Answer first
Core rule
Merchandise may generally enter a zone only on a uniquely and sequentially numbered Form 214 and port-director permit, subject to exceptions for temporary deposit, transit, and qualifying domestic merchandise. Privileged foreign status must be requested on Form 214 before manipulation or manufacture changes tariff classification and generally fixes classification and the applicable duty and tax rate at the status-application point. Foreign merchandise not given privileged or zone-restricted status is nonprivileged foreign. Zone-restricted status is for the sole purpose of exportation, qualifying destruction, or storage and generally bars domestic consumption unless the Foreign-Trade Zones Board finds return to be in the public interest. Current law was reviewed on 2026-08-18 against the eCFR text current through 2026-08-14. For the October 2026 CBLE, answer from the exam-designated 2025 CFR edition when its wording or numbering differs from live law.
Authority and lookup route
Locate the rule before returning to the facts. Links point to government or official publications.
Reference lookup task
Find the ordinary Form 214 permit rule and its three stated exceptions, then compare when privileged foreign and zone-restricted status must or may be requested.
Route: Read §146.32(a)(1), then move to §§146.41 and 146.44; finish with §146.65(a) to see why status timing matters.
Worked example
Foreign components will be manufactured in an FTZ in a way that changes tariff classification. The operator wants privileged foreign status for those components but waits until after manufacturing to apply. Is the request timely under §146.41?
- 1Identify the requested status as privileged foreign rather than the default nonprivileged foreign status.
- 2Locate the timing rule in §146.41(b).
- 3Determine that manufacturing already effected a tariff-classification change.
- 4Reject the late privileged-status request for the stated components.
Conclusion: No. The application had to be made before the zone activity effected the tariff-classification change.
Common traps
- Calling Form 214 admission an entry for consumption into customs territory.
- Requesting privileged foreign status after manipulation or manufacture changes tariff classification.
- Assuming all foreign merchandise in a zone is privileged foreign by default.
- Treating zone-restricted status as freely convertible to domestic consumption.