Unknown. Final rule

7,366 words·~33 min read·/register/2024/02/08/2024-01953

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2024-02-08.xml --- 89 27 Thursday, February 8, 2024 Contents Centers Disease Centers for Disease Control and Prevention NOTICES Hearings, Meetings, Proceedings, etc., 8681-8682 2024-02514 2024-02515 Centers Medicare Centers for Medicare & Medicaid Services RULES Medicare and Medicaid Programs: Patient Protection and Affordable Care Act; Advancing Interoperability and Improving Prior Authorization Processes for Medicare Advantage Organizations, etc. on the Federally-Facilitated Exchanges, etc., 8758-8988 2024-00895 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration Commodity Futures Commodity Futures Trading Commission NOTICES Meetings;

Sunshine Act, 8651 2024-02635 Consumer Product Consumer Product Safety Commission PROPOSED RULES Safety Standard: Blade-Contact Injuries on Table Saws; Notice of Opportunity for Oral Presentations, 8582-8583 2024-02570 Residential Gas Furnaces and Boilers, 8583-8584 2024-02563 Defense Department Defense Department NOTICES Environmental Impact Statements; Availability, etc.: O'Brien Road Access Modernization, Fort Meade, MD, 8651-8652 2024-02612 Defense Nuclear Defense Nuclear Facilities Safety Board NOTICES Recommendation 2023-01, 8652-8666 2024-02513 Drug Drug Enforcement Administration RULES Conforming Amendment Regarding the Veterinary Medicine Mobility Act of 2014, 8538-8539 2024-02322 Education Department Education Department NOTICES Hearings, Meetings, Proceedings, etc.:

President's Board of Advisors on Historically Black Colleges and Universities, 8666-8667 2024-02524 Energy Department Energy Department See Federal Energy Regulatory Commission Environmental Protection Environmental Protection Agency RULES State Hazardous Waste Management Program: South Dakota, 8540-8546 2024-02310 PROPOSED RULES Definition of Hazardous Waste Applicable to Corrective Action for Releases from Solid Waste Management Units, 8598-8606 2024-02328 Hearings, Meetings, Proceedings, etc.:

Unregulated Contaminant Monitoring Rule, 8584-8598 2024-02247 Listing of Specific Per- and Polyfluoroalkyl Substances as Hazardous Constituents, 8606-8621 2024-02324 State Hazardous Waste Management Program: South Dakota, 8621 2024-02311 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Air Pollution Regulations for Outer Continental Shelf Activities, 8677-8678 2024-02613 Climate Pollution Reduction Grants Program Implementation Grants Information Collection Request, 8679 2024-02614 Cancellation Order for Certain Pesticide Registrations and Amendments to Terminate Uses, 8675 C1-2023-28547 Exemption:

DQB Males (Wolbachia pipientis, DQB Strain, Contained in Live Adult Culex quinquefasciatus Males), 8674-8675 2024-02586 Pesticides; Flexible Packaging; Child Resistant Packaging Requirements, 8675-8677 2024-02587 Federal Aviation Federal Aviation Administration PROPOSED RULES Falsification, Reproduction, Alteration, Omission, or Incorrect Statements, 8560-8578 2024-00872 Modernization of Special Airworthiness Certification, 8559-8560 2024-02545 Federal Communications Federal Communications Commission RULES Video Relay Service and Internet Protocol Captioned Telephone Service—Commencement of Pending User Registration;

Rates for Interstate Inmate Calling Services; Correction, 8549 2024-02384 PROPOSED RULES Modifying Emissions Limits for the 24.25-24.45 GHz and 24.75-25.25 GHz Bands; Correction, 8621-8622 2024-02598 Petition for Reconsideration of Action in Proceeding; Correction, 8621 2024-02578 Priority Application Review: Broadcast Stations that Provide Local Journalism or Other Locally Originated Programming, 8622-8629 2024-02039 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 8679-8680 2024-02571 Charter Amendments, Establishments, Renewals and Terminations:

