FTZ’ine March 2025
March 3, 2025
March Madness
It used to be a basketball tournament. Maybe they still play. Bet you were busy last month too.
But for sure it describes March U.S. tariff changes, and the effort international traders are putting in to try and keep this thing afloat.
A Rose Garden ceremony is planned today to unveil the reciprocal tariffs that have been the subject of weeks of intense media speculation.
We got a sneak peek with last week’s introduction of a 25% tariff on all imported automobiles. The language of that Proclamation spells trouble for automotive FTZs; they will be inadvertently impacted. Other industries that rely on FTZ manufacturing may be similarly disadvantaged after the announcements today unless the proclamations adopt language that protects U.S. factories.
The cherry blossoms are out in your Nation’s Capital, so be sure to enjoy them. And whatever happens tonight, don’t let ‘em bust your bracket.
Top Story: Auto Tariffs Highlight FTZ Need For A Census Override
In a surprise announcement last Wednesday, President Trump imposed 25% tariffs on imported cars and car parts. This new tariff on car parts is postponed while the technical details of calculating the fee are worked out, but the 25% import tariff on finished automobiles goes into effect tomorrow.
The tariffs were swiftly denounced by the leaders of Germany and France, who called on the European Union to retaliate. Even US manufacturers have a gripe with the way the tariffs are set up.
The Census Bureau requires that manufacturers in foreign-trade zones always report a foreign origin, which will cause U.S. Customs to assess the new duties on FTZ-produced vehicles. Unless an accommodation for U.S. plants is made in the new reciprocal tariff orders, the breadth of affected FTZ manufacturing operations will broaden dramatically.
In Germany, whose auto industry is a huge exporter to the United States, the economy minister, Robert Habeck, said it was “crucial that the E.U. delivers a decisive response to the tariffs,” adding: “It must be clear that we will not back down.”
Olaf Scholz, Germany’s chancellor, called the tariff decision “wrong.” “The U.S. is thus embarking on a path that will only end with losers,” he said. “Because tariffs and isolation cost prosperity for everyone.”
The American market is crucial for Germany’s biggest automakers, including BMW, Mercedes-Benz and Volkswagen. The announcement sent shares of German automakers tumbling on Thursday. Shares of the Italian luxury carmaker Ferrari and the Swedish manufacturer Volvo also slumped. The rout encompassed European auto parts makers as well as the tire producers Pirelli and Continental.
Tech Tip: Even CBP Is Struggling With The Pace Of Tariff Changes
U.S. Customs and Border Protection (CBP) issued a message that a programming error in the Automated Commercial Environment (ACE) forced importers to pay Section 232 duties that were not collectible.
Importers bringing in one of the four affected HTSUS classifications (8418.99.8010, 8418.99.8015, 8418.99.8020 and 8418.99.8025) had difficulty trying to troubleshoot their ACE rejections. Programming issues like this one caused many importers to file late entries as the new tariffs went into effect.
CBP resolved this particular issue effective March 27th, but filers who entered such goods on or after March 12th were forced to add HTSUS 9903.85.08 and pay the Section 232 additional duties.
Those importers can now file a PSC (Post-Summary Correction) correcting the entry summary line(s) by removing 9903.85.08 to obtain refunds of duties paid. PSCs can be filed on any unliquidated entries to request a refund of duties paid under a trade remedy. Once an entry has liquidated, a protest may be filed within 180 days of the date of liquidation.
Questions about how the foreign-trade zones program can help you navigate the new tariffs? Contact us at info@iscm.co.
Canada Passes The Torch, But Not The Test
Last month Canada swore Mark Carney in as its new prime minister, ending nearly 10 years with Justin Trudeau in the role.
Trudeau had been the subject of ridicule from U.S. President Trump before the switch. Even with the handoff, Canada still got hit with additional tariffs on their steel, aluminum, automobiles, and anything else that doesn’t fall under USMCA.
The 59 year old central banker moved quickly to name a streamlined cabinet and pledged to uphold Canada’s interests in the face of 10 to 25% duties and additional tariff threats from the United States.
Governor General Mary Simon, the personal representative of King Charles, Canada’s head of state, presided over the swearing-in ceremony at Rideau Hall in the capital, Ottawa.
“We’re building a government that meets the moment. Canadians expect action — and that’s what this team will deliver,” Carney said in a social media post.
