FTZ’ine April 2021
March 31, 2021
FTZ’ine June 2021
June 2, 2021
Lots Of Trade Last Month, Trade Policy Not So Much
New USTR Catherine Tai used her first official speech last month to discuss . . . climate change, and has just been assigned the task of reviewing intellectual property rules that restrict wider manufacture of vaccines developed in the United States.
That is a reflection of the lack of policy activity in your Nation’s Capital last month with respect to the trade issues that affect the foreign-trade zone community.
The US and China continue to trade barbs, and a lot of merchandise, and appear to be too distracted quelling the pandemic and growing their respective economies to address their differences anytime soon.
The backlog at the Suez Canal cleared in 5 days, faster than the FTZ’ine expected, but shippers must still consider the impact future canal blockages might have on their supply chains.
The Brexit deal between the EU and UK achieved final ratification by both sides, but tough implementation issues remain to be resolved.
Port congestion on the west coast has improved slightly, but mainly by moving part of the backlog northward to ports like Oakland. At least a dispute with the longshoremen won’t become a disruptive factor; the latest contract proposal looks to be headed for ratification by the ILWU rank and file later this month, well before peak season.
Top Story: China Relations A Dark Cloud on Otherwise Rosy Economic Outlook
Tech Tip
What’s up with the e214 lately? If you have been one of the unlucky ones that have gotten multiple rejections on recent e214 filings, you already know there have been quite a few hiccups with ACE programming for FTZs this past week. And, even if you have not gotten the rejects, you’ve seen all of the CSMS messages about error correction and FTZ numbering.
It started with the final release of the FTZ ID Format update. On April 24, 2021, CBP deployed the Foreign Trade Zone (FTZ) ID Format Expansion. This necessitated an update in both the ACE Entry Summary Create/Update and Duty Deferral Create/Update CATAIR chapters. Check with your FTZ software company and your broker if you file with one to make sure they made the corresponding updates before your next zone week ends.
Now that the 7501-06 and 7501-08 filings have been updated, after the e214 was updated some time ago, the FTZ Board can begin issuing the expanded FTZ IDs where needed.
When this change went into production, however, some odd things started happening with e214s filed the following Monday. Zones started getting invalid errors that the FIRMS was not bonded, or the reported port did not match the port on file with the FIRMS. It took several days to get the errors resolved, and CBP headquarters had to get involved to ensure timely recordkeeping of the daily receipts.
It is not clear why a change in the entry summary caused errors with the e214, but it is a good reminder that operators need to be mindful any time anything related to FTZ reporting in ACE is being updated.
This is a good time to check and make sure you are signed up to receive CSMS messages, so you can stay on top of the latest updates to ACE and other CBP announcements. Go here to search prior messages and scroll to the bottom to sign up to receive the messages in your inbox.
If you have questions about this new zone ID or filing e214s, send them to us at Info@iscm.co to learn how ISCM can help.
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FTZ Board Activity
- Woodfield Distribution LLC submitted an application for subzone status for its facilities within FTZ 49 in Dayton, New Jersey. MORE
- MANE, Inc. received authorization of production activity for flavor preparations and seasonings within FTZ 46H in Cincinnati and Lebanon, Ohio. MORE
- Celgene Corporation received approval to operate its facility in Warren and Summit, New Jersey as Subzone 49U. MORE
- Black & Decker (U.S.), Inc. submitted a notification of proposed production activity for additional components and finished products for the production and kitting of power tools and injection molded parts within FTZ 38M in Fort Mill, South Carolina. MORE
- Miraclon Corporation submitted a notification of proposed production activity for aditional components of flexographic/aluminum printing plates and direct imaging/thermo imaging layer film within FTZ 106F in Weatherford, Oklahoma. MORE
- MSD International GMBH (Puerto Rico Branch) LLC submitted a notification of proposed production activity for additional components and an additional finished good for pharmaceuticals within FTZ 7G in Las Piedras, Puerto Rico. MORE
- Lely North America, Inc. submitted a notification of proposed production activity for automated milking and feeding equipment within FTZ 107E in Pella, Iowa. MORE
- Lam Research Corporation submitted an application to expand Subzone 18F by adding a new site in Newark, California. MORE
- BMW Manufacturing Company, LLC submitted a notification of proposed production activity for an additional type of passenger motor vehicle within FTZ 38A in Spartanburg, South Carolina. MORE
- Kaiser Premier LLC submitted a notification of proposed production activity for special purpose vehicles within FTZ 293A in Fort Morgan, Colorado. MORE
- Lam Research Corporation submitted a notification of proposed production activity for additional components and finished goods for semiconductor production equipment, subassemblies and related parts within FTZ 45H in Tualatin and Sherwood, Oregon. MORE
Lots Of Trade Last Month. Trade Policy, Not So Much –
New USTR Catherine Tai used her first official speech last month to discuss . . . climate change, and has just been assigned the task of reviewing intellectual property rules that restrict wider manufacture of vaccines developed in the United States.
That is a reflection of the lack of policy activity in your Nation’s Capital last month with respect to the trade issues that affect the foreign-trade zone community.
The US and China continue to trade barbs, and a lot of merchandise, and appear to be too distracted quelling the pandemic and growing their respective economies to address their differences anytime soon.
The backlog at the Suez Canal cleared in 5 days, faster than the FTZ’ine expected, but shippers must still consider the impact future canal blockages might have on their supply chains.
The Brexit deal between the EU and UK achieved final ratification by both sides, but tough implementation issues remain to be resolved. Port congestion on the west coast has improved slightly, but mainly by moving part of the backlog northward to ports like Oakland. At least a dispute with the longshoreman out west won’t become a disruptive factor; the latest contract proposal looks to be headed for ratification by the rank and file later this month, well before peak season.