i) Liquidation

Waste resulting from the manufacture or manipulation of merchandise in privileged foreign status, and domestic status merchandise which has lost its identity as such, lose their former statuses and become nonprivileged foreign status merchandise (19 CFR 146.42(b) and (c); see sections 5.7(d), 9.7(g)(1)(ii), and 9.7(h)(1)(i) FTZM).

(3) Generalized System of Preferences - To be eligible for duty-free treatment under the Generalized System of Preferences (19 CFR 10.171 through 10.178), several conditions must be met. 1) The merchandise must be imported directly from the Beneficiary Developing Country; (19 CFR 10.175); 2) nonprivileged foreign status merchandise entered for consumption must be in the same condition that it was in at the time of admission to the zone (C.S.D. 80-188).

(4) Entireties - Any reference in a HTS heading to an article shall include a reference to that article entered unassembled or disassembled. General Rule of Interpretation 2(a), HTS. This allows unassembled articles imported into the United States on the same conveyance on the same day to be treated as an entirety for tariff classification purposes. The FTZ Act creates an exception to this general rule governing entireties, with a choice of changing entireties being afforded a User. When nonprivileged foreign and privileged domestic status merchandise are attached or packaged together or withdrawn in an entirety in a zone, the nonprivileged foreign merchandise is classifiable at the rate of the entirety, even though the domestic portion is separately classifiable (C.S.D. 82-29). Election of privileged foreign status allows a User to have individual parts or components classified at the time privileged status is requested without reference to the classification of the entirety (C.S.D. 83-97).

(h) Valuation - Both privileged and nonprivileged foreign status merchandise are appraised in the same manner, as set forth in 19 CFR 146.65(b).

(1) Dutiable Value - The dutiable value of merchandise transferred from a zone is the price actually paid or payable for the merchandise in the transaction that caused the merchandise to be admitted into the zone, plus the statutory additions contained in 19 U.S.C. §402(b)(1) less, if included, international shipment and insurance costs and U.S. inland freight costs. If there is no such price actually paid or payable, or no reasonable representation of that cost or of the statutory additions, the dutiable value may be determined by excluding from the total zone value any included zone costs of processing or fabrication, general expenses and profit, and the international shipment and insurance costs and U.S. inland freight costs related to the merchandise transferred from the zone. The dutiable value shall reflect the total value of the foreign merchandise used in the manipulation or manufacture of the entered merchandise. In order to arrive at the dutiable value, a deduction from the transaction value of the foreign merchandise or total zone value, as appropriate, for recoverable and irrecoverable waste or

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