
FTZ’ine August 2026
August 3, 2026FTZB Mic Drop Moment
“I am no longer with the Foreign-Trade Zones Board staff.”
That brief, blunt email message signaled the end of Elizabeth Whiteman’s tenure with the U.S. Foreign-Trade Zones Board. Grantees, Users, and Operators are trying to figure out what comes next. The silence is uncomfortable as there has been no guidance from Washington.
FTZs are feeling the uptick in Customs enforcement as more changes are implemented in response to President Trump’s Executive Order targeting import activity.
The unofficial end of summer is upon us, and with that, the sprint to Election Day 2026 begins. The White House has begun to hedge its bets in case Democrats claim a majority of the House in the fall.
After eliminating the public inclusion process for additions to the Section 232 derivative list, the Bureau of Industry and Security at the Department of Commerce requested public comment on a list of 14 new steel, aluminum, and copper derivative products, signaling that Section 232 duties will continue to expand in scope.
The FTZine staff thanks Liz Whiteman for 28 years of service (and writing material!) and wish her health and happiness on her next journey.
Top Story - Liz Whiteman Retires From FTZ Board
Elizabeth “Liz” Whiteman concluded an extraordinary career with the U.S. Foreign-Trade Zones Board on August 20th, leaving a legacy of modernization in the administration of the U.S. Foreign-Trade Zones program. Liz, as she was known in the industry, joined the FTZ staff as an economist in 1998.
Liz reported she “expected to stay for a few years before moving on” but in 2023, she became only the seventh Executive Secretary—and the first woman—to hold the position since the office was established in 1934.
Liz’s tenure is marked with some of the most consequential modernization initiatives in the FTZ program’s history, including electronic filing, the Alternative Site Framework, the Online FTZ Information System (OFIS), and the Production Notification process.
The program she entered in 1998 was considerably more dependent on paper applications, predetermined zone sites, and lengthy approval processes.
Today, applications and communications can be transmitted electronically, an advancement that turned prescient during the pandemic, when government agencies were forced to suspend most mail and in-person operations.
Federal Register Notices and case information are accessible through the Online FTZ Information System (OFIS), and grantees and operators use the system for important program reporting and administrative functions.
Liz was instrumental in establishing regular engagement and education programs for the Grantee community.
Among the most important structural changes during her career was the Alternative Site Framework, or ASF. The framework fundamentally changed how many grantees could respond to companies seeking FTZ designation. ASF allows an approved grantee to establish a defined “service area” and subsequently seek designation for qualifying usage-driven sites or subzones as business needs arise.
ASF transformed the FTZ program into a more responsive economic-development tool. Grantees can now respond more quickly when manufacturers, distributors, and other prospective users need the program. Companies can consider FTZ participation without concern for protracted negotiations for support from U.S. Customs and Border Protection.
This “significantly greater flexibility” in establishing subzones and usage-driven sites led to explosive growth in use of the program, particularly after the installation of trade remedy tariffs began in 2018.
The Production Notification process similarly changed how companies obtain authority to manufacture within an FTZ. The new process created a defined administrative path for companies seeking to begin or expand U.S. production with non-sensitive commodities, further broadening the use and appeal of the program.
Liz also leaves behind a program that is substantially more transparent and electronically accessible than the one she joined. As a new Examiner in 1999, she was assigned a subzone application from perhaps the last television manufacturing site in the United States. The complicated subzone application arrived in Banker’s Boxes strapped to a pallet. It is perhaps this experience that motivated Liz to adopt the current process where paperless applications are now submitted electronically to the FTZ Board, and case materials and Federal Register notices are widely available on the internet.
Throughout her career, Liz served as a bridge between the federal government and the FTZ community, combining regulatory responsibility with education and outreach. For operators, users, and grantees, those improvements will continue delivering benefits long after her departure—and represent a fitting legacy for nearly three decades of public service.


CBP Continues To Rachet Up FTZ Enforcement
President Trump’s “Strengthening Customs Enforcement,” Executive Order started a significant shift toward more aggressive oversight of companies and individuals involved in FTZs and importing merchandise.
