article

The National Association of Foreign-Trade Zones
ZONESREPORT
CONTENTS
CHAIRMAN’SLETTER
PRESIDENT’SLETTER
NAFTZ NEWS
NAFTZ hosts successful
Fundamentals of FTZs Seminar in
Austin, TX, Jan. 4-5. . . . . . . . . . . . . . . . . . . . 4
NAFTZ to offer Jan. 20 webinar
on filing annual reports with
FTZ Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Register now for NAFTZ Legislative
& Regulatory Seminar Feb. 10 in
Washington, D.C. . . . . . . . . . . . . . . . . . . . . . . 4
FTZ COMMUNITY NEWS
Hawaii Foreign Trade-Zone opens
new International Trade Resource
Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
NAFTZ Sends Letter, Leis to Hawaii
to Congratulate Past President
Homer A. Maxey . . . . . . . . . . . . . . . . . . . . . . . 6
FTZ helps New Mexico set record
for business recruitment in 2014. . . . . 8
TRADE NEWS
A Trade Opportunity for Obama
and the New Congress. . . . . . . . . . . . . . 10
Obama hopes to enlist GOP in push
for trade pact, despite Democratic
resistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Sen. Hatch welcomes new
members to the Senate Finance
Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
REGULATORY UPDATE
THANK YOU TO OUR
SPONSORS
JANUARY2015
CHAIRMAN’SLETTER
Hello NAFTZ members and friends,
Happy New Year and best wishes to all for a
prosperous, productive and successful 2015.
Considering how Foreign-Trade Zones affected our
2014 holiday season, the following scenario reflects
on the list of Subzones found on the Foreign-Trade
Zones Board list of Foreign-Trade Zones:
Shopping for holiday gifts, you purchased new
fishing gear for your brother from Cabela’s and shopped online with
your Dell laptop through a vast array of gifts from Crate & Barrel
before finally settling on table linens for your sister. When the receipt
arrived in your email box, you printed it on your home Canon printer.
The youngsters on your list received clothing from Gymboree, while
you selected a trendy new Fossil watch for each teenager.
Having celebrated at home with friends until the wee hours of the
morning, you awoke with a powerful need for a Bayer tablet. You
filled the Mister Coffee machine from a Delta faucet, pulled on your
Levi jeans, and then sipped the java from a pretty Oneida cup.
Making sure that special gift from Tiffany & Co. was safely packed
in your carry-on Tumi luggage, you tripped over a pair of Nine
West shoes left inside your front door by a guest who must have
departed in stocking feet on the walk you cleared yesterday with
your Husqarvana snow thrower. Of course, that brought on memories of the weeks during autumn with a Black & Decker leaf blower
in your hands on the same front walk. You wrote a note-to-self to
add a Deere & Company riding mower to your post-holiday sale list.
After an hour-long drive in your BMW, you arrived at the airport for an
international flight, with the aviation fuel in the plane destined for export. All
in all, Foreign-Trade Zones contributed favorably to your holiday season.
2015 will be a fine year of NAFTZ programs and outreach with your
professional needs foremost in the planning process. Your Program
Committee now under the leadership of Shane Williams plans to
bring a fresh perspective to programming and evaluation through
electronic means. On January 4-5, FTZ Fundamentals in Austin, TX,
began the New Year by introducing the FTZ program from A to Z –
from application and activation through zone benefits and zone status
merchandise. I joined more than 70 new grantees, operators and users
at the FTZ Fundamentals, including the welcome reception on Sunday
evening. (Please see the story below for a full report on the event.)
In Washington, DC, for the Legislative Seminar on February 10,
you can expect a U.S. Customs and Border Protection update, a
Foreign-Trade Zones Board report from Andrew McGilvray, and a
timely discussion about the Miscellaneous Tariff Bill. The Legislative
Seminar provides a premier forum for learning the latest regulatory
and Congressional developments, and interacting with government
officials and your FTZ colleagues. I hope you will consider setting
aside February 11 to visit your elected officials on the hill, sharing with
them the latest NAFTZ Annual Report. If an approval for Alternative
Site Framework added Congressional districts to your FTZ project,
this is prime time to tout the availability of a rapid FTZ response to
the needs of business and industry in those newly added districts.
Please watch the NAFTZ Zones Report for future details and mark
your calendars for the NAFTZ Spring Seminar, May 17-19 in Tampa,
FL, and the Annual Conference, September 27-30 in Los Angeles, CA.
Sincerely,
Jan Frantz, Chairman
The National Association of Foreign-Trade Zones Partnership. Pride. Prosperity. 1001 Connecticut Ave NW Suite 350 | Washington DC 20036 | 202.331.1950 202.331.1994 fax | www.naftz.org
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ZONESREPORT
JANUARY2015
NAFTZ STAFF
President
Daniel Griswold
[email protected]
Manager of Education
and Meetings
Victoria Cartwright
[email protected]
PRESIDENT’SLETTER
Dear NAFTZ Members:
2014 was a good year for NAFTZ and the FTZ
program, and 2015 promises to be even better.
As we transition into a New Year, let’s take a
moment to reflect on the eventful year we just
finished, and look ahead to the promise of the
year ahead of us.
During the past 12 months, NAFTZ fulfilled its
mission to equip our members with the training, education, and
connections they need to succeed as professionals in the FTZ environment. The highlight of the year was without doubt the NAFTZ’s
42nd Annual Conference and Exhibition in Fort Worth, Texas, last
September. The event attracted 460 attendees who benefited from
one of the best programs ever organized for an NAFTZ conference.
NAFTZ members enjoyed the uncommon privilege of hearing remarks
on trade and the FTZ program straight from the CBP Commissioner
himself, R. Gil Kerlikowske. Other CBP officials interacted with NAFTZ
members on a range of subjects, from the implementation of the
Automated Commercial Environment, to navigating Customs site visits.
