"Privileged Foreign Status" allows for a determination of tariff duties when items are entered into a FTZ, when the items are imported out of the FTZ the duty owed is based on the earlier determination even if the items were further processed or changed while in the FTZ.

Question

Quizplus · Accepted Answer

This statement is true. "Privileged Foreign Status" is a designation granted to merchandise that is admitted to a Foreign Trade Zone (FTZ) and is exempted from customs duties while in the zone. The duty owed for the merchandise is determined at the time of admission to the zone, and any subsequent processing or alteration of the merchandise does not affect the duty rate owed upon its eventual release into the United States or transfer to another FTZ.

"Privileged Foreign Status" Allows for a Determination of Tariff Duties