CLEAN FTZ Act of 2025

Key Points

• The bill requires U.S. Customs and Border Protection to create a public list of all foreign free trade zones. These are special areas in other countries where goods are processed without normal taxes. The goal is to see exactly where products are coming from and who is running these zones.
• Countries will be ranked into four levels based on how well they stop illegal activities like drug smuggling and selling fake products. Tier 1 countries follow all the rules, while Tier 4 countries are those that do not try to stop criminal activity in their trade zones.
• The government will offer help and advice to countries in the lower ranks to help them improve their security. This includes sharing best practices for checking cargo and stopping money laundering or the funding of terrorism.
• People or companies caught using these zones for illegal trade could face serious consequences. The bill allows the government to freeze their bank accounts in the U.S. and ban them from entering the country to discourage criminals from using these zones as safe havens.
• A new hotline and website will be set up so businesses can report illegal activity they see in these zones. This gives companies a way to help the government identify which countries are failing to follow international safety standards.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.