Privileged foreign status
Also called: PF status · non-privileged foreign status
A status that can be requested for foreign goods admitted to a US foreign-trade zone, fixing their classification and duty rate at the time of admission even if they are later manufactured into a different product. Without it, goods have non-privileged foreign status and are classified in their condition when they leave the zone. US rules have at times made PF status mandatory for goods subject to certain additional duties.
In practice
Choosing between privileged and non-privileged status is the main way FTZ users manage inverted tariffs and additional duties.
Applies to: 
USA
Related terms
- Foreign-trade zone admission
- The process of bringing goods into a US foreign-trade zone, requested on CBP Form 214 or electronically, after which they are treated as outside US…
- Free zone
- An enclosed area within a customs territory where non-Union or foreign goods can be stored, handled or processed without import duty being charged…
- Section 301 duties
- Additional US duties imposed under Section 301 of the Trade Act of 1974 in response to trade practices of a foreign country judged unreasonable or…
- IEEPA tariffs
- Additional US duties imposed by executive order on the basis of the International Emergency Economic Powers Act, a 1977 law giving the President…