[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR123.74]

[Page 595-596]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 123--CUSTOMS RELATIONS WITH CANADA AND MEXICO--Table of Contents
 
            Subpart H--Land Border Carrier Initiative Program
 
Sec. 123.74  Notice of selection; appeal of determination.

    The information provided pursuant to paragraphs (b) through (d) of 
Sec. 123.73 shall constitute the criteria used to evaluate the 
competency of the carrier-applicant to participate in the LBCIP. 
Following Customs evaluation

[[Page 596]]

of the information provided, Customs shall notify the carrier-applicant 
in writing of Customs determination as to whether the carrier-applicant 
is qualified to participate in the LBCIP. In cases of selection, Customs 
will sign and return one of the copies of the written agreement. In 
cases of nonselection, the written notice shall clearly state the 
reason(s) for denial and recite the applicant's appeal rights under 
paragraph (b) of this section.
    (a) Grounds for nonselection. The port director may deny a carrier's 
application to participate in the LBCIP for any of the following 
reasons:
    (1) Evidence of any criminal or dishonest conduct involving the 
carrier, a corporate officer, designated drivers, or other person the 
port director determines is exercising substantial ownership or control 
over the carrier operation or corporate officer;
    (2) Evidence of improper use of designated conveyances;
    (3) Evidence that the written agreement was entered into by fraud or 
misstatement of a material fact; or
    (4) A determination is made that the grant of LBCIP privileges would 
endanger the revenue or security of the Customs area.
    (b) Appeal of determination. Carrier-applicants not selected to 
participate in the LBCIP and who wish to appeal the decision shall 
either:
    (1) Appeal the adverse determination in accordance with the appeal 
procedure set forth in Sec. 123.75(c) of this part; or
    (2) Cure any deficiency in the first application by submitting a new 
application to the port director who denied the previous application 
after waiting 60 days from the date of issuance of the first 
determination.