Foreign-Trade Zones Board Proceedings, 8525-8530 [2024-01953]

Agencies

• DEPARTMENT OF COMMERCE
• Foreign-Trade Zones Board

[Federal Register Volume 89, Number 27 (Thursday, February 8, 2024)]
[Rules and Regulations]
[Pages 8525-8530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01953]



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Rules and Regulations
                                                Federal Register
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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. 

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

[[Page 8525]]



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 
[email protected], (202) 482-0473, or Ashlande Gelin at 
[email protected], (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: Sec. Sec.  400.1(c) and 400.16. One comment stated that 
the word ``production'' should be added to the list of activities in 
Sec. Sec.  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 Sec. Sec.  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 (Sec.  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

[[Page 8526]]

items listed. As a result, this change has not been adopted.
    Comment 2: Sec.  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: Sec.  400.11(b)(2)(i). One comment requested 
confirmation that removing the phrase ``general purpose'' from the 
description of zone sites in Sec.  400.11(b)(2)(i) would not impact the 
adjacency requirement for subzones in Sec.  400.11(b)(2)(ii).
    Response: We can confirm that removal of the phrase ``general 
purpose'' from Sec.  400.11(b)(2)(i) will not impact Sec.  
400.11(b)(2)(ii).
    Comment 4: Sec.  400.13(a)(8). One comment requested confirmation 
that the proposed edits to Sec.  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: Sec.  400.13(c). One comment stated that moving prior 
Sec.  400.14(e) to Sec.  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 Sec.  400.14(e) to 
Sec.  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 Sec.  
400.14(e) to Sec.  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 Sec.  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/policy-guidance?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 
Sec.  400.14(e) to Sec.  400.13(c).
    Comment 6: Sec.  400.13(c) and Sec.  400.32(c)(2). One comment 
suggested including reference to Chapter 99 (trade remedy) duty rates 
in Sec.  400.13(c) and Sec.  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: Sec.  400.16. Several comments argued that the proposed 
addition of the phrase ``in foreign status'' to Sec.  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 Sec.  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 Sec.  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.

[[Page 8527]]

    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 long-standing 
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 
Sec.  400.16. The change to this text is consistent with the language 
adopted by the Board in 1991 and currently used in Sec.  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

0
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)).

0
2. In Sec.  400.2:
0
a. Revise paragraphs (h) and (t);
0
b. Remove paragraph (u); and
0
c. Redesignate paragraphs (v) through (aa) as paragraphs (u) through 
(z).
    The revisions read as follows:


Sec.  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 Sec.  400.11(b)(2)) to a CBP port of entry, operated as a 
public utility (within the meaning of Sec.  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.
* * * * *

0
3. In Sec.  400.4, revise paragraphs (m) and (t) to read as follows:


Sec.  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 Sec. Sec.  400.21(b), 400.29, 400.43(f), and 
400.44;
* * * * *
    (t) Review zone schedules and determine their sufficiency under 
Sec.  400.44(c);
* * * * *

0
4. In Sec.  400.11, revise paragraph (b)(2)(i) to read as follows:


Sec.  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.
* * * * *

0
5. In Sec.  400.13:
0
a. Revise paragraph (a)(8);
0
b. Redesignate paragraph (c) as paragraph (d); and
0
c. Add a new paragraph (c).
    The revision and addition read as follows:


Sec.  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.
* * * * *

0
6. In Sec.  400.14:
0
a. Revise the section heading and paragraph (a); and
0
b. Remove paragraph (e).
    The revisions read as follows:


Sec.  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 Sec. Sec.  400.22 and 400.37 
shall be used. If Board review of a notification under Sec.  400.37 
results in a determination that further review is warranted for all or 
part of the notified activity, the application process pursuant to 
Sec. Sec.  400.23, 400.31 through 400.32, 400.34, and 400.36 shall 
apply

[[Page 8528]]

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).
* * * * *

0
7. Revise Sec.  400.16 to read as follows:


Sec.  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.

0
8. In Sec.  400.21:
0
a. Revise paragraphs (a) and (c)(1);
0
b. In paragraph (c)(5), add the word ``and'' following the semicolon;
0
c. Remove paragraph (c)(6) and redesignate paragraph (c)(7) as 
paragraph (c)(6);
0
d. Remove paragraph (d)(2)(vi);
0
e. Redesignate paragraphs (d)(2)(vii) and (ix) as paragraphs (d)(2)(vi) 
through (viii);
0
f. Revise paragraphs (e)(3), (h), and (i); and
0
g. Remove paragraph (j).
    The revisions read as follows:


Sec.  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 (Sec.  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 Sec.  
400.4(m).

