FTZ’ine September 2026
September 1, 2026
Ping Ping Is In The House
What we wanted: A timeline for improving trade relations between the planet’s two largest economies.
What we got: A giant panda named Ping Ping (he/him), and another named Fu Shuang (she/her).
The recent summit between Presidents Xi and Trump could have been better, and could have been a lot worse. We’ll take the bears (who are doing smashingly well in Atlanta, thank you for asking, after their dedicated FedEx move from China) and hope the goodwill effort by China spills over into trade improvements soon.
Unceasing price pressures, inflationary effects of the AI boom, and elevated costs for oil led the Federal Reserve to raise interest rates last month. The President’s pledge to freeze imports from any country that has a trade surplus with the United States could come into play soon.
That is because the Fed may raise rates yet again this month, right before the midterm elections. And if the President follows through, FTZ operators could suddenly find themselves in high demand for storage of merchandise cut off from the U.S. market.
While Canada is implementing retaliatory trade measures, Mexico’s deferential route seems to be far more effective at eliciting favorable trade terms from the United States. Canada is looking elsewhere for buyers, including the EU and China, but distance will make it hard to replace U.S. purchasing power for Canadian goods.
The midterm results will tell us if there will be any legislation during a lame duck session after Election Day. At a minimum, a continuing resolution will be required to keep the government functioning, but it may not be possible to move anything more than that.
As the leaves begin to turn colors it is time for the FTZine staff to start thinking about this year’s Halloween getup. Perhaps Mayhem again? The costume still fits the times anyway. Got a good trade-related costume in mind? Share it with info@iscm.co.
Top Story - Is No News Good News For FTZs?
President Trump and Chinese President Xi Jinping concluded a three-day summit in Washington with considerable pageantry but few substantive breakthroughs on the economic and strategic issues dividing the U.S. and China. Despite discussions involving trade, artificial intelligence, rare-earth minerals, Taiwan and Iran, neither government announced comprehensive trade measures.
The most important tangible development for the trading community was an agreement to extend the existing U.S.-China trade truce until January 10, providing businesses with another short period of stability while negotiations continue. And the new Board of Trade has suggested reducing tariffs on $30B worth of goods from China.
The absence of a major agreement is perhaps just a missed opportunity. The summit also avoided any renewed escalation of import tariffs on Chinese goods.
Treasury Secretary Scott Bessent described the latest extension as necessary “to give us more time to see what we can do on the economic front.” The existing truce has involved the United States suspending certain tariffs and economic restrictions while China has continued supplying rare-earth minerals needed by American manufacturers of automobiles, semiconductors, aircraft, power tools and other products. The two-month extension therefore preserves a fragile equilibrium rather than resolving the underlying trade dispute.
President Trump portrayed the summit positively. He described his meeting with Xi as “very productive” and “one of Friendship, Strength, and Success, for both China and the U.S.A.” Xi similarly said the two leaders had agreed to add “new substance” to the bilateral relationship. Yet neither leader provided details of substantial new trade commitments, and the summit produced no major announcements concerning artificial intelligence, Taiwan or the broader economic relationship.
The two leaders are expected to meet again at the Asia-Pacific Economic Cooperation summit in China in November and at the Group of 20 meeting in Florida in December.
According to a Congressional Research Service report, Chinese goods entering the United States were still subject to average tariffs of 36.5% in July, while U.S. merchandise entering China faced tariffs of approximately 31%. Higher tariffs would increase U.S. import and manufacturing costs and place additional pressure on margins and consumer prices, while also affecting American agricultural and industrial exporters.
China’s control of rare-earth minerals remains one of the most important constraints on further U.S. escalation. China possesses approximately 60% of known global rare-earth deposits and still processes roughly 90% of those materials. Beijing has already demonstrated its willingness to restrict exports, giving China significant leverage over supply chains supporting semiconductors, advanced technology, automobiles and defense manufacturing.
For Foreign-Trade Zone Users, the extended truce offers valuable—but temporary—breathing room.. That stability is unlikely to be tested before Election Day, and the next presidential election cycle may be too close at that point for either of the major parties to take actions that risk further increases in consumer prices.
Artificial intelligence, semiconductor technology, critical minerals, energy security, investment restrictions and industrial capacity have become intertwined with traditional trade policy. China has spent two decades attempting to replace high-technology imports with domestic production and has developed dominant positions in industries including batteries, solar panels, telecommunications equipment and electric vehicles. That strategy has simultaneously reduced China’s vulnerability to foreign pressure and increased other countries’ dependence on Chinese manufacturing and raw materials.
