Manufacture, Sale, Wear, and Quality Control of Heraldic Items, 35846-35852 [2020-12176]
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Federal Register / Vol. 85, No. 114 / Friday, June 12, 2020 / Proposed Rules
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(iv) The factors in paragraphs
(a)(2)(iii)(B)(1) through (4) of this section
support the conclusion that the isolation
valves and vents and pressure control and
relief valves are structural components of H’s
pipelines within the meaning of paragraph
(a)(2)(iii) of this section. Therefore, the
isolation valves and vents and pressure
control and relief valves are real property.
(v) Meters are used to measure the natural
gas passing into or out of the pipeline
transmission system for purposes of
determining the end users’ consumption.
Over long distances, pressure is lost due to
friction in the pipeline transmission system.
Compressors are required to add pressure to
transport natural gas through the entirety of
the pipeline transmission system. Although
the meters and compressors were installed
during the construction of the pipelines, they
are not time consuming and expensive to
install and remove from the pipelines; are not
designed specifically for the particular
pipelines for which they are a part; and their
removal does not cause damage to the asset
or the pipelines if removed. Thus, the meters
and compressors are not structural
components within the meaning of paragraph
(a)(2)(iii) of this section and, therefore, are
not real property.
(11) Example 11: Land use permit. J
receives a special use permit from the
government to place a cell tower on Federal
Government land that abuts a Federal
highway. Government regulations provide
that the permit is not a lease of the land, but
is a permit to use the land for a cell tower.
Under the permit, the government reserves
the right to cancel the permit and
compensate J if the site is needed for a higher
public purpose. The permit is in the nature
of a leasehold that allows J to place a cell
tower in a specific location on government
land. Therefore, the permit is an interest in
real property under paragraph (a)(5) of this
section.
(12) Example 12: License to operate a
business. K owns a building and receives a
license from State A to operate a casino in
the building. The license applies only to K’s
building and cannot be transferred to another
location. K’s building is an inherently
permanent structure under paragraph
(a)(2)(ii)(A) of this section and, therefore, is
real property. However, K’s license to operate
a casino is not a right for the use, enjoyment,
or occupation of K’s building, but is rather
a license to engage in the business of
operating a casino in the building for the
production of income. Therefore, the casino
license is not real property under paragraph
(a)(5) of this section.
(c) Applicability date. This section
applies to exchanges of real property
beginning on or after [EFFECTIVE DATE
OF THE FINAL RULE].
■ Par. 7. Section 1.1031(k)–1 is
amended by:
■ 1. Removing ‘‘, and’’ at the end of
paragraph (g)(7)(i) and adding a
semicolon in its place;
■ 2. Removing the period at the end of
paragraph (g)(7)(ii) and adding ‘‘; and’’
in its place;
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3. Adding paragraph (g)(7)(iii);
4. In paragraph (g)(8), designating
Examples 1 through 5 as paragraphs
(g)(8)(i) through (v), respectively;
■ 5. Further redesignating newly
redesignated paragraphs (g)(8)(i)(i) and
(ii) as paragraphs (g)(8)(i)(A) and (B);
■ 6. Further redesignating newly
redesignated paragraphs (g)(8)(i)(A)(A)
and (B) as paragraphs (g)(8)(i)(A)(1) and
(2), respectively;
■ 7. Designating the undesignated
paragraph immediately following newly
redesignated paragraph (g)(8)(i)(A)(2) as
paragraph (g)(8)(i)(A)(3);
■ 8. Further redesignating newly
redesignated paragraphs (g)(8)(ii)(i)
through (iii) as paragraphs (g)(8)(ii)(A)
through (C);
■ 9. Further redesignating newly
redesignated paragraphs (g)(8)(ii)(A)(A)
through (C) as paragraphs (g)(8)(ii)(A)(1)
through (3);
■ 10. Further redesignating newly
redesignated paragraphs
(g)(8)(ii)(A)(1)(1) and (2) as paragraphs
(g)(8)(ii)(A)(1)(i) and (ii), respectively;
■ 11. In newly redesignated paragraph
(g)(8)(ii)(A)(1)(i), removing ‘‘, or’’ at the
end of the paragraph and adding ‘‘; or’’
in its place;
■ 12. Designating the undesignated
paragraph immediately following newly
redesignated paragraph (g)(8)(ii)(A)(3) as
paragraph (g)(8)(ii)(A)(4); and
■ 13. Further redesignating newly
redesignated paragraphs (g)(8)(iii)(i)
through (v) as paragraphs (g)(8)(iii)(A)
through (E), respectively;
■ 14. Further redesignating newly
redesignated paragraphs (g)(8)(iv)(i)
through (iii) as paragraphs (g)(8)(iv)(A)
through (C), respectively;
■ 15. Further redesignating newly
redesiganted paragraphs (g)(8)(v)(i)
through (iii) as paragraphs (g)(8)(v)(A)
through (C), respectively;
■ 16. In newly redesiganted paragraph
(g)(8)(v)(B), removing ‘‘(g)(4))(i)’’ and
adding ‘‘(g)(4)(i)’’ in its place; and
■ 17. Adding paragraphs (g)(8)(vi) and
(g)(9).
The additions read as follows:
■
■
§ 1.1031(k)–1
exchanges.
Treatment of deferred
*
*
*
*
*
(g) * * *
(7) * * *
(iii) Personal property that is
incidental to real property acquired in
an exchange. For purposes of this
paragraph (g)(7), personal property is
incidental to real property acquired in
an exchange if—
(A) In standard commercial
transactions, the personal property is
typically transferred together with the
real property; and
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(B) The aggregate fair market value of
the incidental personal property
transferred with the real property does
not exceed 15 percent of the aggregate
fair market value of the replacement real
property.
*
*
*
*
*
(8) * * *
*
*
*
*
*
(vi) Example 6. (A) In 2020, B transfers to
C real property with a fair market value of
$1,100,000 and an adjusted basis of $400,000.
B’s replacement property is an office building
and, as a part of the exchange, B also will
acquire certain office furniture in the
building that is not real property, which is
industry practice in a transaction of this type.
The fair market value of the real property B
will acquire is $1,000,000 and the fair market
value of the personal property is $100,000.
(B) In a standard commercial transaction,
the buyer of an office building typically also
acquires some or all of the office furniture in
the building. The fair market value of the
personal property B will acquire does not
exceed 15 percent of the fair market value of
the office building B will acquire.
Accordingly, under paragraph (g)(7)(iii) of
this section, the personal property is
incidental to the real property in the
exchange and is disregarded in determining
whether the taxpayer’s rights to receive,
pledge, borrow or otherwise obtain the
benefits of money or other property are
expressly limited as provided in paragraph
(g)(6) of this section. Upon the receipt of the
personal property, B recognizes gain of
$100,000 under section 1031(b), the lesser of
the realized gain on the disposition of the
relinquished property, $700,000, and the fair
market value of the non-like-kind property B
acquired in the exchange, $100,000.
(9) Applicability date. Paragraphs
(g)(7)(iii) and (g)(8)(vi) of this section
apply to exchanges beginning on or after
[EFFECTIVE DATE OF THE FINAL
RULE].
*
*
*
*
*
Sunita Lough,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2020–11530 Filed 6–11–20; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF DEFENSE
Department of the Army
32 CFR Part 507
RIN 0702–AA70
[Docket No. USA–2018–HQ–0016]
Manufacture, Sale, Wear, and Quality
Control of Heraldic Items
Department of the Army, DOD.
Proposed rule; request for
comments.
AGENCY:
ACTION:
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Federal Register / Vol. 85, No. 114 / Friday, June 12, 2020 / Proposed Rules
The Department of the Army
proposes to revise its regulation on the
Manufacturing, Sale, Wear, and Quality
Control of Heraldic Items which
prescribes the Army Heraldic Quality
Control Program and the certification
process for manufacturers in order to
make Military Insignia. The rule also
establishes procedures governing the
manufacture, commercial sale,
reproduction, possession, and wear of
military decorations, medals, badges,
insignia and their components and
appurtenances. The proposed revisions
include the addition of a five-year
renewal period for manufacturer
certification and insignia authorizations
and changes to the procedure for
authorizing the use of insignia on
commercial items.
DATES: Submit comments on or before
August 11, 2020.
ADDRESSES: You may submit comments,
identified by 32 CFR part 507, Docket
No. USA–2018–HQ–0016 and or RIN
0702–AA70, by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Department of Defense, Office
of the Deputy Chief Management
Officer, Directorate of Oversight and
Compliance, 4800 Mark Center Drive,
Mailbox #24, Suite 08D09, Alexandria,
VA 22350–1700.
Instructions: All submissions received
must include the agency name and
docket number or Regulatory
Information Number (RIN) for this
Federal Register document. The general
policy for comments and other
submissions from members of the public
is to make these submissions available
for public viewing on the internet at
https://www.regulations.gov as they are
received without change, including any
personal identifiers or contact
information.
FOR FURTHER INFORMATION CONTACT: Mr.
Thomas L. Casciaro, 571–515–0335.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
Background
The Department of the Army is
proposing revisions to the Army
Heraldic Quality Control Program and
the certification process for
manufacturers to follow in order to
make Military Insignia. The purpose of
this program is to manage the
procedures for the manufacture and sale
of Military Insignia made in the United
States using government owned hubs,
dies, manufacturing drawings and
cartoons. This regulation was last
published in the Federal Register on
May 18, 1998 (63 FR 27208.)
