[Federal Register Volume 88, Number 111 (Friday, June 9, 2023)]
[Proposed Rules]
[Pages 37815-37819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-12123]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

15 CFR Part 400

[Docket No. 230131-0033]
RIN 0625-AB22


Foreign-Trade Zones Board Proceedings

AGENCY: Foreign-Trade Zones Board, International Trade Administration, 
Commerce.

ACTION: Proposed rule and request for comments.

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SUMMARY:  The Foreign-Trade Zones Board (the Board) proposes to amend 
its regulations and invites public comment on these proposed revisions. 
These modifications, if adopted, would allow for additional electronic 
fee payment options and make other minor clarifications and corrections 
to the regulatory language. Sections of the Board's 2012 regulations 
regarding application formats contained information collection 
requirements and could not be effective until the Office of Management 
and Budget (OMB) approved the information collection requests, which 
occurred on March 25, 2013.

DATES: To be assured of consideration, written comments must be 
received no later than July 10, 2023.

ADDRESSES: All comments must be submitted through the Federal 
eRulemaking Portal at https://www.regulations.gov, Docket No. ITA-
230131-0033, unless the commenter does not have access to the internet. 
Commenters that do not have access to the internet may submit the 
original and one electronic copy of each set of comments by mail or 
hand delivery/courier. All comments should be addressed to: Executive 
Secretary, Foreign-Trade Zones Board, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Room 21013, Washington, DC 20230. Comments submitted to the Board 
will be uploaded to the eRulemaking Portal at www.Regulations.gov.
    The Board will consider all comments received before the close of 
the comment period. All comments responding to this document will be a 
matter of public record and will be available on the Federal 
eRulemaking Portal at www.Regulations.gov. The Board will not accept 
comments accompanied by a request that part or all of the material be 
treated confidentially because of its business proprietary nature or 
for any other reason.
    Any questions concerning the process for submitting comments should 
be submitted to Enforcement & Compliance (E&C) Communications office at 
(202) 482-0063 or [email protected].

FOR FURTHER INFORMATION CONTACT: Elizabeth Whiteman at 
[email protected], (202) 482-0473, or Ashlande Gelin at 
[email protected],, (240) 449-5911.

SUPPLEMENTARY INFORMATION: 

Background

    Foreign-Trade Zones (FTZs or zones) are restricted-access sites in 
or near U.S. Customs and Border Protection (CBP) ports of entry. Zones 
are licensed by the Board and operated under the supervision of CBP 
(see 19 CFR part 146). Specifically, zones are physical areas into 
which foreign and domestic merchandise may be moved for operations 
involving storage, exhibition, assembly, manufacture or other 
processing not otherwise prohibited by law. Zone areas ``activated'' by 
CBP are considered outside of U.S. customs territory for purposes of 
CBP entry procedures. Therefore, the usual formal CBP entry procedure 
and payment of duties is not required on the foreign merchandise in 
FTZs unless and until it enters U.S. customs territory for U.S. 
domestic consumption. In fact, U.S. duties can be avoided on foreign 
merchandise re-exported from a FTZ, including after incorporation into 
a downstream product through activity in the FTZ. Zones have as their 
public policy objective the creation and maintenance of employment 
through the encouragement of operations in the United States which, for 
customs reasons, might otherwise have been carried on abroad.
    Through this proposed action, the Board intends to update the rules 
for FTZs. The key revision in the proposed regulations pertains to 
providing flexibility on the method to submit application fees. The 
current regulations require that application fees be submitted by 
check. While the Board has begun accepting ``eChecks'', the revisions 
proposed here would allow for the submission of additional forms of 
electronic payment.
    This proposed action will move the existing requirement to admit 
merchandise subject to AD/CVD actions in ``Privileged foreign'' status 
to the ``General conditions, prohibitions and restrictions applicable 
to authorized zones'' section. This move of the existing language is 
intended to clarify that the provision applies to all merchandise that 
is admitted to FTZs.
    Other revisions in this proposed rulemaking will update the 
language used to provide clarification and to reflect current 
practices.
    On February 28, 2012, a final rule was published revising the 
regulations of the Foreign-Trade Zones Board (77 FR 12112). That rule 
was published with an effective date of April 30, 2012, except for 
Sec. Sec.  400.21 through 400.23, 400.25 and 400.43(f). These sections 
contained information collection requirements and could not become 
effective until the Office of Management and Budget (OMB) approved 
these information collection requests pursuant to the Paperwork 
Reduction Act (44 U.S.C. Chapter 35). On March 25, 2013, OMB approved 
the information collections under control number 0625-0139, and the FTZ 
Board then began to use the new applications under Sec. Sec.  400.21 
through 400.23, 400.25 and 400.43(f).

