Home Discussion Free Trade Zone & Warehouses Record-keeping requirements for Customs warehouse

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  • Douglas Meadows
    Participant
    Post count: 25

    9. Question 1 point
    The proprietor of a Customs warehouse shall comply with all but which one of the following record-keeping requirements?

    A. All merchandise collected by a proprietor or her agent shall be receipted.
    B. Those records retained shall be those which a prudent business person in the same type of business can be expected to maintain.
    C. All merchandise entered into the bonded warehouse shall be recorded by lot number.
    D. The Permit file folder shall be kept up to date by filing all receipts and withdrawals within five business days after the event occurs.
    E. Any theft or overage shall be immediately brought to the attention of the port director and confirmed in writing within two business days after the event has been brought to the attention of the port.

    admin
    Keymaster
    Post count: 26

    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 ยง 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.

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