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089289 1 (1970-10-09)

handle is hein.gao/gaobacvfd0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE 143 FEDERAL OFFICE BUILDING, 50 FULTON STREET *1***** * * 'SAN FRANCISCO, CALIFORNIA 94102 IN RPLY REFER To October 9, 1970 26337 Mr. Ben A. Burk Regional Commissioner of Customs Federal Building and Court House 11-50 Golden Gate Avenue Box 36117 San Francisco, California 94102 Dear Mr. Burk: We have examined into the Bureau of Customs procedures and controls over merchandise entered in the San Francisco Foreign Trade Zone and bonded warehouses. Our survey was performed pri- marily at the San Francisco District Office and at the Foreign Trade Zone. On the basis of our survey, we found the San Francisco Dis- trict Office could strengthen its management controls over mer- chandise imported into the Foreign Trade Zones (FTZ) and class 8 warehouses. Our findings were discussed with Regional and Dis- trict officials who advised that appropriate corrective action would be taken. These points are summarized below for your in- formation and such further action as you may consider necessary. Although our survey was limited to the San Francisco District, the weaknesses found at the FTZ and bonded warehouse were similar and may also apply to controls at other Customs Districts within your Region. Need to improve physical and doementary control over zone and warehouse merchandise Our survey showed that physical security controls at the FTZ and class 8 warehouse were not in accordance with applicable laws and/or regulations, and that inventory controls, particu- larly the master lot procedure at the FTZ, were not adequate to maintain control over merchandise. FTZ regulations require zone facilities be sufficient to prevent unauthorized entry by persons, conveyances, and merchan- dise. We observed, however, that persons and merchandise are allowed1 to pass freely in and out of the zone facilities withoixt notification to or inspection by Bureau of Customs personnel. 0nI mir T aU

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