Bill Summary
The **Foreign-Trade Zone Export Enhancement Act of 2025** aims to clarify and improve the tariff treatment of merchandise within U.S. foreign-trade zones, specifically in relation to the United States-Mexico-Canada Agreement (USMCA) and the Foreign Trade Zones Act. The Act is designed to support U.S. competitiveness in manufacturing and distribution while preserving jobs.
Key provisions include:
1. **Duty-Free Entry**: The Act allows certain merchandise that is processed or manufactured in U.S. foreign-trade zones to enter the U.S. free of duties, provided they are classified under a specific tariff heading (9801.00.95). This aims to encourage exports and streamline the process for goods intended for international markets.
2. **Regulatory Implementation**: The Act mandates that the Commissioner of U.S. Customs and Border Protection issues necessary regulations within 90 days of the Act's enactment to ensure compliance and effective implementation of the new provisions.
Overall, this legislation seeks to enhance the functionality of foreign-trade zones, promoting economic growth and job retention in the U.S. by making export processes more efficient and cost-effective.
Possible Impacts
The "Foreign-Trade Zone Export Enhancement Act of 2025" could have several implications for individuals and businesses. Here are three examples:
1. **Job Creation and Preservation**: The Act aims to enhance the competitiveness of U.S. manufacturing and distribution by ensuring the effective operation of foreign-trade zones. This could lead to the creation of new jobs in industries that utilize these zones. For example, a manufacturing company that sets up operations in a foreign-trade zone may hire additional workers to meet increased demand, thus providing employment opportunities in the local economy.
2. **Reduced Costs for Exporters**: By allowing certain merchandise to enter free of duty when exported from a foreign-trade zone, the Act could lower the costs for businesses involved in international trade. For instance, a company producing electronics in a foreign-trade zone could save on tariffs when exporting its products, enabling it to price its goods more competitively in foreign markets. This financial relief could help small and medium-sized enterprises expand their export operations.
3. **Increased Investment in Foreign-Trade Zones**: The clarity provided by the amendments to the Foreign Trade Zones Act may encourage more businesses to invest in establishing or expanding operations within these zones. This could lead to a more robust supply chain, enhanced logistical capabilities, and improved access to international markets. For individuals, this investment might translate into better products and services, as companies innovate and scale up production in response to favorable trade conditions.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6792 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6792
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 17, 2025
Mr. Gooden (for himself, Mr. Vicente Gonzalez of Texas, Ms. Foxx, Ms.
De La Cruz, Mr. Kelly of Pennsylvania, and Mr. Buchanan) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Foreign-Trade Zone Export
Enhancement Act of 2025''.
SEC. 2. PURPOSE.
The purpose of this Act is to ensure that foreign-trade zones in
the United States continue--
(1) to operate in support of United States competitiveness
in manufacturing and distribution; and
(2) to create and preserve jobs in the United States.
SEC. 3. RULES RELATED TO DUTIES IMPOSED ON FOREIGN-TRADE ZONE
MERCHANDISE.
(a) Amendments to Foreign Trade Zones Act.--Section 3 of the Act of
June 18, 1934 (commonly known as the ``Foreign Trade Zones Act'') (19
U.S.C. 81c), is amended by adding at the end the following new
subsection:
``(f) Export From a Foreign-Trade Zone of Certain Merchandise
Manufactured or Changed in Condition.--Notwithstanding the seventh
proviso of subsection (a)--
``(1) each article subject to the procedures described in
such proviso and classifiable under the heading 9801.00.95 of
the Harmonized Tariff Schedule of the United States shall enter
free of duty in accordance with such heading; and
``(2) any article consisting of components subject to such
procedures and classifiable under such heading shall enter free
of duty with respect to such components.''.
(b) Duty-Free Treatment for Certain Articles.--Subchapter I of
chapter 98 of the Harmonized Tariff Schedule of the United States
(hereinafter the ``HTS'') is amended by inserting in numerical sequence
the following new subheading:
`` 9801.00.95 Merchandise that Free ............... ............... ............... ''.
is subject to
duty deferral
restrictions of
the free trade
agreement between
the United
States, Mexico,
and Canada (19
U.S.C. 4501, et
seq.; commonly
known as the
`USMCA') (or any
successor
agreement) that
is admitted into
a United States
foreign-trade
zone,
manufactured, or
changed in
condition
therein, and
subsequently
withdrawn for
direct
exportation to
the territory of
a Party to that
agreement........
SEC. 4. IMPLEMENTATION AND ENFORCEMENT.
Not later than 90 days after the date of the enactment of this Act,
the Commissioner of U.S. Customs and Border Protection shall issue such
regulations as are necessary to implement section 3.
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