Summer is here and the heat is on! Not only across many parts of the United States, but in Washington, DC as we look towards our next set of virtual fly-ins (See more under the Advocacy column), debates and election season.

A Game of Tetris

Regardless of which Administration is sitting in the big white house on Pennsylvania Avenue, NAFTZ continues to work to advance the issues that are critical to our members. Working with the relevant federal agencies and representatives on the Hill feels very much at times like a game of Tetris. Any gamers out there (or anyone with an 11 year old like me) know this game. Constantly moving pieces and the need for strategy while the elements speed up or slow down depending upon the trade, policy or political dynamics. Bearing this in mind, here’s what is currently on our plate:

Meeting with CBP Acting Commissioner Troy Miller – Members of the Executive Committee and the internal NAFTZ team will be meeting with CBP Acting Commissioner Troy Miller and other members of CBP Leadership in July for “Trade Day” to discuss NAFTZ’s agenda of pending issues that need CBP engagement and/or action.

FTZ Storage Issue – The ability to store goods flagged/detained for review for forced labor considerations in a foreign-trade zone remains front and center. NAFTZ has been working closely with CBP Headquarters Executive Director Susan Thomas and Director Brad Slutsky (among others) to reverse CBP’s current position by demonstrating the objective need to permit this use, the ability of FTZs to satisfy any concerns CBP may have from both a physical and system control perspective as well as the weaknesses in CBP’s current plan regarding the use solely of bonded warehouse space. If you have faced challenges as a result of this current position please reach out to me or Jeff so that we can provide those anecdotes to CBP HQ.

Level Playing Field for 321 – De minimis also continues to be a hot topic in the press and in trade policy. NAFTZ is not taking a position regarding any changes contemplated with de minimis; rather, our focus is on ensuring a level playing field for US FTZs and our members that are currently at a competitive disadvantage relative to offshore companies.

USMCA – As we have reported to the Membership and reiterated in the Legislative Summit and Spring Conference, NAFTZ continues to work to educate members on the Hill and engage with USTR on the two issues that need to be addressed which carried over from NAFTZ into USMCA. Slowly but surely, we are getting attention focused on these concerns. With the mantra of both sides of the aisle aimed at bolstering manufacturing and operations in the U.S., we are seizing this opportunity to show once again why FTZs should be considered a vital economic development tool and only by removing limiting provisions such as those found under USMCA can we help achieve that goal.

In addition to the above, we are focused on working on appropriations and funding to better support local ports and, by extension, zone operations as well as working with CBP Headquarters on opportunities to better educate CBP personnel on training relative to zones as education continues to be a challenge as positions and personnel shift within CBP. Whether on the Hill or with the agency, continued education is critical so that, if the political climate changes, we are ready.

One of the things I am most proud of is our shift from a reactive association to a proactive association! A pivot attributable in no small part to engagement by our membership and working groups. If we continue to play that long game and recognize it's not always a sprint, we will achieve positive results. And perhaps win a game or two of Tetris along the way as well!