15 CFR § 400.3 - Authority of the Board.

---
identifier: "/us/cfr/t15/s400.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "15 CFR § 400.3 - Authority of the Board."
title_number: 15
title_name: "Commerce and Foreign Trade"
section_number: "400.3"
section_name: "Authority of the Board."
chapter_name: "FOREIGN-TRADE ZONES BOARD, DEPARTMENT OF COMMERCE"
part_number: "400"
part_name: "REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
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))."
regulatory_source: "77 FR 12139, Feb. 28, 2012, unless otherwise noted."
cfr_part: "400"
---


# 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);

(11) Authorize under certain circumstances the entry of “zone-restricted merchandise” (19 CFR 146.44) into the customs territory pursuant to § 400.48;

(12) Impose fines for violations of the Act and this part;

(13) Instruct CBP to suspend activated status pursuant to § 400.62(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).

(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);

(2) Mitigate and assess fines pursuant to §§ 400.62(e) and (f) and instruct CBP to suspend activated status pursuant to § 400.62(h); and

(3) Restrict the use of zone procedures under certain circumstances pursuant to § 400.49(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.