Dear Valued Clients and Partners,
As we close out the third quarter of 2025, I want to take a moment to reflect on what has been a season of continued progress, innovation, and collaboration at ITC Diligence International.
From rising trade tariffs to increased CBP enforcement and shifting global logistics, this year has brought its share of challenges. Yet at ITC, our focus has remained constant: supporting our clients through complex trade environments with clarity, expertise, and reliability. Whether assisting with FTZ compliance, navigating CBP's new Merchandise Processing Fee cap increase, or helping importers prepare for year-end audits, our team continues to meet the moment.
Our growth this year has been steady and purposeful. New partnerships are forming, and longstanding clients are continuing to trust us with greater responsibility. To accommodate this, we’ve expanded our team and enhanced our internal systems to ensure every client, new or established, receives the responsiveness and depth of service that defines ITC.
In this issue, you’ll meet Yoselin in our Employee Spotlight, hear updates on policy and program changes affecting importers, and get a glimpse into how we're continuing to advocate for smart trade strategy across our FTZ, customs brokerage, and logistics services.
We’re also thrilled to announce the upcoming launch of our Managed Services Program, designed to give importers a centralized solution for FTZ oversight, administration, and compliance management. It’s another step toward helping clients simplify complex trade operations with a single trusted partner.
Thank you for your continued trust. We’re proud to be your partner in global trade and remain committed to earning that trust every single day.
Warm regards,
David Harlow
President & CEO
ITC Diligence International
Announcing ITC’s FTZ Managed Services Program
Flexible Support for Smarter FTZ Operations
This November, ITC Diligence International is formally rolling out its FTZ Managed Services Program, a two-tiered solution designed to help Foreign Trade Zone operators improve compliance, streamline operations, and unlock duty savings with confidence.
With growing pressure on importers to stay compliant amid rising trade tariffs and Customs scrutiny, many businesses are seeking more robust FTZ support without expanding internal teams. ITC’s Managed Services model delivers just that, with flexible service levels to fit each operation.
Two Levels of Expert Support
1. Management Oversight
This service is ideal for operators who manage day-to-day activity internally but want expert guidance. It includes:
- Annual ITC mock compliance audits
- Representation with CBP and FTZ Board
- Staff training and operational consulting
- Assistance preparing annual and reconciliation reports
- Ongoing support for regulatory and procedural questions
2. Managed Services Program
For businesses seeking full-service zone management, this tier provides hands-on operational execution, including:
- Inbound/outbound workflow processes
- Inventory tracking and reconciliation
- Discrepancy resolution and monthly performance reporting
- Customs documentation filing
- Tariff management via proprietary ITC platforms
Both tiers are designed to scale with your business while giving you peace of mind that your FTZ program is operating within full Customs compliance.
The Benefit of Experience
Whether you’re operating a single zone or managing multiple facilities, ITC brings decades of expertise as a 4PL, customs broker, and FTZ consultant. Our Managed Services solution gives clients the flexibility to choose the right level of involvement while we handle the rest.
Interested in streamlining your FTZ oversight or offloading zone management altogether?
Connect with ITC to explore which Managed Services tier is right for you.
CBP Increases MPF Cap: What Importers Need to Know
On October 1, 2025, U.S. Customs and Border Protection (CBP) officially implemented an increase to the Merchandise Processing Fee (MPF) cap, a change that directly affects importers filing high-value entries. While MPF remains a relatively small portion of total import costs, even minor adjustments can impact large-volume importers and supply chain budgets.
What Changed
- The MPF ad valorem rate remains at 0.3464% of the declared value of imported merchandise.
- The minimum MPF increased from $31.67 to $32.90 per entry, and the maximum cap rose from $634.62 to $651.50 per entry.
- These changes apply to entries filed on or after October 1, 2025, as part of CBP’s annual adjustment to align with inflation and cost recovery measures.
(Note: values above reflect current CBP data as of October 2025; importers should always verify via the Federal Register or CBP.gov for the latest updates.)
How It Affects Importers
For most importers, the impact of this increase will be modest at no more than a few dollars per entry. However, for companies filing large or high-value entries, particularly in manufacturing, retail, or automotive sectors, those small increases can add up over time.
More importantly, the MPF cap increase serves as a reminder to review import entry strategies, including:
- Consolidating shipments when appropriate.
- Leveraging Foreign Trade Zone (FTZ) procedures to defer or eliminate MPF costs.
- Ensuring your customs broker is optimizing declarations for compliance and efficiency.
ITC’s Role in MPF Optimization
At ITC Diligence International, we help clients analyze their import activity and identify opportunities to reduce MPF exposure. For many, operating within an FTZ can provide significant relief. Since MPF is applied per entry, consolidating entries through an FTZ can yield measurable savings.
Our trade and customs experts continuously monitor CBP fee structures and regulatory changes to keep clients informed and compliant.
Whether managing a few monthly entries or thousands, ITC ensures you’re not leaving savings on the table.
