19 CFR 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.
Terms Used In 19 CFR 146.23
- Fungible merchandise: means merchandise which for commercial purposes is identical and interchangeable in all situations. See 19 CFR 146.1
- Merchandise: includes goods, wares and chattels of every description, except prohibited merchandise. See 19 CFR 146.1
- Operator: is a corporation, partnership, or person that operates a zone or subzone under the terms of an agreement with the zone grantee. See 19 CFR 146.1
- port director: means the director of that port of entry. See 19 CFR 146.1
- Unique identifier: means the numbers, letters, or combination of numbers and letters that identify merchandise admitted to a zone with zone status. See 19 CFR 146.1
- User: means a person or firm using a zone or subzone for storage, handling, or processing of merchandise. See 19 CFR 146.1
- Zone lot: means a collection of merchandise maintained under an inventory control method based on specific identification of merchandise admitted to a zone by lot. See 19 CFR 146.1
- Zone status: means the status of merchandise admitted to a zone, i. See 19 CFR 146.1
(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.