FTZ’ine August 2022

The Race To Recess

The Senate goes on summer vacation beginning this coming Monday, August 8th, until Labor Day. They have been trying to get all their work done before then, and have actually had some surprising successes. No Toto, there is still no federal budget, but Congress did agree on an incentive plan to try and bring supply chains for critical materials such as semiconductor chips back to the United States. The Senate is also working to pass a separate spending plan to address climate change, health care, and inflation.

The U.S. economy shrank for the second consecutive quarter. That is the normal definition of a recession, but with the job market still so hot most economists are not ready to use that term yet.

The Uyghur Forced Labor Prevention Act (UFLPA) continues to be less comprehensive than originally advertised, but needs to remain on the radar of importers. Keep looking for your Xinjiang exposure.

Concern for a global food shortage eased when Russia and Ukraine reached a deal to export 20 million tons of grain trapped by the war. Those fears promptly rekindled when Russia bombarded the main Ukrainian port of Odessa within 24 hours of making the deal. One ship has made it through securely so far, with at least 16 more tensely waiting for clearance to safely load.

Top Story: The Odd Bird Economy Confuses Foreign-Trade Zones

Tech Tip: Good News for e214 Filers - ACE House Bill Release Delayed!

Last month, we told you about CSMS #52209523 - Updated Draft FTZ CATAIR chapter which contained links to a draft CATAIR for updates to the e214 to include house bill release functionality. At the time, while there was no date set for this new e214 functionality to be ready for testing. It was expected to go into production in August 2022, only 2 months after being published in draft form.

There were a lot of questions raised by the draft CATAIR about new concurrence functionality and many FTZ operators realized they needed to readdress interfaces with brokers and forwarders to capture the House Bill that was not previously included in these data exchanges.

On July 18, 2022, with no CSMS message announcing the update, CBP posted a new ACE Development and Deployment Schedule. In this version, found here, the release date for all House Bill Release functionality is now listed as Winter 2022, instead of August 2022.

Those questions related to concurrence still remain unanswered, but CBP has said an FAQ about House Bill Release is being created and will be published soon. In the meantime, if you are not receiving house bill information for your ocean receipts on your paperwork, you want to start preparing now to make sure you have it when this becomes mandatory. And if you have electronic interfaces to receive manifest information, double check that house bill of lading is included for all ocean shipments.

As you are preparing, if you have questions or comments on the idea of house bill release, please send them to us at Info@iscm.co.

Congress Moves On Not One, But Two Major Spending Bills

LA May Be The LAST To Strike, FTZs Breathe Easier

Pelosi Visit Plans Inflame Raw U.S. – China Relations

Fatal Port Accident Could Taint Negotiations

FTZ Staff Activity

FTZ Board Staff processed a Termination (S-98-2022) in FTZ 28G on behalf of Talbots Import LLC, in Lakeville, MA, on June 15, 2022
FTZ Board Staff docketed a request (S-99-2022) to establish a subzone in FTZ 21 on behalf of DMA Sales, LLC, in Marion County, SC
FTZ Board Staff processed a Minor Boundary Modification (S-100-2022) in FTZ 39 on behalf of Exel, dba DHL Supply Chain, Inc., in Lewisville, TX, on June 22, 2022
FTZ Board Staff docketed a request (S-101-2022) to establish a subzone in FTZ 68 on behalf of Expeditors International of Washington, Inc., in El Paso, TX
FTZ Board Staff Monitored (S-102-2022) the production scope of FTZ 45F on behalf of Epson Portland, Inc., in Hillsboro, OR
FTZ Board Staff processed a Minor Boundary Notification (S-103-2022) in FTZ 64 on behalf of USA Big Mountain Paper, Inc., in Jacksonville, FL on June 27, 2022
FTZ Board Staff processed a Termination (S-104-2022) in FTZ 176C on behalf of Chrysler, LLC, in Belvidere, IL on June 27, 2022
FTZ Board Staff processed a Minor Boundary Notification (S-105-2022) in FTZ 119G on behalf of SICK Product & Competence Center Americas, LLC, in Bloomington, MN on June 29, 2022
FTZ Board Staff processed a Minor Boundary Notification (S-106-2022) in FTZ 119 on behalf of Archer-Daniels-Midland Company, in St. Paul, MN on June 29, 2022
FTZ Board Staff processed a Termination (S-107-2022) in FTZ 122L on behalf of Flint Hills Resources, L.P., in Corpus Christi, TX on June 30, 2022
FTZ Board Staff processed a Minor Boundary Modification (S-108-2022) in FTZ 72 on behalf of Mercury Marine, in Brownsburg, IN on July 5, 2022
FTZ Board Staff processed a Minor Boundary Modification (S-109-2022) in FTZ 281 on behalf of GFX, Inc., in Miami, FL on July 6, 2022
FTZ Board Staff processed a Minor Boundary Modification (S-110-2022) in FTZ 89 on behalf of Las Vegas FTZ, LLC, in Las Vegas, NV on July 6, 2022

FTZ Board Activity

Dantzler Trade, Inc. received approval for subzone status as Subzone 7S for its facility within FTZ 7 in Toa Baja, Puerto Rico. MORE
The City of Mesa submitted an application for the reorganization of FTZ 221 under the Alternative Site Framework in Mesa, Arizona. MORE
Pfizer, Inc. received authorization of production activity for lipid active pharmaceutical ingredients within FTZ 43 in Kalamazoo, Michigan. MORE
Sunlit Arizona LLC received authorization of production activity for specialty chemicals for microchip production within FTZ 75 in Phoenix, Arizona. MORE
Almod Diamonds Ltd., Inc. submitted a notification of proposed production activity for jewelry, precious and semi-precious stones, and pearls within FTZ 241 in Miramar, Florida. MORE
Maxter Healthcare Inc. submitted a notification of proposed production activity for medical examination disposable gloves within FTZ 149H in Brazoria County, Texas. MORE
Expeditors International of Washington, Inc. submitted an application for the expansion of Subzone 68A within FTZ 68 in El Paso, Texas. MORE
The City of Tampa received approval for the expansion of FTZ 79 under alternative site framework in Tampa, Florida. MORE

The Race To Recess –

The Senate goes on summer vacation beginning this coming Monday, August 8^th, until Labor Day. They have been trying to get all their work done before then, and have actually had some surprising successes. No Toto, there is still no federal budget, but Congress did agree on an incentive plan to try and bring supply chains for critical materials such as semiconductor chips back to the United States. The Senate is also working to pass a separate spending plan to address climate change, health care, and inflation.

The U.S. economy shrank for the second consecutive quarter. That is the normal definition of a recession, but with the job market still so hot most economists are not ready to use that term yet.

The Uyghur Forced Labor Prevention Act (UFLPA) continues to be less comprehensive than originally advertised, but needs to remain on the radar of importers. Keep looking for your Xinjiang exposure.