The temporary easing of tensions may actually provide Beijing with additional time to strengthen that position. Georgetown University professor Evan Medeiros observed that China wants “time and stability because it helps them build a more resilient, more self-reliant economy,” adding, “It gives them time to reduce their exposure to the U.S.” China has also diversified its export markets. Its global trade surplus reached roughly $1.2 trillion last year, while Chinese exporters have expanded their presence in Southeast Asia, Latin America and other markets, reducing their direct reliance on American customers.
Important questions remain about whether commitments already made by China will be fulfilled. Following the May Trump-Xi meeting in Beijing, the White House announced that China had agreed to purchase at least $17 billion annually in U.S. agricultural products through 2028, excluding soybeans, with the target prorated for 2026. Yet China purchased only $3.9 billion of those agricultural products during the first seven months of this year, only slightly above the comparable period during the previous year. “They’re not keeping that promise and it hasn’t been talked about,” commodities analyst Ishan Bhanu said.
The summit may have bought businesses time, and Zoo Atlanta two Panda Bears, but it has not eliminated the uncertainty that makes the FTZ program increasingly important to U.S. manufacturers and importers with Asian components to their supply chain.
CBP Starts Enforcement Blitz With 5106
President Trump’s “Strengthening Customs Enforcement,” Executive Order moved into high gear last month as CBP began enhanced importer verification.
U.S. Customs and Border Protection (CBP) implemented new procedures to verify the identities and information that Importers of Record (IOR) have registered with CBP on Form 5106. The consequences can be immediate: if an enhanced review uncovers missing, inaccurate or incomplete information, that “may result in immediate voiding of IOR numbers” which would halt all further import activity.
CBP has also indicated that it will continue to revise importer eligibility regulations, policies and guidance, meaning the Form 5106 enforcement should be viewed as the beginning—not the end—of significant enforcement changes affecting the FTZ community.
Importers and their brokers should ensure that information contained in Form 5106 is accurate, complete and current, as CBP is not limiting its review to newly created importer accounts. Customs emphasizes that physical addresses, email addresses and telephone numbers must belong directly to the IOR. A business address can no longer be that of a registered agent, customs broker, freight forwarder, or simple P.O. box.
FTZ Users and Operators should therefore review their Form 5106 information now rather than waiting for a CBP notification, while Grantees should alert their user communities that importer identity information has become an active enforcement priority.
Broader changes are likely ahead, potentially requiring importers to hold minimum levels of tangible domestic assets, and increase bond coverage. The Federal Register Notice that announced the 5106 enforcement action was signed by Susan S. Thomas, Executive Assistant Commissioner in the Office of Trade. That’s how you know the issue has the attention of top CBP brass.
Need help reviewing or submitting accurate 5106 information? Contact us at info@iscm.co.
As Canada Scrambles For Plan B, FTZ?
The U.S.-Canada trade relationship has entered the darkest period in memory following the collapse of bilateral USMCA negotiations.
A 50% U.S. tariff on approximately $20 billion of Canadian goods took effect August 22nd, affecting products ranging from dairy and lumber to machinery and textiles. Canada responded on September 8th with retaliatory tariffs covering approximately $20 billion of U.S. merchandise, including 50 % duties on certain milk, cream and whey products and 25% tariffs on many U.S. cheeses.
The escalating measures are disrupting commercial relationships that developed around decades of increasingly integrated North American trade. Foreign-trade zones now have a place in those relationships as import bans and new duties are announced on Canadian goods.
The effects are already becoming visible in individual industries. Canadian dairy exports to the United States have largely stalled since the new tariffs took effect. Because dairy production cannot be quickly adjusted when export demand disappears, processors and farmers face immediate operational challenges. British Columbia dairy farmer Casey Pruim described the problem simply: “Cows aren’t like a tap; you can’t just turn them on or off.”
The consequences are not confined to Canada. David Wiens, president of Dairy Farmers of Canada, warned that the tariffs would affect “the supply chain, not only in Canada but in the U.S. as well.” The observation illustrates the unusual nature of the U.S.-Canada trade relationship: businesses on both sides of the border frequently operate within the same supply chains rather than simply competing against one another. In dairy alone, Canada imported approximately C$1.355 billion of U.S. dairy products in 2025 while exporting C$308.7 million to the United States. Tariffs designed to pressure Canadian producers can therefore generate secondary consequences for American exporters, processors, distributors and consumers.
