This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

8525 

Vol. 89, No. 27 

Thursday, February 8, 2024 

DEPARTMENT OF COMMERCE 

Foreign-Trade Zones Board 

15 CFR Part 400 

[Docket No. 240111–0015; Order No. 2157] 

RIN 0625–AB22 

Foreign-Trade Zones Board 

Proceedings 

AGENCY: Foreign-Trade Zones Board, 

International Trade Administration, 

Commerce. 

ACTION: Final rule. 

SUMMARY: This action adopts minor 

modifications to the regulations of the 

Foreign-Trade Zones Board (the Board). 

The primary purpose for these 

modifications is to provide flexibility on 

the method to submit application fees. 

The prior regulations required 

submitting application fees by check. 

The changes allow for the submission of 

multiple forms of electronic payments 

in addition to paper checks. Other 

revisions in this rulemaking update the 

regulatory language to provide 

clarification and to reflect current 

practices. The Board is also confirming 

it has met the information collection 

requirements from a 2012 final rule. 

DATES: 

Effective dates: This final rule is 

effective March 11, 2024. 

The amendments to 15 CFR 400.21 

through 400.23, 400.25, and 400.43(f), 

published at 77 FR 12139 (Feb. 28, 

2012), are effective February 8, 2024. 

Applicability date: The amendments 

to 15 CFR 400.21 through 400.23, 

400.25, and 400.43(f), published at 77 

FR 12139 (Feb. 28, 2012), were 

applicable beginning March 25, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Whiteman at 

Elizabeth.Whiteman@trade.gov, (202) 

482–0473, or Ashlande Gelin at 

Ashlande.Gelin@trade.gov, (240) 449– 

5911. 

SUPPLEMENTARY INFORMATION: 

Background 

Foreign-Trade Zones (FTZs or zones) 

are restricted-access sites in or near U.S. 

Customs and Border Protection (CBP) 

ports of entry. Zones are licensed by the 

Board and operated under the 

supervision of CBP (see 19 CFR part 

146). Specifically, zones are physical 

areas into which foreign and domestic 

merchandise may be moved for 

operations involving storage, exhibition, 

assembly, manufacture or other 

processing not otherwise prohibited by 

law. Zone areas ‘‘activated’’ by CBP are 

considered outside of U.S. customs 

territory for purposes of CBP entry 

procedures. Therefore, the usual formal 

CBP entry procedure and payment of 

duties is not required on the foreign 

merchandise in FTZs unless and until it 

enters U.S. customs territory for U.S. 

domestic consumption. In fact, U.S. 

duties can be avoided on foreign 

merchandise re-exported from an FTZ, 

including after incorporation into a 

downstream product through activity in 

the FTZ. Zones have as their public 

policy objective the creation and 

maintenance of employment through 

the encouragement of operations in the 

United States which, for customs 

reasons, might otherwise have been 

carried on abroad. 

On June 9, 2023, the Board published 

proposed updates to the rules for FTZs 

and requested public comment (88 FR 

37815). This final rule adopts edits to 

the regulations as described further 

below. The key revision in the 

regulations pertains to providing 

flexibility on the method to submit 

application fees. The prior regulations 

required that application fees be 

submitted by check. While the Board 

has begun accepting ‘‘eChecks’’, the 

revisions here will allow for the 

submission of additional forms of 

electronic payment. 

This action will move the existing 

requirement to admit merchandise 

subject to antidumping duty and 

countervailing duty (AD/CVD) actions 

in ‘‘privileged foreign’’ (PF) status to the 

‘‘General conditions, prohibitions and 

restrictions applicable to authorized 

zones’’ section. This move of the 

existing language is intended to clarify 

that the provision applies to all 

merchandise that is admitted to FTZs. 

Other revisions in this rulemaking 

update the language used to provide 

clarification and to reflect current 

practices. 

On February 28, 2012, a final rule was 

published revising the regulations of the 

Foreign-Trade Zones Board (77 FR 

12112). That rule was published with an 

effective date of April 30, 2012, except 

for sections 400.21–400.23, 400.25 and 

400.43(f). These sections contained 

information collection requirements and 

could not become effective until the 

Office of Management and Budget 

(OMB) approved these information 

collection requests pursuant to the 

Paperwork Reduction Act (44 U.S.C. 

Chapter 35). On March 25, 2013, OMB 

approved the information collections 

under control number 0625–0139, and 

the FTZ Board then began to use the 

new applications under sections 

400.21–400.23, 400.25 and 400.43(f). 

This rulemaking also confirms the 

information collection requirements 

from the 2012 final rule were met. 

Comments and Responses 

We received nine comments on the 

proposed rule from five companies 

operating FTZs, two zone grantees, a 

law firm and a trade association. The 

comments involved several of the edits 

described in the proposed rulemaking 

and also suggested additional edits to 

the regulations. The comments received 

in response to the notice and the 

Board’s responses on the points raised 

in the comments are summarized below. 

