Although summer may be before us, NAFTZ is far from taking a vacation. Let’s hone in and highlight some issues currently in play.

Survey Says ….

Thank you Long Beach! We are really pleased with the turnout and the content of the Spring Seminar. Thanks to the Port of Long Beach, our wonderful sponsors as highlighted by Jeff Tafel in his report; all of our attendees; government agency partners including CBP and the FTZB; and the internal NAFTZ Team for a great event capped off by a fantastic port tour! Shout out to Joel Perler, Manager of Economic Development, at the Port of Long Beach who served as our tour guide.

NAFTZ Submits Comments & Testifies at USTR Supply Chain Resiliency Hearings

Since the time of our last ZonesReport, the NAFTZ submitted comments to the Office of the U.S. Trade Representative (USTR) in response to USTR’s call for tools and solutions to strengthen our supply chains, domestic manufacturing and foster further collaboration with like-minded trading partners and allies. The NAFTZ timely submitted comments focused on the importance FTZs play both as partners and as tools that fit squarely within USTR’s vision. The Association’s comments were supported with in-person testimony by Jeff Tafel before the USTR panel on May 23^rd. Other members of the NAFTZ also submitted comments and gave testimony to further drive home the importance of their operational stories and the role the FTZ program can play. This also presented an opportunity to further highlight the importance of taking FTZs into account when USTR considers trade policy so as not to negatively impact this important economic program. In addition, NAFTZ worked with sister associations that also wanted to include FTZs as a solution within their own comments.

Show Me the (Appropriations) Money!

NAFTZ continues its work on the Hill, meeting with Congressional members and staff on appropriations requests made by the NAFTZ in an effort to direct targeted Congressional funding to CBP to support FTZ operations. NAFTZ has submitted specific language to ensure that the funding requests allow flexibility but also ensure that the funding is not otherwise directed to general operational considerations by CBP. More to come as those efforts continue.

Section 301 – The New Norm

For those holding out hope that Section 301 tariffs on imports of Chinese origin goods might go away, the actions of USTR and the Biden Administration these past several weeks have put those notions to bed. Not only are the tariffs remaining in effect, in a number of instances they will actually increase. Many of the targeted areas are of particular concern to the FTZ community. Solar manufacturing, Electric Vehicle (EV) production and Lithium-ion battery manufacturing are all at the forefront of USTR’s actions and potentially present greater opportunities for FTZ users/operators depending upon whether any goods produced and/or distributed from a zone are intended for the North American market or elsewhere globally.

To Store or Not To Store – That Is the Question

To store is the correct answer. NAFTZ continues its discussions with CBP Headquarters regarding the ability to store goods subject to review for UFLPA purposes in a FTZ pending a determination by CBP. The NAFTZ Executive Team met with a delegation of stakeholders within CBP led by Susan Thomas - Executive Director of Cargo Conveyance & Security - to address why FTZs continue to be a positive and viable solution not only for the trade, but also for CBP. The NAFTZ addressed visibility, traceability, operational and security reasons why FTZs should be available not to mention the partnership considerations of helping CBP further its mission. The NAFTZ also addressed with CBP why this needs to be resolved now as CBP has already announced intentions to expand its UFLPA enforcement. We want to hear from membership!

As these changes affect your operations, please let the NAFTZ team know.

By: 

Shannon Fura, Page Fura, P.C.

NAFTZ Chair