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Legal Basis for This Rulemaking
The legal authorities for this
regulatory action are: 10 U.S.C. 4594; 15
U.S.C. 1051 et seq.; 10 U.S.C. 2260; 18
U.S.C 701, 704; 36 U.S.C. 901. Title 10
U.S.C. 4594 grants the Secretary of the
Army the authority to design flags,
insignia, badges, medals, seals,
decorations, guidons, streamers, finial
pieces for flagstaffs, buttons, buckles,
awards, trophies, marks, emblems,
rosettes, scrolls, braids, ribbons, knots,
tabs, cords and similar items for other
military departments and agencies of
the United States. Title 15 U.S.C. 1051
et seq. is the statutory basis for the
ownership and control of trademarks,
service marks, certification marks, and
collective marks. Title 10 U.S.C. 2260
grants the Secretary of the Army the
authority to license trademarks, service
marks, certification marks, and
collective marks owned or controlled by
the Secretary of the Army. Title 18
U.S.C. 701 states manufacturing, selling
and possession of any badge,
identification card or insignia
prescribed by the head of any
department or agency of the United
States is not authorized unless
authorized by regulations pursuant to
law. Title 18 U.S.C. 704, also known as
the ‘‘Stolen Valor Act’’ makes it illegal
for a person to fraudulently claim
having received a valor award specified
in the Act, with the intention of
obtaining money, property, or other
tangible benefit by convincing another
that he or she received the award. Title
36 U.S.C. 901 grants authority to the
Secretary of Defense to approve a
service flag and lapel button for display
by members of the immediate family of
an individual serving in the Armed
Forces of the United States. Persons
must apply to the Secretary of Defense
for a license to manufacture and sell the
approved service flag. That authority
was delegated by DoD policy 1348.33M
to the Secretary of the Army.
Summary of the Changes Proposed by
the Rule: This rule discusses the
Department of the Army policy
governing the manufacture, commercial
sale, reproduction, possession, and wear
of military decorations, medals, badges,
insignia and their components and
appurtenances. It also establishes the
Heraldic Quality Control Program to
improve the appearance of the Army by
controlling the quality of heraldic items
purchased from commercial sources.
These functions are managed though
The Institute of Heraldry (TIOH). Its
mission is to furnish heraldic services to
the Executive Office of the President,
the Department of Defense, and all other
Federal agencies. The work of TIOH
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encompasses research, design,
development, standardization, quality
control, and other services which are
fundamental to the creation and custody
of official heraldic items. Such items
include coats of arms, decorations, flags,
streamers, agency seals, badges, and
other types of insignia that are approved
for use and/or display. TIOH also
provides the general public with limited
research and information services
concerning heraldic insignia.
TIOH is proposing revisions given the
age of the current regulation and some
procedural changes they are instituting.
For example, TIOH is adding a five-year
renewal period for manufacturer
certification and insignia authorizations
which consists of a review of the
manufacturer in three key areas:
(1) Are they still in business;
(2) have they produced military
insignia; and,
(3) have there been any major quality
control issues?
If there are no issues, the company’s
certification is renewed.
The second change is the approving
authority for the use of insignia images
in commercial items. Pursuant to Title
10 U.S.C 2260, Licensing of intellectual
property: Retention of fees, the
Secretary of the Army established the
Army Trademark Licensing Program in
2006, formalizing the process for the
licensing of marks owned by the
Department of the Army, including
heraldic insignia and other collective
marks. This policy changed The
Institute of Heraldry’s role from an
approving authority to advisory and
assistance to the Army Trademark
Licensing Program.
Expected Impact of the Proposed Rule
This rule facilitates the Department of
the Army Heraldic Quality Control
Program and the manufacturing of all
military decorations, medals, badges,
insignia and their components and
appurtenances. The manufacturer
certification process requires the
manufacturer to submit four samples of
insignia to show they have the
capability to make insignia in
accordance with government
specifications. The submitted samples
have a negligible value, under ten
dollars, and less than five manufactures
apply each year. The recertification
process consists of a review of a
manufacturer’s performance during the
certification period. There is no cost to
the manufacturer for the review and
recertification process.
C. Regulatory Flexibility Act
The Department of the Army does not
expect this proposed rule to have a
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Federal Register / Vol. 85, No. 114 / Friday, June 12, 2020 / Proposed Rules
significant economic impact on a
substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.,
because the rule is not creating any new
requirements for manufacturers of
military insignia.
The Department of the Army is
revising the internal policies that
require a five-year review of
manufacturer certifications, insignia
authorizations and changes to the
procedure for authorizing the use of
insignia on commercial items.
The objective of the proposed
revisions establish procedures
governing the manufacture, commercial
sale, reproduction, possession, and wear
of military decorations, medals, badges,
insignia and their components and
appurtenances. These revisions
supports a recommendation from the
DoD Regulatory Reform Task Force,
under E.O. 13777, enforcing the
Regulatory Reform Agenda.
The Department of the Army does not
collect data on the number of small
businesses that manufactures jewelry,
lapel buttons, medallions, recognition
awards or trophies. Instead, Army
subject matter work with those
companies wishing to be certified to
manufacture and sell Military Insignia
made in the United States using
government owned hubs, dies,
manufacturing drawings and cartoons.
There are currently 15 active certified
manufactures of Military Insignia. Based
on the information available, the Army
does not anticipate that this rule will
significantly impact small business
entities.
This proposed rule does not include
any new reporting, recordkeeping, or
other compliance requirements for small
businesses. Manufacturers wanting to be
certified provide general information
already available to the public, such as
company name, address, points of
contact and the type of insignia they
want to produce. This rule does not
duplicate, overlap, or conflict with any
other Federal rules. There are no known
alternative to the rule that will meet the
stated objectives or minimize the impact
on of the rule on small entities.
The Department of the Army invites
comments from small business concerns
and other interested parties on the
expected impact of this rule on small
entities. The Department of the Army
will also consider comments from small
entities concerning the existing
regulations in subparts affected by this
rule in accordance with 5 U.S.C. 610.
Interested parties must submit such
comments separately and should cite 5
U.S.C. 610 (32 CFR part 507 RIN 0702–
AA70) in correspondence.
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D. Unfunded Mandates Reform Act
The Department of the Army certifies
that this action does not include a
mandate that may result in estimated
costs to State, local or tribal
governments in the aggregate or the
private sector of $100 million or more.
E. National Environmental Policy Act
The Department of the Army has
determined that this action is not
covered under the National
Environmental Policy Act because the
rule is not a major Federal action that
significantly affects the quality of the
human environment.
F. Paperwork Reduction Act
The Department of the Army has
determined that the Paperwork
Reduction Act does not apply.
Manufacturers wanting to be certified
provide general information already
available to the public about the
company such as name, address, points
of contact, contact information and the
type of insignia they want to produce.
Annually, fewer than five manufacturers
request certification.
G. Executive Order 12630 (Government
Actions and Interference With
Constitutionally Protected Property
Rights)
The Department of the Army has
determined that Executive Order 12630
does not apply because the rule does not
impair private property rights.
H. Executive Order 12866 (Regulatory
Planning and Review) and Executive
Order 13563 (Improving Regulation
and Regulatory Review)
The Department of the Army has
determined that according to the criteria
defined in Executive Order 12866 and
Executive Order 13563 this rule is not
a significant regulatory action. As such,
the proposed rule is not subject to Office
of Management and Budget review
under section 6(a)(3) of the Executive
Order 12866.
I. Executive Order 13045 (Protection of
Children From Environmental Health
Risk and Safety Risks)
The Department of the Army has
determined that Executive Order 13045
does not apply because this substantive
action in rulemaking is neither
economically significant nor does the
action concern environment health or
safety risks that may disproportionally
affect children.
J. Executive Order 13132 (Federalism)
The Department of the Army has
determined that Executive Order 13132
does not apply because this rule will not
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have a substantial effect on the States,
on the relationship between the national
government and the States, or on the
distribution of power and
responsibilities among various levels of
government.
K. Executive Order 13771 (Reducing
Regulation and Controlling Regulatory
Costs)
This proposed rule is not expected to
be subject to E.O. 13771 as this rule is
not significant under E.O. 12866.
List of Subjects in 32 CFR Part 507
Decoration, Service Medal, Service
Ribbon, Badge, Lapel Button, Insignia,
Special Skill, Qualification Badges,
Identification Badges, Bars, Shoulder
Sleeve Insignia, Distinctive Unit
Insignia.
For reasons discussed in the preamble
the Department of the Army proposes to
revise 32 CFR part 507 as follows:
PART 507—MANUFACTURE, SALE,
WEAR, AND QUALITY CONTROL OF
HERALDIC ITEMS
Subpart A—Introduction
Sec.
507.1 Purpose.
507.2 References.
507.3 Explanation of abbreviations and
terms.
507.4 Responsibilities.
507.5 Statutory authority.
Subpart B—Manufacture and Sale of
Decorations, Badges, and Insignia
507.6 Authority to manufacture.
507.7 Certification of controlled heraldic
items.
507.8 Authority to sell.
507.9 Reproduction of designs.
507.10 Incorporation of designs or
likenesses of approved designs in
commercial articles.
507.11 Possession and wear.
Subpart C—Heraldic Quality Control
Program
507.12 General.
507.13 Controlled heraldic items.
507.14 Articles not authorized for
manufacture or commercial sale.
507.15 Violations and penalties.
507.16 Processing complaints of alleged
breach of policies.
Subpart D—License and Manufacture of the
Service Flag and Service Lapel Button
507.17 Authority to manufacture.
507.18 Application for licensing.
Authority: 10 U.S.C. 4594; 18 U.S.C 701,
704; 36 U.S.C. 901.
Subpart A—Introduction
§ 507.1
Purpose.
