FTZ’ine January 2026

January 5, 2026

FTZ’ine February 2026

All Quiet On The First Street Front

There is surely a reason the Supreme Court was given the address of #1 First Street in Washington, DC, right across the street from the Capitol. It highlights the cornerstone position the Court holds in American government.

But international traders don’t need to be reminded of the importance of the Court right now. They are anxiously awaiting the Court’s opinion of the IEEPA tariffs, and whether or not those $200B+ in duties should be refunded. The Court’s opinion could create yet another dramatic shift in U.S. tariff policy.

U.S. Customs is working quickly to implement electronic refunds in case a large-scale return of IEEPA payments is required. Make sure your signup is complete before the next FTZ’ine is published.

No federal budget again this year.

Congress passed a Continuing Resolution to fund most government activities through the end of this fiscal year (September 30th). That leaves only Homeland Security funding to fight about. After a brief weekend shutdown, the U.S. government should be back in full swing by the end of the day today.

Fresh after posting the lowest trade deficit in five years, the U.S. balance of trade turned sharply negative in November.

Announcements of yet more new tariffs last month, some implemented, some threatened, continue to destabilize U.S. trading relationships and highlight the value of the FTZ program in managing their impact.

Top Story - First Street Flummoxes FTZs

Arguments challenging President Trump’s authority to impose tariffs under IEEPA began on November 5th of last year. When the Supreme Court granted that unusually quick hearing date, a similarly rapid resolution seemed within reach.

But with U.S. importers still paying billions each month in IEEPA tariffs, folks are now wondering when the Supreme Court will issue its decision.

It might be a bit longer. The Court has not signaled that they regard this dispute as the kind of emergency that international traders do, suggesting the Court may not release an opinion until they take the bench again on February 20th.

Over the last 20 years, the average turnaround time for a Supreme Court opinion was just over three months, according to data gathered by Adam Feldman, creator of Empirical SCOTUS. The timeline has increased in recent years, with the court releasing half or more of its cases in June.

Decision times can vary widely. The court can move quickly, especially in cases with hard external deadlines: The landmark Bush v. Gore case that effectively decided the 2000 presidential election took just over a day. The recent case over TikTok took seven days.

When the justices are under no such pressure, cases can take much longer to resolve. That might be a blessing for CBP, which would be tasked with administering the refund process if the Court rules that way.

On this point the Trump Administration aligns with traders: they too are looking for a fast answer. Lawyers for the President told the Court that speed was of the essence on an issue central to the President's economic agenda. They pointed to a statement from Treasury Secretary Scott Bessent warning that the "longer a final ruling is delayed, the greater the risk of economic disruption."

One possible explanation, said Carter Phillips, a lawyer with 91 arguments before the high court, "is that the court is more evenly divided than appeared to be the case at oral argument and the fifth vote is wavering."

Even if the majority opinion has been drafted and more or less agreed to by five or more members of the court, a separate opinion, probably in dissent, could slow things down, Phillips said.

"Like many, I had hoped that the Supreme would rush the decision out," said Marc Busch, an expert on international trade policy and law at Georgetown University. "But it's not a surprise in the sense that they have until June and lots of issues to work through."

Tech Tip: Don't Miss The Party Train

Now we’re not saying there will be a party train. We’re just saying that if there is a party train, you won’t want to miss it.

Late last month U.S. Customs and Border Protection (CBP) issued a message to the trade that beginning February 6, 2026, CBP will issue all refunds electronically via the Automated Clearing House (ACH). The transition away from paper checks (with some limited exceptions), was announced in the Electronic Refunds Interim Final Rule published January 2, 2026 in the Federal Register.

CBP recently improved the ACH refund sign-up process by:

• Adding an automated ACH Refund Authorization tool in the ACE Secure Data Portal (ACE Portal)

• Automating the ACE Portal’s importer account application, which is necessary to access the new ACH Refund Authorization tool

Don’t delay. Should the Supreme Court order refunds for IEEPA tariffs paid, failure to enable ACH payment will delay your refund.

Questions about how to sign up for ACH refunds from U.S. Customs? Contact us at info@iscm.co.

Canada Back In The Crosshairs

The tumult of U.S. tariff policy continues to keep foreign-trade zone operators and users on their toes.

