Sec. 146.7 Zone changes.
(a) Alteration of an activated area. An operator shall make written
application to the port director for approval of an alteration of an
activated area, including an alteration resulting from a zone boundary
modification. The application must be accompanied by the supporting
document requirements specified in Sec. 146.6, as applicable. The port
director may review the security, suitability, and fitness of the area,
and shall reply to the applicant as provided for in Sec. 146.6.
(b) Deactivation or reactivation. A grantee, or an operator with the
concurrence of a grantee, shall make written application to the port
director for deactivation of a zone site, indicating by layout or
blueprint the exact site to be deactivated. The port director shall not
approve the application unless all merchandise in the site in zone
status (other than domestic status) has been removed at the risk and
expense of the operator. The port director may require an accounting of
all merchandise in a zone as a condition of approving the deactivation.
A zone may be reactivated using the above procedure if a sufficient bond
is on file under Sec. 146.6(d).
(c) Suspension of activated site. When approval of an activated
status has been suspended through the procedure in subpart G, the port
director may require all goods in that area in zone status (other than
domestic status) to be transferred to another zone, a bonded warehouse,
or other location where they may lawfully be stored, if the port
director considers that transfer advisable to protect the revenue or
administer any Federal law or regulation.
(d) New bond. The port director may require an operator to furnish,
on 10 days notice, a new Foreign Trade Zone Operator's Bond on Customs
Form 301. If the operator fails to furnish the new bond, no more
merchandise will be received in the zone in zone status. Merchandise in
zone status (other than domestic status) will be removed at the risk and
expense of the operator. A new bond may be required if (1) the activated
zone area is substantially altered; (2) the character of merchandise
admitted to the zone or operations performed in the zone are
substantially
[[Page 93]]
changed; (3) the existing bond lacks good and sufficient surety; or (4)
for any other reason that substantially affects the liability of the
operator under the bond. Although a new bond may not be required, the
operator shall obtain the consent of the surety to any material
alteration in the boundaries of the zone.
(e) New operator. A grantee of an activated zone site shall make
written application to the port director for approval of a new operator,
submitting with the application a certification by the new operator that
the inventory control and recordkeeping system meets the requirements of
subpart B, and a copy of the system procedures manual if different from
the previous operator's manual. The port director may order an inquiry
into the qualifications, character, and experience of the operator and
its principal officers.
(f) The bond in Sec. 146.6 shall be submitted by the operator before
the operating agreement may become effective in respect to merchandise
in zone status. The port director shall promptly notify the grantee, in
writing, of the approval or disapproval of the application.
(g) List of officers, employees, and other persons. The port
director may make a written demand upon the operator to submit, within
30 days after the date of the demand, a written list of the names,
addresses, social security numbers, and dates and places of birth of
officers and persons having a direct or indirect financial interest in
the operator, and of persons employed in the carriage, receipt or
delivery of merchandise in zone status, whether employed by the zone
operator or a zone user. If a list was previously furnished, the port
director may make a written demand for the same information in respect
to new persons employed in the carriage, receipt, or delivery of zone
status merchandise within 10 days after such employment. The list need
not include employees of common or contract carriers transporting goods
to or from the zone.
[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 95-99, 60 FR
62733, Dec. 7, 1995]
