Record-keeping requirements for Customs warehouse

Here, the questions asks us to identify a record-keeping requirement which the proprietor of a Customs warehouse is not required to comply with. If you eliminate the ones that he is required to comply with, you will be left with the one which is not required to be complied with.

19 CFR § 19.12
(4) Permit file folders –
(d) Accountability for merchandise in a warehouse –
(i) Maintenance. Permit file folders must be maintained and kept up to date by filing all receipts, damage or shortage reports, manipulation requests, withdrawals, removals and blanket permit summaries within five business days after the event occurs.

Therefore D is something that a proprietor of a Customs bonded warehouse would be required to comply with.

(3) Theft, shortage, overage or damage –
(i) General. Except as otherwise provided in paragraph (d)(3)(ii) of this section, any theft or suspected theft or overage or any extraordinary shortage or damage (equal to one percent or more of the value of the merchandise in an entry or covered by a unique identifier; or if the missing merchandise is subject to duties and taxes in excess of $100) must be immediately brought to the attention of the port director, and confirmed in writing within five business days after the shortage, overage, or damage has been brought to the attention of the port director.
(ii) Class 9 warehouses. With respect to Class 9 warehouses, any theft or suspected theft or overage or any extraordinary shortage or damage (equal to one percent or more of the merchandise in an entry or covered by a unique identifier; or if the missing merchandise is subject to duties and taxes in excess of $100) must be immediately brought to the attention of the port director, and confirmed in writing within 20 calendar days after the shortage, overage, or damage has been brought to the attention of the port director.

Choice E requires theft or overage to be reported in writing within 2 business days. The regulations specify either 5 business days or 20 calendar days depending on the scenario. Reporting within 2 business days is not required under the regulations and hence E is the correct answer for this question.