SPECIAL ADVERTISING SECTION

FOREIGN TRADE ZONES

By Melissa Irmen, AZS, CZS

Led by Rep. Aaron Bean( R-Fla.) and Rep. Marilyn Strickland( D-Wash.), the caucus was created to promote greater understanding of the US Foreign-

Trade Zones program and its role in supporting American competitiveness. For the National Association of Foreign- Trade Zones( NAFTZ) and the domestic foreign-trade zone( FTZ) community, the caucus presents an opportunity to strengthen policymaker education and provides a forum for practical discussion of real-world use cases.

For many companies, US foreigntrade zones are a highly technical element of the trade and customs environment. Policymakers, however, may have a passing familiarity with the term, but an unclear understanding of their function and process of operations. Education that closes that gap can significantly impact the decisions made by Congress on legislative matters affecting trade, customs enforcement, manufacturing, supply chains, tariffs or domestic investment.

At its core, the US Foreign-Trade Zones program enables approved sites within the United States to be treated, for customs purposes, as outside US customs territory. Goods may be admitted to a zone and handled under federal supervision. Duties are generally paid when merchandise leaves the zone and enters US commerce, but no duty is owed on goods exported from a zone.

Established in 1934, the program has been part of the US trade

As global supply chains adapt to shifting trade patterns, evolving tariffs and changing market demands, businesses are placing greater value on locations that offer connectivity, resilience and long-term growth potential. The Houston Ship Channel is one of the world’ s most dynamic trade gateways, and Port Houston strengthens that advantage through modern infrastructure, multimodal connectivity and the administration of Foreign-Trade Zone No. 84( FTZ 84) as part of its broader economic development strategy.

Stretching 52 miles, the Houston Ship Channel is the nation’ s busiest waterway by total tonnage and serves more than 200 public and private terminals, creating one of the country’ s most significant industrial and logistics corridors. Home to a leading concentration of activity across the energy, petrochemical, manufacturing and distribution sectors, the Houston region offers businesses direct access to suppliers, customers, transportation providers and shipping services.

Administered by Port Houston, FTZ 84 operates as a vital component of the region’ s supply chain infrastructure, giving businesses greater flexibility in managing imports, exports, manufacturing and inventory needs. Through duty deferral, tariff mitigation strategies and streamlined customs procedures, companies can lower costs, improve cash flow and strengthen supply chain performance. In 2025, more than 125 companies sought guidance from Port Houston on FTZ benefits, and seven new FTZ sites expanded the zone’ s footprint across the Houston region. Today, FTZ 84 plays a significant role in regional commerce, supporting an estimated $ 25 billion- $ 50 billion in merchandise received annually, facilitating up to $ 5 billion in exports and helping sustain approximately 10,000 regional jobs. Strategic investments continue to strengthen Houston’ s competitive position. The Houston Ship

Channel Expansion, known as Project 11, is enhancing navigational efficiency, improving safety and accommodating larger vessels. At the same time, Port Houston is investing $ 2.1 billion in landside infrastructure over the next five years to expand terminal capacity, accelerate cargo movement and strengthen supply chain performance.

With continued investment in infrastructure and supply chain capabilities, Houston is well positioned to meet the evolving needs of global commerce for decades to come. n

44 Journal of Commerce | August 3, 2026 www. joc. com