Sec. 146.25  Annual reconciliation.

    (a) Report. The operator shall prepare a reconciliation report 
within 90 days after the end of the zone/subzone year unless the port 
director authorizes an extension for reasonable cause. The operator 
shall retain that annual reconciliation report for a spot check or audit 
by Customs, and need not furnish it to Customs unless requested. There 
is no form specified for the preparation of the report.
    (b) Information required. The report must contain a description of 
merchandise for each zone lot or unique identifer, zone status, quantity 
on hand at the beginning of the year, cumulative receipts and transfers 
(by unit), quantity on hand at the end of the year, and cumulative 
positive and negative adjustments (by unit) made during the year.
    (c) Certification. The operator shall submit to the port director 
within 10 working days after the annual reconciliation report, a letter 
signed by the operator certifying that the annual reconciliation has 
been prepared, is available for Customs review, and is accurate. The 
certification letter must contain the name and street address of the 
operator, where the required records are available for Customs review; 
and the name, title, and telephone number of the person having custody 
of the records. Reporting of shortages and overages based on the annual 
reconciliation will be made in accordance with Sec. 146.53. These 
reports must accompany the certification letter.