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H.R. 6792·119th Congress·Introduced Dec 17, 2025

Foreign-Trade Zone Export Enhancement Act of 2025

IntroducedForeign Trade and International FinanceSubstantive
View bill text
Sponsor
Rep. Gooden, Lance [R-TX-5]
Committees
Ways and Means Committee (primary)
Last action
Dec 17, 2025

Bottom line

The bill ensures that goods manufactured or changed in condition within U.S. foreign-trade zones and then exported to USMCA partner countries are explicitly free of U.S. duties, aiming to boost U.S. competitiveness and jobs.

What it actually does

This bill clarifies the tariff treatment for merchandise processed within U.S. foreign-trade zones (FTZs) and subsequently exported directly to Canada or Mexico under the United States-Mexico-Canada Agreement (USMCA). It amends the Foreign Trade Zones Act to ensure such goods are duty-free and creates a new Harmonized Tariff Schedule (HTS) subheading (9801.00.95) to explicitly grant this duty-free status. The aim is to enhance the competitiveness of U.S. manufacturing and distribution within FTZs.

Proponents argue

Proponents argue that this bill removes an unintended tariff burden, thereby enhancing the competitiveness of U.S. manufacturing and distribution operations within foreign-trade zones. They contend it will support job creation and preservation in the United States by making FTZs more attractive for export-oriented businesses, aligning U.S. law with the spirit of the USMCA agreement to facilitate duty-free trade.

Opponents contend

Opponents might argue that while seemingly a clarification, this bill could lead to a minor reduction in potential tariff revenue for the U.S. government, even if the goods were largely expected to be duty-free under USMCA. Some might also contend that it provides a specific advantage to companies operating within FTZs, potentially creating an uneven playing field compared to businesses outside these zones.

The bill is very short and clearly written, making it highly accessible for a reader to evaluate within a short timeframe.

Section 3(a)

Amendment to Foreign Trade Zones Act

prominently featuredstraightforward

This provision amends Section 3 of the Foreign Trade Zones Act (19 U.S.C. 81c) by adding a new subsection (f). This new subsection clarifies that certain articles, specifically those subject to USMCA duty deferral restrictions and classifiable under the new HTS heading 9801.00.95, will enter duty-free. This applies to goods manufactured or changed in condition within a U.S. foreign-trade zone and then directly exported to a USMCA Party.

GroupImpactMechanismScale
GroupBusinesses operating in U.S. Foreign-Trade Zones (FTZs)ImpactReduced costs and increased certaintyMechanismElimination of potential duties on goods exported to USMCA partnersScaleDirect impact on export-oriented businesses utilizing FTZs
GroupU.S. manufacturing and distribution sectorsImpactEnhanced competitivenessMechanismLower operating costs for FTZ-based export activitiesScaleBroad positive impact on trade and investment in FTZs

Supporters argue

Supporters argue this amendment removes an existing ambiguity or unintended barrier, ensuring that goods processed in FTZs and destined for USMCA partners are not subject to duties, thereby fostering U.S. export competitiveness and supporting domestic jobs.

Critics contend

Critics may suggest that while clarifying, this provision could be seen as formalizing a specific carve-out that might reduce potential tariff revenue, even if the revenue was not consistently collected due to the USMCA agreement.

Tradeoffs

The provision balances the goal of promoting U.S. export competitiveness through FTZs against potential, albeit likely minor, implications for federal tariff revenue and the principle of uniform tariff application.

Section 3(b)

New Harmonized Tariff Schedule Subheading

prominently featuredstraightforward

This section amends the Harmonized Tariff Schedule of the United States (HTS) by inserting a new subheading, 9801.00.95. This new subheading explicitly grants 'Free' duty treatment to merchandise that is subject to USMCA duty deferral restrictions, admitted into a U.S. foreign-trade zone, manufactured or changed in condition there, and then directly exported to a USMCA Party. This codifies the duty-free treatment into the tariff schedule itself.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

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