It was an unprecedented opportunity for NAFTZ members to interact
in person with such a broad array of CBP officials at a single event.
Note: All NAFTZ materials, including
Zones Report, are the intellectual
property of the association and are
intended for the benefit of members only.
The use of NAFTZ materials to advise or
otherwise serve non-member clients is
discouraged.
NAFTZ members also benefited from attending the Fundamentals of
FTZs Seminar in Orlando in January, the Legislative and Regulatory
Seminar in Washington in February, and the Spring Seminar in Seattle
in May. Thanks to the efforts of the Program Committee under the
leadership of Shannon Fura, the content of NAFTZ events during
the year was superb, and thanks to the professional management
of Victoria Cartwright, the meals, logistics, and amenities of all the
events were first-rate. Working with the Webinar Subcommittee,
Victoria also successfully managed a series of nine ZoneCast webinars on a range of practical topics that were offered free to members.
NAFTZ also kept our members informed during the year with timely
blast emails, the monthly Zones Report e-newsletter, and access to
our enhanced web site.
NAFTZ made its presence felt in Washington in 2014 by effectively
advocating for an improved FTZ program. Among the accomplishments was our influence on the development of ACE in a more
FTZ-friendly direction through the efforts of the ACE Task Force and
its tireless chair Melissa Irmen. We also offered a list of suggestions
to the FTZ Board to improve the Online FTZ Information System as
well as technical corrections for the Part 400 regulations. Through
the efforts of Sean Murray, Rebecca Williams and others, NAFTZ filed
additional comments with the Consumer Product Safety Commission
to mitigate potentially harmful effects of a proposed rule on certificates of compliance.
After years of effort, NAFTZ made real progress in 2014 to enable
the enhanced reporting of FTZ exports both to the FTZ Board in its
annual report and to the U.S. Census Bureau through the Automated
Export System. Because of our efforts, 2015 could see the first
widespread collection of FTZ export data that includes value added
in zones as well as “indirect exports.”
On Capitol Hill, our long-time colleagues Jim Smith and Brian
Hannigan at Smith Dawson and Andrews helped us deliver the
message that the FTZ program is a vital tool for promoting trade,
manufacturing investment, and exports. We visited a number of
offices on in the House and Senate with the “ask” that Congress fully
fund the final implementation of ACE. Our efforts in Congress culminated with a well-attended briefing on the FTZ program for House
staff members on Dec. 4, featuring Jose Quinonez and Melissa Irmen,
and sponsored by the House Manufacturing Caucus.
Closer to home, the board and professional staff at NAFTZ made
every effort to make wise use of the resources you provide for the
The National Association of Foreign-Trade Zones Partnership. Pride. Prosperity. 1001 Connecticut Ave NW Suite 350 | Washington DC 20036 | 202.331.1950 202.331.1994 fax | www.naftz.org
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ZONESREPORT
JANUARY2015
BOARD OF
DIRECTORS
OFFICERS
Chairman of the Board
Jan Frantz, Executive Director
BC/CAL/KAL Inland Port Development
Vice Chairman
Jose Quinonez, Foreign-Trade Zone
Manager, City of El Paso, El Paso
International Airport
Treasurer
Trey Boring, Sr. VP, IMS Worldwide, Inc.
Secretary
Julie Brown, CEO
Georgia Foreign-Trade Zone, Inc.
DIRECTORS
Kenneth Carlstedt, Trade Controls &
Customs Compliance Manager,
Momentive Performance Materials
Sean Lydon, President, ISCM, Inc.
Jim Maloney, Maritime Marketing Manager,
Port of San Francisco
Bill Fisher, Vice-President of Customs
Compliance, American Global Brokerage
Services
Charles Daniels, Director of Logistics,
Fortessa, Inc.
William Carr, US Customs Compliance,
Phillips 66
Rebecca Williams, Manager, Trade &
Customs, The Rockefeller Group
Melissa Irmen, SVP, Products & Strategy,
Integration Point
Cornelia Steinert, Canon Virginia, Inc.
Johnny Fernandez, Executive Director
CODEZOL C.D.
Frankie Bryson, Nissan North America
PRESIDENT'SLETTER (CONTINUED)
association. For the third year in a row, NAFTZ ran a significant surplus in its operations, allowing the board to rebuild the association’s
reserve fund after difficult economic times in 2008-09. We have
also been conscious to keep NAFTZ membership and events as
affordable as possible. In 2014, a $50 discount for early membership
renewal was extended to December 31, and the $10 credit card
transaction fee was eliminated. NAFTZ member grantees received
a total of $250 in rebates at the end of the year for new operator/
user primary members from their zones.
More details about the highlights and accomplishments of 2014 and
what’s ahead for 2015 will be featured in the 2014-15 NAFTZ Annual
Report that you should be receiving by email later this month. I look
forward to working with all of you to make 2015 a successful year
for NAFTZ and for your companies and communities.
Looking ahead, the NAFTZ board of directors has tasked the NAFTZ
president and staff to give priority in 2015 to
Dan Griswold, President
Best wishes,
•Secure an expanded pilot from Customs to extend direct delivery
to non-owner operators and affiliates;
•Urge Customs to rewrite the Part 146 regulations of FTZs;
•Work through the ACE Task Force to ensure a smooth transition
of FTZ data elements into ACE and full sensitivity to FTZs in the
single-window reporting to PGAs in the International Trade Data
System;
•Ask Congress to fully fund ACE implementation in the Customs
Reauthorization bill.
Honorary Director
David Ostheimer, Lamb & Lerch
Immediate Past Chairman
Scott Wienke, Director, Global Trade
Compliance, Abbvie, Inc.
General Counsel
Marshall V. Miller, Esq.
Miller & Company, P.C.
