November 2017
November 17, 2017
January 2018
January 3, 2018

December 2017

Top Story -

Don't Be A Turkey: Get Those 216 Forms In On Time!

If your current diet includes leftover turkey, cranberry sauce, mashed potatoes and/or candies yams, it can mean only one thing: it is time for FTZ operators to file their annual 216 forms.  

That’s right, the form that was supposed to be eliminated in a new set of regulations (or perhaps pilot test) is still alive and well and must still be completed and approved for each zone.  Grantees may wish to send their operators a helpful reminder that the forms should be signed soon.  Some ports are requiring actual quantity and weight measures, and a confirmation of the zone year start and end dates. Want help completing the form? Get it here.

Commerce Starts It's Own Aluminum AD/CVD Investigation

Aluminum imports from China are again the target of a new U.S. trade action. Earlier this week the Department of Commerce self-initiated antidumping and countervailing duty investigations against imports of alloy aluminum sheet from China. This marks the first time in over two decades that the agency has brought its own case against imports. Typically, it is the domestic industry that files AD/CVD actions and Commerce and the International Trade Commission (ITC) administer them. If Commerce finds dumping or unfair subsidization in its preliminary determinations, currently scheduled for February 2018 (CVD) and April 2018 (AD), importers will be charged the calculated duties upon the products' entry into U.S. commerce. 

The product covered by the investigations is "common alloy aluminum sheet, which is a flat-rolled aluminum product having a thickness of 6.3 mm or less, but greater than 0.2 mm, in coils or cut-to-length, regardless of width." Aluminum sheet is typically used in building and construction, transportation, automotive manufacturing, and appliances 

CBP's New In-Bond Regulations In Force... Sort Of

The new in-bond regulations promulgated by CBP went into affect this week.  However, complete implementation of those regulations cannot be completed until Customs makes technology changes. These are needed to accept the additional data required (6-digit HTS code, FIRMS code, etc.) by the new regulations.  Not only have the required technology changes not been implemented, their design has not even been released or tested.  CBP did note that they would be ‘flexible’ in enforcing the new regulations for the next 90 days.  We expect that time period to be extended until after gets the required ACE changes are in place. 
USTR Not Encouraged By NAFTA Negotiations

As the fifth round of talks concluded in Mexico City earlier this month, tensions with Canada and Mexico were apparent with both countries telling the United States that it would make little headway with its current approach.

USTR Robert Lighthizer took aim at his Canadian and Mexican counterparts, saying “thus far, we have seen no evidence that Canada or Mexico are willing to seriously engage on provisions that will lead to a rebalanced agreement. Absent rebalancing, we will not reach a satisfactory result.”

Mr. Lighthizer said while some progress has been made to modernize NAFTA, “I remain concerned about the lack of headway. Our teams will be meeting again next month in Washington. I hope our partners will come to the table in a serious way so we can see meaningful progress before the end of the year.”

Canada and Mexico are hedging against the potential collapse of NAFTA by pushing for trade agreements with new partners, including China. Both countries have indicated their willingness to move forward with the 11-country Trans-Pacific Partnership, from which the United States withdrew earlier this year.

 
IMF Projects That 2017 Was A Record Trade Year

What looked like the year of the trade war was the year of the trade boom.
As 2017 draws to a close, the International Monetary Fund is projecting the volume of trade in goods and services will have grown 4.2 percent in 2017, up from 2.4 percent in 2016. That would be the first time trade has outpaced output growth since 2014 and harks back to the pre-crisis days when such outperformance was a regular occurrence.

Among the winners: big manufacturing powerhouses such as Germany and China and producers of electronics like South Korea. Caterpillar Inc. and Samsung Electronics Co. are some of the companies that are cashing in. Closely watched gauges on manufacturing suggest the recovery should continue into 2018. Illinois-based Caterpillar, FTZ user and long a pointer for global growth, has seen increased sales in almost every corner of the world: from Asia to Europe, and Africa to Latin America.

"The global economy appears set to remain in good shape in 2018 as the broad-based economic strength seen this year will carry over," Oxford Economics wrote in a recent note in which they revised their forecast for world trade higher by 0.5 percentage points to 4.2 percent next year. "We see some scope for further upward revisions."

