Merchandise in privileged foreign status shall be classified and appraised in its condition at the time the privilege is requested and through proper application to the port director. Sometimes it is to the ad vantage of the applicant to admit the merchandise in privileged foreign status. Obviously, if a product admitted into a zone has a duty rate lower than that of the finished product, then the operator would want to admit the merchandise in privileged foreign status so those components will be assessed at the lower duty rate when transferred from the zone for consumption.
Why would I choose to admit goods to a zone with privileged foreign status?
Last Modified: Nov 12, 2013