0
9. In Sec.  400.24, revise paragraphs (a)(1), (c), and (d) to read as 
follows:


Sec.  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 (Sec.  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 Sec.  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 Sec.  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 Sec. Sec.  400.31 through 400.34 and 400.36 shall 
be followed, where relevant. If not, the procedure set forth in Sec.  
400.38 shall generally apply (although the Executive Secretary may 
elect to follow the procedures of Sec. Sec.  400.31 through 400.34 and 
400.36 when warranted).

0
10. In Sec.  400.26:
0
a. Revise the section heading;
0
b. In paragraph (d), add the word ``and'' following the semicolon;
0
c. In paragraph (e), remove ``; and'' and add a period in its place; 
and
0
d. Remove paragraph (f).
    The revision reads as follows:


Sec.  400.26  Criteria for evaluation of proposals, including for 
zones, expansions, subzones, or other modifications of zones.

* * * * *

0
11. In Sec.  400.27, revise the introductory text to read as follows:


Sec.  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 Sec.  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, intra-industry 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:
* * * * *

0
12. In Sec.  400.29:
0
a. Revise paragraphs (b) and (c); and
0
b. Remove paragraph (d).
    The revisions read as follows:


Sec.  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 (Sec.  400.21; Sec.  400.11(a)(2))--$3,200.
    (2) Subzones (Sec.  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 (Sec.  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.

0
13. In Sec.  400.31, revise paragraph (b) to read as follows:


Sec.  400.31  General application provisions and pre-docketing review.

* * * * *
    (b) Pre-docketing review. The applicant shall submit a complete 
copy

[[Page 8529]]

of an application for pre-docketing review. The Executive Secretary 
shall determine whether the application satisfies the requirements of 
Sec. Sec.  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 pre-docketing 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 Sec.  400.29, the fees shall be 
paid in accordance with Sec.  400.29 once the application is determined 
to be sufficient.

0
14. Revise Sec.  400.32 to read as follows:


Sec.  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 Sec.  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 
Sec. Sec.  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 Sec.  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 Sec.  400.28(c). Submissions must meet the requirements of 
Sec.  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.

0
15. In Sec.  400.33, revise paragraph (e)(3) to read as follows:


Sec.  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.
* * * * *

0
16. In Sec.  400.34, revise paragraph (a)(5)(iv)(C) to read as follows:


Sec.  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.
* * * * *

0
17. In Sec.  400.35, revise paragraph (c) to read as follows:


Sec.  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.
* * * * *

0
18. In Sec.  400.36:
0
a. Revise paragraphs (b) and (e); and
0
b. Remove the paragraph heading from paragraph (f).
    The revisions read as follows:


Sec.  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 Sec.  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.
* * * * *

0
19. In Sec.  400.37, revise paragraph (a) to read as follows:


Sec.  400.37  Procedure for notification of proposed production 
activity.

    (a) Submission of notification. A notification for production 
authority pursuant to Sec. Sec.  400.14(a) and 400.22 shall be 
submitted simultaneously to the Board's Executive Secretary and to CBP.
* * * * *

0
20. Revise Sec.  400.38 to read as follows:


Sec.  400.38  Procedure for request for minor modification of zone.

    (a) The Executive Secretary shall make a determination in cases 
under Sec.  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 Sec.  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.

[[Page 8530]]

    (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.


Sec.  400.42  [Amended]

0
21. In Sec.  400.42, remove and reserve paragraph (b).


Sec.  400.43  [Amended]

0
22. In Sec.  400.43, remove paragraph (i).

0
23. In Sec.  400.44:
0
a. Revise paragraphs (a), (b)(5), and (e); and
0
b. Remove paragraph (f).
    The revisions read as follows:


Sec.  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.

0
24. In Sec.  400.45, revise paragraph (b) to read as follows:


Sec.  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.

0
25. In Sec.  400.52, revise paragraph (b)(2) to read as follows:


Sec.  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 Sec.  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.
* * * * *

0
26. In Sec.  400.61, revise paragraphs (a) and (c) to read as follows:


Sec.  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 Sec.  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