FTZ’ine October 2021
September 30, 2021
FTZ’ine December 2021
December 1, 2021
Prepare For Air
It was always faster. But it was never cheaper. With the current multiplier on container rates, plus the now customary demurrage and detention charges, on top of new terminal fees just going into effect, it may now be less expensive to ship your merchandise by air than by ocean.
The G-20 meeting in Rome this past weekend confirmed an international deal on corporate income taxes. The 15% minimum tax may not have a direct impact on the FTZ community, but it is a sign of a growing coalition that could add pressure to China.
A more direct impact will be felt by an agreement just before the G-20 meeting started to convert Section 232 tariffs on EU-originating steel and aluminum to tariff rate quotas. Importers should prepare for new data and recordkeeping requirements to establish origin.
Once the President returns from Italy it will be crunch time for both the $1.85T spending bill and the $1T infrastructure bill. While the details of the new tariff-rate quota system must be worked out with Europe, expect most other trade issues to be on DC’s back burner until those bills pass.
The number of ships waiting to unload on the west coast stretched into triple digits last month. New terminal fees instituted to spur action by the steamship lines seem likely to instead flow down directly to importers, adding even more inflationary pressure to American consumer good prices.
Top Story: Biden Administration Reaches Deal With EU on Section 232
Tech Tip: CBP Preparing For Ocean Manifest House Bill Release
In a recent CSMS (CSMS #49759925 - EDI Implementation Guide Updates posted for ACE Import Ocean Manifest House Bill Release capability), CBP published the implementation guide (IG) changes needed for ACE Import Ocean Manifest House Bill Release functionality. Yes, CBP is finally planning to provide capability for release to be tracked at the house bill level for ocean manifests, including processing in bonds and ePTTs at the house bill level not only for air, but for ocean as well.
If you have ever had to track down General Order messages on a shared ocean bill, only to find out everything with your e214 is fine and it was someone else’s goods on the BOL that went to GO, you can appreciate how this will make your life easier.
But if you have never recorded your ocean house bills because, well, CBP didn’t either, you may have some process changes to make for your bonded movements and invoice information. You have some time to figure that out, though. According to the latest ACE Development/Deployment Schedule, the targeted deployment (subject to change) for this release is August 2022.
There are still a lot of open questions about how all of this will work, including when updates to the e214 will be provided to accommodate this functionality. When we know more, we’ll be sure to share. In the meantime, if you have questions or comments on the idea of house bill release, please send them to us at Info@iscm.co.
Congestion Continues To Plague FTZ Supply Chains
New Terminal Fees Compound Congestion Problems For Importers
Add Environmental Disaster To Port Congestion Impact
ATA Study Forecasts Driver Shortage Growing To 160,000 by 2030
FTZs Prepare For HTS Changes
FTZ Staff Activity
FTZ Board Activity
- Lam Research Corporation submitted an application for the expansion of FTZ 18F in Livermore, California. MORE
- LUC Urethanes, Inc. received authorization of production activity for wheels, rollers and friction pads for industrial machinery and material conveyance within FTZ 265 in Conroe, Texas. MORE
- Mercedes-Benz U.S. International, Inc. received authorization of production activity for electric motor vehicles and battery assemblies within FTZ 265 in Vance and Woodstock, Alabama. MORE
- Mercedes Benz USA, LLC received approval for subzone status for its facility within FTZ 98G in Vance, Alabama. MORE
- Tesla, Inc. received approval for the expansion of subzone 18G in Lathrop, California. MORE
- Pensacola-Escambia County Promotion & Development Commission received approval for the reorganization and expansion of FTZ 249 under the Alternative Site Framework in Pensacola, Florida. MORE
- Intel Corporation received authorization of production activity for kitting, assembly and packaging of computer electronics within FTZ 281 in Miami, Florida. MORE
- AbbVie Ltd. submitted a notification of proposed production activity for for additional components of pharmaceutical products within FTZ 7 in Barceloneta, Puerto Rico. MORE
- BMW Manufacturing Company, LLC submitted a notification of proposed production activity for additional components of passenger motor vehicles within FTZ 38 in Spartanburg, South Carolina. MORE
Prepare For Air –
It was always faster. But it was never cheaper. With the current multiplier on container rates, plus the now customary demurrage and detention charges, on top of new terminal fees just going into effect, it may now be less expensive to ship your merchandise by air than by ocean.
The G-20 meeting in Rome this past weekend confirmed an international deal on corporate income taxes. The 15% minimum tax may not have a direct impact on the FTZ community, but it is a sign of a growing coalition that could add pressure to China.
A more direct impact will be felt by an agreement just before the G-20 meeting started to convert Section 232 tariffs on EU-originating steel and aluminum to tariff rate quotas. Importers should prepare for new data and recordkeeping requirements to establish origin.
Once the President returns from Italy it will be crunch time for both the $1.75T spending bill and the $1T infrastructure bill. While the details of the new tariff-rate quota system must be worked out with Europe, expect most other trade issues to be on DC’s back burner until those bills pass. The number of ships waiting to unload on the west coast stretched into triple digits last month. New terminal fees instituted to spur action by the steamship lines seem likely to instead flow down directly to importers, adding even more inflationary pressure to American consumer good prices.