For companies operating in US Foreign-Trade Zones (FTZs), the first several weeks after the Supreme Court’s striking down of the International Emergency Economic Powers Act (IEEPA) tariffs on Feb. 20 brought more confusion than relief.
Those weeks were marked by a level of uncertainty that supply chain leaders have grown all too familiar with in today’s trade environment: rapid policy changes, uneven implementation, and real financial consequences tied to both.
Now, thanks to the collective advocacy of the Foreign-Trade Zone community, a behind-the-scenes policy correction by US Customs and Border Protection (CBP) is delivering immediate and meaningful relief to these businesses.
As of March, CBP has stopped collecting tariffs assessed under IEEPA on FTZ entry summaries. While no formal announcement has been issued as of the time of this writing, the change represents a critical course correction for importers and exporters who rely on US FTZs to manage costs, cash flow, and compliance.
For small package shippers navigating increasingly complex global supply chains, the implications are both practical and strategic for the bottom line.
Policy Gap With Real Consequences & Industry Advocacy’s Role in the Fix
The issue came to light on February 20, 2026, with a ruling by the US Supreme Court, which clarified that certain tariffs imposed under IEEPA authorities should no longer be collected.
However, in the days and weeks following that decision, US FTZ operators reported a disconnect: despite the ruling – and an accompanying Executive Order directing that collections stop – companies were still being required to report and, in some cases, pay those tariffs on FTZ entry summaries.
For businesses using the zones, this created a costly contradiction that dragged on for more than two weeks.
US FTZs are designed to provide flexibility in tariff timing and treatment. Companies can defer or reduce duties depending on how goods move through the zone. But when tariffs that have effectively been invalidated are still being collected at the point of entry, that core benefit is undermined, particularly for small and mid-sized shippers managing tight margins and high shipment volumes.
Even short-term misalignment can have outsized effects. For parcel-driven supply chains, where inventory turns quickly and cash flow cycles are compressed, unexpected tariff collections can ripple across fulfillment timelines, pricing strategies, and customer commitments.
The turning point came through rapid intervention by the National Association of Foreign-Trade Zones (NAFTZ).
After learning that IEEPA tariffs were still being applied within US FTZs, NAFTZ escalated the issue to senior administration officials and engaged directly with CBP and other agencies to resolve the discrepancy. The organization also worked to prevent Type 06 FTZ entries – those used for goods entering US commerce from a zone – from being rejected when those tariffs were excluded.
Following those discussions, NAFTZ was informed that CBP had halted the collection of IEEPA tariffs on all FTZ entry summaries as of 7 p.m. Eastern on March 4.
While CBP has not issued a formal notice this operational shift is already changing how US FTZ entries are being processed and rectifying at least part of the nation’s tariff impact on businesses.
Policy Implementation Still Challenging & Why it Matters
Despite this particular policy correction, execution on the ground has not been entirely consistent.
For a short time, some US FTZ entry summaries were being accepted, while others with other trade remedy tariffs applicable on the entry were rejected. This was also corrected once brought to CBP’s attention. That variability underscores a broader reality in today’s trade environment – policy changes often move faster than system-wide implementation.
For small package shippers and logistics teams, this creates a near-term need for continued vigilance and resource allocation to be made in compliance.
Companies operating in these designated zones should be closely monitoring entry outcomes, coordinating with customs brokers, and documenting any inconsistencies in how filings are handled.
In a landscape where compliance systems are still catching up to policy direction, operational awareness is becoming a more significant supply chain competitive advantage than the former leaders of speed and price.
While US Foreign-Trade Zones are often associated with large-scale manufacturing or bulk imports, they play an increasingly important role in parcel-driven logistics as well. Especially as e-commerce and direct-to-consumer fulfillment models expand, US FTZs are becoming more highly valued for their breadth of reach and opportunity for impact.
For small package shippers, the benefits of FTZs include:
·Duty deferral: Tariffs are paid only when goods enter US commerce, not when they arrive at the port
·Inventory flexibility: Goods can be stored, assembled, or reconfigured within the zone
·Cash flow optimization: Reduced upfront costs support faster inventory turns and reinvestment
The improper collection of IEEPA tariffs threatened to erode these advantages at a time when many shippers are already recalibrating supply chains in response to shifting federal policies, geopolitical pressures, and evolving customer expectations.
By halting those collections, CBP’s adjustment restores a degree of predictability and reinforces the deep value of FTZs as a tool for navigating uncertainty.
What Comes Next for the Shipping & Logistics Industry?
While the Supreme Court’s ruling on IEEPA tariffs felt significant, tariffs as a central economic policy tool have by no means gone away.
NAFTZ will continue working with CBP and administration officials to ensure the Supreme Court’s ruling, and any future rulings, are implemented consistently across all FTZ operations around the US.
In the meantime, companies should expect some continued variability as systems and processes are fully aligned. The absence of a formal CBP notice means that, for now, much of the guidance is being communicated informally through industry channels – like this one.
For small package shippers, the takeaway is clear, as well. Awareness and education should be a consistent organization priority.
Trade policy shifts can, and will, continue to impact day-to-day operations in the years ahead. But as this episode shows, they can also create opportunities to optimize strategy, strengthen partnerships, and leverage tools like U.S. FTZs even more effectively.
And in a logistics environment where margins are tight and expectations are high, even incremental improvements in cost structure and cash flow can make a meaningful difference.
Melissa Irmen is Director of Advocacy at the National Association of Foreign-Trade Zones (NAFTZ), where she leads efforts to advance policy and strengthen the U.S. FTZ program. With more than 20 years of career experience in global trade and customs compliance, she is a recognized industry expert and frequent speaker on trade issues. Irmen is a Certified and Accredited Zone Specialist and previously served as Chair of the NAFTZ Board of Directors.
This article originally appeared in the May/June, 2026 issue of PARCEL.