Employee Spotlight: Yoselin Hernandez
Account Manager of the Consulting Team
Yoselin’s journey with ITC Diligence International didn’t begin with her hiring; it began back in 2019 when she was managing FTZ operations at Noble House Home Furnishings. Working closely with ITC on compliance and customs strategy, she saw firsthand the depth of expertise and professionalism ITC brought to the table. So when Noble House closed its doors, stepping into a role at ITC felt like a natural continuation of her FTZ career.
Now as Account Manager of the Consulting Team, Yoselin brings years of hands-on experience and a leadership mindset shaped by her background in trade compliance. What’s surprised her most since joining is how different industries adapt to the FTZ program to fit their unique models. “Every client runs a little differently,” she says. “That flexibility is what makes FTZs so powerful and helping companies realize that is the best part of the job.”
Her approach reflects three of ITC’s core values: Commitment, Leadership, and Resilience. Whether guiding a new client through designation or coaching seasoned teams through compliance updates, Yoselin takes pride in empowering others and solving complex challenges with confidence.
Yoselin describes the ITC team as incredibly welcoming and collaborative “like joining a family instead of just another company.” The openness to share knowledge and support one another has made her transition smooth and rewarding.
Looking ahead, she’s eager to become more active in the broader FTZ industry through organizations like NAFTZ, and one day help shape national awareness and policy for zone programs. “My goal is to advocate for the value of FTZs because it changed my career, and I know it can change businesses too.”
Outside the office, Yoselin keeps busy with her family hiking, camping, and creating balloon decorations for events, a hobby that blends creativity with attention to detail, just like her work.
We’re proud to have Yoselin on the team, and even more proud of the expertise and heart she brings to ITC’s mission every day.
Fun Fact
Bigger Than the Port, Smaller Than a Pier?
Foreign Trade Zones come in all shapes and sizes and we mean that literally. From sprawling port operations to compact logistics hubs, no two zones are quite the same.
Here’s a snapshot of the extremes:
- Biggest FTZ: Zone 202 & 50, covering the Port of Los Angeles and Long Beach, stretches across thousands of acres and processes everything from tiny tech parts to towering wind turbine blades.
- Smallest FTZ: Zone #7 in Honolulu is compact but mighty, supporting Hawaii’s trade ecosystem in a region where every shipment counts.
- Newest Zone: FTZ #303 joined the national program in January 2025, and as the newest FTZ is showing that trade infrastructure is still growing.
Size doesn’t determine impact. From island ports to mega-terminals, FTZs help streamline trade, reduce costs, and support U.S. importers coast to coast.
Client Spotlight: Dolby Laboratories
Bringing Innovation to Life Through Trade Strategy
Dolby Laboratories is a name synonymous with sound and visual excellence. Their technologies power some of the most immersive entertainment experiences across cinema, streaming, and gaming. Behind the scenes, Dolby’s innovation is matched by a commitment to operational precision, including how they manage global trade.
Partnering with ITC Diligence International
To support their Foreign Trade Zone operations, Dolby partners with ITC Diligence International for Customs Brokerage Services. Our team assists with filings, compliance support, and day-to-day customs coordination, helping ensure that Dolby’s cutting-edge technologies move efficiently through the global supply chain.
Delivering Strategic Value to Clients
By integrating brokerage support into their FTZ framework, Dolby enhances visibility and control over their imports while minimizing duty exposure. ITC’s dedicated team helps keep compliance on track, documentation clean, and filings timely even as trade regulations shift. It’s a partnership built on trust, precision, and a shared commitment to high standards.
Stay Ahead of Tariff Shocks: Leverage FTZs for Predictable Profitability
Today more than ever importers and manufacturers are facing increased costs, fluctuating tariffs, and ever-tightening regulatory requirements. For many companies, Foreign Trade Zones (FTZs) have become a powerful solution in creating flexibility and control across the supply chain.
What Makes FTZs So Effective Against Tariffs
Operating within an FTZ allows U.S.-based companies to bring imported goods into a designated, secured area without immediately paying duties or certain fees. This deferral or, in some cases, elimination of customs duties can translate into significant financial and operational advantages.
Companies that utilize FTZs benefit from:
- Duty Deferral and Elimination: Duties are paid only when goods leave the zone for U.S. consumption or not at all if they’re re-exported.
- MPF Savings: FTZ operators can consolidate entries, dramatically reducing the number of Merchandise Processing Fees (MPF) paid per week.
- Inventory Control: Enhanced visibility and control through zone software and CBP-approved inventory systems.
- Supply Chain Flexibility: Simplified movement of materials and finished goods, even during disruptions.
FTZs Offer a Competitive Advantage From Tariffs
With unpredictable tariffs and rising logistics costs, companies operating within FTZs gain real strategic agility. They can respond faster to market shifts, adapt sourcing strategies, and maintain consistent cash flow.
At ITC Diligence International, our FTZ experts help clients design, activate, and manage their zones with precision. From feasibility studies and activation support to full operational management, ITC ensures each FTZ operates at peak efficiency and compliance.