For Foreign-Trade Zone Users importing Canadian-origin goods, the new tariff environment makes FTZ use worthy of consideration. Those benefits cannot match the duty and MPF-free imports of USMCA-qualifying merchandise, but those days may not be coming back anytime soon. And the ability to defer duty payment and manage inventory within an FTZ can become increasingly valuable as tariff rates rise.
FTZ Grantees and 3PL operators should anticipate increased inquiries from businesses that previously had little reason to investigate the FTZ program. A Canadian supplier or U.S. importer accustomed to duty-free or relatively low-duty trade may never have considered an FTZ necessary. A 50% tariff changes that calculation considerably.
Grantees can also work to identify regional companies exposed to Canadian tariffs and educate them about legitimate FTZ strategies.
The dispute is also beginning to alter Canada’s long-term trade strategy. Prime Minister Mark Carney is pursuing deeper commercial, defense and cultural relationships with Europe and Asia as Canada attempts to reduce its dependence on the United States. Carney has identified Europe as a particularly important opportunity, noting that while the European economy is growing slowly, it remains “the second biggest economy in the world” and Canada is “underpenetrated in that economy.” He has also argued that “greater penetration of Europe is a bigger opportunity for Canada than China,” citing potential cooperation in defense procurement, critical minerals, artificial intelligence, pharmaceuticals, cyber policy and other sectors.
Canada is simultaneously rebuilding commercial relationships in Asia. Carney and Chinese President Xi Jinping have described a renewed relationship as a “strategic partnership,” with China agreeing to reduce or eliminate tariffs on certain Canadian agricultural products, principally canola, while Canada agreed to permit a limited number of Chinese electric vehicles to enter at a lower tariff rate.
Despite these diversification efforts, replacing the U.S. market will be extraordinarily difficult. Geography remains particularly important for products such as dairy and other perishables that can move rapidly across the U.S.-Canada border but cannot simply be redirected to distant markets without new customers, transportation networks and regulatory approvals. Economist Bryan Yu observed that companies “really can’t quickly adjust to a 50% tariff” and predicted that the interim period could bring “higher prices, weaker economic activity and deeper mistrust.” Carney himself has acknowledged that economic transformation will take time: “You don’t transform the economy overnight.”
Canada is actively attempting to “spread its wings” by cultivating alternative markets, while U.S. importers are confronting duties that can fundamentally alter the economics of Canadian sourcing. Foreign-Trade Zones cannot eliminate every tariff arising from the dispute, but companies that never needed an FTZ when Canadian trade was guided by USMCA may suddenly have a compelling reason to learn how one works.
Mexico, Like China, Tries To Stay Under U.S. Radar
Mexico is taking a markedly different approach from Canada in managing its increasingly complicated trade relationship with the United States. While the U.S.-Canada relationship has deteriorated into escalating tariffs and retaliation, Mexican President Claudia Sheinbaum continues to emphasize negotiation with President Trump and is seeking targeted tariff relief for important Mexican industries.
Following what she characterized as a “very good” telephone conversation with President Trump last month, Sheinbaum said Mexico is “doing everything we can, within the framework of sovereignty, respect, and what is best for Mexico, to reach a deal soon.”
The contrast with Canada is significant. Both countries entered the current trade confrontation from similar positions as U.S. neighbors, USMCA partners and highly integrated participants in North American manufacturing supply chains. Both have also faced new U.S. tariffs affecting important industries. Yet Canada’s negotiations have broken down and the two countries have imposed retaliatory measures on one another, while Mexico continues pursuing an agreement and has identified tariff relief for steel, aluminum and automobiles as important objectives.
It does not mean, however, that the U.S. will be quick to return to the duty-free treatment afforded most imports from Mexico.
President Sheinbaum has repeatedly framed her negotiations around Mexican sovereignty and national interests, particularly following controversial U.S. proposals involving security and military activity inside Mexico.
In that respect, Mexico’s approach has an important similarity to China’s current strategy toward Washington. Beijing has demonstrated a willingness to retaliate when necessary, but it has simultaneously maintained negotiations and accepted temporary trade truces rather than allowing every dispute to trigger unrestricted economic escalation.