Comment 1: §§ 400.1(c) and 400.16. 

One comment stated that the word 

‘‘production’’ should be added to the 

list of activities in §§ 400.1(c) and 

400.16. 

Response: The Board adopted the 

word ‘‘production’’ in its 2012 

regulations to encompass various 

activities that require prior 

authorization from the Board. By using 

the word production, the Board was not 

creating a new type of activity that 

could occur within FTZs. The summary 

lists in both §§ 400.1(c) and 400.16 use 

common terminology to describe the 

types of activity that can occur within 

FTZs. Instead of creating a new type of 

activity to be added to these lists, 

‘‘production’’ as defined in the 

regulations (§ 400.2(o)) could include 

any of the listed activities if they meet 

the criteria included in the definition. 

Inclusion of the word production in the 

lists in these sections could provide the 

mistaken impression that ‘‘production’’ 

is a separate activity from the other 


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items listed. As a result, this change has 

not been adopted. 

Comment 2: § 400.2. One comment 

suggested that a definition be included 

for ‘‘Traditional Site Framework’’. 

Response: While we agree that a 

definition for the Traditional Site 

Framework should be included in the 

regulations in the future, any definition 

should provide substance. Creating a 

definition that is both meaningful and 

substantive will require additional time 

and is best suited for another 

rulemaking. 

Comment 3: § 400.11(b)(2)(i). One 

comment requested confirmation that 

removing the phrase ‘‘general purpose’’ 

from the description of zone sites in 

§ 400.11(b)(2)(i) would not impact the 

adjacency requirement for subzones in 

§ 400.11(b)(2)(ii). 

Response: We can confirm that 

removal of the phrase ‘‘general purpose’’ 

from § 400.11(b)(2)(i) will not impact 

§ 400.11(b)(2)(ii). 

Comment 4: § 400.13(a)(8). One 

comment requested confirmation that 

the proposed edits to § 400.13(a)(8) 

would continue to require that grantees 

maintain a level of control while 

providing discretion to the grantee on 

how to maintain that control over FTZ 

designated locations. 

Response: We can confirm that the 

edit proposed here would continue to 

require that the grantee maintain control 

over FTZ designated sites and subzones 

but that a grantee will have flexibility 

and discretion as to how control is 

maintained. The regulations will no 

longer require that a grantee maintain an 

agreement with a property owner. 

Comment 5: § 400.13(c). One 

comment stated that moving prior 

§ 400.14(e) to § 400.13(c) could have an 

adverse effect on warehouse operations, 

not be consistent with 19 U.S.C. 81(c)(e) 

and should only be considered through 

a more involved process. 

Response: This comment did not 

supply any evidence in support of the 

statements made. The language to be 

moved from § 400.14(e) to § 400.13(c) 

has been included as part of the FTZ 

Board’s regulations since 1991. Since 

1991, merchandise admitted to FTZs 

that is subject to AD/CVD orders or 

suspension of liquidation under AD/ 

CVD procedures has been required to be 

placed in PF status (19 CFR 146.41) 

regardless of the ultimate use of the 

merchandise in production or 

warehousing operations. As a result, 

moving the language from § 400.14(e) to 

§ 400.13(c) will have no impact on 

warehouse operators or any existing 

zone operations. While the production 

equipment provision of the FTZ Act (19 

U.S.C. 81(c)(e)) generally allows for 

duties on eligible merchandise to be 

paid in its condition upon entry, the Act 

first requires that all other applicable 

customs and other laws be applied. The 

Act does not provide for unconditional 

use of the production equipment 

provision in 19 U.S.C. 81(c)(e). 

The change proposed here simply 

moves the existing language from one 

section of the regulations to the prior 

section. The change is being made since 

including the language in § 400.13(c) 

better reflects the existing interpretation 

of the requirement. The PF status 

requirement for merchandise that is 

subject to AD/CVD orders or suspension 

of liquidation under AD/CVD 

procedures when admitted to a zone for 

warehousing or for use under the 

production equipment provision has 

been consistently maintained. As an 

example, a memo from the Acting 

Executive Secretary to FTZ grantees on 

February 14, 2000 (https://

www.trade.gov/policyguidance?anchor=content-node-t14- 

field-lp-region-1-3) regarding the 

treatment of production equipment 

includes the following: ‘‘The equipment 

should be evaluated for Customs duty 

purposes in its condition when it goes 

into production (i.e., as complete 

production equipment), keeping in 

mind the requirements for evaluating 

incoming articles subject to 

antidumping/countervailing (AD/CVD) 

orders. The FTZ regulations require the 

election of privileged foreign status, 

upon admission to the zone, on any 

incoming merchandise that is subject to 

AD/CVD orders . . . When such 

merchandise leaves the zone for U.S. 

commerce, it will be subject to AD/CVD 

procedures based on its condition when 

it arrived at the zone.’’ 

