According to this slightly confusing Wiki article, both E120 and E130 coexisted, but it doesn't give an exact reason for that, and what version was available where.

https://en.wikipedia.org/wiki/Toyota_Corolla_(E120)

However, according to toyotareference.com, ZZ refers to the two 1.8 engines available in North America. The XRS had chassis code ZZE131, while all other versions had ZZE130.

http://www.toyotareference.com/corolla/2003-2008