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They have to be earned in the system where you turn them in.
Not sure, as I'm only working an Exploited system owned by my power.
Recently I heard you can mine in stronghold/reinforced systems and sell in exploited systems in range, or so I believe. I don't know if the same applies to bounty hunting.
I saw people recommending going into power combat zones to achieve more merits, but firstly power combat zones can be buggy, with no ships spawning, requiring relogging until they do, and the ships tend to be tougher than in even a Haz Res, so less kills/time and less merits/time.
OK, I admit I've only fought in about a dozen PPCZs, I might not have sufficient data.
I've done a few PPCZ, and they feel a bit tougher. Might just be my imagination. You do also have to face many opponents, with many allies, as opposed to picking and choosing targets in a RES.
I've had some terrible luck with PPCZs.
Never had a Haz Res be a ghost town, always plenty of targets, just sometimes its all small ships. But you can get the same in CZs sometimes as well. All PPCZs are medium threat, so there should always be a mix of ships, but sometimes the spawn function tends to favour certain ships.
However, you need to do your bounty hunting in an acquisition or reinforcement system. AKA one your power owns or is unowned and in range of an allied fortification or stronghold system. No merits are earned at all for bounty hunting in a hostile system. Power kills are a different matter, and do count in hostile systems as an undermining activity. But you might get a bad rep with the local controlling faction and have a bounty placed on you if you do that.
I still need to check out the combat zones, so I can't comment more on them, yet.