Privileged Domestic Status

Summary of Privileged Domestic Status

A condition that may be accorded to merchandise of U.S. origin, or to imported merchandise upon which duties have been paid, that is entered into a foreign Trade Zone (read this and related legal terms for further details). Any eligible merchandise so entered that is subject to internal revenue tax must have taxes paid prior to application for this status. Application is made to the district director of customs. Goods granted this status may re-enter the customs territory free of duties and taxes.

(Main Author: William J. Miller)