Zone restricted status refers to a designation for merchandise that has been transferred to a foreign-trade zone specifically for export or destruction. This merchandise cannot be altered or brought into the U.S. Customs Territory without obtaining explicit permission from the Foreign-Trade Zones Board. Such permission is evaluated on a case-by-case basis and is granted only if it serves the public interest.
This term is commonly used in international trade and customs law. It is important for businesses involved in importing and exporting goods, particularly those utilizing foreign-trade zones. Users may need to complete specific forms or procedures to manage merchandise under zone restricted status, which can be facilitated by legal templates available through US Legal Forms.
Here are a couple of examples of abatement:
For instance, a company might import electronics into a foreign-trade zone with zone restricted status, planning to export them to a foreign market. If they decide to sell the electronics in the U.S., they must first seek permission from the Foreign-Trade Zones Board to change the status of the merchandise.
The primary legal reference for zone restricted status is found in the Foreign-Trade Zones Act, specifically under 19 U.S.C. § 81c. Additionally, case law such as Hong Kong & Shanghai Banking Corp. v. HFH USA Corp. (805 F. Supp. 133, D.N.Y. 1992) illustrates how title to goods is affected by this status.
| Term | Description | Difference |
|---|---|---|
| Bonded Warehouse | A facility where goods are stored without payment of duties. | Zone restricted status applies specifically to goods intended for export or destruction, while bonded warehouses may hold goods for various purposes. |
| Foreign-Trade Zone | A designated area where goods can be imported without immediate customs duties. | Zone restricted status is a specific designation within foreign-trade zones, focusing on export or destruction. |
If you are dealing with merchandise under zone restricted status, ensure you understand the requirements for obtaining permission from the Foreign-Trade Zones Board. Consider using US Legal Forms for templates that can assist you in managing the necessary documentation. If your situation is complex, consulting with a legal professional is advisable.
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It is a designation for merchandise in a foreign-trade zone that is intended for export or destruction and cannot be altered without permission.