[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR146.6]

[Page 94-95]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 146--FOREIGN TRADE ZONES--Table of Contents
 
                      Subpart A--General Provisions
 
Sec. 146.6  Procedure for activation.

    (a) Application. A zone operator, or where there is no operator, a 
grantee, shall make written application to the port director to obtain 
approval of activation of a zone or zone site. The area to be activated 
may be all or any portion of the zone approved by the Board. The 
application must include a description of all the zone sites covered by 
the application, any operation to be conducted therein, and a statement 
of the general character of the merchandise to be admitted. The port 
director may also require the operator or grantee to submit fingerprints 
on form FD 258 or electronically at the time of filing the application. 
If the operator is an individual, that individual's fingerprints may be 
required. If the operator or grantee is a business entity, fingerprints 
of all officers and managing officials may be required.
    (b) Supporting documents. The application must be accompanied by the 
following:
    (1) [Reserved]
    (2) A blueprint of the area approved by the Board to be activated 
showing area measurements, including all openings and buildings; and all 
outlets, inlets, and pipelines to any tank for the storage of liquid or 
similar product, that portion of the blueprint certified to be correct 
by the operator of the tank;
    (3) A gauge table, when appropriate, showing the capacity, in the 
appropriate unit, of any tank, certified to be correct by the operator 
of the tank;
    (4) A procedures manual describing the inventory control and 
recordkeeping system that will be used in the zone, certified by the 
operator or grantee to meet the requirements of subpart B; and
    (5) The written concurrence of the grantee, when the operator 
applies for activation, in the requested zone activation.
    (c) Inquiry by port director. As a condition of approval of the 
application, the port director may order an inquiry by a Customs officer 
into:
    (1) The qualifications, character, and experience of an operator 
and/or grantee and their principal officers; and
    (2) The security, suitability, and fitness of the facility to 
receive merchandise in a zone status.
    (d) Decision of the port director. The port director shall promptly 
notify the applicant in writing of his decision to approve or deny the 
application to activate the zone. If the application is denied, the 
notification will state the grounds for denial which need not be limited 
to those listed in Sec. 146.82. The decision of the port director will 
be the final Customs administrative determination in the matter. On 
approval of the application, a Foreign Trade Zone Operator's Bond shall 
be executed on Customs Form 301, containing the bond conditions of 
Sec. 113.73 of this chapter.

[[Page 95]]

    (e) Activation. Upon the port director's approval of the application 
and acceptance of the executed bond, the zone or zone site will be 
considered activated; and merchandise may be admitted to the zone. 
Execution of the bond by an operator does not lessen the liability of 
the grantee to comply with the Act and implementing regulations.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 93-18, 58 FR 
15773, Mar. 24, 1993; T.D. 95-99, 60 FR 62733, Dec. 7, 1995; T.D. 99-27, 
64 FR 13676, Mar. 22, 1999; T.D. 01-14, 66 FR 8767, Feb. 2, 2001]