Public Affairs Advisor
James P. Smith
Smith Dawson & Andrews
The National Association of Foreign-Trade Zones Partnership. Pride. Prosperity. 1001 Connecticut Ave NW Suite 350 | Washington DC 20036 | 202.331.1950 202.331.1994 fax | www.naftz.org
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ZONESREPORT
JANUARY2015
EVENT
ADVERTISEMENT
OPPORTUNITY
NAFTZ is giving you the
opportunity to advertise one of
your own events or educational
opportunities through our
website. If you would like to
post information on one of our
event pages, please call the
office at 202.331.1950 for more
information.
NAFTZ Event Advertisement
Guidelines
• Advertising space must be
purchased in three (3) month
blocks.
• The cost is $3,500 for each
three (3) month block of
advertising space.
• Advertising will be displayed
on the bottom of the specified
event’s page.
• NAFTZ has final approval
of advertisement content.
Advertisement must not conflict
with NAFTZ events or interests.
• This space is available for
“event” advertisement only,
including trainings, webinars,
and other educational offerings.
No specific products, software,
or services, may be promoted
in the advertisement space.
FTZ CLASSIFIEDS
Visit our website to see up-to-date
job openings!
NAFTZ NEWS
NAFTZ hosts successful Fundamentals of
FTZs Seminar in Austin, TX, Jan. 4-5
NAFTZ
welcomed more than
70
attendees
to
its
annual
Fundamentals of
FTZs Seminar held
on January 4-5 at
the Sheraton Austin
Austin FTZ No. 183 Grantee Carrie Yeats addresses at the Capitol in
Austin,
Texas.
attendees during the luncheon on Monday.
Attendees enjoyed
a welcome reception Sunday evening, and then gathered at 7:30
Monday morning for a full-day overview of all aspects of the FTZ
program.
Presenting the program were two FTZ operator/user veterans—
Virginia Thompson of Crate and Barrel, and Frankie Bryson of Nissan
North America. Between the two of them, they represented a wealth
of practical experience and perspective from both the warehouse/
distribution and the production/manufacturing sides of FTZ operations. Their presentations prompted a number of good follow up
questions from those attending.
Organizing this year’s Fundamentals was NAFTZ board member Jim
Maloney of the Port of San Francisco. Jim introduced the speakers
and also engaged the audience in several lively rounds of “FTZ
Trivia.” NAFTZ President Dan Griswold opened the presentation with
an overview of the FTZ program, and ended the day by touting the
benefits of NAFTZ membership. NAFTZ Board Chair Jan Frantz also
attended, welcoming the attendees at the Sunday night reception.
This year’s Fundamentals of FTZs Seminar also featured, for the first
time, a beta version of a mobile app that allows those attending NAFTZ
events to access program schedules, room locations, attendee rosters
and other vital information on their smart phones, tablets, and other
mobile devices. Stay tuned for updates as NAFTZ refines this new
service for our members for use at our other events in 2015.
NAFTZ to offer Jan. 20 webinar on filing
annual reports with FTZ Board
NAFTZ will kick off the 2015 ZoneCast webinar series on Tuesday, Jan.
20, with the essential and timely topic of “The Process of Filing Your
Annual Report with the FTZ Board.” Presenting the complimentary
webinar will be FTZ Board Senior Analyst Elizabeth Whiteman.
The webinar will cover all important aspects to assist grantees, operators, and users in filing annual report information with the FTZ Board
through its Online FTZ Information System (OFIS). The webinar will
identify the steps to filing, offer a general overview of the process,
and address possible challenges in preparing the report.
Guests can register for FREE here.
Register now for NAFTZ Legislative & Regulatory
Seminar Feb. 10 in Washington, D.C.
The 2015 Legislative & Regulatory Seminar, “FTZs: Leading the
Economic Expansion – Jobs, Exports, and Investment,” is shaping
up to be a great event which will highlight the trade policy agendas
of Congress and the Administration, with a special focus on the
implications they will have on the Foreign-Trade Zone community.
This year’s seminar will be held on Tuesday, February 10, 2015, at
the Loews Madison Hotel in downtown Washington, DC.
Our annual Legislative & Regulatory Seminar brings NAFTZ members
face-to-face with top decision makers in Washington DC to discuss
The National Association of Foreign-Trade Zones Partnership. Pride. Prosperity. 1001 Connecticut Ave NW Suite 350 | Washington DC 20036 | 202.331.1950 202.331.1994 fax | www.naftz.org
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ZONESREPORT
JANUARY2015
UPCOMING
EVENTS
Legislative &
Regulatory Seminar
February 10, 2015
Loews Madison Hotel
Washington, DC
Annual Spring Seminar
May 17-19, 2015
Hilton Tampa Downtown
Tampa, FL
Annual Conference &
Exposition
September 27-30, 2015
Loews Hollywood Hotel
Hollywood, CA
ONLINE
EDUCATION
The Process of Filing
Your Annual Report
with the FTZ Board
January 20, 2015
2-3 p.m. Eastern
NAFTZNEWS (CONTINUED)
key public policy issues affecting the Foreign-Trade Zone community. The program consists of one full day of educational sessions,
including a panel discussion with key officials. This year’s program will
focus on the 2015 Congressional Trade Policy Outlook, and Update
on FTZ Board with Executive Secretary Andrew McGilvray, the latest
on the next steps in implementation of the Automated Commercial
Environment (ACE) in 2015, and a discussion of the FTZ program as
an alternative to the stalled miscellaneous tariff bill process.
You can view the event schedule and register for the seminar on
the NAFTZ web site.
NAFTZ seeks to clear way for wider
use of FTZ identifier in AES
NAFTZ made further progress in December in clearing the remaining
road blocks to more widespread use of the FTZ identifier when reporting
FTZ exports in the Automated Export System (AES). In an email communication to the Data Collection Coordination Branch at U.S. Census,
NAFTZ has requested that the in-bond type and entry number fields in
AES be made optional rather than mandatory for FTZ exporters.