Expected Impact of the Proposed Rule

    The proposed edits will allow for additional flexibility on the 
submission of application fees and otherwise clarify existing language 
and practices. The proposed edits are not expected to impact the number 
of requests submitted to the FTZ Board or the operation and management 
of existing zones.

Classifications

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
proposed rule is not significant for purposes of Executive Order 12866.

Paperwork Reduction Act

    This proposed rule contains no new collection of information 
subject to the Paperwork Reduction Act, 44 U.S.C. chapter 35.

Executive Order 13132

    This proposed rule does not contain policies with federalism 
implications as that term is defined in section 1(a) of Executive Order 
13132, dated August 4, 1999 (64 FR 43255 (August 10, 1999)).

[[Page 37816]]

Regulatory Flexibility Act

    The Chief Counsel for Regulation proposes to certify to the Chief 
Counsel for Advocacy of the Small Business Administration under the 
provisions of the Regulatory Flexibility Act (RFA), 5 U.S.C. 605(b), 
that the proposed rule would not have a significant economic impact on 
a substantial number of small business entities. A summary of the need 
for, objectives of and legal basis for this rule is provided in the 
preamble and is not repeated here.
    The types of small entities using the FTZ program include 
miscellaneous manufacturing and ocean freight companies. Under the 
Small Business Administration Regulations implementing the RFA, these 
types of businesses are considered small entities when they have fewer 
than 500 employees. Using this criterion, of the approximately 1000 
business entities operating in zones and impacted by this proposed 
rule, approximately 350 are likely considered small entities under the 
RFA. The edits proposed will not have a significant economic impact on 
any such entities.
    The proposed action includes minor edits to existing regulations 
and does not create additional burden on any parties. Therefore, the 
proposed rule would not have a significant economic impact on a 
substantial number of small business entities. For this reason, an 
Initial Regulatory Flexibility Analysis is not required, and one has 
not been prepared.

List of Subjects in 15 CFR Part 400

    Administrative practice and procedure, Confidential business 
information, Customs duties and inspection, Foreign-trade zones, 
Harbors, Imports, Reporting and recordkeeping requirements.

    Dated: June 1, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance, Alternate Chairman, 
Foreign-Trade Zones Board.

    For the reasons stated, the Board proposes to amend 15 CFR part 400 
as follows:

PART 400--REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD

0
1. The authority citation for part 400 continues to read as follows:

    Authority:  Foreign-Trade Zones Act of June 18, 1934, as amended 
(Pub. L. 73-397, 48 Stat. 998-1003 (19 U.S.C. 81a-81u)).

0
2. In Sec.  400.2:
0
a. Revise paragraphs (h) and (t);
0
b. Remove paragraph (u); and
0
c. Redesignate paragraphs (v) through (aa) as paragraphs (u) through 
(z).
    The revisions read as follows:


Sec.  400.2  Definitions.

