10.7 Discrepancy Recordkeeping

temperature.(See 19 CFR 146.94 (d)(e)). The Operator and the Port Director are encouraged to discuss potential losses and gains specific to each commodity prior to admittance to the zone. Commodity variances may be detailed in the procedures manual. CBP Headquarters may authorize an allowance for variances in volume caused by nitrogen entrained in bulk concentrated orange juice stored in stainless steel tanks (See Section 11.10(b) FTZM).

(j) Damage to Merchandise in Zone - The liability of the Operator under its bond may be adjusted for the loss of value resulting from damage to merchandise occurring in the zone. The Operator shall segregate, mark, and otherwise secure damaged merchandise to preserve its identity as damaged merchandise (19 CFR 146.53(e)). There is no requirement that such a loss of value be reported upon identification. However, zone Operators who wish to document such damage may do so by filing CBPF 4315 using the procedures of 19 CFR 158, Subpart C. Damaged merchandise which is entered for consumption will be granted an allowance in value as provided in 19 CFR 146.65(b)(3).

10.6 Discrepancies Found Upon Transfer to the Customs Territory - When a transfer is not physically supervised by CBP personnel, the Operator will be relieved of responsibility only for the merchandise transferred from the zone in the condition and quantity as shown on the entry, transfer, or other appropriate form. The Operator will be relieved of responsibility only if it receives the signed receipt on the document of the importer or the carrier named in that document. The responsibility of the Operator may be adjusted by any discrepancy report made jointly by the Operator and the bonded cartman, lighterman, or carrier, or the importer, and signed by the above or an authorized representative within 15 days after transfer of the merchandise from the zone. Any adjustment must be noted on the permit copy of the entry, withdrawal, or other appropriate form or document. A copy of any joint report or discrepancy must be submitted to the Port Director within 10 working days of signing by the parties (19 CFR 146.71(b)).

(a) Seal Concurrence - If the cartman, carrier, or importer does not obtain the written concurrence of the Operator in the condition of any CBP seal affixed by the Operator, the seal will be deemed intact.

(b) CBP Physical Supervision - If the Port Director requires lading and/or transfer from the zone under CBP physical supervision, any discrepancies will be reported by the appropriate CBP personnel on the permit copy of the entry document. The Operator’s responsibility will be adjusted to the extent of any quantity discrepancy reported by CBP personnel.

(c) When Operator Is Relieved of Responsibility - Merchandise is considered transferred from a zone, and the Operator thereby relieved from liability, when:

(1) The Port Director has properly issued a permit for transfer from the zone under 19 CFR 146.71(a); and

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