Every year NAFTZ’s 2023 Legislative Summit brings together FTZ professionals of all kinds and puts us face to face with key individuals from CBP, the Department of Commerce, members of congress and their staff, USTR, etc.

This year’s Legislative event was no different and we heard from a number of familiar faces and welcomed many new ones.  Here are some highlights and key takeaways from this year’s Legislative Summit and news about the next Legislative Summits in 2024 and 2025.

Board Meeting:

The week started off as usual with the first face-to-face Board of Directors meeting of the year.  The Board voted to fill a vacancy on the board as now former Board member Justin Huguet took a new job with Geodis, requiring him to step off the board as Justin will now be an additional member from Geodis with Designated Member Jennifer Van Gundy from Geodis already seated on the Board.  Miguel Zamora, Grantee for FTZ #29 in Louisville, Kentucky was nominated to fill the vacancy with the Board voting to approve the nomination. 

The Board also discussed the evolving compliance challenges related to UFLPA and the fact that these compliance issues are leading some companies to consider leaving the FTZ program.  NAFTZ is concerned that UFLPA, 232, 301, 321, 999 line limits for weekly estimates, USMCA, etc. continue to ‘chip away’ at FTZ benefits, which is not in line with the original intention of the FTZ program since it’s inception in the 1930’s.  NAFTZ continues to advocate for parity for FTZs and expansion of benefits, not the reduction of benefits as experienced the last few years.

Of other note, the Board was provided with an initial overview of the Advocacy Survey results and the progress being made on the 5-year Advocacy Vision Plan and Balanced Score Card.

Legislative Summit:

Jim Smith and Ben Odendahl, NAFTZ’s Government Relations Advisors kicked of the 2023 event with an overview of the new Congress and anticipated actions.  They noted there has already been talk on the hill regarding a Customs Modernization/Reform package potentially in the works.  Following the overview of the 2023 landscape, a new “Beltway Insiders” panel discussion drilled down into trade-specific issues and where these issues may land in the new congress.  Members of the panel included Megan Costello of Sorini, Samet & Associates, Stacy Ettinger from K&L Gates, Michael Stroud, Partner at Nossaman and Ben Odendahl, Smith Dawson Andrews.  This session was ranked one of the highest of the day and gave everyone a lot to think about and look for in 2023.

Speakers from CBP included Mr. Bradford Slutsky, Director of Cargo Security and Control Division (CSCD) within Cargo and Conveyance Security (CCS) at OFO Headquarters and Ms. Diann Rodriguez, Executive Director of Cargo and Conveyance Security (CCS) at U.S. Customs and Border Protection (CBP) Headquarters.  From Commerce, Dawn Shackleford, Executive Director for Trade Agreements Policy and Negotiations and Elizabeth Whiteman, Senior Analyst on the Foreign-Trade Zones (FTZ) Staff.

Beth Baltzan, Senior Advisor to the U.S. Trade Representative (USTR) spoke on the agencies view of zones and discussed the Biden Administration Trade Policy and how FTZs fit in, inviting NAFTZ to provide the association’s perspective about how the FTZ program can support the agency and administrations priorities.

An NAFTZ Congressional Award of Appreciation was presented to Congresswomen Terri Sewell of Alabama’s 7th Congressional District who accepted the award and continues to support NAFTZ’s efforts in her comments via virtual appearance with Legislative attendees.  Other congressional awards will be presented in March as  the House was not in session the week of the Legislative event.

A panel of NAFTZ members active in the Advocacy Visioning and Planning process along with Jeff Tafel presented the same update on the Advocacy Survey initial results and Advocacy Balanced Score Card strategic planning as presented to the Board of Directors the day before.  NAFTZ will release a final report of the survey results in the coming weeks to the membership.

Rounding out the days program was a conversation between Amgad Shehata, Senior Vice President with UPS having responsibilities for International Public Affairs and Strategy and NAFTZ President Jeff Tafel.  In their session Mr. Shehata talked about the view of FTZs from the perspective of dedicated Government Relations corporate staff and how the FTZ program is perceived, and how government relations staff engage with advocacy efforts.  This was another new session in the 2023 program and was highly rated by attendees.

During lunch, the 2023 Homer Maxey award for Advocacy was presented by NAFTZ Board of Directors Chair Shane Williams and Advocacy Co-chair and Board member Torrey Torrey Chambliss to David Sikkink, Grantee of FTZ #9 in Hawaii.  For a video of the presentation, click here:  https://youtu.be/CzwM8XEhFwg

Hannigan’s Hangout Reception

NAFTZ’s Legislative Summit was a favorite event of Brian Hannigan who was the primary person from Smith Dawson Andrews working with NAFTZ for many years and unfortunately passed last year.  Member organizations Smith Dawson Andrews, Miller & Co., ISCM, UPS and FTI Consulting partnered together to make this reception possible.  Brian’s family and friends were present and a number of stories about Brian and his passion for working with NAFTZ were shared, and an award of appreciation was presented to Brian’s wife and family.

In-person Congressional Visits

The Legislative event wrapped up with a number of teams on Capitol Hill advocating for FTZ awareness and parity.   A number of offices mentioned the possibility of Customs reform legislation being talked about on the hill and NAFTZ continued to push for parity for the FTZ program, continue to support the work of the Ship Safe Coalition regarding 321 de minimis, USMCA and the upcoming USITC investigation report and other issues.

Future Legislative Conferences

For the second year in a row, the House of representatives was not in session for our Legislative week.  With the Super Bowl and Valentines Day also being held this week, NAFTZ is in the process of moving the event two weeks later to the last week of February that may cross into the first week of March for 2024 and 2025.  NAFTZ is still under Covid-related contacts with The Madison hotel in DC and hope the change in dates will better align with the congressional calendar and not overlap with holidays and events that make participation in the Legislative Summit a challenge for some members.  NAFTZ expects to be able to make a formal announcement, if this change is possible, in March.

Link to Legislative events photos

By: Jeff Tafel, NAFTZ President & Shane Williams, Chairman