FTZ’ine November 2022
November 1, 2022
FTZ’ine January 2023
January 3, 2023
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The revolving door at the top of U.S. Customs and Border Protection was spinning again last month as Chris Magnus was pressured to resign as Commissioner. While administration concerns with Magnus centered on Border Control, it leaves U.S. trade policy enforcement without a leader once again.
Still no word on an ILWU contract as west coast container volume continues to shift eastward. Unusually swift and bipartisan action by Congress to end the possibility of a rail strike could help nudge the longshoreman back to the table.
Both sides of the Ukraine conflict appear to be digging in for a long winter. The revelation that U.S.-origin parts were used to construct Iranian drones used by Russia could presage a fresh look at export controls.
Things have been looking good for the U.S. economy. Holiday sales numbers have encouraged merchants so far, and as long as no more shocks emerge there could be a path to tempered growth.
Top Story: Congress Moves Quickly To Avert Rail Strike
Tech Tip: Delay on Ocean Manifest House Bill Release – Again
Once again, CBP has delayed the House Bill Release functionality for ocean shipments, this time targeting March 5, 2023 for deployment for all house bill release functionality.
Yesterday, CBP updated their online ACE FAQ document to include items specific to house bill release, including some that are unique to FTZ processing. This is a good reference for anyone preparing for ocean shipments arriving in their FTZ.
One item of note is the fact that the House Bill of Lading (HBOL) should include the carrier code, also known as the SCAC, of that HBOL. There is no additional field for the HBOL SCAC. It is simply appended to the beginning of the BOL number. Since this is not the case for air shipments, and since FTZ operators have only had to enter house bill numbers for air shipments until now, this may come as a surprise to some operators when filing e214s after March 4.
This detail wasn’t mentioned in the e214 CATAIR, so if your data interfaces are developed based on that, double check with your IT department that this is known and accounted for in the interface. If you aren’t using electronic interfaces to populate your manifest data, be sure that not only the HBOL, but also the HBOL SCAC is included in your paperwork for all ocean shipments.
While we are on the subject of SCACs, did you know they expire every year? We didn’t either, but a recent CSMS message was sent to remind carriers to renew their registration for the year or they will no longer be recognized as valid carriers in CBP systems. So, if you start seeing strange messages about invalid SCAC, check with your carrier.
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.
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Do We Need A New CBP Commissioner? Indeed We Do
It could be time to update your LinkedIn profile if you would like to be the next Commissioner of Customs and Border Protection. The White House announced last month that CBP Commissioner Chris Magnus offered his resignation, and that President Biden accepted.
The shakeup at CBP comes after arrests at the southern border climbed to a record of more than 2.3 million in the past year, fueling attacks from Republicans that the Biden administration's border policies encourage migrants.
Migrant stops at the Mexican border totaled 2.38 million in the fiscal year that ended Sept. 30, up 37% from the year before. That annual amount is more than twice the highest level during Donald Trump’s presidency, driving the policy scrutiny.
Secretary of Homeland Security Alejandro Mayorkas thanked Magnus for his service in an email to the CBP workforce. He also announced that Troy A. Miller, a career CBP official would again serve as acting commissioner.
Magnus, who is 62, was picked by the White House and confirmed by the Senate in a party-line vote. He lasted in the job less than a year.
FTZ Staff Activity
- FTZ Board Staff processed a Minor Boundary Modification (S-187-2022) in FTZ 197 on behalf of Aries Worldwide Logistics, in Santa Teresa, NM on October 18, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-188-2022) in FTZ 68 on behalf of OLA Logistics, LLC, in El Paso, TX on October 19, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-189-2022) in FTZ 49 on behalf of DSV Air & Sea, Inc., in Carteret, NJ on October 25, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-190-2022) in FTZ 146A on behalf of North American Lighting, in Flora, IL on October 25, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-191-2022) in FTZ 281 on behalf of EA Global Trading Inc., DBA Amerex, in Miami, FL on October 26, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-192-2022) in FTZ 207 on behalf of LL Flooring Services, LLC, in Sandston, VA on October 26, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-193-2022) in FTZ 281 on behalf of Alamo Group Holdings, LLC, in Hialeah, FL on October 31, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-194-2022) in FTZ 52 on behalf of Regent Tek Industries, Inc., in Shirley, NY on November 1, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-195-2022) in FTZ 82K on behalf of International Warehousing and