Technical Amendments to Regulations of the Foreign-Trade Zones Board

Federal RegisterOct 15, 1997

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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

15 CFR Part 400

[Docket No. 97092934-7234-01]; Order No. 929

RIN 0625-AA49

Technical Amendments to Regulations of the Foreign-Trade Zones

Board

AGENCY: Foreign-Trade Zones Board, International Trade Administration,

Commerce.

ACTION: Final rule.

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SUMMARY: The Foreign-Trade Zones (FTZ) Board adopts the following

technical amendments to its regulations to reflect recent changes both

to the Foreign-Trade Zones Act of 1934 (``FTZ Act'') and in the

organizational structure of the United States Customs Service.

EFFECTIVE DATE: October 15, 1997.

FOR FURTHER INFORMATION CONTACT: John J. Da Ponte, Jr., Executive

Secretary, Foreign-Trade Zones Board, room 3716, U.S. Department of

Commerce, Pennsylvania Avenue and 14th Street NW, Washington, DC 20230

(202/482-2862).

SUPPLEMENTARY INFORMATION:

Background

The regulations of the Foreign-Trade Zones Board are amended to

conform with the following changes: (1) An amendment to the FTZ Act,

pursuant to section 910 of the National Defense Authorization Act of

1996, Pub. L. 104-201, 110 Stat. 2422, 2620 (1996), which removed the

Secretary of the Army from membership on the Foreign-Trade Zones Board;

and 2) recent revisions by the U.S. Customs Service to its

organizational structure, which eliminated Regional Commissioner and

District Director positions, broadening the role of Port Directors.

Classification

This rulemaking action was determined to be not significant for

purposes of Executive Order 12866. The Administrative Procedure Act

requirements of notice and comment and delayed effective date are

unnecessary for these technical amendments because the FTZ Board has no

discretion in making these amendments which are required by Pub. L.

104-201 and reorganization within the U.S. Customs Service. Because

notice and comment are not required by 5 U.S.C. 553(b)(B) or any other

statute for these technical amendments and procedures, a regulatory

flexibility analysis is not required and was not prepared for purposes

of the Regulatory Flexibility Act. This rulemaking involves information

collection requirements which are cleared under OMB Control No. 0625-

0139 for purposes of the Paperwork Reduction Act. Notwithstanding any

other provision of law, no person is required to respond to nor shall a

person be subject to a penalty for failure to comply with a collection

of information subject to the requirements of the Paperwork Reduction

Act unless that collection of information displays a currently valid

OMB Control Number

List of Subjects in 15 CFR Part 400

Administrative practice and procedure, Confidential business

information, Customs duties and inspection, Foreign-trade zones,

Harbors, Imports, Reporting and recordkeeping requirements.

For the reasons set forth in the preamble, 15 CFR part 400 is

amended as set forth below:

PART 400--REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD

1. The authority for 15 CFR part 400 continues to read as follows:

Authority: Foreign-Trade Zones Act of June 18, 1934, as amended

(Pub. L. 397, 73rd Congress, 48 Stat. 998-1003 (19 U.S.C. 81a-81u)).

2. Section 400.2 is revised to read as follows:

Sec. 400.2 Definitions.

(a) Act means the Foreign-Trade Zones Act of 1934, as amended.

(b) 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.

Department of the Treasury.

(d) Executive Secretary is the Executive Secretary of the Foreign-

Trade Zones Board.

(e) Foreign-trade zone is a restricted-access site, in or adjacent

to a Customs port of entry, operated pursuant to public utility

principles under the sponsorship of a corporation granted authority by

the Board and under supervision of the Customs Service.

(f) Grant of authority is a document issued by the Board which

authorizes a zone grantee to establish, operate and maintain a zone

project or a subzone, subject to limitations and conditions specified

in this part and in 19 CFR part 146. The authority to establish a zone

includes the authority to operate and the responsibility to maintain

it.

(g) Manufacturing, as used in this part, means activity involving

the substantial transformation of a foreign article resulting in a new

and different article having a different name, character, and use.

(h) Port Director is normally the director of Customs for the

Customs jurisdictional area in which the zone is located.

(i) Port of entry means a port of entry in the United States, as

defined by part 101 of the regulations of the Customs Service (19 CFR

part 101), or a user fee airport authorized under 19 U.S.C. 58b and

listed in part 122 of the regulations of the Customs Service (19 CFR

part 122).

