UPDATE: Supreme Court IEEPA Ruling & FTZ Processing – March 3, 2026

NAFTZ continues to actively engage with CBP, the Office of the United States Trade Representative (USTR), and Congressional offices regarding the ongoing FTZ processing impacts following the Supreme Court’s IEEPA decision. Discussions are continuing today.

We recognize that many members are still encountering situations where ACE processing and validation rules are resulting in continued reporting and payment of IEEPA-related Chapter 99 duties for certain FTZ withdrawals for domestic consumption. This remains a serious operational and financial concern.

Based on member reports and technical review, we believe a key driver is how ACE applies validations for FTZ entries compared to standard consumption entries—particularly where privileged status election and effective dates intersect.

Current operational reality: Until formal guidance and/or system updates are issued, it appears that the only way to avoid entry rejections for goods admitted in PF status while the IEEPA tariffs applied is to include the applicable IEEPA tariff Chapter 99 classification(s) on the entry summary for those goods.

NAFTZ is actively explaining the challenges associated with continued collection of IEEPA tariffs to members of the administration and advocating that this practice cease, with clear operational direction and corresponding system alignment.

We will share substantive updates as soon as they are available.

Please Note: When evaluating any tariff announcements, consult with your trade attorney or advisor to understand how these measures specifically impact your U.S. FTZ operations.