December 15, 2023

Privileged Foreign Status (PF)

Zone status whereby merchandise is classified and appraised, with duties and taxes determined, at the time the status is elected. Once chosen, the privileged foreign status cannot be changed.
December 15, 2023

Port of Entry

A place designated by the U.S. Government at which CBP personnel is assigned with authority to accept entries of merchandise, collect duties and enforce the various provisions of CBP laws.
December 15, 2023

Permit to Transfer (PTT)

Permit to move merchandise in-bond from one location to another within the same port. Now generally filed electronically and referred to as an ePTT.
December 15, 2023

Operator’s Bond

An Activity Type 4 bond submitted electronically to CBP to assure compliance with CBP Operator responsibilities.
December 15, 2023

Operator

A corporation, partnership or person that operates a zone or subzone under the terms of an agreement with the Grantee. A Grantee may act as its own Operator. An Operator may also be a User, and in this case is referred to as a Operator/User.
December 15, 2023

Nonprivileged Foreign Status (NPF)

Status of zone merchandise not previously cleared by CBP which is appraised in the condition of the merchandise at the time it enters Customs territory. NPF status may be changed upon approval from CBP, provided the merchandise is still in the same condition as when admitted to the zone. While in the zone, NPF status merchandise can be manipulated, manufactured, […]
December 15, 2023

Manufacturing

CBP determines what constitutes manufacturing on a case-by-case basis, distinguishing it from other operations such as manipulation, processing, production and blending. The U.S. Foreign-Trade Zones Board has defined “Production” as any process that results in (1) a substantial transformation resulting in a change in the essential character of the merchandise, whether or not there is a change in the HTSUS […]
December 15, 2023

Manipulation

As defined in Section 562 of the Tariff Act, processing wherein merchandise is packed, unpacked, repacked, cleaned, sorted, graded or otherwise changed in condition. The precise distinction between manipulation, manufacturing and now production is subject to interpretation.