* * * * *
    (h) Foreign-trade zone (FTZ or zone) includes all sites/subzones 
designated under the sponsorship of a zone grantee, in or adjacent (as 
defined by Sec.  400.11(b)(2)) to a CBP port of entry, operated as a 
public utility (within the meaning of Sec.  400.42), with zone 
operations under the supervision of CBP.
* * * * *
    (t) Usage-driven site means a site established for a single 
operator or user under the ASF.
* * * * *
0
3. In Sec.  400.4, revise paragraphs (m) and (t) to read as follows:


Sec.  400.4  Authority and responsibilities of the Executive Secretary.

* * * * *
    (m) Issue instructions, guidelines, forms and related documents 
specifying time, place, manner and formats for applications, 
notifications, application fees and zone schedules in various sections 
of this part, including Sec. Sec.  400.21(b), 400.29, 400.43(f), and 
400.44;
* * * * *
    (t) Review zone schedules and determine their sufficiency under 
Sec.  400.44(c);
* * * * *
0
4. In Sec.  400.11, revise paragraph (b)(2)(i) to read as follows:


Sec.  400.11  Number and location of zones and subzones.

* * * * *
    (b) * * *
    (2) * * *
    (i) A zone site is located within 60 statute miles or 90 minutes' 
driving time (as determined or concurred upon by CBP) from the outer 
limits of a port of entry boundary as defined in 19 CFR 101.3.
* * * * *
0
5. In Sec.  400.13:
0
a. Revise paragraph (a)(8);
0
b. Redesignate paragraph (c) as paragraph (d); and
0
c. Add a new paragraph (c).
    The revision and addition read as follows:


Sec.  400.13  General conditions, prohibitions and restrictions 
applicable to authorized zones.

    (a) * * *
    (8) Private ownership of zone land and facilities is permitted, 
provided the zone grantee retains the control necessary to implement 
the approved zone. Such permission shall not constitute a vested right 
to zone designation, nor interfere with the Board's regulation of the 
grantee or the permittee, nor interfere with or complicate the 
revocation of the grant by the Board. Grantees shall retain a level of 
control which allows the grantee to carry out its responsibilities as 
grantee. The sale of zone-designated land/facility for more than its 
fair market value without zone designation could, depending on the 
circumstances, be subject to the prohibitions set forth in section 17 
of the Act (19 U.S.C. 81q).
* * * * *
    (c) Restrictions on items subject to antidumping and countervailing 
duty actions--(1) Board policy. Zone procedures shall not be used to 
circumvent antidumping duty (AD) and countervailing duty (CVD) actions 
under 19 CFR part 351.
    (2) Admission of items subject to AD/CVD actions. Items subject to 
AD/CVD orders, or items which would be otherwise subject to suspension 
of liquidation under AD/CVD procedures if they entered U.S. customs 
territory, shall be placed in privileged foreign status (19 CFR 146.41) 
upon admission to a zone or subzone. Upon entry for consumption, such 
items shall be subject to duties under AD/CVD orders or to suspension 
of liquidation, as appropriate, under 19 CFR part 351.
* * * * *
0
6. In Sec.  400.14:
0
a. Revise the section heading and paragraph (a); and
0
b. Remove paragraph (e).
    The revisions read as follows:


Sec.  400.14  Production--requirement for prior authorization.

    (a) In general. Production activity in zones shall not be conducted 
without prior authorization from the Board. To obtain authorization, 
the notification process provided for in Sec. Sec.  400.22 and 400.37 
shall be used. If Board review of a notification under Sec.  400.37 
results in a determination that further review is warranted for all or 
part of the notified activity, the application process pursuant to 
Sec. Sec.  400.23, 400.31 through 400.32, 400.34, and 400.36 shall 
apply to the activity. Notifications and applications requesting 
production authority may be submitted by the zone's grantee or by the 
operator that proposes to undertake the activity (provided the operator 
at the same time furnishes a copy of the notification or application to 
the grantee and that submissions by the operator are

[[Page 37817]]

consistent with the grantee's zone schedule).
* * * * *
0
7. Revise Sec.  400.16 to read as follows:


Sec.  400.16  Exemption from state and local ad valorem taxation of 
tangible personal property.