U.S. Customs and Border Protection (CBP) has now started to undertake comprehensive reforms involving Importers of Record (IORs), customs bonds, supply-chain disclosures, penalties, audits, seizures, and enforcement. FTZs across the country have already experienced ‘Enhanced’ Compliance Reviews that are part of the effort. These reviews involve more officers, across more specialties, and deeper dives into valuation and classification questions than FTZs are used to.
One of the most consequential changes involves who may serve as an Importer of Record. This will impact FTZs that deal with consignment of inventory with foreign owners. Expected revisions include requiring importers to maintain a minimum amount of tangible domestic assets, bonding, or both.
CBP is also directed to increase minimum bond coverage. Trade remedy tariff increases have already played havoc with bond requirements, and FTZs will need to be prepared for the changes.
The Order goes further by requiring every IOR to maintain “good standing” with CBP. Good standing will be based on an importer’s—and its affiliates’—history of compliance with customs and trade laws, payment of customs liabilities, and other factors determined by the agency. FTZs already maintain close relationships with CBP, which may help with this requirement, but importers that lose good standing could be prohibited from importing merchandise or even designating a customs broker to act as IOR.
CBP is directed to restrict in-bond privileges where appropriate. For Foreign-Trade Zone operators and users, these requirements have particular significance because FTZ operations depend completely on the in-bond delivery of freight.
The FTZ community will need to assess the impact of the new directives, including existing IOR and bond arrangements, and ensure that compliance programs are prepared for a considerably more rigorous enforcement environment.
Need help preparing for an Enhanced Compliance Review of your FTZ?
Contact us at info@iscm.co.
U.S.-Canada Trade Talks Collapse as China Watches
Trade relations between the United States and Canada continued to deteriorate this month following the collapse of USMCA negotiations between the countries.
Reports from Washington indicate Commerce Secretary Howard Lutnick viewed a framework deal negotiated by United States Trade Representative (USTR) Jamieson Greer as too generous to Canada and pushed for bigger concessions.
Canada then suspended negotiations on August 21st, saying last-minute U.S. demands made the proposed agreement unacceptable.
The following day, additional U.S. tariffs of 50 percent took effect on C$27.6 billion of Canadian goods.
Canada has now announced that it will respond “dollar for dollar, rate for rate,” imposing counter-tariffs of 15, 25 and 50 percent on an equivalent value of U.S. imports beginning right after Labor Day.
The breakdown is particularly striking because the negotiations had appeared close to producing an agreement. On August 18th, Prime Minister Mark Carney said the two countries had made “substantial progress,” and the United States postponed implementation of the Section 338 tariffs to allow negotiations to continue.
Canada finally concluded however, that the U.S. position had changed materially. Carney said the new terms were “unfair, uneconomic, and called into question the reliability of any deal.” In a subsequent address, he summarized Canada’s assessment more bluntly: “They asked too much and offered too little.”
The disagreements extended beyond tariff rates. Canada says it had offered to remove remaining retaliatory tariffs on strategic sectors—including steel, aluminum and automobiles—if the United States substantially reduced its corresponding tariffs. Canada was also prepared to encourage provinces to return American alcoholic beverages to store shelves and make administrative changes concerning supply management.
But Ottawa rejected U.S. demands affecting Canadian cultural policy, French-language protections and other areas it considered matters of national sovereignty. “We were not prepared to compromise Canada’s sovereignty or undermine our key industries,” Carney said. “We were not prepared to compromise on the protection of the French language and our culture.”
Canada also announced C$7.5 billion in new and expanded assistance for affected workers and businesses, building on nearly C$25 billion in previously announced support. Although Canadian officials continue to leave room for eventual negotiations, the government is clearly preparing its industries for a potentially prolonged trade confrontation.
The longer-term implications extend beyond bilateral commerce. Canada has explicitly made diversification away from excessive dependence on the U.S. market part of its economic strategy. Carney said Canada is “diversifying our partnerships abroad” and reported that the country is working to expand access to non-U.S. markets.
Including China.
In an August address, he argued that the traditional economic relationship has fundamentally changed: “We cannot control the storm blowing in from Washington. We can chart a new course by building Canada strong at home and diversifying our trading relationships abroad.”
If that strategy becomes permanent, the consequences could outlast the immediate tariff dispute, with China becoming an indirect beneficiary of that realignment.
