[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR400.21]

[Page 64]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
      CHAPTER IV--FOREIGN-TRADE ZONES BOARD, DEPARTMENT OF COMMERCE
 
PART 400_REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD--Table of Contents
 
        Subpart C_Establishment and Modification of Zone Projects
 
Sec.  400.21  Number and location of zones and subzones.


    (a) Number of zone projects--port of entry entitlement. (1) Provided 
that the other requirements of this subpart are met:
    (i) Each port of entry is entitled to at least one zone project;
    (ii) If a port of entry is located in more than one state, each of 
the states in which the port of entry is located is entitled to a zone 
project; and
    (iii) If a port of entry is defined to include more than one city 
separated by a navigable waterway, each of the cities is entitled to a 
zone project.
    (2) Zone projects in addition to those approved under the 
entitlement provision of paragraph (a)(1) of this section may be 
authorized by the Board if it determines that existing project(s) will 
not adequately serve the public interest (convenience of commerce).
    (b) Location of zones and subzones--port of entry adjacency 
requirements. (1) The Act provides that the Board may approve ``zones in 
or adjacent to ports of entry'' (19 U.S.C. 81b).
    (2) The ``adjacency'' requirement is satisfied if:
    (i) A general-purpose zone is located within 60 statute miles or 90 
minutes' driving time from the outer limits of a port of entry;
    (ii) A subzone meets the following requirements relating to Customs 
supervision:
    (A) Proper Customs oversight can be accomplished with physical and 
electronic means; and
    (B) All electronically produced records are maintained in a format 
compatible with the requirements of the U.S. Customs Service for the 
duration of the record period; and
    (C) The grantee/operator agrees to present merchandise for 
examination at a Customs site selected by Customs when requested, and 
further agrees to present all necessary documents directly to the 
Customs oversight office.