Zone Restricted Status Law and Legal Definition
Zone Restricted Status is a status of zone merchandise transferred to a zone for the sole purpose of exportation or destruction. Zone restricted status merchandise cannot be changed or brought into the U.S. Customs Territory without the specific permission of the Foreign-Trade Zones Board. The permission is granted on a case-by-case review, and only if the Foreign Trade Zones Board finds that entry would be in the public interest.
Merchandise in Customs bonded warehouse may be withdrawn from that warehouse and admitted into foreign-trade zone only under zone-restricted status. [19 USCS § 81c].
The following is an example of a case law referring to the term:
Under N.Y. U.C.C. Law § 2-401(2), title to goods passes at the time and place that the seller completes performance with respect to the physical delivery of the goods. Where the contract between the parties requires delivery of the goods in a foreign trade zone or in Panama, the buyer receives title when the goods are delivered to the foreign trade zone and attains zone-restricted status. [Hong Kong & Shanghai Banking Corp. v. HFH USA Corp., 805 F. Supp. 133 (D.N.Y. 1992)].