World Radiocommunication Conference Advisory Committee, 8680-8681 2024-02619 Federal Energy Federal Energy Regulatory Commission NOTICES Application: Eagle Creek Schoolfield Hydro, LLC and City of Danville, 8668-8669 2024-02605 Combined Filings, 8669-8674 2024-02602 2024-02608 2024-02609 Environmental Assessments; Availability, etc.: Port Arthur Pipeline, LLC, 8670-8671 2024-02607 Initial Market-Based Rate Filings Including Requests for Blanket Section 204 Authorizations: CPV Backbone Solar, LLC, 8667-8668 2024-02604 Federal Highway Federal Highway Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 8736-8737 2024-02572 Federal Motor Federal Motor Carrier Safety Administration NOTICES Request for Information: Study of Sexual Assault and Sexual Harassment in the Commercial Motor Vehicle Industry, 8737-8739 2024-02539 Federal Railroad Federal Railroad Administration NOTICES Emergency Order to Prevent Operation of Trains and Other On-Track Rail Equipment on Blackwell Northern Gateway Railroad, 8739-8741 2024-02536 Federal Reserve Federal Reserve System NOTICES Change in Bank Control:

Acquisitions of Shares of a Bank or Bank Holding Company, 8681 2024-02523 Federal Trade Federal Trade Commission RULES Procedures for Oversight of the Horseracing Integrity and Safety Authority's Annual Budget, 8530-8533 2024-02290 PROPOSED RULES Horseracing Integrity and Safety Authority Oversight, 8578-8582 2024-02291 Federal Transit Federal Transit Administration NOTICES Competitive Funding Opportunity: Fiscal Year 2024: Low or No Emission Grant Program and the Grants for Buses and Bus Facilities Competitive Program, 8741-8753 2024-02246 Fish Fish and Wildlife Service PROPOSED RULES Endangered and Threatened Species: 90-Day Finding for the Kings River Pyrg, 8629-8631 2024-02620 Migratory Bird Hunting:

Proposed 2024-25 Migratory Game Bird Hunting Regulations, 8631-8639 2024-02517 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Western Snowy Plover Survey and Reporting, 8703-8705 2024-02569 Food and Drug Food and Drug Administration RULES Filing of Petition: Color Additive; Sensient Colors, LLC, 8537-8538 2024-02576 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 8682 2024-02579 International Drug Scheduling:

Convention on Psychotropic Substances; Single Convention on Narcotic Drugs; World Health Organization; Scheduling Recommendations; Butonitazene; 3-Chloromethcathinone; Dipentylone; 2-Fluorodeschloroketamine; Bromazolam, 8683-8689 2024-02573 Foreign Assets Foreign Assets Control Office NOTICES Sanctions Action, 8753-8754 2024-02240 Foreign Trade Foreign-Trade Zones Board RULES Board Proceedings, 8525-8530 2024-01953 Geological Geological Survey NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Landslide Hazards Risk Reduction Grants Program, 8705-8706 2024-02589 Panhandle Terrapin Project, 8706-8707 2024-02591 Government Accountability Government Accountability Office NOTICES Government Auditing Standard; 2024 Revision, 8681 2024-02594 Health and Human Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Food and Drug Administration See National Institutes of Health RULES Health Data, Technology, and Interoperability:

Certification Program Updates, Algorithm Transparency, and Information Sharing; Correction, 8546-8549 2024-02519 Medicare and Medicaid Programs: Patient Protection and Affordable Care Act; Advancing Interoperability and Improving Prior Authorization Processes for Medicare Advantage Organizations, etc. on the Federally-Facilitated Exchanges, etc., 8758-8988 2024-00895 Homeland Homeland Security Department See Transportation Security Administration NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Civil Rights Evaluation Tool, 8692-8693 2024-02588 Housing Housing and Urban Development Department NOTICES Privacy Act; Matching Program, 8693-8703 2024-02566 2024-02567 2024-02568 Indian Affairs Indian Affairs Bureau NOTICES Rate Adjustments for Indian Irrigation Projects, 8707-8712 2024-02596 Interior Interior Department See Fish and Wildlife Service See Geological Survey See Indian Affairs Bureau See National Park Service Internal Revenue Internal Revenue Service NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 8755 2024-02575 Agency Information Collection Activities; Proposals, Submissions, and Approvals: Pre-Approved Plans Program, 8754-8755 2024-02574 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews, 8641-8649 2024-02600 Sales at Less Than Fair Value; Determinations, Investigations, etc.: Truck and Bus Tires from Thailand, 8649 2024-02601 Justice Department Justice Department See Drug Enforcement Administration Labor Department Labor Department RULES Practice and Procedure, 8533-8537 2024-01991 National Archives National Archives and Records Administration NOTICES Hearings, Meetings, Proceedings, etc.:

