To which of the following actions may merchandise admitted to a Foreign Trade Zone in zone-restricted status be subjected?
How to get there
19 CFR 146.44(a): Zone-restricted statusMerchandise taken into a zone for the sole purpose of exportation, destruction (except destruction of distilled spirits, wines, and fermented malt liquors), or storage will be given zone-restricted status on proper application. That status … cannot be abandoned once granted. Merchandise in zone-restricted status may not be removed to Customs territory for domestic consumption except where the Board determines the return to be in the public interest.
Exportation is one of the three permitted purposes. The answer is D.
Why the other choices are wrong
A) Transfer for domestic consumption with a Center Director's approval: only the FTZ Board can allow a return, and only if it's in the public interest. A Center Director can't.
B) Change to domestic status: zone-restricted status "cannot be abandoned once granted."
C) Manipulation or manufacture into a new article: the status exists for the sole purpose of exportation, destruction or storage. Manufacturing isn't one of them.
Tip
The four FTZ statuses: privileged foreign (rate locked at the PF grant, can't be abandoned), nonprivileged foreign (classified as it leaves the zone), zone-restricted (export, destruction or storage only, and it can be considered exported for customs purposes if the applicant wants that, § 146.44(c)), and domestic. Zone-restricted status is applied for on CBP Form 214 (§ 146.44(b)).
Source: 19 CFR 146.44(a)–(c) (eCFR).
CBP answer key: Answer D · 19 CFR 146.44(a)Source: CBP past exams ↗