Current tensions are already complicating broader U.S. efforts to coordinate international economic pressure at a time when Washington is seeking cooperation from major trading partners on China and Iran. A China that presents itself as a predictable commercial partner could exploit divisions among the United States and its traditional allies even where those countries remain deeply skeptical of Beijing.


Midterm Possibilities Consume Congressional Agenda
With control of Congress increasingly uncertain heading into the November 2026 midterm elections, the Trump Administration has begun opening lines of communication with Democratic leaders who could hold substantially greater power in Washington next year.
President Trump’s son-in-law Jared Kushner recently met in New York with House Democratic Leader Hakeem Jeffries, who would be the leading candidate for Speaker if Democrats capture the House. The Associated Press characterized the meeting as “a signal that the White House is seeking ways to work with Democrats” should Republicans lose their House majority.
The discussion reportedly included housing, immigration and the high cost of living, and Kushner suggested a follow-up meeting between Jeffries and White House Chief of Staff Susie Wiles.
The chasm between the two sides seems so wide that it is difficult to imagine passage of meaningful trade legislation for at least a year if the majority in either chamber changes in November.
Neither side is portraying the outreach as a political alliance. Jeffries subsequently said Kushner “asked for a meeting, and I took it, to discuss the affordability crisis,” while simultaneously promising aggressive oversight of the Administration if Democrats win the House. “No one is going to get a pass,” Jeffries said.
At the same time, he emphasized that Americans expect Washington to solve problems, adding, “I’m not simply here to make a point, but I’m also here to make a difference.” The combination of confrontation and willingness to negotiate provides an early indication of what divided government could look like during the final two years of the Trump presidency.
The Administration has reason to prepare for that possibility. Republicans currently control the Senate 53-47, counting the two Independents who caucus with Democrats as part of the Democratic bloc. In the House, the Republican majority is considerably narrower, with 218 Republicans, 212 Democrats, one Independent and four vacancies as of late August. All 435 House seats are before voters in November, while Democrats would need a net gain of four Senate seats to take outright control of the upper chamber. The Senate remains the more difficult target, but both chambers are sufficiently competitive that businesses engaged in international trade should be preparing for several possible congressional configurations in 2027.
Trade policy could become one of the most important areas of disagreement under a Democratic House. Ways and Means Committee Democrats have sharply criticized the Administration’s reliance on executive tariff authorities, particularly following the Supreme Court’s rejection of the Administration’s use of IEEPA tariffs. Ranking Member Richard Neal has accused the Administration of searching for new statutory mechanisms to continue imposing tariffs and has argued that the country needs “a coherent trade strategy” rather than repeated changes in tariff authority. A Democratic majority would give those views considerably greater institutional weight through committee leadership, hearings, investigations and control over which trade legislation advances through the House.
The clearest indication of the potential change is emerging from congressional proposals to reclaim authority over tariffs. Senate Finance Committee Ranking Member Ron Wyden has introduced the Congressional Trade Powers Reform Act of 2026, which would require congressional approval of presidential tariff actions, establish a bicameral Joint Committee on Tariffs and Trade, clarify that binding trade agreements require congressional approval, and increase congressional oversight of the Office of the U.S. Trade Representative. “Congress must reassert its authority over trade and tariffs,” Wyden said, arguing that no president should be able to “unilaterally change the worldwide economy at the click of a button.”
That debate is already affecting legislation in the current Congress. Democrats have supported stronger sanctions against Russia but objected to provisions granting President Trump broad authority to impose tariffs against major purchasers of Russian energy. Neal declared after Senate passage that legislation granting additional tariff power to the President “will not stand in the House,” while Wyden argued that Congress should impose sanctions without handing the President discretion to determine which trading partners are tariffed or exempted. A Democratic-controlled House in 2027 would make similar delegations of new tariff authority substantially more difficult to enact.
The 2026 USMCA review provides another important indication of where bipartisan cooperation—and conflict—could emerge. Ways and Means Democrats have called for stronger provisions addressing offshoring, worker rights, environmental protection, economic security and enforcement while reaffirming the trilateral North American trading relationship. In their May letter to the Administration, committee Democrats called the review “a crucial opportunity to fortify the North American economic relationship and the resiliency of the U.S. economy,” while stating that “House Democrats stand ready to work with your office.”