State, Local, Tribal, and Private Sector Policy Advisory Committee, 8724-8725 2024-02529 National Institute National Institutes of Health NOTICES Hearings, Meetings, Proceedings, etc.: Center for Scientific Review, 8690 2024-02581 Eunice Kennedy Shriver National Institute of Child Health and Human Development, 8691-8692 2024-02525 National Cancer Institute, 8689-8691 2024-02592 2024-02593 National Institute of General Medical Sciences, 8690 2024-02582 National Institute on Aging, 8690 2024-02583 National Institute on Drug Abuse, 8691 2024-02526 National Oceanic National Oceanic and Atmospheric Administration RULES Fisheries of the Northeastern United States:

Atlantic Deep-Sea Red Crab Fishery; 2024 Atlantic Deep-Sea Red Crab Specifications, 8557-8558 2024-02516 Regulations Governing the Take of Marine Mammals Incidental to Specified Activities; CFR Correction, 8557 2024-02695 PROPOSED RULES Fisheries of the Caribbean, Gulf of Mexico, and South Atlantic: Atlantic Coastal Migratory Pelagic Fishery; Atlantic Dolphin and Wahoo Fishery; and South Atlantic Snapper-Grouper Fishery; Control Date, 8639-8640 2024-02509 NOTICES Hearings, Meetings, Proceedings, etc.:

Gulf of Mexico Fishery Management Council, 8650-8651 2024-02616 North Pacific Fishery Management Council, 8650 2024-02617 Pacific Fishery Management Council, 8651 2024-02615 National Park National Park Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Procedures for State, Tribal, and Local Government Historic Preservation Programs and Management of Historic Preservation Fund Grants, 8713-8714 2024-02584 Inventory Completion: Central Washington University, Ellensburg, WA, 8719-8720 2024-02550 Nassau County Department of Parks, Recreation and Museums—Garvies Point Museum and Preserve, Glen Cove, NY, 8715-8716 2024-02559 Ohio History Connection, Columbus, OH, 8712-8718, 8721-8724 2024-02551 2024-02552 2024-02553 2024-02554 2024-02555 Peabody Museum of Archaeology and Ethnology, Harvard University, Cambridge, MA, 8720 2024-02557 Repatriation of Cultural Items:

Central Washington University, Ellensburg, WA, 8718-8719 2024-02549 Goucher College, Baltimore, MD, 8722-8723 2024-02558 University of California, Berkeley, Berkeley, CA, 8721 2024-02556 Nuclear Regulatory Nuclear Regulatory Commission NOTICES Licenses; Exemptions, Applications, Amendments etc.: Tennessee Valley Authority; Browns Ferry Nuclear Plant, Units 1, 2, and 3, 8725 2024-02611 Pension Benefit Pension Benefit Guaranty Corporation NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Locating and Paying Participants, 8725-8726 2024-02518 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 8726-8728 2024-02527 2024-02618 Postal Service Postal Service NOTICES Product Change: Priority Mail and USPS Ground Advantage Negotiated Service Agreement, 8728-8730 2024-02540 2024-02541 2024-02542 2024-02530 2024-02531 2024-02532 2024-02534 2024-02537 Priority Mail Express, Priority Mail, and USPS Ground Advantage Negotiated Service Agreement, 8728, 8730 2024-02538 2024-02543 Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select Negotiated Service Agreement, 8728 2024-02533 Priority Mail, USPS Ground Advantage and Parcel Select Negotiated Service Agreement, 8729 2024-02535 Securities Securities and Exchange Commission NOTICES Self-Regulatory Organizations;