(j) Private corporation means any corporation, other than a public

corporation, which is organized for the purpose of establishing a zone

project and which is chartered for this purpose under a law of the

state in which the zone is located.

(k) Processing, when referring to zone activity, means any activity

involving a change in condition of merchandise, other than

manufacturing, which results in a change in the Customs classification

of an article or in its eligibility for entry for consumption.

(l) Public corporation means a state, a political subdivision

(including a municipality) or public agency thereof, or a corporate

municipal instrumentality of one or more states.

(m) State includes any state of the United States, the District of

Columbia, and Puerto Rico.

(n) Subzone means a special-purpose zone established as an adjunct

to a zone project for a limited purpose.

(o) Zone means a foreign-trade zone established under the

provisions of the Act and these regulations. Where used in this part,

the term also includes subzones, unless the context indicates

otherwise.

(p) Zone grantee is the corporate recipient of a grant of authority

for a zone project. Where used in this part,

[[Page 53535]]

the term ``grantee'' means ``zone grantee'' unless otherwise indicated.

(q) Zone operator is a corporation, partnership, or person that

operates a zone or subzone under the terms of an agreement with the

zone grantee or an intermediary entity, with the concurrence of the

Port Director.

(r) Zone project means the zone plan, including all of the zone and

subzone sites that the Board authorizes a single grantee to establish.

(s) Zone site means the physical location of a zone or subzone.

(t) Zone user is a party using a zone under agreement with the zone

grantee or operator.

3. Section 400.11 is amended by revising paragraph (d)(1) to read

as follows.

Sec. 400.11 Authority of the Board.

* * * * *

(d) Determinations of the Board. (1) The determination of the Board

will be based on the unanimous vote of the members (or alternate

members) of the Board.

* * * * *

4. Section 400.24 is amended by revising paragraph (d)(5)(i)(B) to

read as follows:

Sec. 400.24 Application for zone.

* * * * *

(d) Exhibits. * * *

(5) Exhibit Five (Maps) shall consist of:

(i) The following maps and drawings:

* * * * *

(B) A local community map showing in red the location of the

proposed zone; and

* * * * *

5. Section 400.24 is further amended by revising paragraph (h) to

read as follows:

Sec. 400.24 Application for zone.

* * * * *

(h) Format and number of copies. Unless the Executive Secretary

alters the requirements of this paragraph, submit an original and 8

copies of the application on 8\1/2\'' x 11'' (216 x 279 mm) paper.

Exhibit Five of the original application shall contain full-sized maps,

and copies shall contain letter-sized reductions.

* * * * *

6. Section 400.26 is amended by revising paragraph (a)(2) to read

as follows:

Sec. 400.26 Application for expansion or other modification to zone

project.

(a) In general. * * *

(2) The Executive Secretary, in consultation with the Port

Director, will 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 will consider the

extent to which the proposed modification would:

(i) Substantially modify the plan originally approved by the Board;

(ii) Expand the physical dimensions of the approved zone area as

related to the scope of operations envisioned in the original plan.

* * * * *

7. Section 400.27 is amended by revising paragraph (c)(3) to read

as follows:

Sec. 400.27 Procedure for processing application.

* * * * *

(3) Send copies of the filing and initiation notice and the

application to the Commissioner of Customs and the Port Director, or a

designee.

* * * * *

8. Section 400.27 is further amended by revising paragraph (d)(1)

to read as follows:

Sec. 400.27 Procedure for processing application.

* * * * *

(d) Case reviews--procedure and time schedule--(1) Customs review.

The Port Director, or a designee, in accordance with agency regulations

and directives, will submit a technical report to the Executive

Secretary within 45 days of the conclusion of the public comment period

described in paragraph (c)(2) of this section.

* * * * *

9. Section 400.27 is further amended by revising paragraph

(d)(2)(v)(C) to read as follows:

Sec. 400.27 Procedure for processing application.

* * * * *

(d) Case reviews--procedure and time schedule--* * *

(2) Examiners reviews--non-manufacturing/processing. * * *

(v) * * *

further comments, which shall be submitted within 45 days after

notification.

* * * * *

Sec. 400.27 [Amended]

10. In Sec. 400.27, paragraph (f)(1) is amended by removing