Even after tariffs between the United States and China reached extraordinary levels—145% on Chinese merchandise and 125% on U.S. imports at the height of the confrontation—the countries eventually negotiated a tariff truce. China has continued to use economic countermeasures selectively while preserving channels for negotiation.
China’s experience also demonstrates why maintaining negotiating leverage matters. Beijing possesses enormous influence over critical minerals and rare-earth processing, controlling almost 90% of global processing and refining capacity. China has used restrictions on rare-earth exports as leverage while Washington has relied heavily on advanced-semiconductor and technology controls. When faced with additional U.S. restrictions, Beijing said it had “no choice but to take necessary countermeasures,” but those actions have occurred alongside continued negotiations rather than replacing them entirely.
Mexico lacks China’s rare-earth dominance, but its leverage comes from something different: the extraordinary integration of Mexican production into the U.S. economy.
The economic evidence from China also illustrates the limitations of tariffs as a mechanism for fundamentally reshaping global trade. U.S.-China bilateral trade fell 29% from $584 billion in 2024 to $415 billion in 2025, and U.S. imports from China continued declining during 2026. Yet China redirected exports toward other markets. Chinese exports to ASEAN countries increased 14% in 2025 to approximately $660 billion, while exports to the European Union increased 9% to approximately $560 billion. By August 2026, China had accumulated a goods trade surplus of roughly $820 billion, approaching its approximately $1.2 trillion surplus for all of 2025. The lesson for Mexico: preserving market access to the United States is extremely valuable, but diversification can also provide negotiating strength.
For Foreign-Trade Zone Grantees, Users, and Operators, Mexico’s decision to remain at the negotiating table is encouraging because Mexico is deeply embedded in U.S. manufacturing supply chains. USMCA has exempted the majority of qualifying Mexican and Canadian exports from ordinary tariffs and supported extensive cross-border integration.
The broader trade environment that will influence negotiations with both countries remains unsettled. Even as bilateral trade with China declined substantially, the overall U.S. goods deficit increased from $1.201 trillion in 2024 to $1.235 trillion in 2025. During May through July 2026, the combined goods deficit reached approximately $325 billion, compared with $277 billion during the same three months of 2025. Those figures demonstrate that reduced imports from one country can be accompanied by increased sourcing elsewhere rather than a corresponding increase in U.S. production.
FTZs Watch Interest Rates Rise, Deferral & MPF Benefits Increase
Today is the beginning of the federal government’s new fiscal year, bringing another increase in U.S. Customs and Border Protection’s Merchandise Processing Fee. For Fiscal Year 2027, the minimum MPF will increase from $33.58 to $34.58, while the maximum fee will rise from $651.50 to $670.86.
For individual entries the increase may appear modest, but for companies making hundreds or thousands of customs entries annually, the cumulative effect reinforces one of the FTZ program’s most dependable financial benefits.
The MPF increase arrives as companies confront another important financial issue: higher borrowing costs. The Federal Reserve recently raised interest rates in its first major tightening action in years, and policymakers are openly discussing additional increases as they attempt to return inflation to the Fed’s 2% target.
The Fed increase has international traders on alert because President Trump has previously threatened to implement export bans in the event that the Fed raises rates. So far, no such bans have been announced, but with another increase possible this month, the President may find it necessary to act on his pledge.
Wall Street is betting that another quarter-point increase at the October 27-28 meeting could lift the federal funds target range to 4% to 4.25%. Federal Reserve officials have emphasized that the decision remains dependent on incoming employment and inflation data.
The interest-rate environment remains uncertain. Federal Reserve Governor Christopher Waller has said that another “hot” inflation report could compel him to support another increase, although he questioned the need to move prematurely, asking, “What’s the cost of waiting one meeting?” Governor Michael Barr offered a similar data-dependent assessment but said that “if inflation appears not to be moderating sufficiently, then I think we should act decisively to raise rates.” Other officials have indicated that additional tightening may be necessary before year-end, meaning companies should not assume that September’s increase will be the last.
The economic forces driving the debate connect to international trade. The U.S. goods-and-services trade deficit reached $88.6 billion in July, its largest gap in 16 months and an increase of more than 24% from June. Imports increased 2.8% to $399.3 billion, fueled in part by shipments of computers, computer accessories and semiconductors supporting the artificial-intelligence investment boom. Exports declined 2.1% to $310.7 billion. For FTZs serving electronics, semiconductor, data-center and advanced-manufacturing supply chains, continued high import volumes combined with higher financing costs could increase interest in both weekly entry and duty deferral.