Since this proposed edit does not 

change the enforcement or meaning of 

the language; this action merely moves 

the existing language from § 400.14(e) to 

§ 400.13(c). 

Comment 6: § 400.13(c) and 

§ 400.32(c)(2). One comment suggested 

including reference to Chapter 99 (trade 

remedy) duty rates in § 400.13(c) and 

§ 400.32(c)(2) and specifying the duty 

rate that would be applicable for such 

merchandise at the time of entry from a 

zone. This comment also suggested 

including a new section of the 

regulations regarding merchandise 

processed in a zone and subject to 

Chapter 99 duties. 

Response: Although it is understood 

that the intention of this comment is to 

provide predictability to companies 

operating and using FTZs, this proposed 

edit could impact multiple laws 

involving trade remedies. Inclusion of 

this language would remove the relevant 

authorities regarding trade remedies 

from decisions on the applicability of 

duties as merchandise leaves FTZs, 

potentially having policy implications 

and impacting various trade remedy 

actions. While the comment noted that 

inclusion of the proposed language 

would be consistent with certain 

presidential proclamations regarding 

trade remedies, the proposed language 

would not be consistent with all 

proclamations regarding current trade 

remedies. As a result, the proposed edits 

related to Chapter 99 duties would 

require further review and discussion 

and therefore are not appropriate for 

this process. 

Comment 7: § 400.16. Several 

comments argued that the proposed 

addition of the phrase ‘‘in foreign 

status’’ to § 400.16 would be 

inconsistent with the statutory language 

of 19 U.S.C. 81(o)(e) and that a similar 

proposed regulatory change in 1990 

resulted in the FTZ Board revising its 

final regulations. One comment also 

requested clarification on the practical 

implications of including the phrase ‘‘in 

the activated area’’ in this section. Other 

comments supported inclusion of the 

phrase ‘‘in the activated area’’ in this 

section. 

Response: In response to the 

comments received, this action replaces 

the proposed phrase ‘‘in foreign status’’ 

with a reference to ‘‘foreign 

merchandise’’. Use of the modifier 

‘‘foreign’’ to describe merchandise in 

this section is consistent with the 

language adopted by the Board in 1991 

and currently used in § 400.1(c) as well. 

While the substance of the comments 

is not being analyzed through this 

process, the discussion and outcome of 

the regulatory edits in 1991 does not 

appear to be as settled as implied in the 

comments. In 1990, the Board proposed 

including language to § 400.1(c) stating 

that merchandise should be in the zone 

for a bona fide customs reason to be 

eligible for the exemption on state and 

local ad valorem taxes. While the 

language was ultimately removed from 

the final rule in 1991, the preamble to 

the 1991 regulations included the 

following reference to language in the 

House report accompanying Public Law 

98–873: ‘‘. . . this exemption should 

apply only to goods in zones for bona 

fide Customs reasons.’’ This action 

continues use of the reference to 

merchandise eligible for the exemption 

on state and local ad valorem taxes as 

‘‘foreign’’. Further edits or changes to 

this language would only be considered 

as part of more comprehensive 

regulatory revisions that would provide 

for further comment and analysis. 


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In terms of the reference to ‘‘in the 

activated area’’ in this section, we can 

confirm that this would clarify that FTZ 

designated space would need to be in 

operation and activated under CBP 

procedures for the merchandise to be 

exempt from state and local ad valorem 

taxes. Inclusion of this language 

provides clarification on the longstanding Board interpretation and is not 

a new requirement or limitation on this 

section. Apart from one comment 

requesting clarification, all other 

comments supported inclusion of this 

phrase. 

Changes From the Proposed Rule 

The sole change to the regulatory text 

from the proposed rule is replacing the 

proposed phrase ‘‘foreign status’’ with 

‘‘foreign’’ in § 400.16. The change to this 

text is consistent with the language 

adopted by the Board in 1991 and 

currently used in § 400.1(c). As a result, 

this change does not require additional 

public comment. 

Classification 

This final rule has been determined to 

be not significant for purposes of 

Executive Order 12866. 

The Chief Counsel for Regulation of 

the Department of Commerce certified 

to the Chief Counsel for Advocacy of the 

Small Business Administration during 

the proposed rule stage that this action 

would not have a significant economic 

impact on a substantial number of small 

entities. The factual basis for the 

certification was published in the 

proposed rule and is not repeated here. 

No comments were received regarding 

this certification. As a result, a 

regulatory flexibility analysis was not 

required and none was prepared. 

This final rule contains no new 

information collection requirements 

under the Paperwork Reduction Act of 

1995. 

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. 

Dated: January 26, 2024. 

Dawn Shackleford, 

Executive Director of Trade Agreements 

Policy & Negotiations, Alternate Chairman, 

Foreign-Trade Zones Board. 