The in-bond type and entry number information has been required
by U.S. Customs when checking the FTZ identifier in AES even
though the same information is supplied separately to Customs
through bonded movement documents or the QP/WP filing. Many
zone operators do not have the in-bond information at the time they
file exports in AES and thus do not check the FTZ identifier even
though the exports would qualify as coming from an FTZ for Census
reporting purposes. By making the in-bond and entry number fields
optional, FTZ operators would be free to flag the FTZ identifier and
thus enhance the reporting of FTZ exports in Census data.
In a December 10 email to Wendy Peebles and Steve Bulman at the
U.S. Census Bureau, NAFTZ requested that Census send a work
request to U.S. Customs to make the in-bond information in AES
optional when flagging the FTZ identifier. Here is the text of the email
from NAFTZ President Dan Griswold to U.S. Census:
“Thank you for indicating your willingness on our phone call last week
to submit a work request to CBP regarding a change in the AES
programming that will make it easier for FTZs to report bonded movements as originating from zones.Specifically, we would like the request
to be that the in-bond type and entry number fields be optional, rather
that mandatory, when an FTZ number is entered into the FTZ Identifier
field.The work request for this change can be sent to Bill Delansky,
with a copy to Lydia Jackson as she verified during our meeting last
Thursday (Dec. 4) that CBP does not need the fields to be mandatory.
“As I think we all understand, this change is an important one to
better reflect the value of exports originating from FTZs in the United
States.The requirement to indicate the bond type and the in-bond
number on the AES filing means that many zones do not complete
the conditional FTZ number field for bonded movements because
they are unable to provide the detailed in-bond data at the time of
the AES filing (thus, the export does not appear in reporting as being
attributed to FTZ activity). By making it optional, zones are encouraged to always report their FTZ Identifier, so the export is accurately
reflected as being conducted by a zone, and to provide whatever
additional data is available at the time of the filing. …
“On behalf of the members of NAFTZ, we thank you for the good
working relationship that has been established between NAFTZ and
the U.S. Census Bureau. We all have a common interest in the most
accurate and comprehensive collection of import and export data.”
NAFTZ will continue to work with U.S. Customs, U.S. Census, and
the FTZ Board to ensure that the full extent of FTZ exports is captured in U.S. trade data so that policy makers and the public can
fully appreciate the significant, positive impact of the FTZ program
on the U.S. economy.
The National Association of Foreign-Trade Zones Partnership. Pride. Prosperity. 1001 Connecticut Ave NW Suite 350 | Washington DC 20036 | 202.331.1950 202.331.1994 fax | www.naftz.org
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ZONESREPORT
JANUARY2015
FTZ COMMUNITY NEWS
Hawaii Foreign Trade-Zone opens new
International Trade Resource Center
NAFTZ Sends Letter, Leis to Hawaii to Congratulate
Past President Homer A. Maxey
Dec 11, 2014, By Duane Shimogawa, Reporter - Pacific Business News
NAFTZ joined in the celebration last month of the dedication of the Homer A.
Maxey International Trade Resource Center at FTZ No. 9 on Honolulu, Hawaii.
The center was named for Homer A. Maxey, who was not only the original grantee
of the Honolulu zone but also a co-founder and the original president of NAFTZ
in 1973-75.
The Honolulu-based Hawaii Foreign-Trade Zone No. 9, whose mission is to serve
as the “hub of international trade” in the state, opened its new Homer A. Maxey
International Trade Resource Center on December 11, 2014.
The center began a $10.5 million renovation in October 2013, which includes 40
additional offices, ranging in size from 200 square feet to 5,000 square feet, as
well as a conference center and a co-working space.
The building renovation was funded in part by a grant from the U.S. Department
of Commerce Economic Development Administration and the state.
Besides supporting the expansion of import/export and manufacturing in the state,
the Hawaii Foreign Trade Zone No. 9, which is located on Pier 2 at Honolulu Harbor
and is a division of the Hawaii Department of Business, Economic Development
and Tourism, also works with the Island’s maritime industry through public-private
collaboration.
In recognition of the well-deserved honor, NAFTZ sent two leis for Homer on the
occasion of the December 11 dedication. The NAFTZ Advisory Council, composed of past NAFTZ presidents and honorary life members, also sent a letter
of congratulations to Homer, recounting his unique and pivotal contribution to
starting NAFTZ and modernizing the FTZ program. On the next page is the full
text of the letter:
The center was named for Homer A.
Maxey, who was the first administrator
for Hawaii Foreign-Trade Zone No. 9.
The full report and slideshow can be
accessed at the web site of the Pacific
Business News. The following photos
were included in the report:
Edward Santos Jr., left, warehouseman retiree and David Sikkink,
administrator, tour the outside of the second floor of the new Homer
A. Maxey International Trade Resource Center
Homer A. Maxey and his wife Mahina celebrate the dedication
ceremony launching the opening of the Homer A. Maxey
International Trade Resource Center. Maxey was the first
administrator for the Foreign Trade Zone.
The National Association of Foreign-Trade Zones Partnership. Pride. Prosperity. 1001 Connecticut Ave NW Suite 350 | Washington DC 20036 | 202.331.1950 202.331.1994 fax | www.naftz.org
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JANUARY2015
FTZ COMMUNITYNEWS (CONTINUED)
National Association of Foreign-Trade Zones
1001 Connecticut Avenue NW Suite 350 Washington, DC 20036 202.331.1950 www.naftz.org
December 11, 2014
Mr. Homer Maxey
Hawaii Foreign-Trade Zone No. 9
521 Ala Moana Blvd. Pier 2, Suite 201
Honolulu, Hawaii 96813
Dear Homer:
It is with a great deal of pride that the NAFTZ recognizes your extraordinary accomplishments on the occasion of the dedication of the “Homer A. Maxey International Trade Resource Center” at ForeignTrade Zone No. 9 in Honolulu, Hawaii. In November of 1972, you joined representatives of Foreign-Trade Zones in New York, New Orleans, San Francisco, Seattle and Kansas City to hold an informal
meeting at the U.S. Department of Commerce headquarters organized by Mr. John J. DaPonte Jr., then Acting Executive Secretary of the Foreign-Trade Zones Board. At that time there were 14 zone
projects, 535 user firms, 972 jobs, with $44 million of dollar volume. The individuals in the room firmly believed that the FTZ program required a special effort to expand it. Forty-one years later, the ForeignTrade Zones program in the United States is a robust economic development tool. With 268 zone projects in every state and Puerto Rico, over 3,000 user firms, $835 billion in dollar volume, and 390,000
jobs, the program has far exceeded those original representatives’ expectations.