This regulation prescribes the
Department of the Army policy
governing the manufacture, commercial
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sale, reproduction, possession, and wear
of military decorations, medals, badges,
insignia, and their components and
appurtenances. It also establishes the
Heraldic Quality Control Program to
improve the appearance of the Army by
controlling the quality of heraldic items
purchased from commercial sources.
§ 507.2
References.
Related publications are listed in
paragraphs (a) through (d) of this
section. (A related publication is merely
a source of additional information. The
user does not have to read it to
understand this part).
(a) Department of Defense Manual
1348.33, Volume 3, Manual of Military
Awards and Decorations. (Available at
https://www.esd.whs.mil/Directives/
issuances/dodm/)
(b) Army Regulation 360–1, Army
Public Affairs Program. (Available at
https://armypubs.army.mil/
ProductMaps/PubForm/AR.aspx)
(c) Army Regulation 670–1, Wear and
Appearance of Army Uniforms and
Insignia. (Available at https://
armypubs.army.mil/ProductMaps/
PubForm/AR.aspx)
(d) Army Regulation 840–1,
Department of the Army Seal, and
Department of the Army Emblem and
Branch of Service Plaques. (Available at
https://armypubs.army.mil/
ProductMaps/PubForm/AR.aspx)
(e) Army Regulation 27–60,
Intellectual Property. (Available at
https://armypubs.army.mil/
ProductMaps/PubForm/AR.aspx)
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§ 507.3
terms.
Explanation of abbreviations and
(a) Abbreviations.
(1) CFR—Code of Federal Regulations.
(2) DA—Department of the Army.
(3) DAASA—Deputy Administrative
Assistant to the Secretary of the Army
(4) DLA—Defense Logistics Agency.
(5) DUI—Distinctive unit insignia.
(6) ID—Identification
(7) IOH—Institute of Heraldry
(8) MCS—Military Clothing Store.
(9) RDI—Regimental Distinctive
Insignia.
(10) ROTC—Reserve Officers’
Training Corps.
(11) SSI—Shoulder sleeve insignia.
(12) TIOH—The Institute of Heraldry.
(13) U.S.C.—United States Code.
(b) Terms.
(1) Appurtenances. Devices such as
stars, letters, numerals, or clasps worn
on the suspension ribbon of the medal,
or on the ribbon bar that indicate
additional awards, participation in
specific events, or other distinguishing
characteristics of the award.
(2) Awards. An all-inclusive term that
consists of any decoration, medal,
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badge, ribbon, or appurtenance
bestowed on an individual or unit.
(3) Badge. An award given to an
individual for identification purposes or
that is awarded for attaining a special
skill or proficiency. Certain badges are
available in full, miniature, and dress
miniature sizes.
(4) Cartoon. A drawing, six times
actual size, showing placement of
stitches, color of yarn and number of
stitches.
(5) Certified manufacturer. A
manufacturer who demonstrated the
capability to manufacture controlled
heraldic items according to government
standards.
(6) Certificate of authority to
manufacture. A certificate assigning
manufacturers a hallmark and
authorizing manufacture of heraldic
items.
(7) Decoration. An award given to an
individual as a distinctively designed
mark of honor denoting heroism, or
meritorious or outstanding service or
achievement.
(8) Hallmark. A distinguishing mark
consisting of a letter and numbers
assigned to certified manufacturers for
use in identifying manufacturers of
insignia.
(9) Heraldic items. All items worn on
the uniform to indicate unit, skill,
branch, award or identification and for
which a design has been established by
TIOH on an official drawing.
(10) Heraldic Quality Control
Program. A program that improves the
appearance of the Army by controlling
the quality of insignia purchased from
commercial sources.
(11) Lapel button. A miniature
enameled replica of an award, which is
worn only on civilian clothing.
(12) Letter of agreement. A letter
signed by manufacturers before
certification, stating that the
manufacturer agrees to produce heraldic
items in accordance with specific
requirements.
(13) Letter of authorization. A letter
issued by TIOH that authorizes the
manufacture of a specific heraldic item
after quality assurance inspection of a
preproduction sample.
(14) Medal. An award issued to an
individual for the performance of
certain duties, acts, or services,
consisting of a suspension ribbon made
in distinctive colors and from which
hangs a medallion.
(15) Rosette. A lapel device created
from gathering the suspension ribbon of
a medal into a circular shape. The
device is worn on the lapel of civilian
clothing.
(16) Service medal. An award made to
personnel who participated in
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35849
designated wars, campaigns, or
expeditions or who have fulfilled
specified service requirements in a
creditable manner.
(17) Tools. Hubs, dies, cartoons, and
drawings used in the manufacture of
heraldic items.
(18) Unit award. An award made to an
operating unit, which is worn by
members of that unit who participated
in the cited action (permanent unit
award).
§ 507.4
Responsibilities.
Director, The Institute of Heraldry
(TIOH). The Director, TIOH, will—
(a) Monitor the overall operation of
the Heraldic Quality Control Program.
(b) Establish policy and procedures to:
(1) Certify manufacturers of insignia
and plaques.
(2) Control the manufacture and
quality assurance of military
decorations, the DA seal and emblem,
Branch of Service plaques, and other
heraldic items.
(3) Grant certificates of authority for
the manufacture and commercial sale of
Service flags and Service lapel buttons.
(4) Provide heraldic services to the
Executive Branch, Department of
Defense, and other Federal agencies on
a reimbursable basis.
(5) Provide advisory opinions on the
use of Army heraldic items for licensing
or other commercial purposes (for
example, the Army Emblem, Army Flag,
unit insignia, and items approved for
wear on uniforms), at the request of the
Army Trademark Licensing Program.
§ 507.5
Statutory authority.
(a) The manufacture, commercial sale,
possession, and reproduction of badges,
identification cards, insignia, or other
designs prescribed by the head of a U.S.
department or agency, or colorable
imitations of them, are governed by
Title 18, United States Code, section 701
(18 U.S.C. 701).
(b) The wear, manufacture, and
commercial sale of military decorations,
medals, badges, and their components
and appurtenances, or colorable
imitations thereof, are governed by 18
U.S.C. 704.
(c) The furnishing of heraldic services
to other Military departments and
Federal agencies is governed by 10
U.S.C. 4594.
(d) The display of and license to
manufacture and sell the approved
service flag or service lapel button is
governed by 36 U.S.C. 901.
(e) The ownership and licensing of
trademarks, service marks, and
collective marks such as DUI, RDI, SSI,
and other Army-owned heraldic
insignia are governed by 15 U.S.C. 1051
et seq., and 10 U.S.C. 2260.
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§ 507.9
Subpart B—Manufacture and Sale of
Decorations, Badges, and Insignia
§ 507.6
Authority to manufacture.
(a) Only manufacturers that TIOH has
certified and issued a certificate of
authority may produce heraldic items.
(1) TIOH will issue a certificate of
authority to manufacturers who can
demonstrate they have the capability to
manufacture controlled heraldic items
according to Government specifications
or purchase descriptions through the
certification process.
(2) The certificate of authority to
manufacture is applicable only for the
individual, firm, or corporation
indicated and will be valid for 5 years.
(3) TIOH will assign a hallmark to
each certified manufacturer. All
controlled heraldic items manufactured
for commercial sale will bear the
manufacturer’s hallmark.
(4) TIOH exclusively uses the ‘‘IOH’’
hallmark for the development of new
controlled heraldic items; it is not
authorized for use on items for
commercial sale.
(b) A certificate of authority to
manufacture may be revoked or
suspended under the procedures
prescribed in § 507.16.
(c) A list of certified manufacturers is
on the TIOH web page at https://
tioh.army.mil/Catalog/VendorList.aspx.
§ 507.7
items.
Certification of controlled heraldic
(a) The manufacture and commercial
sale of controlled heraldic items are not
authorized until the certified
manufacturer receives a letter of
authorization from TIOH. Manufacturers
who want to manufacture and sell
controlled heraldic items must submit
four production samples of each item to
TIOH for authorization. If TIOH
approves the production samples, it will
provide a letter of authorization to
manufacture along with one certified
production sample to the manufacturer.
Letters of authorization for certified
heraldic items are valid for 5 years.
(b) The Director, TIOH may revoke or
suspend a letter of authorization for
failure to manufacture the heraldic item
in accordance with applicable
Government specifications.
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§ 507.8
Authority to sell.
No certificate of authority to
manufacture is required for selling
controlled heraldic items listed in
§ 507.13. However, all sellers must
ensure that all articles they sell bear
hallmarks assigned by TIOH and are
manufactured by certified
manufacturers in conformance with
applicable Government specifications.
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Reproduction of designs.
(a) The photographing or printing of
any decoration, service medal, service
ribbon, badge, lapel button, insignia, or
other device of a design the Secretary of
the Army has prescribed for members of
the Army to use is authorized, provided
that such reproduction does not
discredit the U.S. Army and is not used
to defraud or misrepresent the
identification or status of an individual,
organization, society, or other group of
persons.
(b) The making or executing in any
manner of any engraving, impression, or
colorable imitation in the likeness of
any decoration, service medal, service
ribbon, badge, lapel button, insignia, or
other device of a design the Secretary of
the Army has prescribed for members of
the Army to use is prohibited without
prior approval in writing from the Army
Trademark Licensing Program.
(c) Except when used to illustrate a
particular article that is offered for
commercial sale, AR 360–1, paragraph
8–9e prohibits the use of Army themes,
material, uniforms, or insignia in
advertisements and promotions for
entertainment-oriented products that
could imply Army endorsement of the
product. Direct requests to the Chief,
Public Affairs (SAPA–ZA), 1500 Army
Pentagon, Washington, DC 20310–1500.