For the reasons set out in the 

preamble, 15 CFR part 400 is amended 

as follows: 

PART 400—REGULATIONS OF THE 

FOREIGN-TRADE ZONES BOARD 

■ 1. The authority citation for part 400 

continues to read as follows: 

Authority: Foreign-Trade Zones Act of 

June 18, 1934, as amended (Pub. L. 73–397, 

48 Stat. 998–1003 (19 U.S.C. 81a–81u)). 

■ 2. In § 400.2: 

■ a. Revise paragraphs (h) and (t); 

■ b. Remove paragraph (u); and 

■ c. Redesignate paragraphs (v) through 

(aa) as paragraphs (u) through (z). 

The revisions read as follows: 

§ 400.2 Definitions. 

* * * * * 

(h) Foreign-trade zone (FTZ or zone) 

includes all sites/subzones designated 

under the sponsorship of a zone grantee, 

in or adjacent (as defined by 

§ 400.11(b)(2)) to a CBP port of entry, 

operated as a public utility (within the 

meaning of § 400.42), with zone 

operations under the supervision of 

CBP. 

* * * * * 

(t) Usage-driven site means a site 

established for a single operator or user 

under the ASF. 

* * * * * 

■ 3. In § 400.4, revise paragraphs (m) 

and (t) to read as follows: 

§ 400.4 Authority and responsibilities of 

the Executive Secretary. 

* * * * * 

(m) Issue instructions, guidelines, 

forms and related documents specifying 

time, place, manner and formats for 

applications, notifications, application 

fees and zone schedules in various 

sections of this part, including 

§§ 400.21(b), 400.29, 400.43(f), and 

400.44; 

* * * * * 

(t) Review zone schedules and 

determine their sufficiency under 

§ 400.44(c); 

* * * * * 

■ 4. In § 400.11, revise paragraph 

(b)(2)(i) to read as follows: 

§ 400.11 Number and location of zones 

and subzones. 

* * * * * 

(b) * * * 

(2) * * * 

(i) A zone site is located within 60 

statute miles or 90 minutes’ driving time 

(as determined or concurred upon by 

CBP) from the outer limits of a port of 

entry boundary as defined in 19 CFR 

101.3. 

* * * * * 

■ 5. In § 400.13: 

■ a. Revise paragraph (a)(8); 

■ b. Redesignate paragraph (c) as 

paragraph (d); and 

■ c. Add a new paragraph (c). 

The revision and addition read as 

follows: 

§ 400.13 General conditions, prohibitions 

and restrictions applicable to authorized 

zones. 

(a) * * * 

(8) Private ownership of zone land 

and facilities is permitted, provided the 

zone grantee retains the control 

necessary to implement the approved 

zone. Such permission shall not 

constitute a vested right to zone 

designation, nor interfere with the 

Board’s regulation of the grantee or the 

permittee, nor interfere with or 

complicate the revocation of the grant 

by the Board. Grantees shall retain a 

level of control which allows the 

grantee to carry out its responsibilities 

as grantee. The sale of zone-designated 

land/facility for more than its fair 

market value without zone designation 

could, depending on the circumstances, 

be subject to the prohibitions set forth 

in section 17 of the Act (19 U.S.C. 81q). 

* * * * * 

(c) Restrictions on items subject to 

antidumping and countervailing duty 

actions—(1) Board policy. Zone 

procedures shall not be used to 

circumvent antidumping duty (AD) and 

countervailing duty (CVD) actions under 

19 CFR part 351. 

(2) Admission of items subject to AD/ 

CVD actions. Items subject to AD/CVD 

orders, or items which would be 

otherwise subject to suspension of 

liquidation under AD/CVD procedures 

if they entered U.S. customs territory, 

shall be placed in privileged foreign 

status (19 CFR 146.41) upon admission 

to a zone or subzone. Upon entry for 

consumption, such items shall be 

subject to duties under AD/CVD orders 

or to suspension of liquidation, as 

appropriate, under 19 CFR part 351. 

* * * * * 

■ 6. In § 400.14: 

■ a. Revise the section heading and 

paragraph (a); and 

■ b. Remove paragraph (e). 

The revisions read as follows: 

§ 400.14 Production—requirement for prior 

authorization. 

(a) In general. Production activity in 

zones shall not be conducted without 

prior authorization from the Board. To 

obtain authorization, the notification 

process provided for in §§ 400.22 and 

400.37 shall be used. If Board review of 

a notification under § 400.37 results in 

a determination that further review is 

warranted for all or part of the notified 

activity, the application process 

pursuant to §§ 400.23, 400.31 through 

400.32, 400.34, and 400.36 shall apply 


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to the activity. Notifications and 

applications requesting production 

authority may be submitted by the 

zone’s grantee or by the operator that 

proposes to undertake the activity 

(provided the operator at the same time 

furnishes a copy of the notification or 

application to the grantee and that 

submissions by the operator are 

consistent with the grantee’s zone 

schedule). 