Proposed Rule Changes: Fixed Income Clearing Corp., 8730-8732 2024-02520 Small Business Small Business Administration NOTICES Disaster Declaration: Maine, 8734 2024-02561 Maine; Public Assistance Only, 8735 2024-02560 New York; Public Assistance Only, 8733-8734 2024-02546 North Carolina, 8733 2024-02547 Tennessee; Public Assistance Only, 8733 2024-02564 West Virginia, 8734-8735 2024-02548 Hearings, Meetings, Proceedings, etc.: Advisory Committee on Veterans Business Affairs, 8735-8736 2024-02599 Interagency Task Force on Veterans Small Business Development, 8732-8733 2024-02597 State Department State Department NOTICES Hearings, Meetings, Proceedings, etc.:

International Security Advisory Board, 8736 2024-02606 Transportation Department Transportation Department See Federal Aviation Administration See Federal Highway Administration See Federal Motor Carrier Safety Administration See Federal Railroad Administration See Federal Transit Administration Security Transportation Security Administration RULES Frequency of Renewal Cycle for Indirect Air Carrier Security Programs, 8550-8557 2024-02495 Treasury Treasury Department See Foreign Assets Control Office See Internal Revenue Service Separate Parts In This Issue Part II Health and Human Services Department, Centers for Medicare & Medicaid Services, 8758-8988 2024-00895 Health and Human Services Department, 8758-8988 2024-00895 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 89 27 Thursday, February 8, 2024 Rules and Regulations DEPARTMENT OF COMMERCE Foreign-Trade Zones Board 15 CFR Part 400 [Docket No. 240111-0015; Order No. 2157] RIN 0625-AB22 Foreign-Trade Zones Board Proceedings AGENCY: Foreign-Trade Zones Board, International Trade Administration, Commerce.

ACTION: Final rule. SUMMARY: This action adopts minor modifications to the regulations of the Foreign-Trade Zones Board (the Board). The primary purpose for these modifications is to provide flexibility on the method to submit application fees. The prior regulations required submitting application fees by check. The changes allow for the submission of multiple forms of electronic payments in addition to paper checks. Other revisions in this rulemaking update the regulatory language to provide clarification and to reflect current practices.

The Board is also confirming it has met the information collection requirements from a 2012 final rule. DATES: *Effective dates:* This final rule is effective March 11, 2024. The amendments to 15 CFR 400.21 through 400.23, 400.25, and 400.43(f), published at 77 FR 12139 (Feb. 28, 2012), are effective February 8, 2024. *Applicability date:* The amendments to 15 CFR 400.21 through 400.23, 400.25, and 400.43(f), published at 77 FR 12139 (Feb. 28, 2012), were applicable beginning March 25, 2013.

FOR FURTHER INFORMATION CONTACT: Elizabeth Whiteman at *Elizabeth.Whiteman@trade.gov,*

(202)482-0473, or Ashlande Gelin at *Ashlande.Gelin@trade.gov,*

(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 an 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. On June 9, 2023, the Board published proposed updates to the rules for FTZs and requested public comment (88 FR 37815). This final rule adopts edits to the regulations as described further below. The key revision in the regulations pertains to providing flexibility on the method to submit application fees. The prior regulations required that application fees be submitted by check. While the Board has begun accepting “eChecks”, the revisions here will allow for the submission of additional forms of electronic payment. This action will move the existing requirement to admit merchandise subject to antidumping duty and countervailing duty (AD/CVD) actions in “privileged foreign”

