This bill mandates the Commissioner of U.S. Customs and Border Protection (CBP) to identify and evaluate foreign free trade zones (FTZs) globally. Its primary goal is to enhance transparency and combat illicit international trade, including activities like narcotics, arms, and counterfeit goods, within these zones. The CBP, in consultation with other agencies, will publish a list of these zones and their administrators. Following this identification, the bill requires countries hosting these FTZs to be classified into four tiers based on their adherence to international standards and efforts to counter illicit trade. The classification methodology considers factors such as the level of transnational criminal activity, the effectiveness of government efforts to combat illicit trade, and compliance with various international guidelines, including those from the OECD, the Revised Kyoto Convention, and the Financial Action Task Force. Countries are categorized from **Tier I** (fully compliant) to **Tier IV** (non-compliant with no efforts). For countries in **Tier II, Tier III, or Tier IV**, the CBP may offer recommendations and best practices to improve law enforcement and combat illicit trade. Additionally, the bill establishes a public hotline and secure website for reporting illicit international trade within any zone. Crucially, the bill authorizes the President to impose significant measures against foreign persons found to be involved in illicit international trade, corruption, or money laundering within FTZs located in **Tier II, Tier III, or Tier IV** countries. These measures include the **blocking of property** under the International Emergency Economic Powers Act and **ineligibility for U.S. visas** or admission.
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Timeline
Introduced in Senate
Read twice and referred to the Committee on Finance.
Introduced in Senate
Read twice and referred to the Committee on Finance.
Foreign Trade and International Finance
CLEAN FTZ Act of 2025
USA119th CongressS-1291| Senate
| Updated: 4/3/2025
This bill mandates the Commissioner of U.S. Customs and Border Protection (CBP) to identify and evaluate foreign free trade zones (FTZs) globally. Its primary goal is to enhance transparency and combat illicit international trade, including activities like narcotics, arms, and counterfeit goods, within these zones. The CBP, in consultation with other agencies, will publish a list of these zones and their administrators. Following this identification, the bill requires countries hosting these FTZs to be classified into four tiers based on their adherence to international standards and efforts to counter illicit trade. The classification methodology considers factors such as the level of transnational criminal activity, the effectiveness of government efforts to combat illicit trade, and compliance with various international guidelines, including those from the OECD, the Revised Kyoto Convention, and the Financial Action Task Force. Countries are categorized from **Tier I** (fully compliant) to **Tier IV** (non-compliant with no efforts). For countries in **Tier II, Tier III, or Tier IV**, the CBP may offer recommendations and best practices to improve law enforcement and combat illicit trade. Additionally, the bill establishes a public hotline and secure website for reporting illicit international trade within any zone. Crucially, the bill authorizes the President to impose significant measures against foreign persons found to be involved in illicit international trade, corruption, or money laundering within FTZs located in **Tier II, Tier III, or Tier IV** countries. These measures include the **blocking of property** under the International Emergency Economic Powers Act and **ineligibility for U.S. visas** or admission.