The White House just announced that a much-anticipated trade deal had been reached with India after months of negotiation.

Canada, not so much.

At the World Economic Forum late last month, Canadian Prime Minister Mark Carney received widespread praise and attention for his remarks condemning economic coercion of smaller countries. The U.S. took note of his comments.

Prime Minister Carney then told the President that Canada plans to diversify away from the United States with a dozen new trade deals. The President threatened to impose a 100% tariff on goods imported from Canada if our northern neighbor went forward with a deal for China. Such acrimony will surely tarnish the start of USMCA free trade negotiations.

Then news surfaced that Canada was further refusing to certify jets from Savannah, Georgia-based Gulfstream Aerospace.

The President threatened that in return the U.S. would decertify all Canadian aircraft, including planes from its largest aircraft maker, Bombardier. “If, for any reason, this situation is not immediately corrected, I am going to charge Canada a 50% Tariff on any and all Aircraft sold into the United States of America”.

Plane maker Bombardier focuses on business and private jets, and losing access to the U.S. market would be a huge blow to the major Quebec employer.

Treasury Secretary Scott Bessent warned Prime Minister Carney that his recent public comments against U.S. trade policy could backfire going into the formal review of the U.S.-Mexico-Canada Agreement, a trade deal that protects Canada from the heaviest impacts of the new tariffs.

Canada is not the only country in the trade crosshairs. The President announced his intention to levy 50% tariffs on products from any country that sells oil to Cuba. The Executive Order to put those tariffs in place has just been issued, but the tariff rate itself was not confirmed, nor the countries to which it might apply.

Full Shutdown Averted, But DHS Funding On Short Timeline

Foreign-Trade Zone operators and users are bracing for the brinkmanship that has defined government funding of late. While Congress has agreed to endow most of the federal government through the end of the year, complete funding for the Department of Homeland Security, which includes Customs and Border Protection (CBP), is not assured.

The good news is that there will be no shutdown threats for the vast majority of government agencies for the balance of the fiscal year that ends in September. The bad news is that the “C” could be affected in the significant debate over funding for “BP”.

The full government should resume operations tomorrow, but DHS funding is only assured for two more weeks while contentious negotiations for the balance of the year continue.

The agreement is the culmination of intense bargaining between White House officials and members of Congress. It did not come together in time to avert a brief lapse in federal funding over last weekend, starting on Saturday morning.

The Senate vote was 71 to 29, with 24 Democrats and five Republicans voting in opposition. Many Democrats said they could not bring themselves to vote for any additional funding for ICE until the funds were tied to stricter guardrails. “I’ve made my position clear: not another dime for Trump’s lawless ICE operations means not another dime, not even for one more day,” said Senator Chris Van Hollen, Democrat of Maryland. “That’s why I voted against the funding bill before the Senate today.”

“We don’t have that many leverage points in the Senate, but obviously spending is one of them,” Senator Chuck Schumer, the New York Democrat and minority leader who brokered the deal with Mr. Trump, said in an interview. “We realized we had to reform and really rein in ICE.”

The agreement contained five other spending bills to fund a large portion of the government, including the Departments of Defense, State, Treasury, Transportation, Labor, Education, and Health and Human Services.

Foreign-Trade Zones See Trade Deficit Bounce Higher

After shrinking significantly in September and October, the U.S. trade deficit widened dramatically in November.

According to the U.S. Department of Commerce, the goods and services deficit jumped to $56.8 billion in November, rising 95% from the previous month.

The data reflected the volatility that has resulted from steep tariffs implemented over the past year. Exports fell 3.6% in the month, to $292.1 billion, led by declining outbound shipments of gold, pharmaceuticals, consumer goods and crude oil. Imports rose 5% in November, to $348.9 billion, as Americans bought foreign pharmaceuticals as well as equipment to fill new data centers.

The trade deficit had fallen significantly in prior months, seemingly accomplishing a major goal for President Trump, who views that metric as a sign of economic weakness. The October trade deficit was the lowest monthly figure recorded since June 2009.

The tariffs have shuffled trade with various countries. As of January, the U.S. effective tariff rate had climbed to nearly 17 percent, the highest level since 1935. From January to November, the goods trade deficit with China was only $189 billion, less than the United States’ trade deficit with the European Union, and only slightly larger than America’s trade deficit with Mexico.