Sounding a combative tone, he said “ Our leaner cabinet will focus on two priorities in particular: first, protecting Canadian workers and their families in the face of unjustified foreign trade actions. And second, growing this great country by putting more money in Canadians’ pockets.”
Canada’s federal elections must be held no later than October 20, though analysts speculate Carney may call them sooner, in order to take advantage of his party's current popularity.
FTZs Wait For Other Shoe To Drop As E.U. Mulls Retaliation
The European Union is delaying its retaliatory trade actions two more weeks. European Commission President Ursula von der Leyen said those actions will be in response to the Trump administration’s decision to dissolve the EU/US agreement on steel and aluminum imports and issue new tariffs.
The EU had intended to levy duties on $28B worth of goods from the United States in two phases, on April 1 and April 13. The tariffs will target steel and aluminum products, as well as American beef, poultry, bourbon, motorcycles, peanut butter and jeans.
But President Trump plans to impose “reciprocal” tariffs to match the tax rates that other countries charge on imports “for purposes of fairness.” These reciprocal tariffs are expected to be announced this evening.
EU Trade Commissioner Maroš Šefčovič said that delaying the EU measures would allow the bloc to better understand the possible impact of the reciprocal tariffs and work out how best to respond.
“I can confirm that we decided to adjust the timing of the entry into force of tariffs,” President Ursula von der Leyen said, and added that with the delay, the commission’s goal is “to get the balance of products right, reflecting the interests of our producers, our exporters, our consumers, and of course, minimize the potential negative impact on our economy.”
President Von der Leyen reaffirmed that the world’s biggest trading bloc is “opposed to tariffs. We think that tariffs are bad. They are like taxes. They are bad for consumers. They are bad for business on both sides of the Atlantic without any question.”
Foreign-Trade Zones Await Copper Market Study
Copper prices hit record highs at the end of March as traders try to predict the impact of an ongoing trade war between the U.S. and its key trading partners on supplies of the vital metal.
Buyers in the U.S. have been stocking up on copper ahead of potential tariffs. A study by the U.S. Department of Commerce on the copper market is expected to complete in November, but the President recently indicated tariffs on copper and copper derivatives may come much sooner than that.
Copper is important to many corners of the U.S. economy from wiring for new home developments to the data centers at the heart of AI development.
Future prices for the base metal’s most traded contract rose to $5.24 per pound last week. Prices are up about 30% so far this year, following modest gains over the last several years. China, the world’s largest importer of copper, is embarking on a stimulus program that could further increase demand for the base metal.
“Tariff threats, tightening supply, and stimulus-fueled optimism for an economic rebound in China have underpinned a rally in copper.” said Adam Turnquist, chief technical strategist for LPL Financial.
“When you look at the uses of copper in today’s economy, those uses and the intensity of use of copper in today’s economy are growing,” said Kathleen L. Quirk, President and CEO of mining giant Freeport-McMoRan, at a recent conference for the global metals industry.
The International Energy Agency expects demand for the base metal to rise 20% to 31,128 kilotons by 2030 and by 41% to 36,379 kilotons by 2040. The U.S. mined about 1.1 million tons of copper in 2024. It currently lags the top producers, including Chile, Peru and China.
