S. 1291: Containing and Limiting the Extensive Abuses Noticed in Free Trade Zones Act of 2025

This bill, titled the "Containing and Limiting the Extensive Abuses Noticed in Free Trade Zones Act of 2025" (or the "CLEAN FTZ Act of 2025"), aims to address issues related to foreign free trade zones (FTZs) and illicit international trade that may occur within them. The key components of the bill are as follows:

Identification of Free Trade Zones

The bill mandates that the Commissioner of U.S. Customs and Border Protection, in collaboration with other key U.S. government officials, will identify and publish a list of non-U.S. free trade zones. This list will include details like the identity, location, and administrators of each zone. The intention is to make this information publicly accessible via an internet website.

Furthermore, the Commissioner is required to review this list annually to ensure its accuracy, add new zones, and remove those that no longer exist.

Classification of Countries

Within 180 days of the publication of the free trade zones list, the Commissioner must categorize the countries that host these zones into four tiers based on their compliance with international standards regarding illicit trade.

• Tier I: Countries fully complying with standards.
• Tier II: Countries making significant efforts to comply.
• Tier III: Countries not fully compliant but making efforts; however, they fail to show substantial improvement or deal in significant trade volumes.
• Tier IV: Countries not compliant and not making efforts to comply.

The criteria for classification will be based on various factors, including the level of transnational crime and the effectiveness of governmental actions against illicit trade within these zones.

Recommendations and Support

The bill allows the Commissioner to provide guidance and best practices to countries categorized as Tier II, Tier III, or Tier IV to enhance their law enforcement practices and combat illicit trades. This includes developing strategies for U.S. foreign commercial services in these countries.

Imposition of Economic Sanctions

The bill authorizes the President to impose economic sanctions and visa restrictions against individuals involved in illicit international trade within the zones of Tier II, Tier III, and Tier IV countries. Specific actions may include:

• Blocking property of individuals engaging in illicit trade.
• Ineligibility for U.S. visas or admission for certain foreign persons involved in such activities.

Public Reporting Mechanism

The bill also mandates the establishment of a hotline and a secure internet platform. These resources will allow individuals and organizations operating in the FTZs to report instances of illicit international trade that impact or pose a threat to their operations.

Funding and Implementation

To implement the provisions of this bill, the Commissioner is authorized to receive necessary appropriations without a fiscal year limit, ensuring adequate resources are available for its execution.

Relevant Companies