U.S. Foreign-Trade Zones Board Activity

  • Kubota North America Corporation submitted a notification of proposed production activity to the FTZ Board for its facilities in Subzone 26P in Jefferson and Gainesville GA. LEARN MORE
  • Advanced Optowave Corporation submitted a notification of proposed production in FTZ 52 Site 5 in Jamaica and Ronkonkoma, NY.  LEARN MORE
  • General Electric Transportation received approval for underground mining vehicle production of in its facilities in Fort Worth and Haslet Texas (Subzone 196B) and Erie and Grove City, Pennsylvania. (Subzones 247A and 247B) LEARN MORE
  • CornellCookson, Inc. received approval for rolling steel door production in their facility in Goodyear, AZ. FTZ 277. Site 11. LEARN MORE
  • Salt Lake City Corporation, grantee of FTZ 30, applied to reorganize its existing zone to include the existing site as a “magnet” site. The proposed service area under the alternative site framework is Davis, Morgan, Salt Lake, Utah and Weber Counties, Utah and the cities of Brigham City, Corinne, Honeyville, Perry, Erda, Grantsville, Lake Point, Mills Junction, Rush Valley, Stansbury Park, Stockton, Terra, Tooele, Vernon, Heber City, Midway, Coalville, Deer Mountain, Echo, Francis, Henefer, Kamas, Kimball Junction, Oakley, Park City, Peoa, Samak, Silver Summit, Snyderville, Wanship, Woodland and Mantua Counties in Utah. LEARN MORE
  • Estee Lauder Inc. submitted an application of proposed production to add the finished product of hair straightening styling balm to its existing facilities in Melville, New York within FTZ 52. LEARN MORE
  • The Greater Kansas City Foreign-Trade Zone, Inc. is applying to modify the existing boundaries of Site 3 at the Kansas City International Airport facility by removing a 143.90-acre parcel and adding twelve new parcels totaling 1,273.90 acres. Modified Site 3 would consist of 10,797 acres within FTZ 15.  LEARN MORE
  • Gulfstream Aerospace Corporation has received approval for subzone status within FTZ 168 in Dallas, Texas. LEARN MORE
  • Lockheed Martin Corporation, Space Systems Company has received approval to establish Subzone 123G in Littleton, Colorado. LEARN MORE
  • The City of Hitchcock, Texas, effectively withdrew its application for its own FTZ. The Port of Houston Authority, grantee of FTZ 84, filed an application at the City's request to add a new site to FTZ 84 that had been the subject of the City's unsuccessful FTZ application. LEARN MORE
  • Estee Lauder Inc. received approval to produce Skin Care, Fragrance, and Cosmetic products in its facility within FTZ 52, Site 4, in Melville, New York. LEARN MORE
  • PGTEX USA, Inc. (PGTEX) received approval to produce Fiber Glass Fabrics in its facility within FTZ 68-Site 3, in El Paso, Texas. PGTEX is subject to a restriction concerning the foreign status of glass fire rovings, requiring that they be admitted with privileged foreign status. LEARN MORE
  • Dallas Airmotive, Inc (DAI) submitted a notification of proposed production activity to the FTZ Board for its facility in DFW Airport, Texas in FTZ 30 Site 1. LEARN MORE
  •  Eastman Chemical Company submitted a notification of proposed production for their chemical facility in Kingsport, Tennessee within FTZ 204 Site 12.  LEARN MORE
  • Klaussner Home Furnishings has received permission to produce their Upholstered Furniture in its facility within Subzone 230D, in Asheboro and Candor, North Carolina. They are subject to a restriction requiring that lithium ion batteries be admitted to the subzone in privileged foreign status  or domestic status including Section 400.14. LEARN MORE
  •  Marine Industries Association of South Florida has submitted a notification of proposed production activity, limited to specific foreign-status materials and components and specific finished products, for their facilities in Fort Lauderdale, Florida, FTZ 241 Subzone 241A.  LEARN MORE
  • Kern County, grantee of Foreign-Trade Zone 276, requested to reestablish the zone adjacent to the Los Angeles/Long Beach U.S. Customs and Border Protection port of entry. The reestablished zone would be comprised of the previously approved Site 2, with expanded borders located at the
    intersection of Interstate 5 and Highway 99, Lebec, California—which the application proposes to expand from 247 to 1,093 acres.  
    LEARN MORE
  • Orgill, Inc. has submitted a request that their facility in Tifton, Georgia be granted Subzone status within FTZ144.  LEARN MORE
  • Ekornes Inc. has received approval to establish Subzone 44J within the existing activation limit of FTZ 44 subject to it's 407.5- acre activation limit. This new Subzone is located in Somerset, New Jersey.  LEARN MORE

THE HOLIDAYS COME TO WASHINGTON

Last night the First Lady pressed the button to light the National Christmas Tree located in the Ellipse, just behind the White House.  The tradition of a National Tree is now almost 100 years old.  The Staff at the FTZine wish you and yours a Merry Christmas, Happy Holiday season, and best wishes for a joyful and prosperous New Year.
You can now view current and past issues on the ISCM website: iscm.co/ft-zine/.

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