Thanks very much for the detailed reply. Unfortunately in my case it's not an option to ask the customer to enter their offset so I figured out a slightly different way - After I get the data from the DB in my application I modify it to adjust the time zone prior to passing it to the mail merging engine in my application and thus I mail merge the modified data. But I think this post will serve many people as there was nothing written on this topic. It will be great though if mail merge can figure out the date offset from the PC settings so that the user will not have to enter it.
Thanks again for the valuable information