Foreign Trade Zones & Warehouses
October 2020 (AM) — Question 71
Which of the following statements regarding Class 9 (nine) bonded warehouse operations is INCORRECT?
- AA duty-free store proprietor must maintain, at the duty-free store, a current and separate inventory for each storage area, crib, and sales area containing conditionally duty-free merchandise by warehouse entry, unless approved otherwise by the port director
- BA duty-free warehouse that is an airport store may be located 10 statute miles away from a staffed port of entry
- CDuty-free stores do not need to limit sales of the conditionally duty-free merchandise to personal-use quantities✓ CBP's answer
- DMerchandise in a Class 9 warehouse may be withdrawn for exportation under a sales ticket procedure
- EThe proprietor of a Class 9 warehouse is required to take an annual, physical inventory of merchandise in the warehouse, or a periodic cycle count of selected categories of merchandise at least once a year, with prior notification of the proposed date to CBP personnel
CBP's cited authority
§ 19CFR § 19.36(c)
Answer and citations as published in CBP's official answer key for the October 2020 (AM) examination.
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