As of September 16, 2024, Customs and Border Protection has offered additional options for importers who are members in good standing of the Customs Trade Partnership Against Terrorism (CTPAT) initiative.
Through this initiative, imports flagged and detained for potential forced labor violations can be stored in Foreign Trade Zones (FTZ). Non-members may only store their detained goods using a Type 21 entry in a bonded warehouse.
To qualify, the importer must identify which FTZ Operator they intend on using, and the chosen FTZ Operator must have an active Type 4 bond, a FIRMS Code, and must, of course, be in compliance with all CBP regulations. The importer must also get Port Director approval while notifying both the CTPAT Trade Compliance Branch and the Center of Excellence and Expertise Director.
Flagged shipments in the FTZ may remain there if the importer files a formal 06 entry and includes all data elements of the suspected goods. This filing enables CBP to evaluate the merchandise being presented for entry.
As quoted directly from CBP, the goods stored in an FTZ 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:
- CTPAT Trade Compliance partners must notify the Port Director, the CTPAT Trade Compliance Branch, and the Center of Excellence and Expertise Director when utilizing this option.
- The partner must receive the Port Director's approval prior to moving cargo.
- 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.
