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October 2024, question 45

Entry / Entry Summary · Foreign-trade zones, warehouses and in-bond

Broker B's client wants to export 3,000 men's shirts upon which it paid duty, taxes, and fees at the time of importation by transferring the merchandise to a Foreign Trade Zone (FTZ). On proper application by Broker B, what zone status must the merchandise transferred to the FTZ have to be considered exported for purposes of drawback?

  1. Non-privileged Foreign Status
  2. Privileged Foreign Status
  3. Zone restricted Status
  4. Domestic Status
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CBP's answer: C. C: Zone restricted Status

Merchandise transferred to a zone only for export, destruction or storage is treated as exported for drawback, and on proper application it receives zone-restricted status. That status is the one required (C). Foreign status and domestic status do not make it exported for drawback.

Merchandise in a foreign trade zone for the purposes specified in § 190.181 will be given status as zone-restricted merchandise on proper application 19 CFR 190.182
will be given zone-restricted status on proper application 19 CFR 146.44(a)

Search for: zone-restricted status drawback exportation

CBP's key cites: 19 CFR 190.181; 19 CFR 190.182; 19 CFR 146.44

Question and key from CBP's October 2024 exam and answer key. The walk-through is ours; quotes are from the pinned editions in the reference viewer (HTSUS 2026 Basic, 19 CFR 2025 edition).