[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: 19CFR146.4]



[Page 95-96]

 

                        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 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]