Shipping, in Loxley, AL on November 2, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-196-2022) in FTZ 189G on behalf of tesa tape inc., in Grand Rapids, MI on November 4, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-197-2022) in FTZ 32 on behalf of Hospitality Essentials, LLC, in Miami, FL on November 7, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-198-2022) in FTZ 32 on behalf of IVI Logistics, LLC, in Doral, FL on November 7, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-199-2022) in FTZ 196 on behalf of Prairie Industries Holdings, Inc. DBA Truvant, in Doral, FL on November 7, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-200-2022) in FTZ 32C on behalf of Noamex, Inc., in Hialeah, FL on November 9, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-201-2022) in FTZ 19 on behalf of Transfer Storage & Logistics, Inc., in Omaha, NE on November 14, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-202-2022) in FTZ 202 on behalf of DMF Inc., in Carson, CA on November 21, 2022
- FTZ Board Staff processed a Subzone (S-203-2022) in FTZ 222 on behalf of Jo-Ann Stores, LLC, in Opelika, AL
- FTZ Board Staff processed a Minor Boundary Modification (S-204-2022) in FTZ 129C on behalf of Corvus Energy USA, Ltd., in Bellingham, WA on November 22, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-205-2022) in FTZ 241 on behalf of FLYHOPCO LLC DBA BRADFORD MARINE, in Fort Lauderdale, FL on November 23, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-206-2022) in FTZ 38S on behalf of ATCO Industries, Inc., in Spartanburg, SC on November 25, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-207-2022) in FTZ 118 on behalf of Border Pallet Storage, in Ogdensburg, NY on November 25, 2022
FTZ Board Activity
- Hyundai Motor Manufacturing Alabama, LLC received authorization of production activity for additional components of passenger automobiles, trucks, and cargo trucks within FTZ 222 in Montgomery, Alabama. MORE
- REV Recreation Group, Inc. d/b/a Midwest Automotive Designs submitted a notification of proposed production activity for passenger vehicles within FTZ 125 in Elkhart, Indiana. MORE
- Moly-Cop USA, LLC submitted a notification of proposed production activity for forged steel grinding balls within FTZ 15 in Kansas City, Missouri. MORE
- Tesla, Inc. submitted a notification of proposed production activity for battery products, electric motors, and energy storage products within FTZ 126 in McCarren and Sparks, Nevada. MORE
- The Dallas/Fort Worth international Airport Board submitted an application for the reorganization and expansion of FTZ 39 under the alternative site framework in Dallas and Fort Worth, Texas. MORE
- The Jacksonville Port Authority submitted an application for the reorganization and expansion of the service area in FTZ 64 under the alternative site framework in Jacksonville, Florida. MORE
- Prairie Industries Holdings, Inc. DBA Truvant submitted a notification of proposed production activity for construction toy sets within FTZ 196 in Haslet, Texas. MORE
- Burger Boat Company received approval to operate its facility in Manitowoc, Wisconsin as FTZ 167F. MORE
- Great Plains Manufacturing, Incorporated received approval to operate its facilities in Salina, Kipp, Assaria, Abilene, Enterprise, Ellsworth, Lucas and Tipton, Kansas as FTZ 161E. MORE
- The City of New Bedford submitted an application for the reorganization of FTZ 28 under the alternative site framework in New Bedford, Massachusetts. MORE
- Albion Laboratories, Inc. has withdrawn its production notification for mineral amino acid chelates within FTZ 30 in Ogden, Utah. MORE
- BLG Logistics of Alabama LLC received approval for subzone 98H for its facility in Northport, Alabama. MORE
- Jo-Ann Stores, LLC submitted an application for subzone status for its facility within FTZ 222 in Montgomery, Alabama. MORE
- Exela Pharma Sciences, LLC received authorization of production activity for pharmaceutical products within FTZ 57 in Lenoir, North Carolina. MORE
- Shipbuilders of Wisconsin, Inc. d/b/a Burger Boat Company received authorization of production activity for construction and repair of vessels and hulls within FTZ 167 in Manitowoc, Wisconsin. MORE
- Wyeth Pharmaceuticals, LLC received authorization of production activity for COVID-19 Vaccine within FTZ 27 in Andover, Massachusetts. MORE
Next
The revolving door at the top of U.S. Customs and Border Protection was spinning again last month as Chris Magnus was pressured to resign as Commissioner. While administration concerns with Magnus centered on Border Control, it leaves U.S. trade policy enforcement without a leader once again.
Still no word on an ILWU contract as west coast container volume continues to shift eastward. Unusually swift and bipartisan action by Congress to end the possibility of a rail strike could help nudge the longshoreman back to the table.
Both sides of the Ukraine conflict appear to be digging in for a long winter. The revelation that U.S.-origin parts were used to construct Iranian drones used by Russia could presage a fresh look at export controls.
Things have been looking good for the U.S. economy. Holiday sales numbers have encouraged merchants so far, and as long as no more shocks emerge there could be a path to tempered growth.