(PF)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 rulemaking 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 sections 400.21-400.23, 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 sections 400.21-400.23, 400.25 and 400.43(f). This rulemaking also confirms the information collection requirements from the 2012 final rule were met. Comments and Responses We received nine comments on the proposed rule from five companies operating FTZs, two zone grantees, a law firm and a trade association. The comments involved several of the edits described in the proposed rulemaking and also suggested additional edits to the regulations. The comments received in response to the notice and the Board's responses on the points raised in the comments are summarized below. *Comment 1:* §§ 400.1(c) and 400.16. One comment stated that the word “production” should be added to the list of activities in §§ 400.1(c) and 400.16. *Response:* The Board adopted the word “production” in its 2012 regulations to encompass various activities that require prior authorization from the Board. By using the word production, the Board was not creating a new type of activity that could occur within FTZs. The summary lists in both §§ 400.1(c) and 400.16 use common terminology to describe the types of activity that can occur within FTZs. Instead of creating a new type of activity to be added to these lists, “production” as defined in the regulations (§ 400.2(o)) could include any of the listed activities if they meet the criteria included in the definition. Inclusion of the word production in the lists in these sections could provide the mistaken impression that “production” is a separate activity from the other items listed. As a result, this change has not been adopted. *Comment 2:* § 400.2. One comment suggested that a definition be included for “Traditional Site Framework”. *Response:* While we agree that a definition for the Traditional Site Framework should be included in the regulations in the future, any definition should provide substance. Creating a definition that is both meaningful and substantive will require additional time and is best suited for another rulemaking. *Comment 3:* § 400.11(b)(2)(i). One comment requested confirmation that removing the phrase “general purpose” from the description of zone sites in § 400.11(b)(2)(i) would not impact the adjacency requirement for subzones in § 400.11(b)(2)(ii). *Response:* We can confirm that removal of the phrase “general purpose” from § 400.11(b)(2)(i) will not impact § 400.11(b)(2)(ii). *Comment 4:* § 400.13(a)(8). One comment requested confirmation that the proposed edits to § 400.13(a)(8) would continue to require that grantees maintain a level of control while providing discretion to the grantee on how to maintain that control over FTZ designated locations. *Response:* We can confirm that the edit proposed here would continue to require that the grantee maintain control over FTZ designated sites and subzones but that a grantee will have flexibility and discretion as to how control is maintained. The regulations will no longer require that a grantee maintain an agreement with a property owner. *Comment 5:* § 400.13(c). One comment stated that moving prior § 400.14(e) to § 400.13(c) could have an adverse effect on warehouse operations, not be consistent with 19 U.S.C. 81(c)(e) and should only be considered through a more involved process. *Response:* This comment did not supply any evidence in support of the statements made. The language to be moved from § 400.14(e) to § 400.13(c) has been included as part of the FTZ Board's regulations since 1991. Since 1991, merchandise admitted to FTZs that is subject to AD/CVD orders or suspension of liquidation under AD/CVD procedures has been required to be placed in PF status (19 CFR 146.41) regardless of the ultimate use of the merchandise in production or warehousing operations. As a result, moving the language from § 400.14(e) to § 400.13(c) will have no impact on warehouse operators or any existing zone operations. While the production equipment provision of the FTZ Act (19 U.S.C. 81(c)(e)) generally allows for duties on eligible merchandise to be paid in its condition upon entry, the Act first requires that all other applicable customs and other laws be applied. The Act does not provide for unconditional use of the production equipment provision in 19 U.S.C. 81(c)(e). The change proposed here simply moves the existing language from one section of the regulations to the prior section. The change is being made since including the language in § 400.13(c) better reflects the existing interpretation of the requirement. The PF status requirement for merchandise that is subject to AD/CVD orders or suspension of liquidation under AD/CVD procedures when admitted to a zone for warehousing or for use under the production equipment provision has been consistently maintained. As an example, a memo from the Acting Executive Secretary to FTZ grantees on February 14, 2000 ( *https://www.trade.gov/policy-guidance?anchor=content-node-t14-field-lp-region-1-3* ) regarding the treatment of production equipment includes the following: “The equipment should be evaluated for Customs duty purposes in its condition when it goes into production ( *i.e.,* as complete production equipment), keeping in mind the requirements for evaluating incoming articles subject to antidumping/countervailing (AD/CVD) orders. The FTZ regulations require the election of privileged foreign status, upon admission to the zone, on any incoming merchandise