§ 507.10 Incorporation of designs or
likenesses of approved designs in
commercial articles.
(a) Federal law and Army policy
restrict the use of military designs. The
manufacture of articles for commercial
sale that incorporate designs or
likenesses of decorations, service
medals, service ribbons, and lapel
buttons is prohibited. Certain designs or
likenesses of insignia, such as badges or
organizational insignia, may be
incorporated in articles manufactured
for commercial sale, provided that the
Army Trademark Licensing Program has
granted permission in writing as
specified in § 507.10(b).
(b) The Army Trademark Licensing
Program is responsible for reviewing
requests for permission to incorporate
certain insignia and other Army-owned
marks in articles manufactured for
commercial sale. Requests should be
directed to the Director, Army
Trademark Licensing Program, 2530
Crystal Drive, Suite 4150, Arlington, VA
22202–3934.
§ 507.11
Possession and wear.
(a) The wearing of any decoration,
service medal, badge, service ribbon,
lapel button, or insignia that the Army
has prescribed or authorized by any
person not properly authorized to wear
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such device or the use of any
decoration, service medal, badge,
service ribbon, lapel button, or insignia
to misrepresent the identification or
status of the person by whom such is
worn is prohibited. Any person who
violates this provision is subject to
punishment as prescribed in the statutes
referred to in § 507.5.
(b) Mere possession by a person of
any of the articles prescribed in § 507.13
(except identification cards) is
authorized, provided that such
possession is not used to defraud or
misrepresent the identification or status
of the individual concerned.
(c) Articles specified in § 507.13, or
any distinctive parts (including
suspension ribbons and service ribbons)
or colorable imitations thereof, will not
be used by any organization, society, or
other group of persons without prior
approval in writing by the Army
Trademark Licensing Program as
specified in § 507.10(b).
Subpart C—Heraldic Quality Control
Program
§ 507.12
General.
The Heraldic Quality Control Program
provides a method for ensuring that
controlled heraldic items are
manufactured by certified
manufacturers in accordance with
Government specifications. The design
of metal insignia will be an exact
duplicate of the design of the
Government die or loaned hub from
which the certified manufacturer’s
working die is extracted. The design of
textile insignia will be embroidered in
accordance with Government-furnished
specification and cartoon.
§ 507.13
Controlled heraldic items.
(a) Controlled heraldic items will be
manufactured in accordance with
Government specifications, using
Government loaned hubs, dies, or
cartoons, by TIOH-certified
manufacturers.
(b) The heraldic items listed below are
controlled and authorized for
manufacture and commercial sale under
the Heraldic Quality Control Program
when specifically authorized by TIOH.
(1) All authorized appurtenances and
devices for decorations, medals and
ribbons such as oak leaf clusters, service
stars, arrowheads, ‘‘V’’ device, and
clasps.
(2) Combat, special skill, and
qualification badges and bars.
(3) Identification badges.
(4) All approved Shoulder Sleeve
Insignia.
(5) All approved Distinctive Unit
Insignia.
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(6) All approved Regimental
Distinctive Insignia.
(7) All approved Combat Service
Identification Badges.
(8) Fourrage`res and lanyards.
(9) Lapel buttons.
(10) Decorations, service medals, and
ribbons, except for the Medal of Honor.
(11) Replicas of decorations and
service medals for grave markers.
Replicas are to be at least twice the size
prescribed for decorations and service
medals.
(12) Service ribbons and unit awards.
(13) Rosettes, except for the Medal of
Honor.
(c) Deviations from the prescribed
specifications for these items are not
permitted without prior approval, in
writing, by TIOH.
(d) Hubs, Dies and cartoons are not
provided to manufacturers for the
following items. However,
manufacturing will be in accordance
with the Government-furnished
drawing.
(1) Shoulder Loop Insignia, Reserve
Officers’ Training Corps (ROTC), U.S.
Army.
(2) Institutional SSI, ROTC, U.S.
Army.
(3) Background trimming/flashes, U.S.
Army.
(4) Hand-embroidered bullion
insignia.
§ 507.14 Articles not authorized for
manufacture or commercial sale.
The following articles are not
authorized for manufacture and
commercial sale, except under contract
with the Defense Logistics Agency,
Troop Support (DLA Troop Support):
(a) The Medal of Honor.
(b) Service ribbon for the Medal of
Honor.
(c) Medal of Honor Rosette.
(d) Medal of Honor Flag.
(e) Military Department Service flags
(prescribed in Army Regulation 840–
10).
(f) Articles for commercial sale that
incorporate designs or likenesses of
insignia listed in § 507.13, except when
authorized in writing by the Army
Trademark Licensing Program as
specified in § 507.10(b).
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§ 507.15
Violations and penalties.
(a) TIOH will revoke a certificate of
authority to manufacture when the
holder intentionally violates any of the
provisions of this regulation or does not
comply with the agreement the
manufacturer signed to receive a
certificate.
(b) Violations are also subject to
penalties as prescribed in the statutes
referred to in § 507.5.
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(c) Repetition or continuation of
violations after official notice will be
deemed as corroborating evidence of
intentional violation.
§ 507.16 Processing complaints of alleged
breach of policies.
(a) TIOH may suspend or revoke a
certificate of authority to manufacture if
the manufacturer breaches quality
control policies. The term ‘‘quality
control policies’’ includes the obligation
of a manufacturer to produce insignia in
accordance with all applicable
government specifications,
manufacturing drawings and cartoons
and other applicable instructions TIOH
provided. Breaches of quality control
policies may be identified by TIOH
through the Quality Control Inspection
Program or through registered
complaints to TIOH.
(b) Complaints and reports of an
alleged breach of quality control
policies will be forwarded to the
Director, The Institute of Heraldry, 9325
Gunston Road, Room S113, Fort Belvoir,
VA 22060–5579.
(c) The Director may decide to
suspend or revoke a certificate of
authority to a manufacture based on
evidence gathered during a TIOH
heraldic quality control inspection or
from a registered complaint. The
Director may initiate an informal
investigation of an allegation of
breach(es) of the heraldic quality control
policy.
(d) Heraldic Quality Control
Inspection Program.
(1) TIOH will conduct periodic
quality control inspections of on hand
stocks of heraldic items maintained by:
(i) Exchange military clothing stores.
(ii) Certified manufacturers.
(2) Upon completion of quality
control inspections, TIOH will provide
a report of deficiencies to the
appropriate retail outlet or Commander,
DLA Troop Support and the certified
manufacturer responsible for the
production of the item. The notification
to the manufacturer will require
assurances of compliance with quality
control policies. The report of
deficiencies will be reviewed upon
recertification of the manufacturer. Any
recurrence of the same breach will be
considered a refusal to perform, and the
Director will take further action to
suspend or revoke certification.
(e) Complaint of alleged breach of
quality control policy.
(1) If an investigation is initiated, the
appointed investigator will impartially
ascertain facts and gather appropriate
evidence to substantiate or invalidate
allegations of impropriety. The
investigator will submit a report
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35851
containing a summarized record of the
investigation with findings of each
allegation and supporting evidence to
the Director.
(2) If the investigation substantiates
allegation(s) of a breach of quality
control, the Director will notify the
manufacturer in writing that the
Director is contemplating suspending or
revoking the certificate. The notification
will include:
(i) The specific allegations and
findings of the investigator;
(ii) All evidence provided to the
Director in the investigation;
(iii) A citation to this regulation as the
authority under which the Director may
suspend or revoke the certificate of
authority if the situation warrants after
the manufacturer has had an
opportunity to reply;
(iv) What actions, if the allegations are
undisputed, are required to provide
adequate assurance that future
performance will conform to quality
control policies;
(v) The right to reply within 45 days
of receipt of the notification in order to
submit additional materials and
evidence for consideration, to refute the
allegations, or provide assurances that
future performance will conform to
quality control policies; and
(vi) That a failure to reply within 45
days, or if there is any recurrence of the
same breach will be considered a refusal
to perform, and the Director will take
further action to suspend or revoke
certification.
(f) Refusal to perform.
(1) If the manufacturer fails to reply
within a reasonable time to the letter
authorized by paragraph e above,
refuses to give adequate assurances that
future performance will conform to
quality control policies, indicates by
subsequent conduct that the breach is
continuous or repetitive, or disputes the
allegations of breach, the Director will
direct that a public hearing be
conducted on the allegations.
(2) A hearing examiner will be
appointed by appropriate orders. The
examiner may be either a commissioned
officer or a civilian employee above the
grade of GS–7.
(3) The specific written allegations,
together with other pertinent material,
will be transmitted to the hearing
examiner for introduction as evidence at
the hearing.
(4) For failure to return a loaned tool,
manufacturers may be suspended
without referral to a hearing specified
above; however, the manufacturer will
be advised, in writing, that tools are
overdue and suspension will take effect
if tools are not returned within the
specified time.
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(g) Notification to the manufacturer by
examiner. Within a 7-day period
following the receipt by the examiner of
the allegations and other pertinent
material, the examiner will transmit a
registered letter of notification to the
manufacturer informing him or her of
the—
(1) Specific allegations.
(2) Directive of the Director requiring
the holding of a public hearing on the
allegations.
(3) Examiner’s decision to hold the
public hearing at a specific time, date,
and place that will be not earlier than
30 days from the date of the letter of
notification.
(4) Ultimate authority of the Director
to suspend or revoke the certificate of
authority if the record developed at the
hearing so warrants.
(5) Right to—
(i) A full and fair public hearing.
(ii) Be represented by counsel at the
hearing.