While importers have changed the timing of their shipments to avoid tariffs, when added together trade still approximated normal levels. Last year through November, the overall trade deficit was still up 4.1 percent from the previous year.

Exports for the first 11 months of 2025 were 6.3 percent higher than the previous year, while imports were 5.8 percent higher. Data for December and the full year will be released next month.

FTZ Staff Activity

FTZ Board Staff processed a processed a Minor Boundary Modification (S-1-2026) in FTZ 238 on behalf of Celanese Acetate LLC, Narrows, VA on January 5, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-2-2026) in FTZ 81H on behalf of Hypertherm Inc., Hanover, NH on January 6, 2026
FTZ Board Staff processed a processed a TSF Subzone subject to the activation limits of the Grantee (S-3-2026) in FTZ 84 on behalf of Southwest GFI LLC dba Gourmet Foods International Inc., Conroe, TX on January 6, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-4-2026) in FTZ 780 on behalf of Dorman Products Inc., Portland, TN on January 8, 2026
FTZ Board Staff processed a processed a TSF Subzone subject to the activation limits of the Grantee (S-5-2026) in FTZ 7 on behalf of Inmobiliaria GG LLC, Juncos, PR on January 8, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-6-2026) in FTZ 81D on behalf of EMD Millipore Corporation, Jaffrey, NH on January 9, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-7-2026) in FTZ 196 on behalf of Black & Decker (U.S.) Inc., Northlake, TX on January 9, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-8-2026) in FTZ 196 on behalf of SPM Oil & Gas Inc., Fort Worth, TX on January 9, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-9-2026) in FTZ 49AA on behalf of Centrome Inc. dba Advanced Biotech, Totowa, NJ on January 12, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-10-2026) in FTZ 32 on behalf of OLR Services Inc., Medley, FL on January 12, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-11-2026) in FTZ 26AE on behalf of JS International Inc., Atlanta, GA on January 12, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-12-2026) in FTZ 32 on behalf of DSV Air & Sea Inc., Miami, FL on January 13, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-13-2026) in FTZ 20K on behalf of Liebherr Mining Equipment Newport News Co., Newport News, VA on January 13, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-14-2026) in FTZ 135 on behalf of HMY Yacht Sales Inc., Stuart, FL on January 13, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-15-2026) in FTZ 57F on behalf of Eli Lilly and Company, Concord, NC on January 13, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-16-2026) in FTZ 89D on behalf of Retro Manufacturing Inc., Las Vegas, NV on January 14, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-17-2026) in FTZ 450 on behalf of Rinchem Company LLC, Hillsboro/Cornelius, OR on January 14, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-18-2026) in FTZ 50 on behalf of De Vries International Inc., Irvine, CA on January 14, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-19-2026) in FTZ 39 on behalf of Dallas Fort Worth International Airport, Dallas/Fort Worth, TX on January 15, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-20-2026) in FTZ 57 on behalf of Corsan Logistics LLC, Huntersville, NC on January 15, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-21-2026) in FTZ 197 on behalf of Integrated Maquila Solutions LLC, Santa Teresa, NM on January 15, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-22-2026) in FTZ 104V on behalf of Quantix SCS LLC, Rincon, GA on January 16, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-23-2026) in FTZ 70 on behalf of Cardan Corporation, Temperence, MI on January 20, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-24-2026) in FTZ 202 on behalf of Quirch Foods California LLC, Vernon, CA on January 20, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-25-2026) in FTZ 50 on behalf of Schneider Electric IT Corporation, Chino, CA on January 22, 2026
FTZ Board Staff processed a processed a TSF Subzone subject to the activation limits of the Grantee (S-26-2026) in FTZ 68 on behalf of PMI Services North America Inc., El Paso, TX on January 22, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-27-2026) in FTZ 30 on behalf of Solaray LLC dba SRP Companies, Springville, UT on January 26, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-28-2026) in FTZ 30 on behalf of Logisteed America Inc., Salt Lake City, UT on January 27, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-30-2026) in FTZ 205 on behalf of Scosche Industries Inc., Oxnard, CA on January 28, 2026
FTZ Board Staff processed a processed a Termination (S-31-2026) in FTZ 32 on behalf of American Foods International LLC, Miami, FL on January 28, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-32-2026) in FTZ 241 on behalf of Southeastern International Group LLC, Davie, FL on January 28, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-33-2026) in FTZ 41 on behalf of Dedicated Computing, Waukesha, WI on January 28, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-34-2026) in FTZ 50 on behalf of Dovetail Furniture and Design Inc., Los Angeles, CA on January 30, 2026
FTZ Board Staff processed a processed a Minor Boundary Modification (S-35-2026) in FTZ 244 on behalf of Jonathan Y Designs Inc., Perris, CA on January 30, 2026

