Adverse action pursuant to the provisions of Sec. 118.21(a) or (b) is initiated when the port director serves written notice on the operator or entity selected to operate the CES. The notice shall be in the form of a statement specifically setting forth the grounds for the adverse action and shall inform the operator of the appeal procedures under Sec. 118.23 of this part. [T.D. 96-57, 61 FR 39071, July 26, 1996]