NAFTZ to Continue Pushing for Use of FTZs for UFLPA Goods After COAC Recommendation
The National Association of Foreign-Trade Zones said it will continue to advocate for the use of foreign-trade zones to hold merchandise detained under the Uyghur Forced Labor Prevention Act (see 2308030007), citing a recommendation to that effect adopted by the Commercial Customs Operations Advisory Committee at its Sept. 20 meeting.
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The COAC recommendation said CBP should "continue to engage in a solution for the use of FTZ's within or external to the initial port of import/entry to hold detained merchandise under" the Uyghur Forced Labor Prevention Act pending a decision (see 2309150047). The recommendation also said that if CBP was not able to adjust its position, CBP should provide "legal justifications" as to why.
NAFTZ said that it had worked closely with CBP for the past two and a half years to "establish safeguards" so that forced labor detained goods can be stored in an FTZ until "questions of admissibility have been resolved." NAFTZ said that CBP reversed this decision on Aug. 3 when it issued a CSMS message saying that importers or their authorized filers "may not move detained goods suspected of being made with forced labor into a Foreign-Trade Zone for storage" (see 2308030062)
According to NAFTZ, CBP suggested at the trade group's recent annual conference "that FTZ Operators utilize a separate bonded warehouse or restructure the existing FTZ (by deactivating space and applying for a bonded warehouse) and store the subject goods in those areas, rather than utilizing their already established and secured FTZs." CBP didn't immediately comment. NAFTZ said that they disagreed with CBP's suggestion made at the conference and that they outlined their counterpoints in a letter sent to the Office of Trade on Sept. 19.
"NAFTZ continues to request additional meetings with CBP Headquarters personnel to advocate for a reversal of this position and will continue that advocacy until the ability of FTZs to store forced labor detained goods has been restored," the statement said. "NAFTZ welcomes comments or questions from the trade that may be used to further the Association's advocacy efforts."