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.

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    (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.
    (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.