President Trump has strongly criticized higher rates and has called for the Federal Reserve to reduce borrowing costs to “the LOWEST RATE of any country in the World.” He has also connected the dispute over monetary policy to trade policy, declaring: “LOWER THE RATE OR I’LL STOP TRADING WITH COUNTRIES WITH WHICH WE HAVE A DEFICIT.” The countries with which the United States runs trade deficits include Canada, Mexico, China and members of the European Union. Whether those statements translate into additional trade measures remains uncertain, but they add another element of policy risk for import-dependent businesses.
FTZ Staff Activity
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-396-2026) in FTZ 71 on behalf of Coherent Inc., Bloomfield, CT on Aug 6, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-397-2026) in FTZ 89 on behalf of Optum Frontier Therapies II LLC, Las Vegas, NV on Aug 6, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-398-2026) in FTZ 84 on behalf of GPL Supply Chain Inc., La Porte, TX on Aug 7, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-399-2026) in FTZ 241 on behalf of Lufthansa Technik Component Services, Fort Lauderdale, FL on Aug 7, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-400-2026) in FTZ 72AB on behalf of Eli Lily and Company, Lebanon, IN on Aug 10, 2026
- FTZ Board Staff processed a processed a Termination (S-401-2026) in FTZ 84Y on behalf of Republic Tube LLC, Houston, TX on Aug 10, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-402-2026) in FTZ 25 on behalf of Febest Panamerica LLC dba Febest Parts, Pompano Beach, FL on Aug 10, 2026
- FTZ Board Staff processed a processed a TSF Subzone subject to the activation limits of the Grantee (S-403-2026) in FTZ 7 on behalf of Luis Garraton LLC, Caguas, PR on Aug 12, 2026
- FTZ Board Staff processed a processed a TSF Subzone subject to the activation limits of the Grantee (S-404-2026) in FTZ 7Q on behalf of Motorambar Inc., Ponce, PR on Aug 12, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-405-2026) in FTZ 141G on behalf of MKS Instruments Inc., Rochester, NY on Aug 12, 2026
- FTZ Board Staff processed a processed a TSF Subzone subject to the activation limits of the Grantee (S-406-2026) in FTZ 16 on behalf of Yazaki North America Inc., Petoskey, MI on Aug 13, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-407-2026) in FTZ 32L on behalf of TNS Cargo Service LLC, Medley, FL on Aug 13, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-408-2026) in FTZ 2 on behalf of Port Cargo Service LLC, New Orleans, LA on Aug 13, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-409-2026) in FTZ 35U on behalf of Clinigen Clinical Supplies Management Inc., Malvern, PA on Aug 14, 2026
- FTZ Board Staff processed a processed a Termination (S-410-2026) in FTZ 49 on behalf of Schenker Inc., Jersey City, NJ on Aug 18, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-411-2026) in FTZ 94 on behalf of Padilla Import Sales Marketing Inc., Laredo, TX on Aug 19, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-412-2026) in FTZ 94 on behalf of Ramon Barrios Inc., Laredo, TX on Aug 19, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-413-2026) in FTZ 26AI on behalf of FNS Inc., Atlanta, GA on Aug 19, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-414-2026) in FTZ 147 on behalf of Yuasa Battery Inc., Laureldale, PA on Aug 19, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-415-2026) in FTZ 202 on behalf of Franco Logistics Inc., Huntington Park, CA on Aug 19, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-416-2026) in FTZ 207 on behalf of LEGO Systems Inc., Prince George, VA on Aug 21, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-417-2026) in FTZ 38A on behalf of BMW Manufacturing Co LLC, Greer, SC on Aug 24, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-418-2026) in FTZ 64L on behalf of Metal Container LP, Jacksonville, FL on Aug 25, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-419-2026) in FTZ 72 on behalf of Simtra US LLC, Bloomington, IN on Aug 25, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-420-2026) in FTZ 64M on behalf of APS East Coast Inc. dba Amports Inc., Jacksonville, FL on Aug 26, 2026