When you were selected Chairman of a Committee to develop the organizational framework and development plan for a formal association representing FTZ Grantees, Operators, and Users, all parties
knew that it would require the guidance of a very special person to be successful. What was necessary was a public/private partnership unlike any other since the Foreign-Trade Zones Act was not
structured with federal funding or any methodology to organize and promote the FTZ program. Homer, you used your special skills to listen, observe, and consider all the many issues and concerns. In
a quiet, yet resolute manner as a true leader you brought people together in a consensual way.
You chaired the first conference of FTZ managers held in Washington, D.C., on May 8, 1973, to launch the NAFTZ. You were elected the first President of the Association from 1973 to 1975. The individuals launching the Association understood that in order for the U.S. Foreign-Trade Zones program to be robust, necessary changes must be made to the Federal laws and Federal regulations in order
to create a strong foundation for the program to grow. Every element of the necessary structure to grow the program was examined and a plan developed for change. During your Presidency, the valuation of merchandise manufactured in FTZs, inventory control and recordkeeping, and exactly how large-scale manufacturing could be managed were considered and effectively promoted. Central to
the interest of the Hawaii FTZ was the effective management of petroleum zone activity with the Hawaiian Independent Refinery being the first FTZ oil refinery. Today the petroleum industry is the largest
FTZ user group. You were always available for consultation with FTZ Grantees, Operators, and User firms to develop and expand the program.
You quickly recognized that Gubernatorial and Congressional support for zone projects was essential. On numerous occasions where changes to the FTZ Act or other laws were necessary, you activated
the Governor of Hawaii and the Congressional Delegation of Hawaii to cooperate with the Governors and Congressional Delegations of the rest of the United States in order to pass necessary changes
to laws to enhance the FTZ program. At that time an active effort was developed to partner with State and local economic development agencies to promote use of the FTZ program.
In 1979 you were recognized by the NAFTZ as its first Honorary Life Member. You continued to be actively engaged with the NAFTZ program not only as manager of the Hawaii FTZ, but subsequent to
your retirement. Your wonderful wife, Mahina, was always by your side at NAFTZ functions providing admirable support and dedication. You have remained a key figure in the development of the U.S.
Foreign-Trade Zone program.
Your impact on the U.S. Foreign-Trade Zone program is incalculable. We at the NAFTZ are proud of your extraordinary accomplishments over the years in helping to create the basic framework and
structure of the National Association of Foreign-Trade Zones and the U.S. Foreign-Trade Zone program.
Congratulations and best wishes for the future.
Very truly yours,
The NAFTZ Advisory Council, Donnie Barnes, Tommy Berry, Domenick Gambardella, Brandi Hanback, Greg Jones, Lewis Leibowitz, Marshall Miller, Ray Shaw, Scott Wienke
The National Association of Foreign-Trade Zones Partnership. Pride. Prosperity. 1001 Connecticut Ave NW Suite 350 | Washington DC 20036 | 202.331.1950 202.331.1994 fax | www.naftz.org
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FTZ COMMUNITYNEWS (CONTINUED)
FTZ helps New Mexico set record for business recruitment in 2014
The Las Cruces Bulletin
December 26, 2014
Fiscal year 2013-14 was a banner one for recruiting 13 businesses to the state,
Steve Vierck of the New Mexico Partnership (NMP) reported in September.
The big winner, he said, was Doña Ana County, where half the new companies
are setting up shop.
Vierck said the majority of large businesses locating in New Mexico during the
year came to Dona Ana County.
CertoPlast, a producer of technical adhesive tapes, is locating in Las Cruces at
the West Mesa Industrial Park, the company announced in May. The German firm
has chosen to open its first manufacturing operation in North America at the West
Mesa Industrial Park to take advantage of the Foreign Trade Zone Designation in
Las Cruces. It will hire 100 employees to produce adhesive tapes for automotive
wire harnesses.
CertoPlast’s Managing Director Rene Rambusch said location was a main factor
in the company’s decision. “With Las Cruces’ amenities and proximity to the
Mexican auto industry, we found this to be the best place for our North American
operations,” he told Juarez-ElPasoNow.com. He said the company also was
attracted to the free trade zone.
Read the full story here.
Lakewood, N.J., FTZ No. 235 promotes commerce and trade
Business Facilities By Shana Daley
September/October 2014
The Lakewood Development Corporation, also known as the LDC, is the primary economic catalyst operating on behalf of the Township of Lakewood. In
1994, after an evaluation performed by the State of New Jersey, Lakewood was
identified as an economically depressed community and thus eligible to receive
designation and incentive benefits as a State of New Jersey Urban Enterprise
Zone. The LDC was created to manage the Township of Lakewood’s Urban
Enterprise Zone (UEZ) and its Foreign Trade Zone (FTZ) programs.
As the administrator of these programs, the Corporation is tasked with promoting,
encouraging and assisting local businesses to increase commerce and trade as
well as fulfilling its main goal…the cultivation of business growth and job creation
and retention for residents of Lakewood, NJ and the region. We continue to
strive to meet and exceed the present and future needs of businesses through
our continued partnership with our business community.
