[Code of Federal Regulations]

[Title 19, Volume 2]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR146.21]



[Page 99-100]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

        HOMELAND SECURITY; DEPARTMENT OF THE TREASURY (CONTINUED)

 

PART 146_FOREIGN TRADE ZONES--Table of Contents

 

          Subpart B_Inventory Control and Recordkeeping System

 

Sec.  146.21  General requirements.





    (a) Systems capability. The operator shall maintain either manual or 

automated inventory control and recordkeeping systems or combination 

manual and automated systems capable of:

    (1) Accounting for all merchandise, including domestic status 

merchandise, temporarily deposited, admitted, granted a zone status and/

or status change, stored, exhibited, manipulated, manufactured, 

destroyed, transferred, and/or removed from a zone;

    (2) Producing accurate and timely reports and documents as required 

by this part;

    (3) Identifying shortages and overages of merchandise in a zone in 

sufficient detail to determine the quantity, description, tariff 

classification, zone status, and value of the missing or excess 

merchandise;

    (4) Providing all the information necessary to make entry for 

merchandise being transferred to the Customs territory;

    (5) Providing an audit trail to Customs forms from admission through 

manipulation, manufacture, destruction or transfer of merchandise from a 

zone either by zone lot or Customs authorized inventory method.

    (b) Procedures manual. (1) The operator shall provide the port 

director with an English language copy of its written inventory control 

and recordkeeping systems procedures manual in accordance with the 

requirements of this part.

    (2) The operator shall keep current its procedures manual and shall 

submit to the port director any change at the time of its 

implementation.

    (3) The operator may authorize a zone user to maintain its 

individual inventory control and recordkeeping system and procedures 

manual. The operator shall furnish a copy of the zone user's procedures 

manual, including any subsequent changes, to the port director. However, 

the operator will remain responsible to Customs and liable under its 

bond for supervision, defects in, or failures of a system.



[[Page 100]]



    (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.