    Tangible personal property imported from outside the United States 
and held in foreign status in the activated area of a zone for the 
purpose of storage, sale, exhibition, repackaging, assembly, 
distribution, sorting, grading, cleaning, mixing, display, 
manufacturing, or processing, and tangible personal property produced 
in the United States and held in the activated area of a zone for 
exportation, either in its original form or as altered by any of the 
processes set out in this section, shall be exempt from state and local 
ad valorem taxation.
0
8. In Sec.  400.21:
0
a. Revise paragraphs (a) and (c)(1);
0
b. In paragraph (c)(5), add the word ``and'' following the semicolon;
0
c. Remove paragraph (c)(6);
0
d. Redesignate paragraph (c)(7) as paragraph (c)(6);
0
e. Remove paragraph (d)(2)(vi);
0
f. Redesignate paragraphs (d)(2)(vii) and (ix) as paragraphs (d)(2)(vi) 
through (viii);
0
g. Revise paragraphs (e)(3), (h), and (i); and
0
h. Remove paragraph (j).
    The revisions read as follows:


Sec.  400.21  Application to establish a zone.

    (a) In general. An application for a grant of authority to 
establish a zone (including pursuant to the ASF procedures adopted by 
the Board (Sec.  400.2(c)) shall consist of an application letter and 
detailed contents to meet the requirements of this part.
* * * * *
    (c) * * *
    (1) The relationship of the proposal to the state enabling 
legislation and the applicant's charter;
* * * * *
    (e) * * *
    (3) Appropriate information regarding usage-driven sites or ASF 
subzones.
* * * * *
    (h) Drafts. Applicants are encouraged to submit a draft application 
to the Executive Secretary for review. A draft application must be 
complete with the possible exception of the application letter and/or 
resolution from the applicant.
    (i) Submission of completed application. The applicant shall submit 
the complete application, including all attachments, via email or by 
the method prescribed by the Executive Secretary pursuant to Sec.  
400.4(m).
0
9. In Sec.  400.24, revise paragraphs (a)(1), (c), and (d) to read as 
follows:


Sec.  400.24  Application for expansion or other modification to zone.

    (a) * * *
    (1) A grantee may apply to the Board for authority to expand or 
otherwise modify its zone (including pursuant to the ASF procedures 
adopted by the Board (Sec.  400.2(c)).
* * * * *
    (c) Minor modification to zone. Other applications or requests 
under this subpart shall be submitted in letter form with information 
and documentation necessary for analysis, as determined by the 
Executive Secretary, who shall determine whether the proposed change is 
a minor one subject to this paragraph (c) instead of paragraph (b) of 
this section (see, Sec.  400.38). Such applications or requests include 
those for minor revisions of zone or subzone boundaries based on 
immediate need, as well as for designation as a subzone of all or part 
of an existing zone site(s) (or site(s) that qualifies for usage-driven 
status), where warranted by the circumstances and so long as the 
subzone remains subject to the activation limit (see Sec.  400.2(b)) 
for the zone in question.
    (d) Applications for other revisions to authority. Applications or 
requests for other revisions to authority, such as for Board action to 
establish or modify an activation limit for a zone, modification of a 
restriction, reissuance of a grant of authority or request for a 
voluntary termination shall be submitted in letter form with 
information and documentation necessary for analysis, as determined by 
the Executive Secretary. If the change involves the removal or 
significant modification of a restriction included by the Board in its 
approval of authority or the reissuance of a grant of authority, the 
review procedures of Sec. Sec.  400.31 through 400.34 and 400.36 shall 
be followed, where relevant. If not, the procedure set forth in Sec.  
400.38 shall generally apply (although the Executive Secretary may 
elect to follow the procedures of Sec. Sec.  400.31 through 400.34 and 
400.36 when warranted).
0
10. In Sec.  400.26:
0
a. Revise the section heading;
0
b. In paragraph (d), add the word ``and'' following the semicolon;
0
c. In paragraph (e), remove ``; and'' and add a period in its place; 
and
0
d. Remove paragraph (f).
    The revision reads as follows:


Sec.  400.26  Criteria for evaluation of proposals, including for 
zones, expansions, subzones, or other modifications of zones.