Foreign-Trade Zone Board Activity

- Centrome Inc. dba Advanced Biotech submitted an application requesting subzone status for their facility in Oneonta, New York within Foreign-Trade Zone 37. MORE
- Southwest GFI LLC dba Gourmet Foods International Inc., submitted an application requesting subzone status for their facility in Conroe, Texas within Foreign-Trade Zone 84. MORE
- Inmobiliaria G.G., LLC submitted an application requesting subzone status for their facility in Juncos, Puerto Rico within Foreign-Trade Zone 7. MORE
- Rose Electronics Distributing Co., LLC., submitted a notification of proposed production activity for battery packs within Foreign-Trade Zone 18 in San Jose, California. MORE
- Eastman Chemical Co., submitted a notification of proposed production activity for paraxylene derivative products within Foreign-Trade Zone 204B in Kingsport, Tennessee. MORE
- Iwis drive systems, LLC, submitted a notification of proposed production activity for customized parts and drive system components within Foreign-Trade Zone 72 in Whitestown, Indiana. MORE
- Celanese Acetate LLC, submitted a notification of proposed production activity for cellulose acetate tow and flake within Foreign-Trade Zone 238E in Narrows, Virginia. MORE
- Intel Foundry Corp., submitted a notification of proposed production activity for semiconductor products within Foreign-Trade Zone 18 in Santa Clara, California. MORE
- Qorvo US, Inc., submitted a notification of proposed production activity for semiconductor wafers, modules, and chips within Foreign-Trade Zone 230K in Greensboro, North Carolina. MORE
- Qorvo US, Inc., submitted a notification of proposed production activity for semiconductor wafers, modules, and chips within Foreign-Trade Zone 39 in Richardson, Texas. MORE
- Qorvo US, Inc., submitted a notification of proposed production activity for semiconductor wafers and modules within Foreign-Trade Zone 45K in Hillsboro, Oregon. MORE
- IMRA America Inc., submitted a notification of proposed production activity for femtosecond fiber laser systems within Foreign-Trade Zone 70 in Ann Arbor, Michigan. MORE
- PMI Services North America, Inc., submitted an application requesting subzone status for their facility within Foreign-Trade Zone 68 in El Paso, Texas. MORE
- ECI Gulf Coast Parts and Service, Inc., submitted an application requesting subzone status for their facility within Foreign-Trade Zone 124 in New Iberia, Louisiana. MORE
- BASF Agricultural Solutions US LLC, submitted a notification of proposed production activity for agricultural fungicide and herbicide products within Foreign-Trade Zone 102 in Fenton/Palmyra, Missouri. MORE

No Cake And Ice Cream Yet:

It was another month of dynamic trade developments for the foreign-trade zone community. While there is cause for optimism that trade terms will stabilize soon, too much remains unsettled to do any celebrating just yet.

Negotiations with China resulted in a temporary pause in the sky-high rates FTZs had been paying on their imports. But recent rhetoric from Washington suggests the pause won’t last past the 90 days of the agreement. If it even lasts that long.

The U.S. Court of International Trade ruled that the use of IEEPA to place a 10% additional tariff on all imports overstepped presidential authority. The IEEPA tariffs are still being collected until higher courts make a final ruling. The financial stakes are HUGE for both sides.

An investment deal in U.S. Steel prompted the doubling of Section 232 tariffs on imported steel and aluminum beginning this Thursday. Nothing on the table suggests those 50% rates will be reduced anytime soon. Zones need to prepare accordingly.

Foreign-trade zone applications are down. Way down. Staff losses at the Foreign-Trade Zones Board and the loss of the NPF status option appear to be taking their toll. Bonded Warehouse applications? Still overwhelming CBP in certain ports.