The Lakewood Foreign Trade Zone #235 was established in 1998 with approximately 2000 acres of industrially zoned land in Lakewood assigned as the Zone
area. Its authorized service boundaries have since been expanded to include
Ocean, Monmouth, Middlesex, Burlington and Union counties which also includes
the Lakewood Industrial Parks and industrial and commercial locations along
other major NJ thoroughfares, (New Jersey Turnpike and Garden State Parkway),
granting a greater number of manufacturing and industry the opportunity to utilize
the benefits of this program.
In early 2014, FTZ #235 was transitioned to the FTZ Board’s new and preferred
organizational structure—known as Alternate Site Framework, or ASF. The ASF
process makes it easier and faster for economic development agencies such as
the LDC to offer support to prospective FTZ companies in their jurisdiction. “It
allows us to be more effective with its shortened review time for applications and
which provides reduction in the number of activities that need formal applications,
and is generally more responsive to the needs of today’s companies,” stated
Patricia Komsa, executive director of the LDC and the FTZ #235 administrator.
Read the full story here.
Oneida County, NY, lawmakers approve FTZ expansion
The Rome (NY) Sentinal
December 27, 2014
Oneida County legislators on Dec. 23 approved an application to expand the
county’s foreign trade areas, including adding the Griffiss airport and industrial
park sites. Approval of the foreign trade zone expansion application followed
an elaboration by county Aviation Commissioner Russell Stark on what is being
sought.
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Such zones can assist companies by allowing delayed or reduced duty payments
on foreign merchandise, as well as other savings. By expanding the county’s
zone, the possibility of a manufacturing firm coming to the county airport or the
industrial park area at Griffiss park would be increased, said Stark. Such companies could take advantage of customs and border protections, he noted, in
conjunction with plans for basing a U.S. Customs agent at Griffiss.
Stark said after the meeting that the five current designated foreign trade zones
in the county do not include Griffiss. The U.S. Foreign-Trade Zones Board’s
approval of the county’s current zones dates back to 1991, when Griffiss was
an Air Force base.
Work is still fun for John Hebert, 76, at FTZ No. 171 in Liberty, TX
Hebert was brought up in the Heights and went to St. Thomas High School. He
worked for the post office for a while but found it “too regimented” for his tastes.
After a short stint as a salesman, Hebert started work at a Gulf service station
in 1957 and was made an assistant manager before he was drafted into military
service at age 23.
He had basic training in Colorado and did his military service in Alaska. Discharged
in 1963, Hebert went back to work for Gulf. That company made good use of
him, and Hebert won a few promotions, the last one moving him to Beaumont.
Hebert struck out on his own in 1972 with a distribution company moving Gulf
products and then began buying and selling his own inventory in the 1980s.
Hebert is still active in the company, along with his son, John Hebert Jr.
Dayton (TX) NewsDecember 3, 2014
By Casey Stinnett
After a career with the Department of Public Safety, Stephen Hebert is now justice
of the peace for Liberty County Pct. 1.
Still busy and working at 76 years old,
John Hebert Sr., at center, sits on the
board of the Liberty County ForeignTrade Zone, No. 171. Shown here at
their last meeting, Trey Boring of IMS
Worldwide, Inc., at left, described to
the Liberty County Foreign Trade Zone
board his firm’s report at their annual
meeting Thursday, Oct. 16. The other
board members pictured are Bill
Sjolander, seated on the right, and in the foreground are Kelly McDonald, the City
of Cleveland’s city manager, and Naomi Harrington, the City of Liberty’s director
of finance.
Read the full story here.
Ask Hebert what he does for fun, and “work” is the answer you will get. He and
his wife, Connie, are longtime residents of Liberty, Texas, and pretty well known.
Both are from Houston, and they married while still teenagers.
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TRADE NEWS
A Trade Opportunity for Obama and the New Congress
The Wall Street Journal
December 28, 2014
By Charles Boustany and Robert B. Zoellick
After the midterm elections, political commentators identified trade policy as one
area for cooperation between President Obama and the Republican Congress.
We agree. Under the U.S. Constitution, Congress has authority over trade. But
the active direction and use of that authority depends on an energetic executive,
in partnership with Congress.
According to a recent Pew Research survey, 66% of Americans believe greater
U.S. involvement in the global economy is a “good thing,” with only 25% thinking
it is bad. The Trans-Pacific Partnership (TPP) trade agreement is a “good thing” in
the eyes of 55% of Americans, versus 25% who consider it bad; the Transatlantic
Trade and Investment Partnership (TTIP) scores 53% good and 20% bad. These
inclinations offer opportunity.
Prof. Richard Neustadt explained to President John F. Kennedy that the presidency relied on the “power to persuade.” It’s time for Mr. Obama to persuade
on trade. He must make use of the convening power of the executive to bolster
his advocacy. His administration must work closely with Congress—to listen,
explain, address problems and cut deals.
So why does trade matter? First, Americans are feeling squeezed. On the eve
of the election, Pew Research reported that 79% of Americans considered the
economy to be poor or at best fair. A boost in U.S. trade can increase wages and
lower living expenses for families—offering higher earnings and cutting taxes on
trade. Manufacturing workers who produce exports earn, on average, about 18%
more, according to the Commerce Department. Their pay raise can be traced to
the higher productivity of competitive exporting businesses.
Read the full article here.
Obama hopes to enlist GOP in push for trade
pact, despite Democratic resistance
The Washington Post By David Nakamura
December 26, 2014
President Obama is preparing a major push on a vast free-trade zone that seeks
to enlist Republicans as partners and test his premise that Washington can still
find common ground on major initiatives.
It also will test his willingness to buck his own party in pursuit of a legacy-burnishing achievement. Already, fellow Democrats are accusing him of abandoning
past promises on trade and potentially undermining his domestic priority of
reducing income inequality.
The dynamic, as the White House plots strategy for the new year when the GOP
has full control of Congress, has scrambled traditional political alliances. In recent
weeks, Obama has rallied the business community behind his trade agenda, while
leading Capitol Hill progressives, including Sen. Elizabeth Warren (D-Mass.),
have raised objections and labor and environmental groups have mounted a
public relations campaign against it.
