19 Cfr 146.22

§ 146.22

19 CFR Ch. I (4–1–05 Edition)

(4) The operator’s procedures manual
and subsequent changes will be furnished to the port director for information purposes only. Customs receipt of
a manual does not indicate approval or
rejection of a system.
(c) Liability of operator. Upon zone activation approval the operator remains
liable for complying with all inventory
control and recordkeeping system requirements set forth in this part.
§ 146.22 Admission of merchandise to a
zone.
(a) Identification. All merchandise
will be recorded in a receiving report
or document using a zone lot number
or unique identifier. All merchandise,
except domestic status merchandise for
which no permit for admission is required under § 146.43, will be traceable
to a Customs Form 214 and accompanying documentation.
(b) Reconciliation. Quantities received
will be reconciled to a receiving report
or document such as an invoice with
any discrepancy reported to the port
director as provided in § 146.37.
(c) Incomplete documentation. Merchandise received without complete
Customs documentation or which is
unacceptable to the inventory control
and recordkeeping system will be recorded in a suspense account or record
until documentation is complete or the
system is capable of accepting the information, at which time it will be formally admitted to the zone under
§ 146.32 or 146.40. The receiving report or
document will provide sufficient information to identify the merchandise
and distinguish it from other merchandise. The suspense account or record
will be completely documented for Customs review to explain the differences
noted and corrections made.
(d) Recordation. Merchandise received
will be accurately recorded in the inventory system records from the receiving report or document using the
zone lot number or unique identifier
for traceability. The inventory record
will state the quantity and date admitted, cost or value where applicable,
zone status, and description of the merchandise, including any part or stock
number.
(e) Harbor maintenance fee. When imported cargo is unloaded from a com-

mercial vessel at a U.S. port and admitted into a foreign trade zone, the
applicant for admission of that cargo
into the zone may be subject to the
harbor maintenance fee as set forth in
§ 24.24 of this chapter.
[T.D. 86–16, 51 FR 5049, Feb. 11, 1986, as
amended by T.D. 87–44, 52 FR 10211, Mar. 30,
1987; 52 FR 10970, Apr. 6, 1987]

§ 146.23 Accountability for merchandise in a zone.
(a) Identification of merchandise—(1)
General. A zone lot number or unique
identifier will be used to identify and
trace merchandise.
(2) Fungible merchandise. Fungible
merchandise may be identified by an
inventory method authorized by Customs, which is consistently applied,
such as First-In-First-Out (FIFO) and
using a unique identifier.
(b) Inventory records. The inventory
records will specify by zone lot number
or unique identifier:
(1) Location of merchandise;
(2) Zone status;
(3) Cost or value, unless operator’s or
user’s financial records maintain cost
or value and the records are made
available for Customs review;
(4) Beginning balance, cumulative receipts and removals, adjustments, and
current balance on hand by date and
quantity;
(5) Destruction of merchandise; and
(6) Scrap, waste, and by-products.
(c) Physical inventory. The operator
shall take at least an annual physical
inventory of all merchandise in the
zone (unless continuous cycle counts
are taken as part of an ongoing inventory control program) with prior notification of the date(s) given to Customs
for any supervision of the inventory
deemed necessary. The operator shall
notify the port director of any discrepancies in accordance with § 146.53.
§ 146.24 Transfer of merchandise from
a zone.
(a) Accountability. (1) All zone status
merchandise transferred from a zone
will be accurately recorded within the
inventory control and recordkeeping
system.
(2) The inventory control and recordkeeping system for merchandise transfers must have the capability to trace

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