S. 1291 · Where this bill is now
In committee
Introduced in the Senate, Apr 3, 2025
What this bill does
In plain words · AI-written from the official summaryClassifies countries by free trade zone safety
Free trade zones are special areas where countries allow goods to be produced and stored with fewer customs rules, usually near ports. This bill would require U.S. Customs and Border Protection to list all foreign free trade zones and rank the countries where they're located into four tiers based on how well they follow international standards and prevent illegal trade. For countries ranked in the lower tiers, the government would take extra steps like creating a hotline for reporting illegal activity, and the President could impose sanctions on individuals involved in illegal trade in those zones.
How it affects you
This mainly affects people and businesses involved in international trade and importing goods. If you import products made in free trade zones, the system could mean stricter inspections or delays depending on the country's tier ranking. It also gives the government more tools to crack down on illegal goods moving through these zones.
Read the official summary (Introduced in Senate, Apr 3, 2025)
Containing and Limiting the Extensive Abuses Noticed in Free Trade Zones Act of 2025 or the CLEAN FTZ Act of 2025
This bill creates a system to classify countries based on compliance with international standards within their free trade zones and establishes related penalties. (Free trade zones are designated areas, typically located at or near ports, that contain production facilities and related infrastructure. Generally, these zones are treated as being outside the customs territory despite being physically located inside the geographic boundaries of countries.)
Specifically, U.S. Customs and Border Protection (CBP) must identify, publish, and update a list of non-U.S. free trade zones that includes the identity, location, and administrators of each zone.
Upon publication of the list of zones, CBP must then publish a classification of the countries in which those zones are located into four tiers based on specified standards (e.g., complying with international standards and countering illicit international trade). CBP must notify the government of each country of the tier to which the country was classified and periodically review the tier classification.
The bill directs CBP to take additional actions with respect to countries classified as tier II, III, or IV, such as creating a hotline for reporting instances of illicit international trade.
The bill also establishes related penalties, such as authorizing the President to impose property- and visa-blocking sanctions on any foreign person that has facilitated or supported illicit international trade within a zone located in a country classified as tier II, III, or IV.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 1291
A BILL
CLEAN FTZ Act of 2025
Sponsor: Sen. Bill Cassidy (R-LA) · Introduced Apr 3, 2025 · Foreign Trade and International Finance · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Apr 3, 2025: “Read twice and referred to the Committee on Finance.”
Sections
Sections · 7
- Sec. 1Short titleNo change
- Sec. 2DefinitionsNo change
- Sec. 3Identification of international free trade zonesNo change
- Sec. 4Classification of countries into tiersNo change
- Sec. 5Assistance with respect to tier II, tier III, and tier IV countriesNo change
- Sec. 6Imposition of economic sanctions and visa restrictions with respect to facilitation and support of illicit international trade in tier II, tier III, and tier IV countriesNo change
- Sec. 7Authorization of appropriationsNo change