In a foreign trade zone, what does the rate of duty depend upon?

In a foreign trade zone (FTZ), the rate of duty indeed depends on the type of status assigned to the goods within the zone. This classification can be divided into several categories: privileged status, non-privileged status, domestic status, and zone-restricted status. Each of these statuses has different implications for duty rates.

Privileged status often allows for certain favorable treatment concerning duties, as goods may be entered into the U.S. commerce while incurring the lower duty rate. Non-privileged status typically means that goods remain subject to normal duty rates when they enter U.S. commerce. The designation of domestic status can signify that the goods are treated as U.S.-manufactured, which may bear different tariff implications. Zone-restricted status, on the other hand, may limit the goods' ability to enter U.S. commerce without additional duties.

This complexity allows businesses operating within FTZs to manage their duty exposure effectively, thereby facilitating trade and allowing for more strategic financial planning based on their goods' status. Each of the other options addresses factors that influence the broader trade landscape, but none capture the specific mechanism of duty determination as accurately as the status type within the FTZ itself.