[Federal Register Volume 62, Number 199 (Wednesday, October 15, 1997)]
[Rules and Regulations]
[Pages 53534-53536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27145]


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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.
    (c) Customs Service means the United States Customs Service of the 
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; 
or
    (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.

* * * * *
    (c) Procedure--Executive Secretary responsibilities. * * *
    (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) * * *
    (C) The Customs adviser shall be notified when necessary for 
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 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.
    11. In Sec. 400.27, paragraph (f)(2) is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.


Sec. 400.28   [Amended]

    12. In Sec. 400.28, paragraph (a)(1) is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.
    13. In Sec. 400.28, paragraph (a)(6) is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.


Sec. 400.32   [Amended]

    14. In Sec. 400.32, paragraph (b)(1)(iv) is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.


Sec. 400.41   [Amended]

    15. In Sec. 400.41, the third sentence is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.


Sec. 400.42   [Amended]

    16. In Sec. 400.42, paragraph (a)(1) is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.
    17. In Sec. 400.42, paragraph (b)(1) is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.
    18. In Sec. 400.42, paragraph (b)(3) is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.


Sec. 400.44   [Amended]

    19. In Sec. 400.44, paragraph (b)(4) is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.
    20. In Sec. 400.44, paragraph (c)(3) is amended by removing 
``District Director'' where appearing therein, and adding in its place, 
``Port Director''.


Sec. 400.45   [Amended]

    21. In Sec. 400.45, paragraph (a) is amended by removing ``District 
Director'' where appearing therein, and adding in its place, ``Port 
Director''.
    22. In Sec. 400.45, paragraph (b) is amended by removing ``District 
Director'' where appearing therein, and adding in its place, ``Port 
Director''.
    23. In Sec. 400.45, paragraph (c) is amended by removing ``District 
Director'' where appearing therein, and adding in its place, ``Port 
Director''.


Sec. 400.46   [Amended]

    24. In Sec. 400.46, paragraph (c) is amended by removing ``District 
Director'' where appearing therein, and adding in its place, ``Port 
Director''.


[[Page 53536]]


    By order of the Foreign-Trade Zones Board, Washington, DC, this 
6th day of October 1997.
Robert S. LaRussa,
Assistant Secretary of Commerce for Import Administration Alternate 
Chairman, Foreign-Trade Zones Board.
[FR Doc. 97-27145 Filed 10-14-97; 8:45 am]
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