(iii) Request a change in the date,
time, or place of the hearing, for
purposes of having reasonable time in
which to prepare the case.
(iv) Submit evidence and present
witnesses in his or her own behalf.
(v) Obtain at no cost a verbatim
transcript of the proceedings, upon
written request filed before the
commencement of the hearing.
(h) Public hearing by examiner.
(1) At the time, date, and place
designated in accordance with g(3) of
this section, the examiner will conduct
the public hearing.
(i) A verbatim record of the
proceedings will be maintained.
(ii) All previous material received by
the examiner will be introduced into
evidence and made part of the record.
(iii) The Government may be
represented by counsel at the hearing.
(2) Subsequent to the conclusion of
the hearing, the examiner will make
specific findings on the record before
him or her concerning each allegation.
(3) The complete record of the case
will be forwarded to the Director.
(i) Action by the Director.
(1) The Director will review the
record of the hearing and either approve
or disapprove the findings.
(2) Upon arrival of a finding of breach
of quality control policies, the
manufacturer will be so advised.
(3) After review of the findings, the
certificate of authority may be revoked
or suspended. If the certificate of
authority is revoked or suspended, the
Director will—
(i) Notify the manufacturer of the
revocation or suspension.
(ii) Remove the manufacturer from the
list of certified manufacturers.
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(iii) Inform the AAFES and the
Defense Logistics Agency-Troop
Support of the action.
(j) Reinstatement of certificate of
authority. Upon receipt of adequate
assurance that the manufacturer will
comply with quality control policies,
the Director may reinstate a certificate of
authority that has been suspended or
revoked.
Subpart D—License and Manufacture
of the Service Flag and Service Lapel
Button
§ 507.17
Authority to manufacture.
(a) The Secretary of Defense has
designated the Secretary of the Army to
grant certificates of authority for the
manufacture and commercial sale of
Service flags and Service lapel buttons.
(b) Any person, firm, or corporation
that wishes to manufacture the Service
flag or lapel button must apply for a
certificate of authority to manufacture
from TIOH.
§ 507.18
Application for licensing.
(a) Applicants who want to
manufacture and sell Service flags or
Service lapel buttons should contact the
Director, The Institute of Heraldry, 9325
Gunston Road, Suite 113, Fort Belvoir,
VA 22060–5576 to obtain an agreement
to manufacture, drawings, and
instructions for manufacturing the
Service flag and Service lapel button.
(b) Certificates of authority to
manufacture Service flags and Service
lapel buttons will be valid for 5 years
from the date of issuance, at which time
applicants must reapply for a new
certificate of authority.
Brenda S. Bowen,
Army Federal Register Liaison Officer.
[FR Doc. 2020–12176 Filed 6–11–20; 8:45 am]
BILLING CODE 5061–AP–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R03–OAR–2020–0157; FRL–10010–
42–Region 3]
Air Plan Approval; Pennsylvania;
Allegheny County Area Attainment
Plan for the 2012 Fine Particulate
Matter National Ambient Air Quality
Standard
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is proposing to approve
elements of a state implementation plan
SUMMARY:
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(SIP) revision submitted by the
Pennsylvania Department of
Environmental Protection (PADEP) on
behalf of the Allegheny County Health
Department (ACHD) to address Clean
Air Act (CAA or ‘‘the Act’’)
requirements for the 2012 annual fine
particulate matter (PM2.5) national
ambient air quality standards (NAAQS
or ‘‘standards’’) in the Allegheny County
Moderate PM2.5 nonattainment area
(‘‘Allegheny County area’’). The SIP
revision contains the ‘‘Attainment
Demonstration for the Allegheny
County, PA PM2.5 Nonattainment Area,
2012 NAAQS,’’ submitted on September
30, 2019 (also referred to as ‘‘the
Allegheny County PM2.5 Plan’’ or simply
‘‘the plan’’). EPA is proposing to fully
approve the following elements of the
Allegheny County PM2.5 Plan: The base
year emissions inventory, the
particulate matter precursor
contribution demonstration, the
reasonably available control measures/
reasonably available control technology
(RACM/RACT) demonstration, the
attainment demonstration, the air
quality modeling demonstration
supporting attainment by the attainment
deadline, the reasonable further
progress (RFP) demonstration, and the a
demonstration of interim quantitative
milestones to ensure timely attainment.
EPA is proposing to conditionally
approve the following elements of this
Allegheny County PM2.5 Plan SIP
revision: The contingency measures and
the motor vehicle emission budget
(MVEB) elements of the plan. PADEP
commits, on behalf of ACHD, to submit
a supplemental SIP revision to remedy
those portions of the plan for which
EPA is proposing conditional approval
within twelve months of EPA’s final
conditional approval action. This action
is being taken under the CAA.
DATES: Written comments must be
received on or before July 13, 2020.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R03–
OAR–2020–0157 at https://
www.regulations.gov, or via email to
spielberger.susan@epa.gov. For
comments submitted at Regulations.gov,
follow the online instructions for
submitting comments. Once submitted,
comments cannot be edited or removed
from Regulations.gov. For either manner
of submission, EPA may publish any
comment received to its public docket.
Do not submit electronically any
information you consider to be
confidential business information (CBI)
or other information whose disclosure is
restricted by statute. Multimedia
submissions (audio, video, etc.) must be
accompanied by a written comment.
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]]>Agencies
[Federal Register Volume 85, Number 114 (Friday, June 12, 2020)]
[Proposed Rules]
[Pages 35846-35852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12176]
=======================================================================
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DEPARTMENT OF DEFENSE
Department of the Army
32 CFR Part 507
RIN 0702-AA70
[Docket No. USA-2018-HQ-0016]
Manufacture, Sale, Wear, and Quality Control of Heraldic Items
AGENCY: Department of the Army, DOD.
ACTION: Proposed rule; request for comments.
-----------------------------------------------------------------------
[[Page 35847]]
SUMMARY: The Department of the Army proposes to revise its regulation
on the Manufacturing, Sale, Wear, and Quality Control of Heraldic Items
which prescribes the Army Heraldic Quality Control Program and the
certification process for manufacturers in order to make Military
Insignia. The rule also establishes procedures governing the
manufacture, commercial sale, reproduction, possession, and wear of
military decorations, medals, badges, insignia and their components and
appurtenances. The proposed revisions include the addition of a five-
year renewal period for manufacturer certification and insignia
authorizations and changes to the procedure for authorizing the use of
insignia on commercial items.
DATES: Submit comments on or before August 11, 2020.
ADDRESSES: You may submit comments, identified by 32 CFR part 507,
Docket No. USA-2018-HQ-0016 and or RIN 0702-AA70, by any of the
following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Department of Defense, Office of the Deputy Chief
Management Officer, Directorate of Oversight and Compliance, 4800 Mark
Center Drive, Mailbox #24, Suite 08D09, Alexandria, VA 22350-1700.
Instructions: All submissions received must include the agency name
and docket number or Regulatory Information Number (RIN) for this
Federal Register document. The general policy for comments and other
submissions from members of the public is to make these submissions
available for public viewing on the internet at https://www.regulations.gov as they are received without change, including any
personal identifiers or contact information.
FOR FURTHER INFORMATION CONTACT: Mr. Thomas L. Casciaro, 571-515-0335.
SUPPLEMENTARY INFORMATION:
Background
The Department of the Army is proposing revisions to the Army
Heraldic Quality Control Program and the certification process for
manufacturers to follow in order to make Military Insignia. The purpose
of this program is to manage the procedures for the manufacture and
sale of Military Insignia made in the United States using government
owned hubs, dies, manufacturing drawings and cartoons. This regulation
was last published in the Federal Register on May 18, 1998 (63 FR
27208.)
Legal Basis for This Rulemaking
The legal authorities for this regulatory action are: 10 U.S.C.
4594; 15 U.S.C. 1051 et seq.; 10 U.S.C. 2260; 18 U.S.C 701, 704; 36
U.S.C. 901. Title 10 U.S.C. 4594 grants the Secretary of the Army the
authority to design flags, insignia, badges, medals, seals,
decorations, guidons, streamers, finial pieces for flagstaffs, buttons,
buckles, awards, trophies, marks, emblems, rosettes, scrolls, braids,
ribbons, knots, tabs, cords and similar items for other military
departments and agencies of the United States. Title 15 U.S.C. 1051 et
seq. is the statutory basis for the ownership and control of
trademarks, service marks, certification marks, and collective marks.
Title 10 U.S.C. 2260 grants the Secretary of the Army the authority to
license trademarks, service marks, certification marks, and collective
marks owned or controlled by the Secretary of the Army. Title 18 U.S.C.
701 states manufacturing, selling and possession of any badge,
identification card or insignia prescribed by the head of any
department or agency of the United States is not authorized unless
authorized by regulations pursuant to law. Title 18 U.S.C. 704, also
known as the ``Stolen Valor Act'' makes it illegal for a person to
fraudulently claim having received a valor award specified in the Act,
with the intention of obtaining money, property, or other tangible
benefit by convincing another that he or she received the award. Title
36 U.S.C. 901 grants authority to the Secretary of Defense to approve a
service flag and lapel button for display by members of the immediate
family of an individual serving in the Armed Forces of the United
States. Persons must apply to the Secretary of Defense for a license to
manufacture and sell the approved service flag. That authority was
delegated by DoD policy 1348.33M to the Secretary of the Army.
Summary of the Changes Proposed by the Rule: This rule discusses
the Department of the Army policy governing the manufacture, commercial
sale, reproduction, possession, and wear of military decorations,
medals, badges, insignia and their components and appurtenances. It
also establishes the Heraldic Quality Control Program to improve the
appearance of the Army by controlling the quality of heraldic items
purchased from commercial sources.
