FTZ’ine July 2024
June 27, 2024
FTZ’ine September 2024
September 4, 2024
That's All Folks!
Well, that’s all for the 2024 legislative agenda anyway.
Wow. What a difference a month makes. As the last FTZ’ine went to press, we were eagerly anticipating the first Presidential Debate in a close race. A day later it looked like we could end up with a landslide. Three weeks after that we have a serious race again . . . and a lame duck President. Those two facts add up to a paralytic legislative calendar for the rest of the 118th Congress.
The House is in summer recess and won’t be back for weeks. Once they return, the desperate need to come up with an FY25 budget is likely to exclude progress on almost any trade priorities in Washington. That means most trade initiatives (GSP, AGOA, MTB, etc.) are probably off the table until all the votes are tallied in November. Time to plan for the 119th Congress that starts in January.
Russia just announced that it will begin accepting cryptocurrency for its international sales to help it avoid trade sanctions. That will complicate the candidates’ stand on cryptocurrency which has backers in both parties.
Talks on a new contract with the ILA, representing labor at East and Gulf Coast ports, have not been smooth. With the Master Contract set to expire in September, that could put additional pressure on supply chains just as peak season is ramping up. Batten down the hatches.
Top Story: New China Tariffs Delayed
The U.S. Trade Representative's (USTR) office announced that the new U.S. tariff increases on Chinese imports including electric vehicles and batteries, will be delayed at least until the middle of the month.
The new Section 301 tariffs were scheduled to implement today, but USTR said they are still reviewing over 1,000 comments received in response to the public notice of the additional levies.
The new measures were to include a quadrupling of import duties on Chinese EVs to over 100%, and doubling semiconductor duties to 50%. USTR also sought input whether a proposed 25% duty on medical masks, gloves and a planned 50% tariff on syringes should be higher.
In total the new measures affect $18 billion in current imported Chinese goods including steel and aluminum, semiconductors, electric vehicles, critical minerals, solar cells and cranes, the White House said.
The new tariffs on imports from China come as China’s trade surplus last month broke all records. Officials around the world worry that exports from China will displace their domestic industrial output, and the United States, the European Union, Brazil, India, and Türkiye have been raising tariffs or imposing new ones on manufactured goods from China.
China’s already formidable exports surged in June, China’s customs administration reported. But imports shrank, with Chinese companies and households becoming more cautious about spending money. The result was a record monthly trade surplus of just over $99 billion.
The value of imports slid 2.3 percent in June from a year earlier, to about $209 billion. Exports jumped 8.6 percent, to $308 billion, generating the record-breaking surplus.
Tech Tip: CBP Starts Implementing Major APHIS Changes
The US Department of Agriculture, Animal and Plant Health Inspection Service (APHIS) is making flag updates that will require additional filing.
There are 25 HTS codes for which the flags will change from an AQ1 (can be disclaimed) to AQ2 (cannot be disclaimed). These tariffs begin with 0804, 0805 and 1209, and some form of declaration will be required for items with the affected codes, even if no filing was required before.
The flagging updates were installed starting July 18th, with Harmonized System Update (HSU) 2411.
And bigger changes to APHIS filing requirements will be here soon. U.S. Customs and Border Protection’s Office of Trade and the USDA is hosting a webinar on Wednesday, August 21, 2024, at 2:00 p.m. ET to review the Lacey Act Phase VII Implementation, which will impact an additional 250 HTS codes.
Questions related to the new APHIS filing requirements from USDA? Contact us at info@iscm.co.
Winds Of Unrest Now Blowing Cargo West
The International Longshoremen's Association, AFL-CIO (ILA), which represents 85,000 workers at 100 East and Gulf Coast ports, has threatened to strike if a new contract is not reached by Sept. 30th when the current Master Contract is set to expire.
Talks with the United States Maritime Alliance (USMX) on a new deal have not been smooth.
A sticking point has been the use of automated truck gates at multiple ports. Just as the Port of Baltimore crisis subsides, shippers are beginning to divert some cargo to the West Coast.
Announcements from ILA have not been encouraging to shippers.
“We will not entertain any discussions about extending the current contract, nor are we interested in any help from outside agencies to interfere in our negotiations with USMX,” ILA President Harold Daggett said in a statement. “This includes the Biden Administration and the Department of Labor.”
In a May briefing, Port of Los Angeles Executive Director Gene Seroka said some shippers shifted fractionally back towards the West Coast while the Port of Long Beach also said higher volumes processed in June were due to ongoing labor negotiations.