The administration is moving aggressively in hopes of wrapping up negotiations
by the middle of next year on a 12-nation free-trade pact in the Asia-Pacific region
before the politics become even more daunting ahead of the 2016 presidential
campaign.
“This is an all-hands-on-deck moment for the administration,” said Rep. Ron
Kind (D-Wis.), a pro-trade Democrat viewed by the administration as a key ally.
“They need to get out and educate members and address the concerns they
might have. I’ve been advising colleagues who are skeptical and not supportive
of trade to at least engage in conversations and feedback.”
Read the full article here.
The National Association of Foreign-Trade Zones Partnership. Pride. Prosperity. 1001 Connecticut Ave NW Suite 350 | Washington DC 20036 | 202.331.1950 202.331.1994 fax | www.naftz.org
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TRADENEWS (CONTINUED)
Looking back on the year in trade
Politico December 30, 2014
By Doug Palmer, Victoria Guida and
Adam Behsudi
Efforts to wrap up Asia-Pacific trade talks, hammer
Russia with sanctions and normalize U.S.-Cuba relations marked some of the major developments in a
topsy-turvy year in trade.
Things got off to a slow start after President Barack
Obama’s push to advance legislation to speed up
passage of the proposed Trans-Pacific Partnership
and other trade agreements was stopped cold by
leaders of his own party in Congress — a move that
prevented Democratic lawmakers from having to
take a tough trade vote that would alienate labor and
environmental groups in the run-up to the midterm
elections.
But the GOP took over the Senate anyway and
strengthened its grip on the House, energizing supporters of Obama’s trade agenda in both parties.
With 2014 moving into the rearview mirror, it’s time
to review these and some of the other biggest trade
issues of the year.
Obama’s opening to Cuba: Declaring “it’s time for a
new approach,” Obama surprised the world on Dec. 17
by announcing plans to normalize relations with Cuba
after more than 50 years of hostility. While the trade
embargo remains in place, Obama’s opening includes
reforms to make it easier to sell agricultural products
to Cuba and for Americans to visit the communist-run
island. The move infuriated Cuban-American members
of Congress, including Sen. Marco Rubio (R-Fla.), who
fumed: “All this is going to do is give the Castro regime,
which controls every aspect of Cuban life, the opportunity to manipulate these changes to perpetuate itself
in power.” But the American Farm Bureau Federation
and other farm groups plan a rally next week to push
for further reforms.
EX-IM’S near-death experience: When newly
elected House Majority Leader Kevin McCarthy
said in June that he favored closing down the U.S.
Export-Import Bank, any chance of a straightforward
reauthorization of the 80-year-old institution when its
charter expired in September quickly disappeared.
Reviled by some Republicans as an example of “crony
capitalism” and extolled by many other lawmakers
as an essential export tool, the bank seemed — to
quote Bob Dylan — to be “knock, knock, knockin’ on
heaven’s door” by late summer. In the end, a stopgap
spending measure granted Ex-Im a reprieve through
June, sending both sides back to their corners to
fight again another day.
Trade facilitation deal sputters to life: The Trade
Facilitation Agreement officially became part of the
World Trade Organization’s legal framework this
November, five months after it was supposed to
happen and nearly a year after all members agreed
to the deal. India and a few other countries threw a
wrench in works in July by blocking implementation
of the agreement and demanding that food stockpiling programs be shielded from WTO rules against
trade-distorting subsidies. The United States and
India struck a deal to resolve the issues just a few
weeks after Indian Prime Minister Narendra Modi visited the United States. The rapprochement continued
with the first meeting of the high-level U.S.-India Trade
Policy Forum in four years. Next up, Obama will travel
to India in late January to be “chief guest” at the
country’s Republic Day celebrations.
Read the full article here.
Sen. Hatch welcomes new members
to the Senate Finance Committee
Senate Finance Committee News
Release December 15, 2014
Finance Committee Ranking Member Orrin Hatch
(R-Utah) today welcomed Senators Dan Coats
(R-IN), Dean Heller (R-NV) and Tim Scott (R-SC) to
serve on the Senate Finance Committee in the 114th
Congress.
“The Finance Committee has long been at the center
of every major economic debate. Whether it’s providing responsible tax relief to American families and
job creators, increasing market access to domestic
goods and products, or strengthening the nation’s
entitlement programs to guarantee their solvency
for future generations, our Committee has worked
to develop smart policies to improve the prosperity
of our great nation,” said Hatch.
“With the addition of these three Senators, the
Republican side of this committee will only be
stronger, and I am confident we’ll be able to work
with our counterparts on the other side of the aisle
to help drive a robust agenda to meet the demands
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TRADENEWS (CONTINUED)
of the American people.”
The Finance Committee has the largest jurisdiction of any congressional committee
overseeing over 50 percent of the nation’s budget, including America’s entitlement
programs, Medicare, Medicaid and Social Security, all tax policy, international trade,
several welfare programs and the nation’s debt.
Below is the full list of the Republican members of the Finance Committee for the 114th
Congress: Orrin Hatch, Utah; Chuck Grassley, Iowa; Mike Crapo, Idaho; Pat Roberts,
Kan.; Mike Enzi, Wyo.; John Cornyn, Texas; John Thune, S.D.; Richard Burr, N.C.;
Johnny Isakson, Ga.; Rob Portman, Ohio; Pat Toomey, Pa.; Dan Coats, Indiana; Dean
Heller, Nev.; Tim Scott, S.C.
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REGULATORY UPDATE
ACE FOR EXPORTERS
DOWNWARD ADJUSTMENTS
Customs is proposing to add export functionality to the import Automated
Commercial Environment (ACE). Comments are being accepted until Feb. 9,
2015. 79 Fed. Reg. 73098 (Dec. 9, 2014).