* * * * *
0
11. In Sec.  400.27, revise the introductory text to read as follows:


Sec.  400.27  Criteria applicable to evaluation of applications for 
production authority.

    The Board shall apply the criteria set forth in this section in 
determining whether to approve an application for authority to conduct 
production activity pursuant to Sec.  400.23. The Board's evaluation 
shall take into account information such as pertains to market 
conditions, price sensitivity, degree and nature of foreign 
competition, intra-industry and intra-firm trade, effect on exports and 
imports, ability to conduct the proposed activity outside the United 
States with the same U.S. tariff impact, analyses conducted in 
connection with prior Board actions, and net effect on U.S. employment 
and the U.S. economy:
* * * * *
0
12. In Sec.  400.29:
0
a. Revise paragraphs (b) and (c); and
0
b. Remove paragraph (d).
    The revisions read as follows:


Sec.  400.29  Application fees.

* * * * *
    (b) Uniform system of user fee charges. The following fee schedule 
establishes fees for certain types of applications and requests for 
authority on the basis of their estimated average processing time.
    (1) Additional zones (Sec.  400.21; Sec.  400.11(a)(2))--$3,200.
    (2) Subzones (Sec.  400.25):
    (i) Not involving production activity or involving production 
activity with fewer than three products--$4,000.
    (ii) Production activity with three or more products--$6,500.
    (3) Expansions (Sec.  400.24(b))--$1,600.
    (c) Timing and manner of payment. Application fees shall be paid 
prior to the FTZ Board docketing an application and in a manner 
specified by the Executive Secretary.
0
13. In Sec.  400.31, revise paragraph (b) to read as follows:


Sec.  400.31  General application provisions and pre-docketing review.

* * * * *
    (b) Pre-docketing review. The applicant shall submit a complete 
copy of an application for pre-docketing review. The Executive 
Secretary shall determine whether the application satisfies the 
requirements of Sec. Sec.  400.12, 400.21, and 400.23 through 400.25 
and other applicable provisions of this part such that the application 
is sufficient for docketing. The applicant shall be

[[Page 37818]]

notified within 30 days whether the pre-docketing copy of the 
application is sufficient. If the application is not sufficient, the 
applicant will be notified of the specific deficiencies. An affected 
zone participant may also be contacted regarding relevant application 
elements requiring additional information or clarification. If the 
applicant does not correct the deficiencies and submit a corrected pre-
docketing application copy within 30 days of notification, the pre-
docketing application shall be discarded. For applications subject to 
Sec.  400.29, the fees shall be paid in accordance with Sec.  400.29 
once the application is determined to be sufficient.
0
14. Revise Sec.  400.32 to read as follows:


Sec.  400.32  Procedures for docketing applications and commencement of 
case review.

