Supporting Law/Regulation

Sec. 146.25 Annual reconciliation.

(a) Report. The operator shall prepare a reconciliation report

within 90 days after the end of the zone/subzone year unless the port

director authorizes an extension for reasonable cause. The operator

shall retain that annual reconciliation report for a spot check or audit

by Customs, and need not furnish it to Customs unless requested. There

is no form specified for the preparation of the report.

(b) Information required. The report must contain a description of

merchandise for each zone lot or unique identifer, zone status, quantity

on hand at the beginning of the year, cumulative receipts and transfers

(by unit), quantity on hand at the end of the year, and cumulative

positive and negative adjustments (by unit) made during the year.

(c) Certification. The operator shall submit to the port director

within 10 working days after the annual reconciliation report, a letter

signed by the operator certifying that the annual reconciliation has

been prepared, is available for Customs review, and is accurate. The

certification letter must contain the name and street address of the

operator, where the required records are available for Customs review;

and the name, title, and telephone number of the person having custody

of the records. Reporting of shortages and overages based on the annual

reconciliation will be made in accordance with Sec. 146.53. These

reports must accompany the certification letter.