- FTZ Board Staff processed a processed a Termination (S-421-2026) in FTZ 72S on behalf of Brightpoint North America LP, Plainfield, IN on Aug 26, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-422-2026) in FTZ 18Y on behalf of APS East Coast Inc. dba Amports Inc., Jacksonville, FL on Aug 27, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-423-2026) in FTZ 74 on behalf of APS East Coast Inc. dba Amports Inc., Jacksonville, FL on Aug 27, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-424-2026) in FTZ 129C on behalf of APS East Coast Inc. dba Amports Inc., Jacksonville, FL on Aug 28, 2026
Foreign-Trade Zone Board Activity
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- Viatris Pharmaceuticals, LLC, submitted an application requesting subzone status for their facility within Foreign-Trade Zone 61 in Vega Baja, Puerto Rico. MORE
- Persimmon Technologies Corp., submitted an application requesting subzone status for their facility within Foreign-Trade Zone 27 in Bedford, Massachusetts. MORE
- Catalina Cylinders, Inc., submitted a notification of proposed production activity for aluminum gas cylinders within Foreign-Trade Zone 50 in Garden Grove, California. MORE
- Dongjin Semichem Texas, Inc., submitted a notification of proposed production activity for semiconductor-grade photoresist thinner within Foreign-Trade Zone 183 in Killeen, Texas. MORE
- FTZ Corp of Southern Pennsylvania, received approval to expand the service area of FTZ 147 to include Schuylkill County, Pennsylvania. MORE
- ECI Gulf Coast Parts and Service, Inc., received approval to operate their New Iberia, Louisiana facility as Foreign-Trade Zone Subzone 124X. MORE
- City of Midland, received approval to the reissuance of the subzone grant of authority for the Phillips 66 Company facilities in Borger, Texas, to the City of Amarillo, grantee of FTZ 252. MORE
- Caguas Expressway Motors, LLC, submitted an application requesting subzone status for their facility within Foreign-Trade Zone 61 in Caguas, Puerto Rico. MORE
- JAS Forwarding (USA), Inc., submitted an application requesting subzone status for their facility within Foreign-Trade Zone 38 in Greer, South Carolina. MORE
- Magna Mirrors of America Inc., submitted an application requesting subzone status for their facility within Foreign-Trade Zone 38 in Duncan, South Carolina. MORE
- Perimeter Global Logistics, submitted an application requesting subzone status for their facility within Foreign-Trade Zone 168 in Grand Prairie, Texas. MORE
- Schaeffler Group USA Inc., submitted an application requesting subzone status for their facility within Foreign-Trade Zone 38 in Fort Mill, South Carolina. MORE
- AUMOVIO Systems, Inc., received approval to operate their Morganton, North Carolina facility as Foreign-Trade Zone Subzone 57. MORE
- Total Distribution Inc., received approval to operate their Mogadore, Ohio facility as Foreign-Trade Zone Subzone 40. MORE
- Rochester Electronics, LLC, submitted a notification of proposed production activity for semiconductor products within Foreign-Trade Zone 27 in Newburyport, Massachusetts. MORE
- AUMOVIO Systems, Inc., submitted a notification of proposed production activity for electronic braking, suspension, hydraulic, pneumatic, and related automotive components and systems within Foreign-Trade Zone 57 in Morganton, North Carolina. MORE
- Enerflex Energy Systems Inc., submitted a notification of proposed production activity for natural gas equipment within Foreign-Trade Zone 84 in Houston, Texas. MORE
- Infinera Corp., submitted a notification of proposed production activity for telecommunications devices within Foreign-Trade Zone 272 in Allentown, Pennsylvania. MORE
- Merck, Sharp and Dohme LLC, submitted a notification of proposed production activity for drug products and intermediates within Foreign-Trade Zone 49 in Rahway, New Jersey. MORE
- Olon USA LLC, submitted a notification of proposed production activity for active pharmaceutical ingredients within Foreign-Trade Zone 40 in Concord, Ohio. MORE
- Piramal Critical Care, Inc, submitted a notification of proposed production activity for pharmaceutical anesthetics within Foreign-Trade Zone 272 in Bethlehem, Pennsylvania. MORE
- Eli Lilly and Co., submitted a notification of proposed production activity for drug products within Foreign-Trade Zone 57 in Concord, North Carolina. MORE
- Eli Lilly and Co., submitted a notification of proposed production activity for drug products within Foreign-Trade Zone 93 in Durham, North Carolina. MORE
- Hitachi Vantara Manufacturing, submitted a notification of proposed production activity for enterprise datacenter disk storage system hardware within Foreign-Trade Zone 106 in Norman, Oklahoma. 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.