    (a) Once the pre-docketing copy of the application is determined to 
be sufficient and any fees under Sec.  400.29 have been paid, the 
Executive Secretary shall within 15 days:
    (1) Formally docket the application, thereby initiating the 
proceeding or review;
    (2) Assign a case-docket number; and
    (3) Notify the applicant of the formal docketing action.
    (b) After initiating a proceeding based on an application under 
Sec. Sec.  400.21 and 400.23 through 400.25, the Executive Secretary 
shall:
    (1) Designate an examiner to conduct a review and prepare a report 
or memorandum with recommendations for the Board;
    (2) Publish in the Federal Register a notice of the formal 
docketing of the application and initiation of the review. The notice 
shall include the name of the applicant, a description of the proposal, 
and an invitation for public comment. If the application requests 
authority for production activity and indicates that a component to be 
used in the activity is subject to a trade-related measure or 
proceeding (e.g., AD/CVD order or proceeding, suspension of liquidation 
under AD/CVD procedures), the notice shall include that information. 
For applications to establish or expand a zone or for production 
authority, the comment period shall normally close 60 days after the 
date the notice appears. For applications for subzone designation, the 
comment period shall normally close 40 days after the date the notice 
appears. However, if a hearing is held (see Sec.  400.52), the comment 
period shall not close prior to 15 days after the date of the hearing. 
The closing date for general comments shall ordinarily be followed by 
an additional 15-day period for rebuttal comments. Requests for 
extensions of a comment period will be considered, subject to the 
standards of Sec.  400.28(c). Submissions must meet the requirements of 
Sec.  400.28(b). With the exception of submissions by the applicant, 
any new evidence or new factual information and any written arguments 
submitted after the deadlines for comments shall not be considered by 
the examiner or the Board. Submission by the applicant of new evidence 
or new factual information may result in the (re)opening of a comment 
period. A comment period may otherwise be opened or reopened for cause;
    (3) Transmit or otherwise make available copies of the docketing 
notice and the application to CBP;
    (4) Arrange for hearings, as appropriate;
    (5) Transmit the report and recommendations of the examiner and any 
comments by CBP to the Board for appropriate action; and
    (6) Notify the applicant in writing (via electronic means, where 
appropriate) and publish notice in the Federal Register of the Board's 
determination.
    (c) Any comments by CBP pertaining to the application shall be 
submitted to the Executive Secretary by the conclusion of the public 
comment period described in paragraph (b)(2) of this section.
0
15. In Sec.  400.33, revise paragraph (e)(3) to read as follows:


Sec.  400.33  Examiner's review--application to establish or modify a 
zone.

* * * * *
    (e) * * *
    (3) If the factors considered for an examiner's recommendation(s) 
change as a result of new evidence, the applicable procedures of 
paragraphs (e)(1) and (2) of this section shall be followed.
* * * * *
0
16. In Sec.  400.34, revise paragraph (a)(5)(iv)(C) to read as follows:


Sec.  400.34  Examiner's review--application for production authority.

    (a) * * *
    (5) * * *
    (iv) * * *
    (C) If the factors considered for an examiner's recommendation(s) 
change as a result of new evidence, the applicable procedures of 
paragraphs (a)(5)(iv)(A) and (B) of this section shall be followed.
* * * * *
0
17. In Sec.  400.35, revise paragraph (c) to read as follows:


Sec.  400.35  Examiner's review--application for subzone designation.

* * * * *
    (c) If the factors considered for an examiner's recommendation(s) 
change as a result of new evidence, the applicable procedures of 
paragraphs (a) and (b) of this section shall be followed.
* * * * *
0
18. In Sec.  400.36:
0
a. Revise paragraphs (b) and (e); and
0
b. Remove the paragraph heading from paragraph (f).
    The revisions read as follows:


Sec.  400.36  Completion of case review.

* * * * *
    (b) In its advisory role to the Board, CBP headquarters staff shall 
provide any comments within 15 days for applications under Sec.  400.25 
and within 30 days for all other applications.
* * * * *
    (e) If the Board is unable to reach a unanimous decision, the 
applicant shall be notified and provided an opportunity to meet with 
the Board members or their delegates.
* * * * *
0
19. In Sec.  400.37, revise paragraph (a) to read as follows:


Sec.  400.37  Procedure for notification of proposed production 
activity.

    (a) Submission of notification. A notification for production 
authority pursuant to Sec. Sec.  400.14(a) and 400.22 shall be 
submitted simultaneously to the Board's Executive Secretary and to CBP.
* * * * *
0
20. Revise Sec.  400.38 to read as follows:


Sec.  400.38  Procedure for request for minor modification of zone.