that is subject to AD/CVD orders . . . When such merchandise leaves the zone for U.S. commerce, it will be subject to AD/CVD procedures based on its condition when it arrived at the zone.” Since this proposed edit does not change the enforcement or meaning of the language; this action merely moves the existing language from § 400.14(e) to § 400.13(c). *Comment 6:* § 400.13(c) and § 400.32(c)(2). One comment suggested including reference to Chapter 99 (trade remedy) duty rates in § 400.13(c) and § 400.32(c)(2) and specifying the duty rate that would be applicable for such merchandise at the time of entry from a zone. This comment also suggested including a new section of the regulations regarding merchandise processed in a zone and subject to Chapter 99 duties. *Response:* Although it is understood that the intention of this comment is to provide predictability to companies operating and using FTZs, this proposed edit could impact multiple laws involving trade remedies. Inclusion of this language would remove the relevant authorities regarding trade remedies from decisions on the applicability of duties as merchandise leaves FTZs, potentially having policy implications and impacting various trade remedy actions. While the comment noted that inclusion of the proposed language would be consistent with certain presidential proclamations regarding trade remedies, the proposed language would not be consistent with all proclamations regarding current trade remedies. As a result, the proposed edits related to Chapter 99 duties would require further review and discussion and therefore are not appropriate for this process. *Comment 7:* § 400.16. Several comments argued that the proposed addition of the phrase “in foreign status” to § 400.16 would be inconsistent with the statutory language of 19 U.S.C. 81(o)(e) and that a similar proposed regulatory change in 1990 resulted in the FTZ Board revising its final regulations. One comment also requested clarification on the practical implications of including the phrase “in the activated area” in this section. Other comments supported inclusion of the phrase “in the activated area” in this section. *Response:* In response to the comments received, this action replaces the proposed phrase “in foreign status” with a reference to “foreign merchandise”. Use of the modifier “foreign” to describe merchandise in this section is consistent with the language adopted by the Board in 1991 and currently used in § 400.1(c) as well. While the substance of the comments is not being analyzed through this process, the discussion and outcome of the regulatory edits in 1991 does not appear to be as settled as implied in the comments. In 1990, the Board proposed including language to § 400.1(c) stating that merchandise should be in the zone for a *bona fide* customs reason to be eligible for the exemption on state and local *ad valorem* taxes. While the language was ultimately removed from the final rule in 1991, the preamble to the 1991 regulations included the following reference to language in the House report accompanying Public Law 98-873: “. . . this exemption should apply only to goods in zones for *bona fide* Customs reasons.” This action continues use of the reference to merchandise eligible for the exemption on state and local *ad valorem* taxes as “foreign”. Further edits or changes to this language would only be considered as part of more comprehensive regulatory revisions that would provide for further comment and analysis. In terms of the reference to “in the activated area” in this section, we can confirm that this would clarify that FTZ designated space would need to be in operation and activated under CBP procedures for the merchandise to be exempt from state and local *ad valorem* taxes. Inclusion of this language provides clarification on the long-standing Board interpretation and is not a new requirement or limitation on this section. Apart from one comment requesting clarification, all other comments supported inclusion of this phrase. Changes From the Proposed Rule The sole change to the regulatory text from the proposed rule is replacing the proposed phrase “foreign status” with “foreign” in § 400.16. The change to this text is consistent with the language adopted by the Board in 1991 and currently used in § 400.1(c). As a result, this change does not require additional public comment. Classification This final rule has been determined to be not significant for purposes of Executive Order 12866. The Chief Counsel for Regulation of the Department of Commerce certified to the Chief Counsel for Advocacy of the Small Business Administration during the proposed rule stage that this action would not have a significant economic impact on a substantial number of small entities. The factual basis for the certification was published in the proposed rule and is not repeated here. No comments were received regarding this certification. As a result, a regulatory flexibility analysis was not required and none was prepared. This final rule contains no new information collection requirements under the Paperwork Reduction Act of 1995. 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: January 26, 2024. Dawn Shackleford, Executive Director of Trade Agreements Policy & Negotiations, Alternate Chairman, Foreign-Trade Zones Board. For the reasons set out in the preamble, 15 CFR part 400 is amended as follows: PART 400—REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD 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)). 2. In § 400.2: a. Revise paragraphs