Meanwhile, USTR negotiations with Mexico have already focused on steel and aluminum, automobiles, economic security, labor, agriculture, customs and trade facilitation, among other issues.
If Republicans retain the Senate while Democrats capture the House, major trade legislation in 2027 would require bipartisan negotiation. The most viable legislative opportunities would consequently be measures capable of attracting support from both parties—including customs modernization, supply-chain security, enforcement against forced labor and transshipment, economic-security measures, and targeted reforms benefiting domestic manufacturing.
A Democratic sweep of both chambers would have more significant consequences. Democrats would control both House Ways and Means and Senate Finance—the two committees with primary jurisdiction over trade—and would be positioned to advance legislation restricting presidential tariff authority and increasing congressional oversight of USTR and trade agreements. Even then, however, President Trump would retain the veto, and most ordinary Senate legislation would continue to face the chamber’s 60-vote procedural threshold on filibusters. The practical result could therefore be greater congressional oversight and substantially more pressure on executive trade policy without necessarily producing a reversal of existing tariffs.
Administration Floats More Section 232 Expansion
The Department of Commerce’s Bureau of Industry and Security (BIS) has proposed another significant expansion of the Section 232 tariff regime, potentially adding 14 additional categories of products within the steel, aluminum, and copper derivative tariffs.
BIS proposes to extend Section 232 duties to goods ranging from aluminum powder to copper electrical cables and to fire extinguishers, industrial cranes, agricultural trailers, musical instruments, and filled steel containers.
The proposal demonstrates how Section 232 policy continues to move downstream through U.S. supply chains, even though the inclusion process for Section 232 expansion was terminated in April. The implication for importers and FTZs is that private negotiations with the Administration continue for the addition of significant duties to imports of steel, aluminum, and copper derivative products.
The 14 proposed categories include non-lamellar aluminum powder; brass-wind musical instruments and parts; welding-machine parts; floor safes; specified electric conductor cables; fire extinguishers; heat-exchanger parts; hydraulic engine and motor parts; certain self-propelled cranes, mobile lifting frames and straddle carriers; tanker trailers; agricultural self-loading or self-unloading trailers; other trailers and semi-trailers; and certain filled steel containers.
For most of these products, Commerce proposes an additional 25 percent Section 232 tariff, but different rates would apply to several important categories. Self-loading or self-unloading agricultural trailers and semi-trailers would generally be subject to a 15 percent tariff because Commerce considers them agricultural equipment.
Filled steel containers present a throwback approach to calculating the tariff. The proposal covers containers holding specified propane, oxygen and propylene products and would generally subject the steel container to a 50 percent tariff rate. Commerce is suggesting the additional tariff “would only apply to the value of the metal container” and not to the value of its contents. This type of metal-content valuation creates additional classification, valuation and recordkeeping responsibilities for importers and potentially for FTZ users handling the affected merchandise.
In its Federal Register Notice, Commerce states that the Administrative Procedure Act’s notice-and-comment requirements do not apply because the action involves a military function and that neither the APA nor other law requires the comment opportunity being provided. This gives the Administration considerable flexibility in determining how quickly the proposed tariffs may move from consideration to implementation.
The proposed tariffs are proof that a BIS Section 232 inclusions process exists, and their notice language suggests that they do not feel the need to seek public comment before adding new derivative products to the tariff regime.


