First In-First Out (FIFO)Posted on May 31, 2013
The method by which fungible merchandise or articles are identified by recordkeeping on the basis of the first merchandise or articles received into the inventory. Under this method, withdrawals are from the oldest (first-in) merchandise layer or articles in the inventory at the time of withdrawal. Use of this method in FTZ requires a perpetual inventory system that identifies the merchandise by:
1) The date the merchandise is admitted into the FTZ
2) A unique identification number (UIN) that distinguishes fungible goods from all other goods
3) FTZ status for each increment of the UIN to the inventory
4) The unit value of each such increment
5) The country of origin.