These functions are managed though The Institute of Heraldry
(TIOH). Its mission is to furnish heraldic services to the Executive
Office of the President, the Department of Defense, and all other
Federal agencies. The work of TIOH encompasses research, design,
development, standardization, quality control, and other services which
are fundamental to the creation and custody of official heraldic items.
Such items include coats of arms, decorations, flags, streamers, agency
seals, badges, and other types of insignia that are approved for use
and/or display. TIOH also provides the general public with limited
research and information services concerning heraldic insignia.
TIOH is proposing revisions given the age of the current regulation
and some procedural changes they are instituting. For example, TIOH is
adding a five-year renewal period for manufacturer certification and
insignia authorizations which consists of a review of the manufacturer
in three key areas:
(1) Are they still in business;
(2) have they produced military insignia; and,
(3) have there been any major quality control issues?
If there are no issues, the company's certification is renewed.
The second change is the approving authority for the use of
insignia images in commercial items. Pursuant to Title 10 U.S.C 2260,
Licensing of intellectual property: Retention of fees, the Secretary of
the Army established the Army Trademark Licensing Program in 2006,
formalizing the process for the licensing of marks owned by the
Department of the Army, including heraldic insignia and other
collective marks. This policy changed The Institute of Heraldry's role
from an approving authority to advisory and assistance to the Army
Trademark Licensing Program.
Expected Impact of the Proposed Rule
This rule facilitates the Department of the Army Heraldic Quality
Control Program and the manufacturing of all military decorations,
medals, badges, insignia and their components and appurtenances. The
manufacturer certification process requires the manufacturer to submit
four samples of insignia to show they have the capability to make
insignia in accordance with government specifications. The submitted
samples have a negligible value, under ten dollars, and less than five
manufactures apply each year. The recertification process consists of a
review of a manufacturer's performance during the certification period.
There is no cost to the manufacturer for the review and recertification
process.
C. Regulatory Flexibility Act
The Department of the Army does not expect this proposed rule to
have a
[[Page 35848]]
significant economic impact on a substantial number of small entities
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et
seq., because the rule is not creating any new requirements for
manufacturers of military insignia.
The Department of the Army is revising the internal policies that
require a five-year review of manufacturer certifications, insignia
authorizations and changes to the procedure for authorizing the use of
insignia on commercial items.
The objective of the proposed revisions establish procedures
governing the manufacture, commercial sale, reproduction, possession,
and wear of military decorations, medals, badges, insignia and their
components and appurtenances. These revisions supports a recommendation
from the DoD Regulatory Reform Task Force, under E.O. 13777, enforcing
the Regulatory Reform Agenda.
The Department of the Army does not collect data on the number of
small businesses that manufactures jewelry, lapel buttons, medallions,
recognition awards or trophies. Instead, Army subject matter work with
those companies wishing to be certified to manufacture and sell
Military Insignia made in the United States using government owned
hubs, dies, manufacturing drawings and cartoons. There are currently 15
active certified manufactures of Military Insignia. Based on the
information available, the Army does not anticipate that this rule will
significantly impact small business entities.
This proposed rule does not include any new reporting,
recordkeeping, or other compliance requirements for small businesses.
Manufacturers wanting to be certified provide general information
already available to the public, such as company name, address, points
of contact and the type of insignia they want to produce. This rule
does not duplicate, overlap, or conflict with any other Federal rules.
There are no known alternative to the rule that will meet the stated
objectives or minimize the impact on of the rule on small entities.
The Department of the Army invites comments from small business
concerns and other interested parties on the expected impact of this
rule on small entities. The Department of the Army will also consider
comments from small entities concerning the existing regulations in
subparts affected by this rule in accordance with 5 U.S.C. 610.
Interested parties must submit such comments separately and should cite
5 U.S.C. 610 (32 CFR part 507 RIN 0702-AA70) in correspondence.
D. Unfunded Mandates Reform Act
The Department of the Army certifies that this action does not
include a mandate that may result in estimated costs to State, local or
tribal governments in the aggregate or the private sector of $100
million or more.
E. National Environmental Policy Act
The Department of the Army has determined that this action is not
covered under the National Environmental Policy Act because the rule is
not a major Federal action that significantly affects the quality of
the human environment.
F. Paperwork Reduction Act
The Department of the Army has determined that the Paperwork
Reduction Act does not apply. Manufacturers wanting to be certified
provide general information already available to the public about the
company such as name, address, points of contact, contact information
and the type of insignia they want to produce. Annually, fewer than
five manufacturers request certification.
G. Executive Order 12630 (Government Actions and Interference With
Constitutionally Protected Property Rights)
The Department of the Army has determined that Executive Order
12630 does not apply because the rule does not impair private property
rights.
H. Executive Order 12866 (Regulatory Planning and Review) and Executive
Order 13563 (Improving Regulation and Regulatory Review)
The Department of the Army has determined that according to the
criteria defined in Executive Order 12866 and Executive Order 13563
this rule is not a significant regulatory action. As such, the proposed
rule is not subject to Office of Management and Budget review under
section 6(a)(3) of the Executive Order 12866.
I. Executive Order 13045 (Protection of Children From Environmental
Health Risk and Safety Risks)
The Department of the Army has determined that Executive Order
13045 does not apply because this substantive action in rulemaking is
neither economically significant nor does the action concern
environment health or safety risks that may disproportionally affect
children.
J. Executive Order 13132 (Federalism)
The Department of the Army has determined that Executive Order
13132 does not apply because this rule will not have a substantial
effect on the States, on the relationship between the national
government and the States, or on the distribution of power and
responsibilities among various levels of government.
K. Executive Order 13771 (Reducing Regulation and Controlling
Regulatory Costs)
This proposed rule is not expected to be subject to E.O. 13771 as
this rule is not significant under E.O. 12866.
List of Subjects in 32 CFR Part 507
Decoration, Service Medal, Service Ribbon, Badge, Lapel Button,
Insignia, Special Skill, Qualification Badges, Identification Badges,
Bars, Shoulder Sleeve Insignia, Distinctive Unit Insignia.
For reasons discussed in the preamble the Department of the Army
proposes to revise 32 CFR part 507 as follows:
PART 507--MANUFACTURE, SALE, WEAR, AND QUALITY CONTROL OF HERALDIC
ITEMS
Subpart A--Introduction
Sec.
507.1 Purpose.
507.2 References.
507.3 Explanation of abbreviations and terms.
507.4 Responsibilities.
507.5 Statutory authority.
Subpart B--Manufacture and Sale of Decorations, Badges, and Insignia
507.6 Authority to manufacture.
507.7 Certification of controlled heraldic items.
507.8 Authority to sell.
507.9 Reproduction of designs.
507.10 Incorporation of designs or likenesses of approved designs in
commercial articles.
507.11 Possession and wear.
Subpart C--Heraldic Quality Control Program
507.12 General.
507.13 Controlled heraldic items.
507.14 Articles not authorized for manufacture or commercial sale.
507.15 Violations and penalties.
507.16 Processing complaints of alleged breach of policies.
Subpart D--License and Manufacture of the Service Flag and Service
Lapel Button
507.17 Authority to manufacture.
507.18 Application for licensing.
Authority: 10 U.S.C. 4594; 18 U.S.C 701, 704; 36 U.S.C. 901.
Subpart A--Introduction
Sec. 507.1 Purpose.
This regulation prescribes the Department of the Army policy
governing the manufacture, commercial
[[Page 35849]]
sale, reproduction, possession, and wear of military decorations,
medals, badges, insignia, and their components and appurtenances. It
also establishes the Heraldic Quality Control Program to improve the
appearance of the Army by controlling the quality of heraldic items
purchased from commercial sources.
Sec. 507.2 References.
Related publications are listed in paragraphs (a) through (d) of
this section. (A related publication is merely a source of additional
information. The user does not have to read it to understand this
part).
(a) Department of Defense Manual 1348.33, Volume 3, Manual of
Military Awards and Decorations. (Available at https://www.esd.whs.mil/Directives/issuances/dodm/)
(b) Army Regulation 360-1, Army Public Affairs Program. (Available
at https://armypubs.army.mil/ProductMaps/PubForm/AR.aspx)
(c) Army Regulation 670-1, Wear and Appearance of Army Uniforms and
Insignia. (Available at https://armypubs.army.mil/ProductMaps/PubForm/AR.aspx)
(d) Army Regulation 840-1, Department of the Army Seal, and
Department of the Army Emblem and Branch of Service Plaques. (Available
at https://armypubs.army.mil/ProductMaps/PubForm/AR.aspx)
(e) Army Regulation 27-60, Intellectual Property. (Available at
https://armypubs.army.mil/ProductMaps/PubForm/AR.aspx)
Sec. 507.3 Explanation of abbreviations and terms.
(a) Abbreviations.
(1) CFR--Code of Federal Regulations.
(2) DA--Department of the Army.
(3) DAASA--Deputy Administrative Assistant to the Secretary of the
Army
(4) DLA--Defense Logistics Agency.
(5) DUI--Distinctive unit insignia.
(6) ID--Identification
(7) IOH--Institute of Heraldry
(8) MCS--Military Clothing Store.
(9) RDI--Regimental Distinctive Insignia.
(10) ROTC--Reserve Officers' Training Corps.
(11) SSI--Shoulder sleeve insignia.
(12) TIOH--The Institute of Heraldry.
(13) U.S.C.--United States Code.
(b) Terms.
(1) Appurtenances. Devices such as stars, letters, numerals, or
clasps worn on the suspension ribbon of the medal, or on the ribbon bar
that indicate additional awards, participation in specific events, or
other distinguishing characteristics of the award.
