Dear valued clients and partners,
As we close out the first half of 2025, it’s clear this year has brought more than its share of uncertainty. A new administration has reshaped the trade conversation, introducing shifting tariff structures, tightened enforcement, and an evolving approach to global supply chains.
For many, these changes have introduced friction. For ITC, they’ve reaffirmed why we do what we do.
Over the past several months, we’ve experienced a significant increase in demand as companies navigate heightened uncertainty. Many are seeking trusted guidance to adjust strategies quickly, and we’re honored that both new and long-standing partners continue to place their confidence in our team. Even as demand has grown, our focus remains the same: provide consistent, informed, and proactive service that keeps our clients moving. We’ve expanded our team, streamlined systems, and doubled down on what we do best; solving complex trade problems with precision and purpose.
This isn’t the first wave of volatility we’ve helped our clients navigate. It won’t be the last. But with over two decades of trade experience behind us, we’ve built the resilience and resources needed to thrive in moments like this. It’s that foundation that allows us to stay steady in the storm and help others do the same.
Looking ahead, we’re focused on building better, more streamlined systems, training the next generation of compliance leaders, and delivering more value across the board. Whether you’re facing duty exposure, compliance challenges, or sourcing shifts, ITC will continue to be your trusted partner in global trade.
Warm regards,
David Harlow
President & CEO
ITC Diligence International
Why Strategic FTZ Planning Matters More Than Ever
As 2025 unfolds, the global trade environment is being shaped by rapid tariff escalations and shifting trade alliances. For importers, this means higher costs, tighter margins, and increased pressure to make smarter decisions about how and where goods move. That’s where Foreign Trade Zones (FTZs) come into play as a strategic foundation for long-term international trade success.
At ITC Diligence International, we’re seeing this shift up close. Companies that once viewed FTZs as a workaround are now incorporating them into long-term supply chain planning.
Unlike temporary fixes, FTZs enable structured, proactive customs planning. Goods admitted into an FTZ can benefit from duty deferral or even elimination depending on how the product is processed or exported. The Weekly Entry Program also helps minimize Merchandise Processing Fees (MPF), which can significantly impact high-volume importers.
But the real value of FTZs lies in their integration. When combined with support from experienced FTZ consultants and a trusted customs agent, these zones become powerful trade accelerators. They streamline documentation, improve recordkeeping accuracy, and offer predictability in an increasingly unpredictable global trade environment.
Where Planning Pays Off
Getting the FTZ structure right from the beginning is essential. That includes designating Privileged Foreign (PF) status correctly, coordinating inbound and outbound logistics, and building a strong compliance program that aligns with U.S. Customs and Border Protection (CBP) requirements. The details matter, and having the right team in place can make or break your results.
ITC’s Approach
Our FTZ services are built around long-term success rather than short-term reaction. From designation and activation to daily FTZ management and compliance tracking, ITC helps businesses design systems that hold up under scrutiny and scale with growth.
Whether you're an experienced importer or stepping into the world of international trade for the first time, FTZ planning gives you an edge. With the right partner guiding the process, it becomes a core part of your trade strategy.
Cargo Insurance Essentials in an Uncertain World
The trade landscape in 2025 is anything but predictable. From regional conflict to port delays and inland theft, the risks to global cargo are rising. Simply put, companies that move goods across borders need protection.
That’s where cargo insurance becomes a critical piece of the puzzle.
Rising Risk in Global Trade
- This year, major shipping lanes have faced continued disruption. Houthi attacks in the Red Sea have pushed war-risk premiums on maritime insurance significantly higher, in some cases reaching 1% of ship value. One vessel, the Eternity C, was lost without adequate war-risk coverage, resulting in a multi-million-dollar loss for the shipowner.
- On land, cargo theft and fraud are escalating across North America. Organized theft rings and fraudulent pickups are creating serious risk for freight brokers, 4PL providers, and importers. In many cases, traditional policies don’t cover these events unless specific endorsements are in place.
What Does Cargo Insurance Cover?
Cargo insurance helps recover losses due to:
- Theft or pilferage Damage in transit (land, sea, air)
- Fire, natural disaster, or collision
- War-risk or political conflict (if endorsed)
All-risk policies are the most comprehensive, but even these require accurate shipment details to avoid denied claims.
Proactive Risk Management
To avoid gaps in coverage:
- Confirm who’s responsible for insurance (you, the supplier, or freight broker)
- Review policies before shipping high-value goods or entering high-risk zones
- Update commodity codes, routing, and value declarations regularly
- Explore secure holding options like bonded warehouses and FTZs
How ITC Diligence Helps
At ITC Diligence International, we work closely with logistics partners, freight brokers, and customs agents to align cargo insurance with your broader global trade strategy. From policy setup to claims support, we ensure your goods and your margins are protected.
