§ 400.105 Corporation.

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

(a) “Public corporation" means a 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)

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.S.C. 81a)

8 400.108 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 FR 13714, Sept. 30, 1967]

§ 400.109 District Engineer.

The term "District Engineer" means the engineer of the Department of the

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. 801 et seq.), the Interstate Commerce Act (49 U.S.C. 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.

(i) To 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 FR 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 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. 81j)

§ 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 through 1003; 19 U.S.C. 81a through 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 foreign-trade 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.S.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.S.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.S.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.S.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 FR 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 FR 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

(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 requirements of the Treasury Department in safeguarding the reve

nue.

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

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

(6) 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.

(7) 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, and merchandise.

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

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

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

(c) Ratproofing and sanitation. All buildings and other structures within the zone, whether it is adjacent to water or not, shall be so constructed or altered, and maintained, as may be required by the Surgeon General, United States Public Health Service, to prevent the harborage of rodents. Water supply, sewage disposal, and provision for general sanitation (including adequate facilities for disinfection and fumigation) shall be as required by the Surgeon General, United States Public Health Service.

(Sec. 12, 48 Stat. 1001; 19 U.S.C. 817)

equipment for segregation from customs territory and quarters for personnel.

(a) All zones shall be segregated from the land area of adjacent customs territory by a fence of woven galvanized-wire netting, of not less than No. 6 gage wire, with a mesh not exceeding 2 inches, and an over-all height of at least 10 feet above the concrete base in which the posts are set. The netting shall be securely attached to the insides of the posts and shall be set sufficiently low so as to be flush with the ground at all times. The fence shall be topped by at least three strands of galvanized barbed wire, four-point type, each strand consisting of two strands of No. 121⁄2 gage wire. The three strands shall be secured to metal brackets affixed to the top of each post, the brackets inclining at approximately 45° inward and upward. The strands shall be parallel and from 3 to 4 inches apart. Suitable concrete or metal posts shall be set in concrete footings, not less than 3 feet deep by 10 inches square, and with centers not more than 10 feet apart. Proper anchors and braces shall be installed at corners and gates. The gates shall be of the same material and height as the fence and shall be topped by three strands of the barbed wire above described, such strands to be affixed to metal brackets perpendicular with the gate. Suitable attachments shall be secured to the gates for the purpose of affixing locks. Alternate proposals for barriers of equal efficiency may be approved by the Board.

(b) If, according to the terrain or other factors adjacent to the fence surrounding the enclosure, or for other reasons, the height of the fence as provided for herein is not sufficient for proper protection to the revenue, the height shall be suitably increased at the direction of the Board or the District Director of Customs.

(c) If sides of buildings situated within a zone from a part of the zone enclosure in lieu of the fence prescribed above, all openings in such sides of the buildings shall be securely

closed by heavy metal netting, grills, or other effective barriers.

(d) Fences and other exterior lines of the zone shall be equipped with electric lights and shall be illuminated to the satisfaction of the collector during such times as he may deem necessary.

additional

(e) Such protection against the unauthorized transit of persons, goods, or conveyances to or from a zone shall be provided as may be deemed necessary by the District Director of Customs.

(f) Adequate living quarters, administrative and other facilities for officers and employees of the United States, State, and municipality whose duties may require their presence within the zone, shall be provided by the grantee. The requirements and extent of these facilities will be fixed by the Board.

(g) Each grantee shall provide and maintain such other facilities as may be required from time to time by the Board.

(Sec. 12, 48 Stat. 1001; 19 U.S.C. 817) [Regulations, June 29, 1935, as amended by Order 74, 32 FR 13714, Sept. 30, 1967]

ELIGIBLE APPLICANTS

§ 400.500 Grants made to corporations. Grants may be made to public or private corporations.

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

§ 400.501 Requirements for grant where harbor facilities owned and controlled by State and by municipality. Where harbor facilities of any port of entry in the State are owned and controlled by the State, and where harbor facilities of any other port of entry in the State are owned and controlled by a municipality, grants to public corporations will not be approved by the Board unless such applications have been authorized by an act of the State legislature (enacted after June 18, 1934).

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

§ 400.502 Act of State legislature necessary in case of private corporations. Grants to private corporations will not be approved by the Board unless

§ 400.602 Form and content.

Every application shall be in letter form on letter-size paper and shall contain the date, official designation of the applicant, and shall show whether the application is for the establishment or expansion of the zone, be signed by an authorized officer of the corporation, and bear the corporate seal.

(Sec. 6, 48 Stat. 1000; 19 U.S.C. 81f) § 400.603 Exhibits.

Every application shall be accompanied by the following exhibits:

(a) Exhibit No. 1. Descriptions of (1) the location and qualifications of the area in which it is proposed to establish the zone, showing by metes and bounds, unless these are shown in full on the maps accompanying the application, the land and water area, or land or water area, or land area alone if the application is for the establish