Foreign Trade Zones & Warehouses
April 2022 — Question 4
The operator of a FTZ shall record all shortages and overages as required on which document?
- AAn annual reconciliation report✓ CBP's answer
- BA blanket application form for admission of merchandise
- CCBP Form 214
- DCBP Form 301
- ECBP Form 214-A
Why this answer
Under the cited FTZ provisions, a zone operator must account for shortages and overages found in the zone, and the regulations direct that all of them be recorded as required in the annual reconciliation report prepared under the companion section CBP cites. Certain losses, such as theft or larger shortages of dutiable merchandise, must be reported to CBP promptly, but the comprehensive recording obligation runs through the annual reconciliation. CBP Form 214 is the tempting distractor because it is the zone admission document, and Form 214-A is its continuation sheet; neither is a running record of inventory discrepancies, and Form 301 is a customs bond. Watch for: Reaching for the Form 214 admission document rather than the annual reconciliation report.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the April 2022 examination.
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