CBP to Allow FTZ Storage of Suspected Forced Labor Goods as C-TPAT Trade Compliance Benefit

Customs-Trade Partnership Against Terrorism Trade Compliance partners in good standing may have access to a new benefit, CBP says: the use of a foreign-trade zone to store goods subject to possible forced labor enforcement action.

The agency had been set to allow FTZ storage of all goods stopped for forced labor in 2021 (see 2109220015), before backtracking two years later by saying only bonded warehouses could be used for that purpose (see 2308030062), despite an outcry from the trade industry (see 2309150047). On the other hand, CBP officials have said the agency was exploring how it could bring FTZs into C-TPAT (see 2104290003).

According to a Sept. 16 cargo systems message, importers who are partners with C-TPAT Trade Compliance can take advantage of this benefit by identifying which FTZ operator they will use to store goods and then receiving approval from the port director prior to moving the goods.

"All importers that are CTPAT Trade Compliance partners and have shipments detained for forced labor which are currently stored in an FTZ may continue to store such shipments in the FTZ if the importer files a formal 06 entry to include all data elements for the suspected goods," CBP said.

"As entities are added to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, any goods that are impacted but are stored in an FTZ at the time of such addition may continue to remain in the FTZ only if the importer files an 06 estimated weekly entry containing all line-item data elements as required for the transaction. Such filings enable CBP to properly evaluate the merchandise being presented for entry," CBP continued.

CBP noted that importers that are not partners with C-TPAT Trade Compliance still won't be able to use an FTZ for the storage of goods detained for forced labor. Rather, they may store detained forced labor goods in bonded warehouses using a Type 21 entry.

Those with policy questions may email CSCWarehousing@cbp.dhs.gov, while those with questions on C-TPAT importer notifications may email CTPATTradecompliance@cbp.dhs.gov.

In May 2023, CBP said it would be expanding its preliminary hold notification benefit for Trade Compliance program members to include withhold release orders and forced labor findings (see 2305310061). It also offered preliminary hold notifications for UFLPA holds in March 2023 (see 2304260045).