Audit-Inspection Procedures

These procedures provide the framework for Customs to reduce on-site supervision of FTZs and for Operators to maintain efficiency of operations through the audit-inspection method of supervision. The systems may be manual, computerized, or a combination of both. These procedures are designed to meet the requirements of the U.S. Customs Regulations (T.D. 86-16) for Audit-Inspection Procedures in FTZs. Under the regulations, the Operator maintains the inventory records. Customs is relieved of the obligation of actually keeping the records, but maintains assurance of the system’s accuracy by selective examinations of merchandise, spot checks and audits of FTZ operations.