With passive RFID tags there is a significant limitation in application in proximity of a metal. The reduced performance is due to the shift of resonance frequency and the reduction of inductive coupling. Common solutions are application of thick spacer or use of active RFID tags. However, the problem can be reduced by applying thin ferrite spacer – flexible enhancement film between RFID tag and metal, where it compensates the effect of metal by functioning both as an impedance buffer and as a magnetic core to enhance inductive coupling. Flexible enhancement film materials come in various thicknesses and forms and can be optimized to specific RFID design to achieve significant performance improvement.