(h)and (t); b. Remove paragraph (u); and c. Redesignate paragraphs

(v)through

(aa)as paragraphs

(u)through (z). The revisions read as follows: § 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 § 400.11(b)(2)) to a CBP port of entry, operated as a public utility (within the meaning of § 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. 3. In § 400.4, revise paragraphs

(m)and

(t)to read as follows: § 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 §§ 400.21(b), 400.29, 400.43(f), and 400.44;

(t)Review zone schedules and determine their sufficiency under § 400.44(c); 4. In § 400.11, revise paragraph (b)(2)(i) to read as follows: § 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. 5. In § 400.13: a. Revise paragraph (a)(8); b. Redesignate paragraph

(c)as paragraph (d); and c. Add a new paragraph (c). The revision and addition read as follows: § 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. 6. In § 400.14: a. Revise the section heading and paragraph (a); and b. Remove paragraph (e). The revisions read as follows: § 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 §§ 400.22 and 400.37 shall be used. If Board review of a notification under § 400.37 results in a determination that further review is warranted for all or part of the notified activity, the application process pursuant to §§ 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 consistent with the grantee's zone schedule). 7. Revise § 400.16 to read as follows: § 400.16 Exemption from state and local ad valorem taxation of tangible personal property. Foreign merchandise (tangible personal property) imported from outside the United States and held 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. 8. In § 400.21: a. Revise paragraphs

(a)and (c)(1); b. In paragraph (c)(5), add the word “and” following the semicolon; c. Remove paragraph (c)(6) and redesignate paragraph (c)(7) as paragraph (c)(6); d. Remove paragraph (d)(2)(vi); e. Redesignate paragraphs (d)(2)(vii) and

(ix)as paragraphs (d)(2)(vi) through (viii); f. Revise paragraphs (e)(3), (h), and (i); and g. Remove paragraph (j). The revisions read as follows: § 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 (§ 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 § 400.4(m). 9. In § 400.24, revise paragraphs (a)(1), (c), and

(d)to read as follows: § 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 (§ 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* § 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* § 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 §§ 400.31 through 400.34 and 400.36 shall be followed, where relevant. If not, the procedure set forth in § 400.38 shall generally apply (although the Executive Secretary may elect to follow the procedures of §§ 400.31 through 400.34 and 400.36 when warranted). 10. In § 400.26: a. Revise the section heading; b. In paragraph (d), add the word “and” following the semicolon; c. In paragraph (e), remove “; and” and add a period in its place; and d. Remove paragraph (f). The revision reads as follows: § 400.26 Criteria for evaluation of proposals, including for zones, expansions, subzones, or other modifications of zones. 11. In § 400.27, revise the introductory text to read as follows: § 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 § 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: 12. In § 400.29: a. Revise paragraphs

(b)and (c); and b. Remove paragraph (d). The revisions read as follows: § 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 (§ 400.21; § 400.11(a)(2))—$3,200.

(2)Subzones (§ 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 (§ 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. 13. In § 400.31, revise paragraph

(b)to read as follows: § 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 §§ 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 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 § 400.29, the fees shall be paid in accordance with § 400.29 once the application is determined to be sufficient. 14. Revise § 400.32 to read as follows: § 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 § 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 §§ 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* § 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 § 400.28(c). Submissions must meet the requirements of § 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. 15. In § 400.33, revise paragraph (e)(3) to read as follows: § 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. 16. In § 400.34, revise paragraph (a)(5)(iv)(C) to read as follows: § 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. 17. In § 400.35, revise paragraph

(c)to read as follows: § 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. 18. In § 400.36: a. Revise paragraphs

(b)and (e); and b. Remove the paragraph heading from paragraph (f). The revisions read as follows: § 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 § 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. 19. In § 400.37, revise paragraph

(a)to read as follows: § 400.37 Procedure for notification of proposed production activity.

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

(a)The Executive Secretary shall make a determination in cases under § 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 § 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. § 400.42 [Amended] 21. In § 400.42, remove and reserve paragraph (b). § 400.43 [Amended] 22. In § 400.43, remove paragraph (i). 23. In § 400.44: a. Revise paragraphs (a), (b)(5), and (e); and b. Remove paragraph (f). The revisions read as follows: § 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. 24. In § 400.45, revise paragraph

(b)to read as follows: § 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. 25. In § 400.52, revise paragraph (b)(2) to read as follows: § 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* § 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. 26. In § 400.61, revise paragraphs

(a)and

(c)to read as follows: § 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* § 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. 2024-01953 Filed 2-7-24; 8:45 am]

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