[Code of Federal Regulations]
[Title 19, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR146.4]

[Page 95-96]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 146--FOREIGN TRADE ZONES--Table of Contents
 
                      Subpart A--General Provisions
 
Sec. 146.4  Operator responsibility and supervision.

    (a) Supervision. The operator shall supervise all admissions, 
transfers, removals, recordkeeping, manipulations, manufacturing, 
destruction, exhibition, physical and procedural security, and 
conditions of storage in the zone as required by law and regulations. 
Supervision by the operator shall be that which a prudent manager of a 
storage, manipulation, or manufacturing facility would be expected to 
exercise, and may take into account the degree of supervision exercised 
by the zone user having physical possession of zone merchandise.
    (b) Customs access. The operator shall permit any Customs officer 
access to a zone.
    (c) Safekeeping of merchandise and records. The operator is 
responsible for safekeeping of merchandise and records concerning 
merchandise admitted to a

[[Page 96]]

zone. The operator, at its liability, may allow the zone importer or 
owner of the goods to store, safeguard, and otherwise maintain or handle 
the goods and the inventory records pertaining to them.
    (d) Records maintenance. The operator shall (1) maintain the 
inventory control and recordkeeping system in accordance with the 
provisions of subpart B, (2) retain all records required in this part 
and defined in Sec. 162.1(a) of this chapter, pertaining to zone 
merchandise for 5 years after the merchandise is removed from the zone, 
and (3) protect proprietary information in its custody from unauthorized 
disclosure. Records shall be readily available for Customs review at the 
zone.
    (e) Merchandise security. The operator shall maintain the zone and 
establish procedures adequate to ensure the security of merchandise 
located in the zone in accordance with applicable Customs security 
standards and specifications.
    (f) Storage and handling. The operator shall store and handle 
merchandise in a zone in a safe and sanitary manner to minimize damage 
to the merchandise, avoid hazard to persons, and meet local, state, and 
Federal requirements applicable to a specific kind of goods. All trash 
and waste will be promptly removed from a zone. Aisles will be 
established and maintained, and doors and entrances left unblocked for 
access by Customs officers and other persons in the performance of their 
official duties.
    (g) Guard service. The operator is authorized to provide guards or 
contract for guard service to safeguard the merchandise and ensure the 
security of the zone. This authorization does not limit the authority of 
the port director to assign Customs guards to protect the revenue under 
section 4 of the Act (19 U.S.C. 81d).
    (h) Miscellaneous responsibilities. The operator is responsible for 
complying with requirements for admission, manipulation, manufacture, 
exhibition, or destruction, shortage, or overage; inventory control and 
recordkeeping systems, transfer to Customs territory, and other 
requirements as specified in this part. If the operator elects to 
transfer merchandise from within the district boundaries (see definition 
of ``district'' at Sec. 112.1) to his zone, he shall receipt for the 
merchandise at the time he picks it up for transportation to his 
facility. He becomes liable for the merchandise at that time.

[T.D. 86-16, 51 FR 5049, Feb. 11, 1986, as amended by T.D. 94-81, 59 FR 
51496, Oct. 12, 1994; T.D. 95-77, 60 FR 50020, Sept. 27, 1995; T.D. 99-
27, 64 FR 13676, Mar. 22, 1999]