[Code of Federal Regulations]

[Title 19, Volume 2]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR146.6]



[Page 96-97]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

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



[[Page 97]]



    (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.

    (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]