Sponsors (10)
Requires duty-free entry for FTZ-handled articles and component-containing articles classified under HTSUS 9801.00.95 and directs CBP to issue implementing regulations within 90 days.
Official title: To clarify provisions of the United States Mexico-Canada Agreement Implementation Act and Foreign Trade Zones Act with respect to the appropriate tariff treatment of merchandise in a United States foreign-trade zone, and for other purposes.
Introduced December 17, 2025 by Lance Gooden · Last progress December 17, 2025
The bill boosts competitiveness and lowers costs for businesses in FTZs—potentially preserving jobs in host communities—at the expense of increased competition for some domestic producers, reduced tariff revenue, and implementation risks from a rushed regulatory timeline.
Workers and communities that host or rely on foreign-trade zones (FTZs) are likely to see job creation or preservation as FTZ activity and duty-relief support more domestic manufacturing and distribution.
Importers and manufacturers using FTZ procedures can enter qualifying goods and components duty-free, lowering input costs for businesses and improving competitiveness.
Codifying duty-free treatment in statute and adding an HTSUS subheading reduces customs complexity and gives clearer legal authority for Customs and Trade agencies, simplifying compliance and dispute resolution.
Certain U.S. producers and domestic manufacturers could face increased competition from firms using FTZ procedures, putting pressure on small domestic firms and their workers.
Allowing broader duty-free treatment may reduce tariff revenue to the Treasury, producing fiscal effects that ultimately affect taxpayers.
Implementation risks from a combination of missing HTSUS language and a tight 90-day rulemaking deadline could create legal and operational uncertainty for CBP, importers, ports, and border communities, and could produce lower-quality or vulnerable regulations.
Based on analysis of 4 sections of legislative text.
Makes certain articles and articles containing specified components that are handled under the Foreign-Trade Zones Act and classified under HTSUS heading 9801.00.95 expressly eligible to enter U.S. customs territory free of duty. Requires U.S. Customs and Border Protection to issue implementing regulations within 90 days of enactment to carry out the change. The change creates a statutory entitlement to duty-free entry for those FTZ-handled articles (overriding prior proviso limits) and adds a new, but textually blank, HTSUS subheading to implement the duty-free treatment.