§ 400.42 - Operation as public utility.

§ 400.42 Operation as public utility.

Cross Reference

Link to an amendment published at 89 FR 8530, Feb. 8, 2024.

(a) In general. Pursuant to Section 14 of the FTZ Act (19 U.S.C. 81n), each zone shall be operated as a public utility, and all rates and charges for all services or privileges within the zone shall be fair and reasonable. A rate or charge (fee) may be imposed on zone participants to recover costs incurred by or on behalf of the grantee for the performance of the grantee function. Such a rate or charge must be directly related to the service provided by the grantee (for which the fee recovers some or all costs incurred) to the zone participants. Rates or charges may incorporate a reasonable return on investment. Rates or charges may not be tied to the level of benefits derived by zone participants. Other than the uniform rates and charges assessed by, or on behalf of, the grantee, zone participants shall not be required (either directly or indirectly) to utilize or pay for a particular provider's zone-related products or services.

(b) Delayed compliance date. The compliance date for the requirements of paragraph (a) of this section shall be February 28, 2014. [Reserved]

[77 FR 12139, Feb. 28, 2012, as amended at 89 FR 8530, Feb. 8, 2024]