NAFTZ Questions CBP Decision to Bar FTZs From Storing Goods Detained for Forced Labor

The National Association of Foreign-Trade Zones said it worked with CBP for more than two years on segregating goods detained under suspicion of forced labor, and it says ending storage at FTZs for these goods "is not justified based on the facts and circumstances involved." CBP announced late last week that goods detained under suspicion of forced labor may be transported to a bonded warehouse, but not to an FTZ (see 2308030062).

The trade group said, "By all accounts, those safeguards have worked well in protecting both CBP's and the NAFTZ's mutual interest in seeing that the laws of the United States are properly applied and followed." The group's leaders have "already held initial meetings with CBP Headquarters personnel to advocate for a reversal of this position," NAFTZ said.

CBP didn't respond to a request for comment on Aug. 7.

The National Retail Federation's Jonathan Gold, vice president of supply chain and customs policy, said: "We are aware of several NRF members who utilize Foreign Trade Zones for a number of reasons. As NAFTZ has pointed out, there was a process in place with specific safeguards to address UFLPA concerns. The ability to move containers off the port to a secure location in order to avoid adding to congestion and additional storage fees is critical. We urge CBP to work with NAFTZ and other stakeholders to understand why this decision has been made and how to address any admissibility or security issues they may have."

The U.S. Fashion Industry Association said it hasn't heard from any members on the change in CBP policy on storage of these goods. But a spokesperson added: "We support the position by NAFTZ that companies should be allowed to use FTZs to temporarily store shipments subject to forced labor detentions during the review period."