Foreign Trade Zone Manual

to account for the merchandise covered by each e-214/CBPF 214. The zone admission file shall be maintained in sequential order by using the number assigned to each e-214/CBPF 214 as the file reference numbers (19 CFR 146.37(a)(1)). Under a lot number inventory system, in the instance where more than one zone lot number is received under one zone admission number, the file is still maintained in the same order. The packages of merchandise shall be marked with the zone lot number, so the merchandise can be traced back to a particular e214/CBPF 214 that these zone lot numbers were received under (19 CFR 146.37(d), see Section 6.9(a)(7) and 8.2(a)(1) FTZM).

(4) Authorized Inventory Method - Where a CBP authorized inventory method other than a zone lot number system (specific identification of merchandise) is used, e.g. First-in, First-Out (FIFO), the Operator shall maintain a file of all CBPF 214s in sequential order (19 CFR 146.37(a)(2)). If an Operator wishes to identify merchandise using a system other than zone lot or FIFO they should request approval through the internal advice procedures in 19 CFR 177.11(b)(1)(ii). The request should state the sources of the merchandise to be identified and the dutiable status of that merchandise, as well as describing the zone operation to which the merchandise is subject.

(5) Temporary Deposit - The Operator shall maintain an inventory and recordkeeping system capable of accounting for all merchandise temporarily deposited in a zone, whether or not it is later admitted to the zone (19 CFR 146.21(a)(1)). Applications for temporary deposit shall be made on a sequentially numbered CBPF 214, clearly annotated "Temporary Deposit in Zone” (19 CFR 146.35(b); (see Section 6.5(c) FTZM). The unique number shall be distinct in series, suffix, prefix, or other indicator from those assigned to merchandise under admittance to a zone. A file shall be assigned a temporary deposit number. The file shall be closed when the merchandise is removed from the temporary deposit status.

(6) Direct Delivery - 19 CFR 146.39, certain criteria must be met to allow direct delivery to a zone without prior permit. (c) Accountability for Zone Merchandise - The Operator shall have an inventory control and recordkeeping system(s) capable of accounting for all merchandise stored, exhibited, manipulated, manufactured, processed, destroyed, or granted a zone status change (19 CFR 146.21 (a)(1)). Merchandise admitted to a zone can be identified by either a zone lot number inventory control method (ZLN) or a unique identification number inventory method (UIN).

Zone Lot Number (ZLN) - A collection of merchandise maintained under an inventory control method based on specific identification of merchandise admitted to a zone by lot number. Use of this method requires maintenance of zone lot records, and physical segregation and marking of zone lot numbers.

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