[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: 19CFR146.23]



[Page 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.  146.23  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 Sec.  146.53.