    (a) The Executive Secretary shall make a determination in cases 
under Sec.  400.24(c) involving minor modifications of zones that do 
not require Board action, such as boundary modifications, including 
certain relocations, and shall notify the requestor in writing of the 
decision on the request within 30 days of the Executive Secretary's 
receipt of the complete request and the CBP comments under paragraph 
(b) of this section. Depending on the specific request, the decision 
could be that the request cannot be processed under Sec.  400.24(c)). 
The requestor shall submit a copy of its request to CBP no later than 
the time of the requestor's submission of the request to the Executive 
Secretary.
    (b) If not previously provided to the requestor for inclusion with 
the requestor's submission of the request to the Executive Secretary, 
any CBP comments on the request shall be provided to the Executive 
Secretary within 20 days of the requestor's submission of the request 
to the Executive Secretary.

[[Page 37819]]

Sec.  400.42  [Amended]

0
21. In Sec.  400.42, remove and reserve paragraph (b).


Sec.  400.43  [Amended]

0
22. In Sec.  400.43, remove paragraph (i).
0
23. In Sec.  400.44:
0
a. Revise paragraphs (a), (b)(5), and (e); and
0
b. Remove paragraph (f).
    The revisions read as follows:


Sec.  400.44  Zone schedule.

    (a) The zone grantee shall submit to the Executive Secretary 
(electronic copy or as specified by the Executive Secretary) a zone 
schedule which sets forth the elements required in this section. No 
element of a zone schedule (including any amendment to the zone 
schedule) may be considered to be in effect until such submission has 
occurred. If warranted, the Board may subsequently amend the 
requirements of this section by Board Order.
    (b) * * *
    (5) Information identifying any operator which offers services to 
the public and which has requested that its information be included in 
the zone schedule; and
* * * * *
    (e) A complete copy of the zone schedule shall be freely available 
for public inspection at the offices of the zone grantee. The Board 
shall make copies of zone schedules available on its website.
0
24. In Sec.  400.45, revise paragraph (b) to read as follows:


Sec.  400.45  Complaints related to public utility and uniform 
treatment.

* * * * *
    (b) Objections to rates and charges. A zone participant showing 
good cause may object to any rate or charge related to the zone on the 
basis that it is not fair and reasonable by submitting to the Executive 
Secretary a complaint in writing with supporting information. If 
necessary, such a complaint may be made on a confidential basis 
pursuant to paragraph (a) of this section. The Executive Secretary 
shall review the complaint and issue a report and decision, which shall 
be final unless appealed to the Board within 30 days. The Board or the 
Executive Secretary may otherwise initiate a review for cause. The 
primary factor considered in reviewing fairness and reasonableness is 
the cost of the specific services rendered. Where those costs 
incorporate charges to the grantee by one or more parties undertaking 
functions on behalf of the grantee, the Board may consider the costs 
incurred by those parties or evidence regarding market rates for the 
undertaking of those functions. The Board may rely on best estimates, 
as necessary. The Board will also give consideration to any extra costs 
incurred relative to non-zone operations, including return on 
investment and reasonable out-of-pocket expenses.
0
25. In Sec.  400.52, revise paragraph (b)(2) to read as follows:


Sec.  400.52  Notices and hearings.

* * * * *
    (b) * * *
    (2) The request must be made within 30 days of the beginning of the 
initial period for public comment (see Sec.  400.32) and must be 
accompanied by information establishing the need for the hearing and 
the basis for the requesting party's interest in the matter.
* * * * *
0
26. In Sec.  400.61, revise paragraphs (a) and (c) to read as follows:


Sec.  400.61  Revocation of authority.

    (a) In general. As provided in this section, the Board can revoke 
in whole or in part authority for a zone (see Sec.  400.2(h)) whenever 
it determines that the zone grantee has violated, repeatedly and 
willfully, the provisions of the Act.
* * * * *
    (c) Appeals. As provided in section 18 of the Act (19 U.S.C. 
81r(c)), the grantee of the zone in question may appeal an order of the 
Board revoking authority.

[FR Doc. 2023-12123 Filed 6-8-23; 8:45 am]
BILLING CODE 3510-DS-P