Customs has ruled that payments from a foreign parent company to their U.S.
distributor do not affect the price actually paid or payable for the imported vehicles. The U.S. distributor had argued the incentives effectively lowered the MSRP
of the vehicle, and should therefore lower the value for Customs purposes. HQ
H125118 (Sept. 12, 2014).
APHIS PERMITS
The Animal and Plant Health Inspection Service (APHIS) has announced changes
to its permit process. APHIS will now notify applicants via email regarding the
ePermits application. The applicant has thirty (30) days to respond to the conditions of the draft permit. If no response is received, APHIS will void the permit
application.
BOYCOTTING COUNTRIES
The U.S. Treasury Department has published its updated list of countries that
may request or require participation in a non-sanctioned boycott. 79 Fed Reg.
73141 (Dec. 9, 2014).
eBOND
Customs will begin testing its centralized electronic bond program (eBond) in the
Automated Commercial Environment (ACE) on January 3, 2015. 79 Fed. Reg.
70881 (Nov. 28, 20114).
Customs has a FAQ page for the eBond program. CSMS #14-000623 (Dec. 4,
2014).
FRAUDULENT FOOTWEAR
Customs is discontinuing the practice of publishing notices of broker license and
permit cancellations in the Federal Register. 79 Fed. Reg. 73099 (Dec. 9, 2014).
A federal grand jury in Sacramento, California recently indicted the owner of a
footwear business on charges of evading approximately $5.6 million in Customs
duties by instructing employees and others to create false invoices that undervalued the imported footwear.
CUSTOMS LAB TESTS
FTZ DEVELOPMENTS
Reminding that Customs Lab test results need not always be accepted, Customs
has issued a ruling accepting an importer’s challenge to its lab tests. HQ H187175
(May 14, 2014).
CBPF 216/5 Day Rule/Direct Delivery. Customs Headquarters has agreed to
an expanded pilot program for publishing in the Federal Register in December/
January. The new pilot will eliminate the yearly blanket CBPF 216 for certain
purposes, eliminate the five-day rule, and expand Direct Delivery to include merchandise received by FTZ Operators that are not the “owner/purchaser.”
BROKER LICENSES
DEFECTIVE NAFTA CERTIFICATES
In time for companies preparing their 2015 Blanket NAFTA Certificates of Origin,
Customs has issued an administrative message on defective NAFTA Certificates.
Issues include illegibility, misclassification, incorrect or missing preference criteria, improper signatures, 3rd-country goods, Net Cost field errors, and single
entry Certificates without an invoice or other unique reference number. CSMS
#14-000598 (Nov. 17, 2014).
Customs Regulations. Customs Headquarters agreed to January meetings to
discuss the complete re-write of Part 146.
AES FTZ ID. Customs agreed that with Census authorization, the in-bond code
field in the AES Export document will become optional, providing far more flexibility for zones to place the FTZ identifier number in their AES filings.
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REGULATORYUPDATE (CONTINUED)
FUEL-CELL CLASSIFICATION
Providing guidance on the difference between the residual headings in Chapters
84 and 85, the U.S. Court of International Trade classified fuel cell-powered
dispensers in Heading 8543 as “electrical” machinery. Rubbermaid Commercial
Prods., LLC v. U.S., Slip Op. 14-139 (Dec. 2, 2014).
INTELLECTUAL PROPERTY
In a recent report, the Government Accountability Office (GAO) found that Customs
does not routinely review the International Trade Commission’s (ITC) list of exclusion orders or post trade alerts to its intranet for each order. GAO-15-78 (Nov.
2014).
IRAN SANCTIONS
The temporary sanctions relief granted in November 2013 has been extended
until June 30, 2015. Most of the previous U.S. sanctions remain in place. 79 Fed
Reg. 73141 (Dec. 9, 2014).
ITA BREAKDOWN
After China and the U.S. agreed on the Information Technology Agreement
(ITA) expansion last month, a significant breakdown in negotiations occurred as
China has refused to phase out tariffs on flat panel displays. The ITA will not be
concluded in 2014, and it is unknown whether negotiations can be concluded.
MADE IN USA
A class action filed against apparel companies including Macy’s for violating
California’s “Made in USA” state law for selling jeans with labels that allegedly
did not disclose all foreign components has been expanded to include an online
retailer whose website included a “Made in USA” claim. Clark v. Citizens of
Humanity, LLC, Case No. 3:14-CV-01404-JLS-WVG (Nov. 20, 2014).
November 1 marked the 15-month anniversary of the lapse in the Generalized
System of Preferences (GSP), the longest lapse in the history of the program.
GSP-eligible imports from AGOA-eligible countries continue to benefit from GSP.
CSMS 14-000601 (Nov. 18, 2014).
RPS
The Bureau of Industry and Security (BIS) has unveiled a new search tool for the
Consolidated Restricted Party Screening List.
RUSSIAN SANCTIONS
A recent Wall Street Journal article noted how the sanctions are impacting
non-Russian companies.
OFAC has published new Frequently Asked Questions that provide further guidance on “shale projects,” “Arctic Projects,” what is production, and debt, credit,
and progress payments.
Singapore Agreements
The U.S. and Singapore have signed an agreement on supply chain security
programs and mutual assistance.
TFA
Hong Kong became the first WTO member to ratify the WTO’s Trade Facilitation
Agreement (TFA) on December 10. Two-thirds of the WTO members must ratify
the TFA for it to enter into force.
THE REGULATORY UPDATE IS PROVIDED TO ZONES REPORT EACH MONTH BY
MILLER & CO.
MTB/DUTY SUSPENSIONS/GSP
The last Miscellaneous Trade Bill was authorized by Congress in 2010 and the last
duty suspensions expired December 31, 2012. Companies should be exploring
alternatives such as foreign-trade zones.
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THANK YOU TO OUR SPONSORS
FTZ & Global
Trade Software
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