* * * * * 

■ 7. Revise § 400.16 to read as follows: 

§ 400.16 Exemption from state and local 

ad valorem taxation of tangible personal 

property. 

Foreign merchandise (tangible 

personal property) imported from 

outside the United States and held in 

the activated area of a zone for the 

purpose of storage, sale, exhibition, 

repackaging, assembly, distribution, 

sorting, grading, cleaning, mixing, 

display, manufacturing, or processing, 

and tangible personal property 

produced in the United States and held 

in the activated area of a zone for 

exportation, either in its original form or 

as altered by any of the processes set out 

in this section, shall be exempt from 

state and local ad valorem taxation. 

■ 8. In § 400.21: 

■ a. Revise paragraphs (a) and (c)(1); 

■ b. In paragraph (c)(5), add the word 

‘‘and’’ following the semicolon; 

■ c. Remove paragraph (c)(6) and 

redesignate paragraph (c)(7) as 

paragraph (c)(6); 

■ d. Remove paragraph (d)(2)(vi); 

■ e. Redesignate paragraphs (d)(2)(vii) 

and (ix) as paragraphs (d)(2)(vi) through 

(viii); 

■ f. Revise paragraphs (e)(3), (h), and (i); 

and 

■ g. Remove paragraph (j). 

The revisions read as follows: 

§ 400.21 Application to establish a zone. 

(a) In general. An application for a 

grant of authority to establish a zone 

(including pursuant to the ASF 

procedures adopted by the Board 

(§ 400.2(c))) shall consist of an 

application letter and detailed contents 

to meet the requirements of this part. 

* * * * * 

(c) * * * 

(1) The relationship of the proposal to 

the state enabling legislation and the 

applicant’s charter; 

* * * * * 

(e) * * * 

(3) Appropriate information regarding 

usage-driven sites or ASF subzones. 

* * * * * 

(h) Drafts. Applicants are encouraged 

to submit a draft application to the 

Executive Secretary for review. A draft 

application must be complete with the 

possible exception of the application 

letter and/or resolution from the 

applicant. 

(i) Submission of completed 

application. The applicant shall submit 

the complete application, including all 

attachments, via email or by the method 

prescribed by the Executive Secretary 

pursuant to § 400.4(m). 

■ 9. In § 400.24, revise paragraphs (a)(1), 

(c), and (d) to read as follows: 

§ 400.24 Application for expansion or 

other modification to zone. 

(a) * * * 

(1) A grantee may apply to the Board 

for authority to expand or otherwise 

modify its zone (including pursuant to 

the ASF procedures adopted by the 

Board (§ 400.2(c))). 

* * * * * 

(c) Minor modification to zone. Other 

applications or requests under this 

subpart shall be submitted in letter form 

with information and documentation 

necessary for analysis, as determined by 

the Executive Secretary, who shall 

determine whether the proposed change 

is a minor one subject to this paragraph 

(c) instead of paragraph (b) of this 

section (see § 400.38). Such applications 

or requests include those for minor 

revisions of zone or subzone boundaries 

based on immediate need, as well as for 

designation as a subzone of all or part 

of an existing zone site(s) (or site(s) that 

qualifies for usage-driven status), where 

warranted by the circumstances and so 

long as the subzone remains subject to 

the activation limit (see § 400.2(b)) for 

the zone in question. 

(d) Applications for other revisions to 

authority. Applications or requests for 

other revisions to authority, such as for 

Board action to establish or modify an 

activation limit for a zone, modification 

of a restriction, reissuance of a grant of 

authority or request for a voluntary 

termination shall be submitted in letter 

form with information and 

documentation necessary for analysis, 

as determined by the Executive 

Secretary. If the change involves the 

removal or significant modification of a 

restriction included by the Board in its 

approval of authority or the reissuance 

of a grant of authority, the review 

procedures of §§ 400.31 through 400.34 

and 400.36 shall be followed, where 

relevant. If not, the procedure set forth 

in § 400.38 shall generally apply 

(although the Executive Secretary may 

elect to follow the procedures of 

§§ 400.31 through 400.34 and 400.36 

when warranted). 

■ 10. In § 400.26: 

■ a. Revise the section heading; 

■ b. In paragraph (d), add the word 

‘‘and’’ following the semicolon; 

■ c. In paragraph (e), remove ‘‘; and’’ 

and add a period in its place; and 

■ d. Remove paragraph (f). 

The revision reads as follows: 

§ 400.26 Criteria for evaluation of 

proposals, including for zones, expansions, 

subzones, or other modifications of zones. 

* * * * * 

■ 11. In § 400.27, revise the introductory 

text to read as follows: 

§ 400.27 Criteria applicable to evaluation 

of applications for production authority. 

