NAFTZ Advocacy Update

WOW! January has been a busy month for Advocacy at NAFTZ.  We're excited to share what we’ve accomplished!

• Onboarding new Government Relations Advisors – In our January Zones Report, we welcomed Sorini, Samet & Associates as our new Government Relations Advisors.  January has been busy with onboarding meetings and preparing a roadmap of progressing on our Advocacy Vision plan.  Meet our SSA representatives in February at the 2024 Legislative Summit!  
• CBP Trade Position Consolidation Bill Passes House – NAFTZ wrote a letter of support for H.R. 5862 Creating a Global Trade Specialist position at Customs and Border Protection, and in January, the Bill passed the House. While CBP funding for U.S. FTZ program support is a high priority request for NAFTZ, we also want CBP to see the Association supporting their initiatives to strategically realign and reshape its workforce in response to the evolving trade environment.
• Finalizing our 2024 focus list of advocacy topics – You know how it goes.  If everything is a priority, nothing is a priority.  In preparation for our 2024 Legislative Summit in Washington, DC., we have finalized our top legislative advocacy priorities for the year.  We’ll be publishing more about this soon, but for a sneak peek, join us at the Summit where we will be discussing our 2024 advocacy agenda live!

And we have several items we are watching:

• USTR alludes to possibility of rebalancing of Section 301 China tariffs – USTR has been doing the required review of the Section 301 tariffs effectiveness in changing China’s behavior and mentioned considering “ways to make the tariffs more strategic”.  Any changes in the Section 301 tariffs could impact U.S. FTZs holding merchandise subject to those tariffs and will have to make strategic decisions about future admissions if there are new Section 301 tariffs introduced.
• Tariffs on imports containing Chinese semiconductor components? - The House Select China Committee sent a letter on January 8 to USTR Katherine Tai and Commerce Secretary Raimondo calling for urgent utilization of existing trade authorities to prevent Chinese made foundational semiconductors (also known as “legacy” or “mature” semiconductors) from flooding the U.S. and global market. The Committee also asked for a briefing and answers within 60 days on whether the U.S. has authority to implement additional tariffs on imports containing Chinese-made foundational semiconductor components within finished products, and if not, what authorities are needed. Such action, if taken, would have a widespread impact across almost every U.S. industry.
• USTR says additional response needed to counter China’s EV industry, including in Mexico – Discussions are underway on how the U.S. can counter China’s growing domination of the EV supply chain and how rules of origin provisions allow for China to avoid tariffs.  This includes a USTR review of USMCA, currently underway.
• Select China Committee presses DHS to strengthen UFLPA enforcement - The House Select Committee on China released a nine-page letter to Department of Homeland Security Secretary Alejandro Mayorkas urging immediate action to boost enforcement of the Uyghur Forced Labor Prevention Act (UFLPA). The committee cited several factors undermining current enforcement efforts – inadequate coverage of the UFLPA entity list, transshipment through third countries, including FTA partner countries (specifically highlighting Nicaragua), and Section 321 de minimis entry.

Have questions or feedback on these or other advocacy topics?  Join an Advocacy Working Group!  We need your input, so sign up for the group(s) focusing on the areas that interest you and join the NAFTZ Advocacy effort.  Learn more at https://www.naftz.org/committees/

 By:
Melissa Irmen
NAFTZ Director of Advocacy and Strategic Relations