Congress Adjourns With A Lot Left On Its Plate
House lawmakers escaped the heat here in Washington to get an early start on their five-week summer recess.
When lawmakers return on September 9th, they will only have three weeks to reach a deal to fund the government into FY25, the next fiscal year.
That makes it likely that House Speaker Mike Johnson will have to once again compromise with the Democrat-controlled Senate or risk a partial government shutdown.
Although he has used that tactic successfully before, he has raised the ire of members of his party each time. That criticism will be harder to ignore as the election draws near.
The timeline makes it likely that a short-term extension of the current year’s funding, known as a "continuing resolution" (CR), will be needed to avoid a shutdown. If the CR has a short timeline, working on a complete spending bill would have to start right away, consuming any attention Congress is able to divert from the November elections.
Negotiations over attaching other legislation to the funding measures will complicate the process.
These factors make it likely that trade issues will take a back seat in Washington until after the election and the leadership of both chambers and the White House have been decided.
Baltimore Bump Pushes PANY/NJ To Top Spot
In figures just released through the month of May, the Port of New York and New Jersey’s total volume exceeded 700,000 TEU, claiming the top position in the country for total TEU and loaded TEU.
That bump was likely due in part to the realignment of supply chain routes around restrictions at the Port of Baltimore. That additional volume is unlikely to continue as Baltimore shifts back into normal operations.
ILA negotiations are likely to put an additional damper on volume growth on all east coast ports until a new contract is announced.
FTZ Staff Activity
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-99-2024) in FTZ 25 on behalf of Philip Stein Holding, Inc., Pembroke Park, FL on June 12, 2024
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-100-2024) in FTZ 135C on behalf of USA Timing, Inc., Stuart, FL on June 17, 2024
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-101-2024) in FTZ 18H on behalf of The RK Logistics Group, Fremont, CA on June 18, 2024
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-102-2024) in FTZ 46 on behalf of Prasco, LLC dba Prasco Laboratories, Mason, OH on June 20, 2024
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-103-2024) in FTZ 122Z on behalf of Cimbar Resources, Inc., Corpus Christi, TX on June 25, 2024
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-104-2024) in FTZ 26Z on behalf of Ram Auto Logistics, LLC, Newnan, GA on June 24, 2024
- FTZ Board Staff processed a processed a Termination (S-105-2024) in FTZ 89 on behalf of US Pharmatech Inc., Las Vegas, NV on June 25, 2024
- FTZ Board Staff processed a Traditional Site Framework Subzone Application (S-106-2024) in FTZ 68 on behalf of Kuehne + Nagel, Inc., El Paso, TX on June 27 2024
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-107-2024) in FTZ 50 on behalf of The Gap, Inc., South Gate, CA on June 27, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-108-2024) in FTZ 54A on behalf of W. Schonbek, Inc., Plattsburgh, NY on July 2, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-109-2024) in FTZ 40L on behalf of Midwest Transatlantic Lines, Inc., Berea, OH on June 28, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-110-2024) in FTZ 39 on behalf of Trina Solar US Manufacturing Module 1, LLC, Wilmer, TX on July 1, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-111-2024) in FTZ 74 on behalf of Electrolux Home Products, Inc.,Aberdeen, MD on July 1, 2024
- FTZ Board Staff processed a Traditional Site Framework Subzone Application (S-112-2024) in FTZ 241A on behalf of Consolidated Diesel Company, Whitakers, NC in July, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-113-2024) in FTZ 99I on behalf of Bloom Energy Corporation,Newark, DE on July 2, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-114-2024) in FTZ 39 on behalf of Dallas Fort Worth International Airport Board,Dallas/Fort Worth, TX on July 2, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-115-2024) in FTZ 202 on behalf of Franco Logistics, Inc., Los Angeles, CA on July 2, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-116-2024) in FTZ 244 on behalf of UPS Supply Chain Solutions, Eastvale, CA on July 8, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-117-2024) in FTZ 135A on behalf of RSBC Real Estate LLP dba Safe Harbors Marina Rybovich, Riviera Beach, FL on July 10, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-118-2024) in FTZ 219D on behalf of ATS International, San Luis, AZ on July 10, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-119-2024) in FTZ 119P on behalf of Padagis US LLC, Minneapolis/New Hope, MN on July 16, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-120-2024) in FTZ 297A on behalf of Twin Disc, Inc., Lufkin, IL on July 16, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-121-2024) in FTZ 176 on behalf of Rivian Automotive, LLC, Mt. Morris, IL on July 16, 2024