The Board shall apply the criteria set 

forth in this section in determining 

whether to approve an application for 

authority to conduct production activity 

pursuant to § 400.23. The Board’s 

evaluation shall take into account 

information such as pertains to market 

conditions, price sensitivity, degree and 

nature of foreign competition, intraindustry and intra-firm trade, effect on 

exports and imports, ability to conduct 

the proposed activity outside the United 

States with the same U.S. tariff impact, 

analyses conducted in connection with 

prior Board actions, and net effect on 

U.S. employment and the U.S. economy: 

* * * * * 

■ 12. In § 400.29: 

■ a. Revise paragraphs (b) and (c); and 

■ b. Remove paragraph (d). 

The revisions read as follows: 

§ 400.29 Application fees. 

* * * * * 

(b) Uniform system of user fee 

charges. The following fee schedule 

establishes fees for certain types of 

applications and requests for authority 

on the basis of their estimated average 

processing time. 

(1) Additional zones (§ 400.21; 

§ 400.11(a)(2))—$3,200. 

(2) Subzones (§ 400.25): 

(i) Not involving production activity 

or involving production activity with 

fewer than three products—$4,000. 

(ii) Production activity with three or 

more products—$6,500. 

(3) Expansions (§ 400.24(b))—$1,600. 

(c) Timing and manner of payment. 

Application fees shall be paid prior to 

the FTZ Board docketing an application 

and in a manner specified by the 

Executive Secretary. 

■ 13. In § 400.31, revise paragraph (b) to 

read as follows: 

§ 400.31 General application provisions 

and pre-docketing review. 

* * * * * 

(b) Pre-docketing review. The 

applicant shall submit a complete copy 


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of an application for pre-docketing 

review. The Executive Secretary shall 

determine whether the application 

satisfies the requirements of §§ 400.12, 

400.21, and 400.23 through 400.25 and 

other applicable provisions of this part 

such that the application is sufficient for 

docketing. The applicant shall be 

notified within 30 days whether the predocketing copy of the application is 

sufficient. If the application is not 

sufficient, the applicant will be notified 

of the specific deficiencies. An affected 

zone participant may also be contacted 

regarding relevant application elements 

requiring additional information or 

clarification. If the applicant does not 

correct the deficiencies and submit a 

corrected pre-docketing application 

copy within 30 days of notification, the 

pre-docketing application shall be 

discarded. For applications subject to 

§ 400.29, the fees shall be paid in 

accordance with § 400.29 once the 

application is determined to be 

sufficient. 

■ 14. Revise § 400.32 to read as follows: 

§ 400.32 Procedures for docketing 

applications and commencement of case 

review. 

(a) Once the pre-docketing copy of the 

application is determined to be 

sufficient and any fees under § 400.29 

have been paid, the Executive Secretary 

shall within 15 days: 

(1) Formally docket the application, 

thereby initiating the proceeding or 

review; 

(2) Assign a case-docket number; and 

(3) Notify the applicant of the formal 

docketing action. 

(b) After initiating a proceeding based 

on an application under §§ 400.21 and 

400.23 through 400.25, the Executive 

Secretary shall: 

(1) Designate an examiner to conduct 

a review and prepare a report or 

memorandum with recommendations 

for the Board; 

(2) Publish in the Federal Register a 

notice of the formal docketing of the 

application and initiation of the review. 

The notice shall include the name of the 

applicant, a description of the proposal, 

and an invitation for public comment. If 

the application requests authority for 

production activity and indicates that a 

component to be used in the activity is 

subject to a trade-related measure or 

proceeding (e.g., AD/CVD order or 

proceeding, suspension of liquidation 

under AD/CVD procedures), the notice 

shall include that information. For 

applications to establish or expand a 

zone or for production authority, the 

comment period shall normally close 60 

days after the date the notice appears. 

For applications for subzone 

designation, the comment period shall 

normally close 40 days after the date the 

notice appears. However, if a hearing is 

held (see § 400.52), the comment period 

shall not close prior to 15 days after the 

date of the hearing. The closing date for 

general comments shall ordinarily be 

followed by an additional 15-day period 

for rebuttal comments. Requests for 

extensions of a comment period will be 

considered, subject to the standards of 

§ 400.28(c). Submissions must meet the 

requirements of § 400.28(b). With the 

exception of submissions by the 

applicant, any new evidence or new 

factual information and any written 

arguments submitted after the deadlines 

for comments shall not be considered by 

the examiner or the Board. Submission 

by the applicant of new evidence or new 

factual information may result in the 

(re)opening of a comment period. A 

comment period may otherwise be 

opened or reopened for cause; 

(3) Transmit or otherwise make 

available copies of the docketing notice 

and the application to CBP; 

(4) Arrange for hearings, as 

appropriate; 

(5) Transmit the report and 

recommendations of the examiner and 

any comments by CBP to the Board for 

appropriate action; and 

(6) Notify the applicant in writing (via 

electronic means, where appropriate) 

and publish notice in the Federal 

Register of the Board’s determination. 