FTZ Staff Activity
- FTZ Board Staff processed a processed a TSF Subzone subject to the activation limits of the Grantee (S-390-2026) in FTZ 57 on behalf of AUMOVIO Systems Inc., Morganton, NC on July 30, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-391-2026) in FTZ 272 on behalf of Infinera Corporation, Allentown, PA on July 31, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-392-2026) in FTZ 35T on behalf of Kinder Morgan Liquids Terminals, Philadelphia, PA on July 31, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-393-2026) in FTZ 84 on behalf of Affordable Aluminum Extrusions LLC, Houston, TX on Aug 5, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-394-2026) in FTZ 32 on behalf of Power Star Products Corp., Miami, FL on Aug 6, 2026
- FTZ Board Staff processed a processed a Minor Boundary Modification (S-395-2026) in FTZ 244 on behalf of Metal Container (MCC) LP, Jurupa Valley/Riverside, CA on Aug 6, 2026
Foreign-Trade Zone Board Activity
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- Intel Corp., submitted an application requesting an expansion of Subzone 75C, for their facility within Foreign-Trade Zone 75 in Chandler, Arizona. MORE
- AUMOVIO Systems, Inc., submitted an application requesting subzone status for their facility within Foreign-Trade Zone 57 in Morganton, North Carolina. MORE
- Vulcaflex Inc., submitted an application requesting subzone status for their facility within Foreign-Trade Zone 222 in Auburn, Alabama. MORE
- Tesla, Inc., received authorization of production activity of battery storage products and components within Foreign-Trade Zone 18 in Fremont, Livermore, and Lathrop, California. MORE
- Avant Technology, Inc., received authorization of production activity of solid-state drives and memory modules within Foreign-Trade Zone 12 in Pharr, Texas. MORE
- CGT US Ltd., submitted a notification of proposed production activity for automotive upholstery within Foreign-Trade Zone 80 in New Braunfels, Texas. MORE
- Abbott Laboratories, submitted a notification of proposed production activity for diagnostic medical devices within Foreign-Trade Zone 39 in Irving, Texas. MORE
- Ascentec Engineering, LLC, submitted a notification of proposed production activity for semiconductor equipment precision parts, assemblies, and production kits within Foreign-Trade Zone 45 in Tualatin and Dallas, Oregon. MORE
- Western Digital Technologies, Inc., submitted a notification of proposed production activity for semiconductor die within Foreign-Trade Zone 18 in San Jose and Fremont California. MORE
- Translucent Solar, LLC, submitted a notification of proposed production activity for solar modules within Foreign-Trade Zone 21 in Summerville, South Carolina. MORE
- Corvus Energy USA Ltd., submitted a notification of proposed production activity for maritime battery equipment within Foreign-Trade Zone 129 in Bellingham, Washington. MORE
- Foxx Development, Inc., submitted a notification of proposed production activity for smartphones within Foreign-Trade Zone 153 in San Diego, California. MORE
- Viatris Pharmaceuticals LLC., submitted a notification of proposed production activity for medications within Foreign-Trade Zone 61 in Vega Baja, Puerto Rico. MORE
- Motorambar, Inc., submitted an application requesting an expansion of Subzone 7Q, for their facility within Foreign-Trade Zone 7 in Cataño, Puerto Rico. MORE
- Luis Garraton, LLC, submitted an application requesting subzone status for their facility within Foreign-Trade Zone 7 in Caguas, Puerto Rico. MORE
- Coilcraft, Inc., submitted a notification of proposed production activity for ferrous iron pre-fabrication material within Foreign-Trade Zone 176 in Princeton, Illinois. MORE
- Yazaki North America, Inc., submitted an application requesting subzone status for their facility within Foreign-Trade Zone 16 in Petoskey, Michigan. MORE
- Fermi, Inc., received approval to operate their Panhandle, Texas facility as Foreign-Trade Zone Subzone 252B. MORE
- Pompina Mayaguez LLC, received approval to operate their Ponce, Puerto Rico facility as Foreign-Trade Zone Subzone 163P. MORE
- Venture Steel, Inc., received approval to operate their Bayamón, Puerto Rico facility as Foreign-Trade Zone Subzone 7V. MORE
- Corvus Energy USA Ltd., submitted a notification of proposed production activity for energy storage systems within Foreign-Trade Zone 129 in Bellingham, Washington. MORE
- Ichor Systems, Inc., submitted a notification of proposed production activity for semiconductor equipment within Foreign-Trade Zone 183 in Austin, Texas. MORE
- Niagara Specialty Metals, submitted a notification of proposed production activity for steel sheets within Foreign-Trade Zone 23 in Akron, New York. MORE
- Beauty Industry Group, submitted a notification of proposed production activity for hair extension kits within Foreign-Trade Zone 30 in Salt Lake City, Utah. MORE
- Fluid Quip KS, LLC, submitted a notification of proposed production activity for separation and grinding equipment within Foreign-Trade Zone 138 in Springfield, Ohio. MORE
- Panasonic Energy Corp. of North America, submitted a notification of proposed production activity for lithium-ion battery cells within Foreign-Trade Zone 126 in Sparks, Nevada. 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.

