Foreign Trade Zones & Warehouses
April 2023 — Question 75
What status designation should be applied to merchandise entered for warehousing and transferred to a Foreign Trade Zone?
- APrivileged Foreign Status
- BNonprivileged Foreign Status
- CDomestic Status
- DActivated Status
- EZone-Restricted Status✓ CBP's answer
Why this answer
Part 146 defines the four zone statuses, and 146.44 assigns zone-restricted status to merchandise taken into a zone for storage, destruction, or exportation; its paragraph (d) applies that status specifically to merchandise that was entered for warehousing and then transferred into a foreign trade zone, which is exactly this transaction. Warehouse goods move to a zone only to be stored pending exportation or otherwise disposed of with Board approval, so they cannot take privileged or nonprivileged foreign status, the options that tempt because they describe ordinary dutiable foreign goods; activated status describes the zone site itself, not merchandise. Watch for: Assigning ordinary foreign-status labels to warehouse transfers, which enter zones as zone-restricted.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the April 2023 examination.
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