- FTZ Board Staff processed a Traditional Site Framework Subzone Application (S-122-2024) in FTZ 29 on behalf of Catalent Pharma Solutions, LLC, Winchester, KY in July, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-123-2024) in FTZ 64 on behalf of Massy Distribution (USA), Inc., Jacksonville, FL on July 23, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-124-2024) in FTZ 38 on behalf of Benteler Automotive Corporation, Greer, SC on July 23, 2024
- FTZ Board Staff processed a processed a Termination (S-125-2024) in FTZ 38 on behalf of Port City Logistics, Inc., Greer, SC on July 24, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-126-2024) in FTZ 64 on behalf of Gildan Charleston, Inc., Jacksonville, FL on July 24, 2024
- FTZ Board Staff processed a processed a Termination (S-127-2024) in FTZ 39K on behalf of Dal-Tile Corporation, Sunnyvale, TX on July 24, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-128-2024) in FTZ 241 on behalf of Specialized Freight Carriers, Inc., Weston, FL on July 24, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-129-2024) in FTZ 49O on behalf of Western Carriers, Secaucus, NJ on July 25, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-130-2024) in FTZ 153L on behalf of Marine Group Boat Works LLC, San Diego, CA on July 25, 2024
- FTZ Board Staff processed a Minor Boundary Modification (S-131-2024) in FTZ 50 on behalf of Starco Global LLC, Pico Rivera, CA on July 25, 2024
Foreign-Trade Zone Board Activity
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- The City of Eagle Pass received approval to reorganize Foreign-Trade Zone 96 under the Alternative Site Framework with a service area of Maverick County, Texas. MORE
- Senior Operation LLC submitted a notification of proposed production activity for expansion joints and clamshell bellows within Foreign-Trade Zone 80 in New Braunfels, Texas. MORE
- Hyster-Yale Group, Inc. received approval to expand Subzone 98D in Sulligent, Alabama. MORE
- Trina Solar US Manufacturing Module 1, LLC was denied authorization of production activity for solar panels within Foreign-Trade Zone 39 in Wilmer, Texas. MORE
- Consolidated Diesel Company submitted an application to expand Subzone 214A to include a new site (#5) in Whitacres, North Carolina. MORE
- Flextronics America, LLC received authorization of production activity for radio frequency communication device testers within Foreign-Trade Zone 183C in Austin, Texas. MORE
- Merck Sharp & Dohme LLC received authorization of production activity for pharmaceutical products for research and development within Foreign-Trade Zone 49Y in Rahway, New Jersey. MORE
- Unimacts Company submitted a notification of proposed production activity for steel products within Foreign-Trade Zone 265 in Conroe, Texas. MORE
- LG Energy Solution Arizona, Inc. submitted a notification of proposed production activity for cylindrical lithium-ion battery cells and lithium iron phosphate pouch-type batteries within Foreign-Trade Zone 75V in Queen Creek, Arizona. MORE
- AESC US LLC submitted a notification of proposed production activity for lithium-ion battery cells within Foreign-Trade Zone 78L in Smyrna, Tennessee. MORE
- AESC Florence LLC received approval to operate its Florence, South Carolina facilities as Subzone 21L. MORE
- Photonics Industries International Inc. submitted a notification of proposed production activity for laser systems within Foreign-Trade Zone 52 in Ronkonkoma, New York. MORE
- Catalent Pharma Solutions, LLC submitted an application to operate its Winchester, Kentucky facilities as a Subzone of Foreign-Trade Zone 29. MORE
That’s All Folks!
Well, that’s all for the 2024 legislative agenda anyway.
Wow. What a difference a month makes. As the last FTZ’ine went to press, we were eagerly anticipating the first Presidential Debate in a close race. A day later it looked like we could end up with a landslide. Three weeks after that we have a serious race again . . . and a lame duck President. Those two facts add up to a paralytic legislative calendar for the rest of the 118th Congress.
The House is in summer recess and won’t be back for weeks. Once they return, the desperate need to come up with an FY25 budget is likely to exclude progress on almost any trade priorities in Washington. That means most trade initiatives (GSP, AGOA, MTB, etc.) are probably off the table until all the votes are tallied in November. Time to plan for the 119th Congress that starts in January.
Russia just announced that it will begin accepting cryptocurrency for its international sales to help it avoid trade sanctions. That will complicate the candidates’ stand on cryptocurrency which has backers in both parties.
Talks on a new contract with the ILA, representing labor at East and Gulf Coast ports, have not been smooth. With the Master Contract set to expire in September, that could put additional pressure on supply chains just as peak season is ramping up. Batten down the hatches.