(c) Any comments by CBP pertaining 

to the application shall be submitted to 

the Executive Secretary by the 

conclusion of the public comment 

period described in paragraph (b)(2) of 

this section. 

■ 15. In § 400.33, revise paragraph (e)(3) 

to read as follows: 

§ 400.33 Examiner’s review—application to 

establish or modify a zone. 

* * * * * 

(e) * * * 

(3) If the factors considered for an 

examiner’s recommendation(s) change 

as a result of new evidence, the 

applicable procedures of paragraphs 

(e)(1) and (2) of this section shall be 

followed. 

* * * * * 

■ 16. In § 400.34, revise paragraph 

(a)(5)(iv)(C) to read as follows: 

§ 400.34 Examiner’s review—application 

for production authority. 

(a) * * * 

(5) * * * 

(iv) * * * 

(C) If the factors considered for an 

examiner’s recommendation(s) change 

as a result of new evidence, the 

applicable procedures of paragraphs 

(a)(5)(iv)(A) and (B) of this section shall 

be followed. 

* * * * * 

■ 17. In § 400.35, revise paragraph (c) to 

read as follows: 

§ 400.35 Examiner’s review—application 

for subzone designation. 

* * * * * 

(c) If the factors considered for an 

examiner’s recommendation(s) change 

as a result of new evidence, the 

applicable procedures of paragraphs (a) 

and (b) of this section shall be followed. 

* * * * * 

■ 18. In § 400.36: 

■ a. Revise paragraphs (b) and (e); and 

■ b. Remove the paragraph heading 

from paragraph (f). 

The revisions read as follows: 

§ 400.36 Completion of case review. 

* * * * * 

(b) In its advisory role to the Board, 

CBP headquarters staff shall provide any 

comments within 15 days for 

applications under § 400.25 and within 

30 days for all other applications. 

* * * * * 

(e) If the Board is unable to reach a 

unanimous decision, the applicant shall 

be notified and provided an opportunity 

to meet with the Board members or their 

delegates. 

* * * * * 

■ 19. In § 400.37, revise paragraph (a) to 

read as follows: 

§ 400.37 Procedure for notification of 

proposed production activity. 

(a) Submission of notification. A 

notification for production authority 

pursuant to §§ 400.14(a) and 400.22 

shall be submitted simultaneously to the 

Board’s Executive Secretary and to CBP. 

* * * * * 

■ 20. Revise § 400.38 to read as follows: 

§ 400.38 Procedure for request for minor 

modification of zone. 

(a) The Executive Secretary shall 

make a determination in cases under 

§ 400.24(c) involving minor 

modifications of zones that do not 

require Board action, such as boundary 

modifications, including certain 

relocations, and shall notify the 

requestor in writing of the decision on 

the request within 30 days of the 

Executive Secretary’s receipt of the 

complete request and the CBP 

comments under paragraph (b) of this 

section. Depending on the specific 

request, the decision could be that the 

request cannot be processed under 

§ 400.24(c). The requestor shall submit a 

copy of its request to CBP no later than 

the time of the requestor’s submission of 

the request to the Executive Secretary. 


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8530 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Rules and Regulations 

(b) If not previously provided to the 

requestor for inclusion with the 

requestor’s submission of the request to 

the Executive Secretary, any CBP 

comments on the request shall be 

provided to the Executive Secretary 

within 20 days of the requestor’s 

submission of the request to the 

Executive Secretary. 

§ 400.42 [Amended] 

■ 21. In § 400.42, remove and reserve 

paragraph (b). 

§ 400.43 [Amended] 

■ 22. In § 400.43, remove paragraph (i). 

■ 23. In § 400.44: 

■ a. Revise paragraphs (a), (b)(5), and 

(e); and 

■ b. Remove paragraph (f). 

The revisions read as follows: 

§ 400.44 Zone schedule. 

(a) The zone grantee shall submit to 

the Executive Secretary (electronic copy 

or as specified by the Executive 

Secretary) a zone schedule which sets 

forth the elements required in this 

section. No element of a zone schedule 

(including any amendment to the zone 

schedule) may be considered to be in 

effect until such submission has 

occurred. If warranted, the Board may 

subsequently amend the requirements of 

this section by Board Order. 

(b) * * * 

(5) Information identifying any 

operator which offers services to the 

public and which has requested that its 

information be included in the zone 

schedule; and 

* * * * * 

(e) A complete copy of the zone 

schedule shall be freely available for 

public inspection at the offices of the 

zone grantee. The Board shall make 

copies of zone schedules available on its 

website. 

■ 24. In § 400.45, revise paragraph (b) to 

read as follows: 

§ 400.45 Complaints related to public 

utility and uniform treatment. 

