Tariff break for foreign-zone exports to Mexico and Canada
H.R. 6792 — Foreign-Trade Zone Export Enhancement Act of 2025 · Filed by Lance Gooden (R-TX) · 8 cosponsors · Introduced Dec 17, 2025 · Referred to committee
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What it does
This bill creates a new tariff classification (9801.00.95) that allows goods manufactured or altered in U.S. foreign-trade zones to enter duty-free when exported directly to Mexico or Canada under the USMCA. It amends the Foreign Trade Zones Act and the Harmonized Tariff Schedule to clarify that such merchandise qualifies for duty-free treatment, and requires U.S. Customs to issue implementing regulations within 90 days.
Why we flagged it
The bill's operative mechanism is a duty-free tariff classification for goods exported from foreign-trade zones to USMCA partners. While framed as supporting competitiveness and job preservation, the substantive effect is a targeted tariff relief for firms using these zones, not a broad public-interest measure.
What the text implies
- Duty-free treatment for USMCA-bound exports from foreign-trade zones may incentivize offshoring of intermediate manufacturing steps to these zones, potentially reducing domestic production outside the zones.
- The tariff revenue foregone by this classification is not quantified in the bill and may be substantial if adoption is widespread among manufacturers.
The full analysis lists 3 implications of this text.
Who stands to gain
manufacturers using foreign-trade zones; distribution companies with USMCA export operations; logistics and customs brokers serving foreign-trade zones