FTZ Staff Activity
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-41-2025) in FTZ 79G on behalf of TH Logistics, Plant City, FL on February 24, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-42-2025) in FTZ 26P on behalf of Kubota North America, Gainesville, GA on February 27, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-43-2025) in FTZ 50 on behalf of Tridus International, Inc., Compton, CA on February 28, 2025
- FTZ Board Staff processed a processed a Termination (S-44-2025) in FTZ 18K on behalf of Enovix Corporation, Fremont, CA on February 28, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-45-2025) in FTZ 50AE on behalf of Space Exploration Technologies Corporation dba SpaceX on March 4, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-46-2025) in FTZ 47 on behalf of Proximo Spirits, Inc., Hebron, KY on March 4, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-47-2025) in FTZ 244 on behalf of GPA Logistics Group, Inc., Perris, CA on March 6, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-48-2025) in FTZ 21M on behalf of Coastal Logistics, Inc., Summerville, SC on March 10, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-49-2025) in FTZ 32on behalf of Makej, LLC, Doral, FL on March 11, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-50-2025) in FTZ 75 on behalf of Amkor Technology Arizona, Inc., Peoria, AZ on March 13, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-51-2025) in FTZ 153 on behalf of Jose Enriquez, Inc. dba JE Exports on March 13, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-52-2025) in FTZ 138 on behalf of Brook Sports, Inc., Ashville, OH on March 13, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-53-2025) in FTZ 21N on behalf of Harbor Logistics LLC, North Charleston/Hanahan/Goose Creek, SC on March 14, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-54-2025) in FTZ 32 on behalf of Krystal Logistics USA, Inc., Miami, FL on March 17, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-55-2025) in FTZ 32 on behalf of Boreal International Corporation, Miami, FL on March 17, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-56-2025) in FTZ 32 on behalf of Trading Unlimited, LLC, Homestead, FL on March 17, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-57-2025) in FTZ 41S on behalf of Fresenius Kabi USA, LLC., Pleasant Prairie, WI on March 18, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-58-2025) in FTZ 32 on behalf of Knoxx Logistics, LLC, Doral, FL on March 19, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-59-2025) in FTZ 281 on behalf of Double Ace Cargo, Inc., Miami, FL on March 19, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-60-2025) in FTZ 70 on behalf of Progressive Distribution Centers, Inc., Allen Park, MI on March 20, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-61-2025) in FTZ 70 on behalf of Progressive Distribution Centers, Inc., Detroit, MI on March 20, 2025
- FTZ Board Staff processed a processed a Termination (S-62-2025) in FTZ 138 on behalf of DLG International, Inc., Marysville, OH on March 24, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-63-2025) in FTZ 72 on behalf of Sentry Logistics Solutions, Inc., Indianapolis, IN on March 25, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-64-2025) in FTZ 20 on behalf of LMFAKRO, LLC, Elizabeth City, NC on March 25, 2025
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-65-2025) in FTZ 26AB on behalf of Belnick, LLC, Canton, GA on March 25, 2025
Foreign-Trade Zone Board Activity
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- Phillips 66 Company submitted a notification requesting production activity for renewable fuels within Foreign-Trade Zone 87A in Lake Charles Louisiana. MORE
- Phillips 66 Company submitted a notification requesting production activity for renewable fuels within Foreign-Trade Zone 49E in Linden, New Jersey. MORE
- Phillips 66 Company submitted a notification requesting production activity for renewable fuels within Foreign-Trade Zone 149C in Old Ocean, Texas. MORE
- GPI Beauty, Inc. submitted a notification requesting production activity for plastic tube sleeves within Foreign-Trade Zone 89 in Las Vegas, Nevada. MORE
- Pfizer, Inc. submitted a notification requesting production activity for a pharmaceutical intermediate product within Foreign-Trade Zone 43E in Kalamazoo. Michigan. MORE
- Rincon Power, LLC submitted a notification requesting production activity for contactors, relays, and switches within Foreign-Trade Zone 205 in Carpinteria, California. MORE
- Corteva Agriscience, LLC received authorization of production activity for crop protection products in Foreign-Trade Zone 144A in Valdosta, Georgia. MORE
- Cummins Inc. received approval to operate their Irvine, Pennsylvania facilities as Foreign-Trade Zone 247D. MORE
- Corteva Agriscience, LLC submitted a notification requesting production activity for crop protection products in Foreign-Trade Zone 144A in Valdosta, Georgia. MORE
- PCI Pharma Services received authorization of production activity for additional components of pharmaceutical products within Foreign-Trade Zone 35L in Croydon and Philadelphia, Pennsylvania. MORE
March Madness:
It used to be a basketball tournament. Maybe they still play. Bet you were busy last month too.
But for sure it describes March U.S. tariff changes, and the effort international traders are putting in to try and keep this thing afloat.
A Rose Garden ceremony is planned today to unveil the reciprocal tariffs that have been the subject of weeks of intense media speculation.
We got a sneak peek with last week’s introduction of a 25% tariff on all imported automobiles. The language of that Proclamation spells trouble for automotive FTZs; they will be inadvertently impacted. Other industries that rely on FTZ manufacturing may be similarly disadvantaged after the announcements today unless the proclamations adopt language that protects U.S. factories.
The cherry blossoms are out in your Nation’s Capital, so be sure to enjoy them. And whatever happens tonight, don’t let ‘em bust your bracket.