* * * * * 

(b) Objections to rates and charges. A 

zone participant showing good cause 

may object to any rate or charge related 

to the zone on the basis that it is not fair 

and reasonable by submitting to the 

Executive Secretary a complaint in 

writing with supporting information. If 

necessary, such a complaint may be 

made on a confidential basis pursuant to 

paragraph (a) of this section. The 

Executive Secretary shall review the 

complaint and issue a report and 

decision, which shall be final unless 

appealed to the Board within 30 days. 

The Board or the Executive Secretary 

may otherwise initiate a review for 

cause. The primary factor considered in 

reviewing fairness and reasonableness is 

the cost of the specific services 

rendered. Where those costs incorporate 

charges to the grantee by one or more 

parties undertaking functions on behalf 

of the grantee, the Board may consider 

the costs incurred by those parties or 

evidence regarding market rates for the 

undertaking of those functions. The 

Board may rely on best estimates, as 

necessary. The Board will also give 

consideration to any extra costs 

incurred relative to non-zone 

operations, including return on 

investment and reasonable out-of-pocket 

expenses. 

■ 25. In § 400.52, revise paragraph (b)(2) 

to read as follows: 

§ 400.52 Notices and hearings. 

* * * * * 

(b) * * * 

(2) The request must be made within 

30 days of the beginning of the initial 

period for public comment (see 

§ 400.32) and must be accompanied by 

information establishing the need for 

the hearing and the basis for the 

requesting party’s interest in the matter. 

* * * * * 

■ 26. In § 400.61, revise paragraphs (a) 

and (c) to read as follows: 

§ 400.61 Revocation of authority. 

(a) In general. As provided in this 

section, the Board can revoke in whole 

or in part authority for a zone (see 

§ 400.2(h)) whenever it determines that 

the zone grantee has violated, 

repeatedly and willfully, the provisions 

of the Act. 

* * * * * 

(c) Appeals. As provided in section 18 

of the Act (19 U.S.C. 81r(c)), the grantee 

of the zone in question may appeal an 

order of the Board revoking authority. 

[FR Doc. 2024–01953 Filed 2–7–24; 8:45 am] 

BILLING CODE 3510–DS–P 

FEDERAL TRADE COMMISSION 

16 CFR Part 1 

RIN 3084–AB79 

Procedures for Oversight of the 

Horseracing Integrity and Safety 

Authority’s Annual Budget 

AGENCY: Federal Trade Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Trade 

Commission (‘‘FTC’’ or ‘‘Commission’’) 

is amending its rules pursuant to the 

Horseracing Integrity and Safety Act 

(‘‘Act’’) regarding the Commission’s 

procedures for its oversight of the 

annual budget of the Horseracing 

Integrity and Safety Authority 

(‘‘Authority’’). The amendments to the 

Authority’s budget oversight rules will 

streamline and improve the process for 

approving or disapproving the 

Authority’s annual budget. 

DATES: This rule is effective on February 

8, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Sarah Botha, Attorney ((202–326–2036), 

sbotha@ftc.gov), Office of the Executive 

Director, Federal Trade Commission. 

SUPPLEMENTARY INFORMATION: 

Background 

The Horseracing Integrity and Safety 

Act of 2020, Public Law 116–260, Title 

XII, 134 Stat 1182, 3252 (2020) (codified 

as amended at 15 U.S.C. 3051–3060), 

recognizes the Authority as a selfregulatory nonprofit organization 

charged with developing and enforcing 

rules relating to racetrack safety, antidoping, and medication control. See 15 

U.S.C. 3052. The Act expressly provides 

for Commission oversight of several 

aspects of the Authority’s operations. 

For example, the Commission must 

approve any proposed rule or rule 

modification by the Authority relating 

to the Authority’s bylaws, racetrack 

safety standards, anti-doping and 

medication control, and the formula or 

methodology for determining 

assessments. See id. In December 2022, 

Congress amended HISA to expand the 

Commission’s oversight role over the 

Authority. See Consolidated 

Appropriations Act, 2023, Public Law 

117–328, Sec. 701, 136 Stat. 4459, 5231 

(2022). As amended, the Act gives the 

Commission the power to issue rules 

under the procedures set forth in the 

Administrative Procedure Act, 5 U.S.C. 

553, ‘‘as the Commission finds 

necessary or appropriate to ensure the 

fair administration of the Authority . . . 

or otherwise in furtherance of the 

purposes of this Act.’’ 15 U.S.C. 3053(e). 

In March 2023, relying in part on the 

new amendment, the Commission 

promulgated rules relating to the 

Authority’s budget (‘‘Budget Rule’’). See 

88 FR 18034 (Mar. 27, 2023). The 

Budget Rule, codified at 16 CFR 1.150 

through 1.152, sets forth the process 

whereby the Authority submits each 

year’s proposed budget to the 

Commission for approval. Under the 

Budget Rule, after the Authority submits 

its proposed annual budget to the 

Commission, the Commission publishes 

the proposed budget in the Federal 

Register and the public is given an 

opportunity to comment. See 16 CFR 


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