U.S. Customs and Border Protection (CBP) has implemented a new benefit for Customs Trade Partnership Against Terrorism (CTPAT) Trade Compliance partners.
Subject to the conditions further described below CBP has determined that importers who are CTPAT Trade Compliance partners, in good standing, may utilize an FTZ for the storage of goods subject to potential forced labor enforcement action.
In order for importers who are CTPAT Trade Compliance partners to utilize these benefits, they must identify to CBP which FTZ Operator they will use to store these goods and receive Port Director approval prior to the movement of the goods. The FTZ Operator must have an active Type 4 bond, FIRMS Code, and be in compliance with all CBP regulations. The selection of an FTZ Operator by a CTPAT Trade Compliance partner for this purpose is subject to Port Director approval.
Importers that are not CTPAT Trade Compliance partners are not authorized to utilize an FTZ for the storage of goods detained for forced labor. Such importers may only store detained forced labor goods in bonded warehouses using a Type 21 entry.
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.
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 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.
Goods detained by CBP for forced labor and stored in an FTZ by CTPAT Trade Compliance importers are subject to the following conditions:
- Applicability Reviews for shipments stored in FTZs:
- Centers shall not conduct formal admissibility reviews prior to the filing of formal entries and issuance of detention notices on these formal entries.
- Notifications:
- ACE Instructions
- The line(s) in question on the estimated weekly entry will be marked as detained by the port issuing the CBP Form(s) 6051D.
- All other lines on the 06 estimated weekly entry will remain unedited and the entry will stay on the unresolved report.
- Please note, this estimated weekly entry will not receive a CBP release while any goods on the transaction are detained.
- The filer will need to submit an additional estimated weekly entry for all remaining lines as this additional estimated weekly entry will be their authorization to withdraw the goods from the FTZ.
- Storage of the goods undergoing a determination in the FTZ
- The detained goods must be directly identified and not fungible.
- The detained goods may not be manipulated, sold, broken up, repacked, or distributed.
- The detained goods must be physically segregated from other merchandise.
- The detained goods must be physically identified to indicate to the FTZ Operator’s employees and CBP that those goods cannot and will not be entered into the United States for consumption or removed from the FTZ.
- One of the following processes must be utilized to physically identify the goods:
- CBP 239 Warning Labels must be adhered to the identified cargo at the zone site by CBP personnel; or,
- Subject to the CBP Port Director’s approval, copies of the issued CBP Form 6051D must be adhered to the identified cargo by the FTZ Operator.
Policy questions concerning this guidance should be directed CSCWarehousing@cbp.dhs.gov.
CTPAT importer notifications should be directed to CTPATTradecompliance@cbp.dhs.gov.
In Summary….
Understanding the New FTZ Benefit for CTPAT Trade Compliance Members
U.S. Customs and Border Protection (CBP) has introduced a significant benefit for Customs Trade Partnership Against Terrorism (CTPAT) Trade Compliance partners. This new policy allows these partners to utilize Foreign Trade Zones (FTZs) for storing goods that may be subject to forced labor enforcement actions, provided they meet specific conditions and receive necessary approvals.
Key Points:
- Eligibility: Only CTPAT Trade Compliance partners in good standing can use FTZs for this purpose.
- Approval Process: Importers must identify their chosen FTZ Operator to CBP and obtain Port Director approval before moving goods.
- Compliance Requirements: The FTZ Operator must have an active Type 4 bond, FIRMS Code, and comply with all CBP regulations.
- Restrictions for Non-CTPAT Partners: Importers not part of the CTPAT Trade Compliance program must use bonded warehouses for storing detained goods.
- Ongoing Storage: Current shipments detained for forced labor in FTZs can remain if formal entries are filed.
- UFLPA Entity List: Goods impacted by the Uyghur Forced Labor Prevention Act (UFLPA) can stay in FTZs with proper filings.
Concerns and Assurances:
- Compliance: Ensuring all parties adhere to CBP regulations and obtain necessary approvals is crucial.
- Segregation and Identification: Detained goods must be clearly identified and segregated to prevent unauthorized entry into the U.S. market.
- Notification: CTPAT partners must notify relevant CBP authorities and receive approval before moving cargo.
This policy aims to streamline the process for compliant importers while maintaining strict oversight to prevent forced labor goods from entering the U.S. market. For any questions or further assistance, please reach out through our online contact form.
