---
kind: "section"
citation: "15 C.F.R. § 400.3"
title: "15"
number: "400.3"
heading: "Authority of the Board."
url: "https://uscodex.org/cfr/15/400.3"
---

# §400.3. Authority of the Board.

- (a) **In general.** In accordance with the Act and procedures of this part, the Board has authority to:
  - (1) Prescribe rules and regulations concerning zones;
  - (2) Issue grants of authority for zones, and approve subzones and modifications to the original zone;
  - (3) Authorize production activity in zones and subzones as described in this part;
  - (4) Make determinations on matters requiring Board decisions under this part;
  - (5) Decide appeals in regard to certain decisions of the Commerce Department's Assistant Secretary for Enforcement and Compliance or the Executive Secretary;
  - (6) Inspect the premises, operations and accounts of zone grantees, operators and users (and persons undertaking zone-related functions on behalf of grantees, where applicable);
  - (7) Require zone grantees and operators to report on zone operations;
  - (8) Report annually to the Congress on zone operations;
  - (9) Restrict or prohibit zone operations;
  - (10) Terminate reviews of applications under certain circumstances pursuant to [§ 400.36(g)](/cfr/15/400.36.md?p=g);
  - (11) Authorize under certain circumstances the entry of “zone-restricted merchandise” ([19 CFR 146.44](/cfr/19/146.44.md)) into the customs territory pursuant to [§ 400.48](/cfr/15/400.48.md);
  - (12) Impose fines for violations of the Act and this part;
  - (13) Instruct CBP to suspend activated status pursuant to [§ 400.62(h)](/cfr/15/400.62.md?p=h);
  - (14) Revoke grants of authority for cause;
  - (15) Determine, as appropriate, whether zone activity is or would be in the public interest or detrimental to the public interest, health or safety; and
  - (16) Issue and discontinue waivers pursuant to [§ 400.43(f)](/cfr/15/400.43.md?p=f).
- (b) **Authority of the Chairman of the Board.** The Chairman of the Board (Secretary of the Department of Commerce) has the authority to:
  - (1) Appoint the Executive Secretary of the Board;
  - (2) Call meetings of the Board, with reasonable notice given to each member; and
  - (3) **Submit to the Congress the Board's annual report as prepared by the Executive Secretary.**
- (c) **Alternates.** Each member of the Board shall designate an alternate with authority to act in an official capacity for that member.
- (d) **Authority of the Assistant Secretary for Enforcement and Compliance (Alternate Chairman).** The Commerce Department's Assistant Secretary for Enforcement and Compliance has the authority to:
  - (1) Terminate reviews of applications under certain circumstances pursuant to [§ 400.36(g)](/cfr/15/400.36.md?p=g);
  - (2) Mitigate and assess fines pursuant to §§ [400.62(e)](/cfr/15/400.62.md?p=e) and [(f)](/cfr/15/400.62.md?p=f) and instruct CBP to suspend activated status pursuant to [§ 400.62(h)](/cfr/15/400.62.md?p=h); and
  - (3) Restrict the use of zone procedures under certain circumstances pursuant to [§ 400.49(c)](/cfr/15/400.49.md?p=c).
- (e) **Determinations of the Board.** Determinations of the Board shall be by the unanimous vote of the members (or alternate members) of the Board, which shall be recorded.

## Notes

### Authority

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)).

### Source

Source: 77 FR 12139, Feb. 28, 2012, unless otherwise noted.