h) Valuation

an entry filed electronically under the procedures of 19 CFR 143 Subpart D, if the merchandise is admissible and all requirements of law and regulation have been met.

(g) Tariff Classification - Zone merchandise which is entered for consumption is classified according to the Harmonized Tariff Schedule of the United States, with the General Rules of Interpretation taken in order.

(1) Privileged Foreign (PF) Status Merchandise - Merchandise in PF status will be subject to tariff classification according to its character, condition, and quantity at the rate of duty and tax in force on the date of filing, in complete and proper form, of the application for admission to the zone and for privileged status designation (19 CFR 146.65(a)(1)). Merchandise will not be deemed to have any zone status, including privileged foreign status, unless and until it is admitted to a zone on an e-214/CBPF 214 (See Section 6.4 FTZM). Once privileged foreign status is selected, it can not be abandoned. Entries containing PF status merchandise must list the PF status merchandise on a separate line item(s) from any NPF status merchandise. (See Section 9.9(d) FTZM concerning the effect of privileged foreign status on U.S. Government importations of goods manufactured in a zone into other articles.).

(i) Waste - Recoverable waste of privileged foreign status merchandise remaining after a casualty retains its privileged foreign status, and the merchandise is dutiable in its condition at the time privileged foreign status was requested (LD 86-0007, C.S.D. 86-7 and HQ 216240). It is distinct from recoverable waste of a manufacturing or manipulation operation under 19 CFR 146.42(b), which is changed to nonprivileged foreign status (See Section 9.7(g)(2) and 9.7(h)(1)(i) FTZM).

(iii) Duties Based on Relative Value - Where two or more products result from the manipulation or manufacture of privileged foreign status merchandise in a zone, the duties and taxes applicable upon entry for consumption shall be distributed to the several products in accordance with their relative values at the time of separation, with due allowance for recoverable waste (First Proviso, 19 U.S.C. §81c (a)). In the calculation of relative values in the operations of a petroleum refinery in a zone, the time of separation is defined as the entire manufacturing period. The price of products required for computing relative values shall be the average per unit value of each product for the manufacturing period (19 U.S.C. §81c and see Section 11.6(j) FTZM).

(2) Nonprivileged Foreign Status Merchandise - Nonprivileged foreign status merchandise set forth for in 19 CFR 146.42 will be subject to tariff classification in accordance with the character, condition and quantity of the actual product that is constructively transferred to the Customs territory at the time the entry or entry summary is filed with CBP (19 CFR 146.65(a)(2)).

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