4.3 Grant Limits Lapse and Termination

Board to ensure that they continue to be in the public interest (15 CFR 400.12u, 400.43)).

(5) Amendment or Withdrawal - The Board may permit the amendment or withdrawal of the application during the review period (15 CFR 400.24).

(6) Completion of Review - A copy of the examiners report is sent for review to CBP. Once CBP concurs with the findings, the report is forwarded to the Deputy Assistant Secretary (Enforcement) of the Treasury. If the findings are accepted, a resolution to approve the application is signed by Treasury and forwarded to the Executive Secretary. The time period for CBP and Treasury review is thirty (30) days (15 CFR 400.27(e)).

(7) Final Action - When the Treasury resolution is received, the Board will prepare final action papers for review by the Secretary of Commerce or its designee. After final action, a copy of the Board Order is sent to the Applicant. A public notice of the decision on the application is published in the Federal Register notifying the public of the decision on the application. The total period from the date of filing until receipt of the grant is normally from 10 to 12 months.

4.3 Grant Limits Lapse and Termination - Grants are limited by the provisions of the FTZ ACT and the Board, and by any special conditions which were inserted in the grant. Grants may not be sold, conveyed, transferred, set over, or assigned by the Grantee (19 U.S.C. §81q, 15 CFR 400.28(a)(8)). However, the Board may reissue a grant from one Grantee to another upon approval of a zone application by the intended recipient of the grant. Grants are issued for an indefinite period of time, unless a special time limit has been placed in the grant. Grants may lapse, terminate or be limited in any one of the following ways:

(a) Revocation by the Board for willful and repeated violations of the FTZ Act by the Grantee or subzone Operator, under 19 U.S.C. §81r and 15 CFR 400.28(c);

(b) Grants lapse unless the zone or subzone is activated and in operation not later than 5 years after the Board order establishing a zone. “In operation” has been defined by the Board as open for operations and does not require the admission of foreign status merchandise (61 FR 53305, “Rule Related Notice,” dated 10/11/96).

(c) Voluntary relinquishment of a grant by the Grantee (there is no mention of this method in the FTZ Act or by the Board, but it has been accepted by the Board on several occasions); or

(d) Expiration without renewal of a special time limit placed in the grant (see Section 11.5(g) FTZM).

(e) Restrict or prohibit activity for a zone site or subzone for public interest reasons (15 CFR 400.43).

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