[Code of Federal Regulations] [Title 19, Volume 1] [Revised as of April 1, 2005] From the U.S. Government Printing Office via GPO Access [CITE: 19CFR123.74] [Page 670-671] TITLE 19--CUSTOMS DUTIES CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF HOMELAND SECURITY; 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 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 [[Page 671]] (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.