(2) Awards. An all-inclusive term that consists of any decoration,
medal, badge, ribbon, or appurtenance bestowed on an individual or
unit.
(3) Badge. An award given to an individual for identification
purposes or that is awarded for attaining a special skill or
proficiency. Certain badges are available in full, miniature, and dress
miniature sizes.
(4) Cartoon. A drawing, six times actual size, showing placement of
stitches, color of yarn and number of stitches.
(5) Certified manufacturer. A manufacturer who demonstrated the
capability to manufacture controlled heraldic items according to
government standards.
(6) Certificate of authority to manufacture. A certificate
assigning manufacturers a hallmark and authorizing manufacture of
heraldic items.
(7) Decoration. An award given to an individual as a distinctively
designed mark of honor denoting heroism, or meritorious or outstanding
service or achievement.
(8) Hallmark. A distinguishing mark consisting of a letter and
numbers assigned to certified manufacturers for use in identifying
manufacturers of insignia.
(9) Heraldic items. All items worn on the uniform to indicate unit,
skill, branch, award or identification and for which a design has been
established by TIOH on an official drawing.
(10) Heraldic Quality Control Program. A program that improves the
appearance of the Army by controlling the quality of insignia purchased
from commercial sources.
(11) Lapel button. A miniature enameled replica of an award, which
is worn only on civilian clothing.
(12) Letter of agreement. A letter signed by manufacturers before
certification, stating that the manufacturer agrees to produce heraldic
items in accordance with specific requirements.
(13) Letter of authorization. A letter issued by TIOH that
authorizes the manufacture of a specific heraldic item after quality
assurance inspection of a preproduction sample.
(14) Medal. An award issued to an individual for the performance of
certain duties, acts, or services, consisting of a suspension ribbon
made in distinctive colors and from which hangs a medallion.
(15) Rosette. A lapel device created from gathering the suspension
ribbon of a medal into a circular shape. The device is worn on the
lapel of civilian clothing.
(16) Service medal. An award made to personnel who participated in
designated wars, campaigns, or expeditions or who have fulfilled
specified service requirements in a creditable manner.
(17) Tools. Hubs, dies, cartoons, and drawings used in the
manufacture of heraldic items.
(18) Unit award. An award made to an operating unit, which is worn
by members of that unit who participated in the cited action (permanent
unit award).
Sec. 507.4 Responsibilities.
Director, The Institute of Heraldry (TIOH). The Director, TIOH,
will--
(a) Monitor the overall operation of the Heraldic Quality Control
Program.
(b) Establish policy and procedures to:
(1) Certify manufacturers of insignia and plaques.
(2) Control the manufacture and quality assurance of military
decorations, the DA seal and emblem, Branch of Service plaques, and
other heraldic items.
(3) Grant certificates of authority for the manufacture and
commercial sale of Service flags and Service lapel buttons.
(4) Provide heraldic services to the Executive Branch, Department
of Defense, and other Federal agencies on a reimbursable basis.
(5) Provide advisory opinions on the use of Army heraldic items for
licensing or other commercial purposes (for example, the Army Emblem,
Army Flag, unit insignia, and items approved for wear on uniforms), at
the request of the Army Trademark Licensing Program.
Sec. 507.5 Statutory authority.
(a) The manufacture, commercial sale, possession, and reproduction
of badges, identification cards, insignia, or other designs prescribed
by the head of a U.S. department or agency, or colorable imitations of
them, are governed by Title 18, United States Code, section 701 (18
U.S.C. 701).
(b) The wear, manufacture, and commercial sale of military
decorations, medals, badges, and their components and appurtenances, or
colorable imitations thereof, are governed by 18 U.S.C. 704.
(c) The furnishing of heraldic services to other Military
departments and Federal agencies is governed by 10 U.S.C. 4594.
(d) The display of and license to manufacture and sell the approved
service flag or service lapel button is governed by 36 U.S.C. 901.
(e) The ownership and licensing of trademarks, service marks, and
collective marks such as DUI, RDI, SSI, and other Army-owned heraldic
insignia are governed by 15 U.S.C. 1051 et seq., and 10 U.S.C. 2260.
[[Page 35850]]
Subpart B--Manufacture and Sale of Decorations, Badges, and
Insignia
Sec. 507.6 Authority to manufacture.
(a) Only manufacturers that TIOH has certified and issued a
certificate of authority may produce heraldic items.
(1) TIOH will issue a certificate of authority to manufacturers who
can demonstrate they have the capability to manufacture controlled
heraldic items according to Government specifications or purchase
descriptions through the certification process.
(2) The certificate of authority to manufacture is applicable only
for the individual, firm, or corporation indicated and will be valid
for 5 years.
(3) TIOH will assign a hallmark to each certified manufacturer. All
controlled heraldic items manufactured for commercial sale will bear
the manufacturer's hallmark.
(4) TIOH exclusively uses the ``IOH'' hallmark for the development
of new controlled heraldic items; it is not authorized for use on items
for commercial sale.
(b) A certificate of authority to manufacture may be revoked or
suspended under the procedures prescribed in Sec. 507.16.
(c) A list of certified manufacturers is on the TIOH web page at
https://tioh.army.mil/Catalog/VendorList.aspx.
Sec. 507.7 Certification of controlled heraldic items.
(a) The manufacture and commercial sale of controlled heraldic
items are not authorized until the certified manufacturer receives a
letter of authorization from TIOH. Manufacturers who want to
manufacture and sell controlled heraldic items must submit four
production samples of each item to TIOH for authorization. If TIOH
approves the production samples, it will provide a letter of
authorization to manufacture along with one certified production sample
to the manufacturer. Letters of authorization for certified heraldic
items are valid for 5 years.
(b) The Director, TIOH may revoke or suspend a letter of
authorization for failure to manufacture the heraldic item in
accordance with applicable Government specifications.
Sec. 507.8 Authority to sell.
No certificate of authority to manufacture is required for selling
controlled heraldic items listed in Sec. 507.13. However, all sellers
must ensure that all articles they sell bear hallmarks assigned by TIOH
and are manufactured by certified manufacturers in conformance with
applicable Government specifications.
Sec. 507.9 Reproduction of designs.
(a) The photographing or printing of any decoration, service medal,
service ribbon, badge, lapel button, insignia, or other device of a
design the Secretary of the Army has prescribed for members of the Army
to use is authorized, provided that such reproduction does not
discredit the U.S. Army and is not used to defraud or misrepresent the
identification or status of an individual, organization, society, or
other group of persons.
(b) The making or executing in any manner of any engraving,
impression, or colorable imitation in the likeness of any decoration,
service medal, service ribbon, badge, lapel button, insignia, or other
device of a design the Secretary of the Army has prescribed for members
of the Army to use is prohibited without prior approval in writing from
the Army Trademark Licensing Program.
(c) Except when used to illustrate a particular article that is
offered for commercial sale, AR 360-1, paragraph 8-9e prohibits the use
of Army themes, material, uniforms, or insignia in advertisements and
promotions for entertainment-oriented products that could imply Army
endorsement of the product. Direct requests to the Chief, Public
Affairs (SAPA-ZA), 1500 Army Pentagon, Washington, DC 20310-1500.
Sec. 507.10 Incorporation of designs or likenesses of approved
designs in commercial articles.
(a) Federal law and Army policy restrict the use of military
designs. The manufacture of articles for commercial sale that
incorporate designs or likenesses of decorations, service medals,
service ribbons, and lapel buttons is prohibited. Certain designs or
likenesses of insignia, such as badges or organizational insignia, may
be incorporated in articles manufactured for commercial sale, provided
that the Army Trademark Licensing Program has granted permission in
writing as specified in Sec. 507.10(b).
(b) The Army Trademark Licensing Program is responsible for
reviewing requests for permission to incorporate certain insignia and
other Army-owned marks in articles manufactured for commercial sale.
Requests should be directed to the Director, Army Trademark Licensing
Program, 2530 Crystal Drive, Suite 4150, Arlington, VA 22202-3934.
Sec. 507.11 Possession and wear.
(a) The wearing of any decoration, service medal, badge, service
ribbon, lapel button, or insignia that the Army has prescribed or
authorized by any person not properly authorized to wear such device or
the use of any decoration, service medal, badge, service ribbon, lapel
button, or insignia to misrepresent the identification or status of the
person by whom such is worn is prohibited. Any person who violates this
provision is subject to punishment as prescribed in the statutes
referred to in Sec. 507.5.
(b) Mere possession by a person of any of the articles prescribed
in Sec. 507.13 (except identification cards) is authorized, provided
that such possession is not used to defraud or misrepresent the
identification or status of the individual concerned.
(c) Articles specified in Sec. 507.13, or any distinctive parts
(including suspension ribbons and service ribbons) or colorable
imitations thereof, will not be used by any organization, society, or
other group of persons without prior approval in writing by the Army
Trademark Licensing Program as specified in Sec. 507.10(b).
Subpart C--Heraldic Quality Control Program
Sec. 507.12 General.
The Heraldic Quality Control Program provides a method for ensuring
that controlled heraldic items are manufactured by certified
manufacturers in accordance with Government specifications. The design
of metal insignia will be an exact duplicate of the design of the
Government die or loaned hub from which the certified manufacturer's
working die is extracted. The design of textile insignia will be
embroidered in accordance with Government-furnished specification and
cartoon.
Sec. 507.13 Controlled heraldic items.
(a) Controlled heraldic items will be manufactured in accordance
with Government specifications, using Government loaned hubs, dies, or
cartoons, by TIOH-certified manufacturers.
