FTZ’ine May 2022
May 3, 2022
FTZ’ine July 2022
June 30, 2022
Summer Heat Is Here -
The FTZ'ine staff hopes everyone enjoyed a well-deserved Memorial Day break. That unofficial start to summer has brought heat, literally and figuratively, to your Nation’s Capital.
There are signs that the US economy is slowing quickly. Major retailers including Target and Walmart just reported weaker-than-expected first quarter sales and earnings. Wall Street has struggled to digest exactly what that means for the near term and stock prices dropped sharply in May. Several economists foresee a return to growth for the rest of 2022 based on job market strength, but companies from Ford to Paypal have just announced layoffs.
European leaders reached agreement on an embargo of most Russian oil delivered via ocean. That will likely further strain crude oil inventories and drive high gasoline prices higher. The suspension of Ukrainian grain exports via the Black Sea may cause near term wheat shortages and add upward pressure to global food prices.
Port operations in Shanghai are almost fully restored after China’s most recent COVID-related lockdown, which means shipping volumes to the US will rise from current levels. However, the PMA and ILWU have stopped negotiating a new contract, so putting additional containers in transit bodes poorly for already congested US ports ahead of shipping volumes that normally rise beginning in August.
Top Story: ILWU Negotiations Halted
Tech Tip: Summer is a Great Time for System Review!
Summer can be an excellent time for FTZ system review and clean-up. There are a few good reasons to consider doing this now:
- If you have a Mar 31 fiscal year end, you may be doing FTZ annual reporting activities, and are already in the review and reset mode.
- Plant activity may be slower with many rotating vacation plans, so other FTZ processing duties may be lighter.
- The busy Christmas season hasn’t quite kicked in yet, and while schedules are sometimes chopped up with holidays and vacations, this kind of work can be done in small increments when time is available.
Other summer FTZ activities to consider include:
- Annual reporting – If your zone year ended on March 31, don’t forget about your Annual Reconciliation Report letter due to CBP by June 30. It is also a best practice to submit the Annual System Review letter at the same time.
- Purging records – Activity records must be retained for 5 years after goods are entered for consumption.
- Archiving older electronic records can improve system processing and keeping paper files purged ensures there is room for the incoming records that need to be stored.
- Practice a compliance review – Take a look through your procedure manual, and practice researching the necessary documents and files for a compliance review.
We recommend these activities year-round, but summer can be a convenient time. ISCM assists FTZs with system review and compliance audit preparation, and if you want to check these off quicker so you can get to the pool sooner, email us at Info@iscm.co.
Relations With Mexico Still Strained
ITC Public Hearing Complete, Site Visits On Tap
Lack Of Clarity On Looming UFLPA Enforcement Concerns Importers
Shanghai Restart May Drive Additional US Congestion
US Launches Pacific Trading Block To Counter China
FTZ Staff Activity
- FTZ Board Staff processed a Minor Boundary Modification (S-74-2022) in FTZ 104L on behalf of Hugo Boss USA, Inc., in Midway, GA, on May 2, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-75-2022) in FTZ 7 on behalf of A.Z.C. Metropolitan Distributors, Inc., in Toa Baja, PR, on May 2, 2022
- FTZ Board Staff processed a Termination (S-76-2022) in FTZ 29N on behalf of Amcor Flexibles LLC, in Shelbyville, KY, on May 10, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-77-2022) in FTZ 75T on behalf of Green Worldwide Shipping, LLC, in Phoenix, AZ, on May 11, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-78-2022) in FTZ 241 on behalf of SHM LMC LLC DBA Safe Harbor Lauderdale Marine Center, in Fort Lauderdale, FL, on May 12, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-79-2022) in FTZ 86 on behalf of TIGERS, a JAS Company, in Tacoma, WA, on May 12, 2022
- FTZ Board Staff processed a Subzone (S-80-2022) in FTZ 7 on behalf of Dantzler Trade, Inc., in Toa Baja, PR
- FTZ Board Staff processed a Minor Boundary Modification (S-81-2022) in FTZ 38A on behalf of BMW Manufacturing Co LLC, in Greer, SC, on May 13, 2022
- FTZ Board Staff processed a Termination (S-82-2022) in FTZ 104A on behalf of Merck & Co., in Dougherty County, GA, on May 16, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-83-2022) in FTZ 22 on behalf of Morrison Express Corporation (USA), in Elk Grove Village, IL, on May 16, 2022
- FTZ Board Staff processed a Minor Boundary Modification (S-84-2022) in FTZ 35E on behalf of Philly Shipyard, Inc., in Philadelphia, PA, on May 17, 2022
FTZ Board Activity
- Epoch International Enterprises, Inc. submitted a notification of proposed production activity for printed circuit board assemblies and enclosures within FTZ 18 in Fremont, California. MORE
- Patheon Pharmaceuticals Inc. submitted a notification of proposed production activity for pharmaceutical products within FTZ 46 in Cincinnati, Ohio. MORE
- AbbVie Ltd. submitted a notification of proposed production activity for additional components of pharmaceutical products within FTZ 7 in Barceloneta, Puerto Rico. MORE
- Dantzler Trade, Inc. submitted an application for subzone status for its facility within FTZ 7 in Toa Baja, Puerto Rico. MORE
- BMW Manufacturing Company, LLC received authorization of production activity for additional components of passenger motor vehicles within FTZ 38 in Spartanburg, South Carolina. MORE
- TTI, Inc. received approval for the expansion of Subzone 196A within FTZ 196 in Fort Worth, Texas. MORE
- AbbVie Ltd. submitted a notification of proposed production activity for additional components of pharmaceutical products within FTZ 22 in Chicago, Illinois. MORE
Summer Heat Is Here –
The FTZ’ine staff hopes everyone enjoyed a well-deserved Memorial Day break. That unofficial start to summer has brought heat, literally and figuratively, to your Nation’s Capital.
There are signs that the US economy is slowing quickly. Major retailers including Target and Walmart just reported weaker-than-expected first quarter sales and earnings. Wall Street has struggled to digest exactly what that means for the near term and stock prices dropped sharply in May. Several economists foresee a return to growth for the rest of 2022 based on job market strength, but companies from Ford to Paypal have just announced layoffs.
European leaders reached agreement on an embargo of most Russian oil delivered via ocean. That will likely further strain crude oil inventories and drive high gasoline prices higher. The suspension of Ukrainian grain exports via the Black Sea may cause near term wheat shortages and add upward pressure to global food prices. Port operations in Shanghai are almost fully restored after China’s most recent COVID-related lockdown, which means shipping volumes to the US will rise from current levels. However, the PMA and ILWU have stopped negotiating a new contract, so putting additional containers in transit bodes poorly for already congested US ports ahead of shipping volumes that normally rise beginning in August.