraph (a)(2) and inserting in lieu thereof "conditionally admissible merchandise which may be imported under certain conditions." 9. Section 400.801 is further amended by striking the last sentence in paragraph (a) and inserting a new sentence to read as follows: "Unless otherwise prohibited, over-quota merchandise may be placed in a zone pending its right to transfer to customs territory pursuant to the applicable quota provisions." Sec. 400.804 (Amended) 10. Section 400.804 is amended by striking the citations to the Bureau of Customs' regulations and inserting in lieu thereof in order of appearance: "Sections 146.14, 146.21, 146.22, 146.23, 146.24, and 146.25." Sec. 400.1000 (Amended) 11. Section 400.1000 is amended by striking the citation to the Bureau of Customs' regulations and inserting in lieu thereof "(19 CFR Part 146)". Sec. 400.1002 (Amended) 12. Section 400.1002(a) is revoked. 13. A new Sec. 400.1014 is added to read as follows: Sec. 400.1014 Requirements for accounts, records, and reports. Zone grantees shall maintain their accounts in accordance with generally accepted principles of accounting, and in compliance with any requirements of Federal, State or local governmental agencies having appropriate jurisdiction over the grantee. As to other records and reports, applicable provisions of the Uniform System of Accounts, Records, and Reports, approved by the Board on February 6, 1939, shall remain in effect, as modified by instructions issued by the Executive Secretary concerning preparation of Annual Reports dated July 6, 1964. Records kept under the System shall be retained for 5 years after the merchandise covered by such records has been forwarded from the zone. 14. Section 400.1301 is amended by renumbering paragraph (i) as paragraph (1) and by adding new paragraphs (i), (j), and (k) to read as follows: Sec. 400.1301 Executive Secretary of the Board * * * * * * (i) Authorize in appropriate cases amendements to applications filed with the Board, except that no substantive changes may be authorized after notice of a public hearing, or an invitation for comments, has been published. (j) Approve in appropriate cases, with the prior recommendations of the District Director of Customs and the District Engineer, requests for minor modifications to zone boundaries which will not result in an expansion of zone operations. (k) Approve in appropriate cases, with the prior approval of the District Director of Customs, requests to permit the use of alternate fencing to that specified in Sec. 400.403. 15. Section 400.1303 is amended to read as follows: Sec. 400.1303 Transaction of board business. (a) Meetings of the Board will be held on call of the Chairman. Two members of the Board shall be necessary for a quorum. (b) At the option of the Chairman, the Board may conduct its business, including voting, without an actual meeting being held, provided that no Board member has requested a meeting. When business is so conducted, Board members may communicate their views and recommendations by such means as telephone and memorandum, but the votes of members shall be made in writing and submitted to the Executive Secretary for entry in the voting record. (c) Final vote of each Board member, including dissenting votes, will be recorded and the voting record shall be available for public inspection. 16. Section 400.1305 is amended by striking the first sentence and inserting in lieu thereof the following new sentence: Sec. 400.1305 Authorization for hearings. The Board, or its Chairman, may authorize hearings or rehearings. Sections 400.200 and 400.1003 (Amended) 17. Sections 400.200 and 400.1003(c) are amended by striking the citations to the Shipping Act of 1916 and the Interstate Commerce Act and inserting in lieu thereof, "(46 USC secs. 801 et seq.)" and "(49 USC secs. 1 et seq.)" respectively. On August 11, 1971, there was published in the Federal Register (36 FR 14768) a notice of proposed rule making wherein the Foreign-Trade Zones Board proposed the foregoing amendments to its regulations. Interested persons were given 30 days in which to submit written views and comments regarding the proposed amendments. The views and comments which were received have been considered by the Board in adopting the amendments. This order shall be effective 30 days after publication in the Federal Register. Dated: December 9, 1971. Foreign-Trade Zones Board Maurice H. Stans Secretary of Commerce, Chairman and Executive Officer, Foreign-Trade Zones Board Attest: John J. DaPonte, Jr. Acting Executive Secretary