Looking Ahead
As trade regulations evolve and companies seek new ways to stabilize costs, FTZs will continue to grow in importance. For importers aiming to stay competitive in 2026 and beyond, the question isn’t whether to use an FTZ, it's how to use one most effectively to combat tariffs.
Tariffs, Trade Tensions & Supply Chain Shifts
The global trade landscape is continuing to shift rapidly, with new tariffs, trade tensions, and supply reconfigurations shaping the strategic calculus for importers, exporters, and logistics providers alike.
As a result, we have a larger update on the global trade market than previously.
Below are some of the most important developments in Q3 2025 and what they mean for your operations.
U.S. Initiates New Tariffs on Furniture, Cabinets & Lumber
As of October 14, 2025, the U.S. has imposed 25% tariffs on imported upholstered furniture, kitchen cabinets, and bathroom vanities, along with 10% tariffs on softwood lumber and timber.
These tariffs are expected to be stepped up, furniture tariffs could rise to 30%, and cabinet/vanity tariffs to 50% by January 2026.
For importers in these sectors, this means recalculating landed costs, re-examining sourcing strategies, or even shifting production footprints.
China Tightens Controls on Rare-Earth Exports
China continues to wield export controls as a geopolitical tool. Recently, it has introduced stricter licensing and approval requirements for any product containing trace amounts of China-sourced rare-earth materials.
These rare-earths are critical components for industries like semiconductors, EVs, and defense. The changes may force manufacturers to rethink supply sources or stockpile critical inputs in advance.
Tariff Pressures on Global Trade Routes
Tariff actions continue to ripple through trade networks:
- The European Union is pushing the U.S. to remove tariffs on steel and aluminum content in derivative goods, a move aimed at alleviating strain on industries that use those materials for downstream manufacturing.
- Meanwhile, India’s textile exporters are redirecting efforts toward Europe and offering discounts to preserve U.S. customer relationships amid steep U.S. tariffs (up to 50%).
These shifts illustrate how tariff-based disruptions are driving both geographic and strategic realignments in supply chains.
U.S. Trade Policy: Broader Trends & New Tariff Authority
The U.S. continues expanding its tariff arsenal:
- Since January 2025, the Trump administration has invoked IEEPA, Section 232, and Reciprocal Tariffs while continuing to invoke Section 301 tariffs to impose wide-ranging tariffs across multiple sectors.
wide-ranging tariffs across multiple sectors. - One noteworthy executive action: Executive Order 14245, which places a 25% tariff on goods imported from any country that purchases Venezuelan oil, regardless of the product category.
Additionally, a renewed “Foreign Pollution Fee Act” is under consideration in the U.S. Senate. This proposed bill would establish import fees based on the pollution intensity (emissions) of manufacturing in the exporting country. If passed, it could add a new dimension and environmental cost on top of existing tariffs.
These moves underscore that trade risk is really about strategic positioning, regulatory leverage, and policy flexibility.
Global Trade Defies Turbulence, For Now
- Despite aggressive tariff activity, trade volumes in H1 2025 have remained surprisingly resilient. According to DHL’s Global Connectedness Tracker, international trade grew faster than any half-year since 2010 (excluding the pandemihttps://group.dhl.com/en/media-relations/press-releases/2025/dhl-global-connectedness-tracker-special-update.htmlc rebound).
- That said, global trade growth forecasts have been adjusted downward: from 3.1% to 2.5%, with North America seeing one of the steepest revisions.
This resilience reflects early front-loading of imports to beat tariff deadlines, as well as tactical supply chain adjustments like shifting flows to ASEAN and Africa. But it also highlights how fragile trade momentum may be in the face of ongoing policy shifts.
Implications & What to Watch
Sourcing strategies need contingencies: tariffs are evolving. Supply chain teams should build flexibility for alternate origins or substitution.
Tariff transparency is more critical than ever: clients will increasingly demand clarity on duty, tariff, and regulatory exposure.
FTZs and entry strategies matter even more: as tariffs ratchet up, FTZ optimization and consolidated entry strategies can help buffer cost escalation.
Environmental and regulatory overlays are emerging: features like pollution-based tariffs or licensing controls could become new cost drivers.
Be proactive on classification and material content rules:: derivative goods (with embedded metals, electronics, etc.) will be under more scrutiny for origin and composition.
Thank You for Staying Connected with ITC
As Q3 wraps up, we’d like to extend our appreciation to all our clients, partners, and colleagues who continue to trust ITC Diligence International as their global trade and logistics partner.
This quarter has brought new challenges and opportunities; from regulatory updates and tariff changes to client success stories and internal growth. Through it all, our mission remains the same: to deliver clarity, compliance, and confidence in every shipment and every solution.
As we move into Q4, our focus will remain on innovation, partnership, and proactive compliance ensuring our clients stay one step ahead in an ever-changing trade environment.
Stay tuned for more updates in the coming months, and as always, don’t hesitate to reach out to our team for guidance or support.
Let’s keep building better, stronger supply chains, together.