(b) The heraldic items listed below are controlled and authorized
for manufacture and commercial sale under the Heraldic Quality Control
Program when specifically authorized by TIOH.
(1) All authorized appurtenances and devices for decorations,
medals and ribbons such as oak leaf clusters, service stars,
arrowheads, ``V'' device, and clasps.
(2) Combat, special skill, and qualification badges and bars.
(3) Identification badges.
(4) All approved Shoulder Sleeve Insignia.
(5) All approved Distinctive Unit Insignia.
[[Page 35851]]
(6) All approved Regimental Distinctive Insignia.
(7) All approved Combat Service Identification Badges.
(8) Fourrag[egrave]res and lanyards.
(9) Lapel buttons.
(10) Decorations, service medals, and ribbons, except for the Medal
of Honor.
(11) Replicas of decorations and service medals for grave markers.
Replicas are to be at least twice the size prescribed for decorations
and service medals.
(12) Service ribbons and unit awards.
(13) Rosettes, except for the Medal of Honor.
(c) Deviations from the prescribed specifications for these items
are not permitted without prior approval, in writing, by TIOH.
(d) Hubs, Dies and cartoons are not provided to manufacturers for
the following items. However, manufacturing will be in accordance with
the Government-furnished drawing.
(1) Shoulder Loop Insignia, Reserve Officers' Training Corps
(ROTC), U.S. Army.
(2) Institutional SSI, ROTC, U.S. Army.
(3) Background trimming/flashes, U.S. Army.
(4) Hand-embroidered bullion insignia.
Sec. 507.14 Articles not authorized for manufacture or commercial
sale.
The following articles are not authorized for manufacture and
commercial sale, except under contract with the Defense Logistics
Agency, Troop Support (DLA Troop Support):
(a) The Medal of Honor.
(b) Service ribbon for the Medal of Honor.
(c) Medal of Honor Rosette.
(d) Medal of Honor Flag.
(e) Military Department Service flags (prescribed in Army
Regulation 840-10).
(f) Articles for commercial sale that incorporate designs or
likenesses of insignia listed in Sec. 507.13, except when authorized
in writing by the Army Trademark Licensing Program as specified in
Sec. 507.10(b).
Sec. 507.15 Violations and penalties.
(a) TIOH will revoke a certificate of authority to manufacture when
the holder intentionally violates any of the provisions of this
regulation or does not comply with the agreement the manufacturer
signed to receive a certificate.
(b) Violations are also subject to penalties as prescribed in the
statutes referred to in Sec. 507.5.
(c) Repetition or continuation of violations after official notice
will be deemed as corroborating evidence of intentional violation.
Sec. 507.16 Processing complaints of alleged breach of policies.
(a) TIOH may suspend or revoke a certificate of authority to
manufacture if the manufacturer breaches quality control policies. The
term ``quality control policies'' includes the obligation of a
manufacturer to produce insignia in accordance with all applicable
government specifications, manufacturing drawings and cartoons and
other applicable instructions TIOH provided. Breaches of quality
control policies may be identified by TIOH through the Quality Control
Inspection Program or through registered complaints to TIOH.
(b) Complaints and reports of an alleged breach of quality control
policies will be forwarded to the Director, The Institute of Heraldry,
9325 Gunston Road, Room S113, Fort Belvoir, VA 22060-5579.
(c) The Director may decide to suspend or revoke a certificate of
authority to a manufacture based on evidence gathered during a TIOH
heraldic quality control inspection or from a registered complaint. The
Director may initiate an informal investigation of an allegation of
breach(es) of the heraldic quality control policy.
(d) Heraldic Quality Control Inspection Program.
(1) TIOH will conduct periodic quality control inspections of on
hand stocks of heraldic items maintained by:
(i) Exchange military clothing stores.
(ii) Certified manufacturers.
(2) Upon completion of quality control inspections, TIOH will
provide a report of deficiencies to the appropriate retail outlet or
Commander, DLA Troop Support and the certified manufacturer responsible
for the production of the item. The notification to the manufacturer
will require assurances of compliance with quality control policies.
The report of deficiencies will be reviewed upon recertification of the
manufacturer. Any recurrence of the same breach will be considered a
refusal to perform, and the Director will take further action to
suspend or revoke certification.
(e) Complaint of alleged breach of quality control policy.
(1) If an investigation is initiated, the appointed investigator
will impartially ascertain facts and gather appropriate evidence to
substantiate or invalidate allegations of impropriety. The investigator
will submit a report containing a summarized record of the
investigation with findings of each allegation and supporting evidence
to the Director.
(2) If the investigation substantiates allegation(s) of a breach of
quality control, the Director will notify the manufacturer in writing
that the Director is contemplating suspending or revoking the
certificate. The notification will include:
(i) The specific allegations and findings of the investigator;
(ii) All evidence provided to the Director in the investigation;
(iii) A citation to this regulation as the authority under which
the Director may suspend or revoke the certificate of authority if the
situation warrants after the manufacturer has had an opportunity to
reply;
(iv) What actions, if the allegations are undisputed, are required
to provide adequate assurance that future performance will conform to
quality control policies;
(v) The right to reply within 45 days of receipt of the
notification in order to submit additional materials and evidence for
consideration, to refute the allegations, or provide assurances that
future performance will conform to quality control policies; and
(vi) That a failure to reply within 45 days, or if there is any
recurrence of the same breach will be considered a refusal to perform,
and the Director will take further action to suspend or revoke
certification.
(f) Refusal to perform.
(1) If the manufacturer fails to reply within a reasonable time to
the letter authorized by paragraph e above, refuses to give adequate
assurances that future performance will conform to quality control
policies, indicates by subsequent conduct that the breach is continuous
or repetitive, or disputes the allegations of breach, the Director will
direct that a public hearing be conducted on the allegations.
(2) A hearing examiner will be appointed by appropriate orders. The
examiner may be either a commissioned officer or a civilian employee
above the grade of GS-7.
(3) The specific written allegations, together with other pertinent
material, will be transmitted to the hearing examiner for introduction
as evidence at the hearing.
(4) For failure to return a loaned tool, manufacturers may be
suspended without referral to a hearing specified above; however, the
manufacturer will be advised, in writing, that tools are overdue and
suspension will take effect if tools are not returned within the
specified time.
[[Page 35852]]
(g) Notification to the manufacturer by examiner. Within a 7-day
period following the receipt by the examiner of the allegations and
other pertinent material, the examiner will transmit a registered
letter of notification to the manufacturer informing him or her of
the--
(1) Specific allegations.
(2) Directive of the Director requiring the holding of a public
hearing on the allegations.
(3) Examiner's decision to hold the public hearing at a specific
time, date, and place that will be not earlier than 30 days from the
date of the letter of notification.
(4) Ultimate authority of the Director to suspend or revoke the
certificate of authority if the record developed at the hearing so
warrants.
(5) Right to--
(i) A full and fair public hearing.
(ii) Be represented by counsel at the hearing.
(iii) Request a change in the date, time, or place of the hearing,
for purposes of having reasonable time in which to prepare the case.
(iv) Submit evidence and present witnesses in his or her own
behalf.
(v) Obtain at no cost a verbatim transcript of the proceedings,
upon written request filed before the commencement of the hearing.
(h) Public hearing by examiner.
(1) At the time, date, and place designated in accordance with g(3)
of this section, the examiner will conduct the public hearing.
(i) A verbatim record of the proceedings will be maintained.
(ii) All previous material received by the examiner will be
introduced into evidence and made part of the record.
(iii) The Government may be represented by counsel at the hearing.
(2) Subsequent to the conclusion of the hearing, the examiner will
make specific findings on the record before him or her concerning each
allegation.
(3) The complete record of the case will be forwarded to the
Director.
(i) Action by the Director.
(1) The Director will review the record of the hearing and either
approve or disapprove the findings.
(2) Upon arrival of a finding of breach of quality control
policies, the manufacturer will be so advised.
(3) After review of the findings, the certificate of authority may
be revoked or suspended. If the certificate of authority is revoked or
suspended, the Director will--
(i) Notify the manufacturer of the revocation or suspension.
(ii) Remove the manufacturer from the list of certified
manufacturers.
(iii) Inform the AAFES and the Defense Logistics Agency-Troop
Support of the action.
(j) Reinstatement of certificate of authority. Upon receipt of
adequate assurance that the manufacturer will comply with quality
control policies, the Director may reinstate a certificate of authority
that has been suspended or revoked.
Subpart D--License and Manufacture of the Service Flag and Service
Lapel Button
Sec. 507.17 Authority to manufacture.
(a) The Secretary of Defense has designated the Secretary of the
Army to grant certificates of authority for the manufacture and
commercial sale of Service flags and Service lapel buttons.
(b) Any person, firm, or corporation that wishes to manufacture the
Service flag or lapel button must apply for a certificate of authority
to manufacture from TIOH.
Sec. 507.18 Application for licensing.
(a) Applicants who want to manufacture and sell Service flags or
Service lapel buttons should contact the Director, The Institute of
Heraldry, 9325 Gunston Road, Suite 113, Fort Belvoir, VA 22060-5576 to
obtain an agreement to manufacture, drawings, and instructions for
manufacturing the Service flag and Service lapel button.
(b) Certificates of authority to manufacture Service flags and
Service lapel buttons will be valid for 5 years from the date of
issuance, at which time applicants must reapply for a new certificate
of authority.
Brenda S. Bowen,
Army Federal Register Liaison Officer.
[FR Doc. 2020-12176 Filed 6-11-20; 8:45 am]
BILLING CODE 5061-AP-P
