COAC Set to Urge CBP to Again Allow Use of FTZs for Goods Detained Under UFLPA

The Commercial Customs Operations Advisory Committee is set to adopt a recommendation urging CBP to allow the use of foreign-trade zones for merchandise detained under the Uyghur Forced Labor Prevention Act, after an August policy change by the agency barred the practice (see 2308030062).

“COAC recommends CBP … 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 UFLPA pending a decision,” says a recommendation set for a vote at the upcoming Sept. 20 COAC meeting. “If CBP is unable to adjust its position on the use of FTZ’s, CBP should provide legal justification for the decision.”

CBP issued a CSMS message Aug. 3 announcing that goods detained under UFLPA could no longer be moved into an FTZ for storage, and could only be moved to a bonded warehouse. The National Association of Foreign-Trade Zones and the National Retail Federation both questioned the policy change (see 2308030007).

“As of August 3, 2023, importers can no longer move forced labor detained goods into foreign trade zones (FTZ) for storage pending resolution of detention by the importer or CBP,” the agency said in another document released ahead of the COAC meeting. “Importers may submit requests to transfer goods to bonded warehouses to the respective Port Director for review and approval,” and “the Port Director will approve/deny requests based on the circumstances at his/her Port of Entry,” CBP said.

“Goods currently in FTZ may remain in the FTZ but a withdrawal must be made, and a detention must be issued on the FTZ withdrawal before the Centers of Excellence and Expertise can conduct applicability reviews,” CBP said.