Q&A: Jeff Tafel, President of the National Association of Foreign Trade Zones
Summary
Jeff Tafel, president of the National Association of Foreign-Trade Zones (NAFTZ), explains the role of the NAFTZ and how recent policy shifts — notably the removal of the de minimis exemption — are reshaping warehousing and e-commerce supply chains. He describes NAFTZ’s membership (users, grantees and service providers), the advocacy work behind levelling the playing field, and how Foreign-Trade Zones (FTZs) can now be a more attractive option thanks to duty-deferral benefits. Tafel also discusses operational friction caused by rapid tariff changes and systems issues, but notes those problems are starting to settle as companies adapt.
Key Points
- NAFTZ represents FTZ users, grantees (local economic development entities) and service providers, offering education and advocacy.
- Membership is at an all-time high as more organisations discover the FTZ programme amid changing trade rules.
- The expiration of the de minimis exemption removes a competitive advantage foreign sellers had for low-value e-commerce shipments.
- FTZs become more attractive because duty deferral allows businesses to delay paying duties until goods enter the U.S. stream of commerce.
- Many companies previously moved warehousing and e-commerce operations to Mexico and Canada to exploit de minimis; removal may bring jobs and capacity back to the U.S.
- Rapid tariff changes this year stressed systems (like ACE) and added complexity for FTZ users, though system issues are largely being resolved.
- NAFTZ views elimination of de minimis as a major advocacy win that should encourage investment and expansion of U.S.-based warehousing under the FTZ programme.
Context and Relevance
The end of the de minimis exemption is a major trade-policy shift with immediate operational and strategic consequences for shippers, 3PLs, warehouse operators and e-commerce retailers. FTZs—long a niche tool for duty management—are now positioned as a practical alternative to cross-border staging and other workarounds that hollowed out U.S. warehousing jobs. For supply chain leaders, the interview highlights both opportunities (duty deferral, reshoring potential) and short-term challenges (systems and tariff complexity) as the market adjusts.
Why should I read this?
Short version: if you handle imports, run warehouses, or rely on e‑commerce fulfilment, this matters. Tafel lays out why the removal of de minimis isn’t just a policy footnote—it changes who wins and loses in the logistics game and makes FTZs a real tool for keeping jobs and capacity in the U.K./U.S. supply footprint. We’ve cut through the detail so you can quickly see the strategic moves to consider.