Employee Spotlight: Steve Nakahara
Customs Compliance Specialist
When Steve Nakahara joined ITC Diligence International earlier this year, he brought with him more than a decade of hands-on experience in Foreign Trade Zones and customs compliance. What attracted him to ITC was the chance to shift from an internal compliance role into a client-facing one where he could apply his knowledge across a wide range of industries and help businesses navigate complex trade environments.
Before coming to ITC, Steve worked for a prominent U.S. importer specializing in apparel, footwear, and accessories. There, he oversaw FTZ operations and played a critical role in keeping compliance processes both efficient and audit-ready. Later, he managed FTZ services at a customs brokerage, giving him a unique perspective on both sides of the fence; operator and service provider.
What stood out to Steve about ITC was the team. “It’s a small company with massive growth potential,” he says. “Everyone brings something different to the table, different backgrounds, different skills and it creates a collaborative space that’s hard to find.”
Since joining, Steve has already made an impact by supporting FTZ compliance reviews, assisting in training initiatives, and helping importers stay aligned with CBP expectations. His combination of precision and approachability has made him a strong addition to the team.
Outside of work, Steve keeps busy pursuing a few passions of his own. He’s an avid traveler, a vinyl record enthusiast, and he’s currently perfecting his coffee game at home. You’re just as likely to find him checking out a new art exhibit as you are seeing him in the crowd at a live sporting or music event.
We’re excited to have Steve on the ITC team, and even more excited for the value he’s bringing to our clients across the board.
Fun Fact
What’s the Most Commonly Reclassified Import?
Surprisingly, screws, bolts, and fasteners top the list. These everyday items are often described too vaguely on invoices; labels like “steel parts” or “assembly components” don’t cut it for CBP.
Even minor differences like threading or intended use can shift an HTS code and impact duty rates. Hardware-related classifications are among the most disputed and corrected every year.
At ITC Diligence International, we help importers get classification right from the start. When it comes to customs entries and FTZ filings, even the smallest parts can cause the biggest compliance headaches.
Client Spotlight: Premium Guard
Premium Guard Inc. (PGI) has built its reputation as a leader in the automotive aftermarket, offering high-quality filters and related products to distributors and retailers across North America. Headquartered in Miami with a global supply chain spanning multiple continents, PGI operates with precision, innovation, and a commitment to long-term performance, not just for its products, but for its logistics.
Partnering with ITC Diligence International
As PGI’s global trade footprint expanded, the complexity of managing imports, compliance, and duty mitigation grew. That’s where ITC Diligence stepped in as a strategic partner. From overseeing the company’s FTZ operations to managing customs documentation, duty payments, and audit preparation, ITC helps ensure that PGI’s supply chain remains both nimble and compliant.
Delivering Strategic Value to Clients
This partnership empowers both PGI and ITC to deliver greater value to their clients. By leveraging FTZs to control duty exposure and streamline inbound flows, PGI keeps lead times competitive and costs in check. Meanwhile, ITC’s ongoing compliance management helps reduce risk and maintain a high level of operational transparency even as the regulatory landscape shifts. Premium Guard's attention to product excellence is matched by its dedication to logistics performance. And with ITC in their corner, they’re equipped to deliver both no matter what the market throws their way.
How the Tariff Surge of 2025 is Reshaping Trade Strategy
As the global economy pushes through one of the most turbulent trade years in recent memory, importers and exporters are feeling the pressure. 2025 has been marked by an unrelenting series of tariff escalations, many of them sudden, sweeping, and with little grace period for adjustment.
From March through July, the U.S. implemented a series of broad and targeted tariffs, impacting steel, autos, consumer electronics, agricultural goods, and most Chinese-origin merchandise. Key trade partners, including the EU, India, and Brazil, responded with countermeasures, leading to new layers of complexity in global sourcing and pricing.
For businesses, the fallout has been immediate:
- Higher landed costs Disrupted sourcing plans
- Accelerated nearshoring
- Contract renegotiations
- Delayed shipments due to customs inspections
What used to be quarterly or annual trade planning has now become a weekly exercise in risk management.
At ITC Diligence International, our clients are building forward. We’re helping companies revalidate tariff classifications, reassess country-of-origin documentation, and implement mitigation strategies that go beyond duty deferral. This includes stronger FTZ program design, bonded warehouse integration, and flexible compliance procedures that allow businesses to pivot when policy shifts.
For importers trying to preserve margin and reliability, it’s clear: reacting too slowly is no longer an option.
This year’s tariff landscape is a supply chain reality. And while it may be unpredictable, it’s navigable, with the right advisors by your side.
2025 So Far: Global Trade Trends That Are Reshaping Strategy
As we enter the second half of 2025, one thing is clear: trade and logistics are moving faster than ever, and not always in a straight line. For importers, exporters, freight brokers, and logistics companies alike, this year’s shifts require more than tactical pivots they call for structural strategy.
Here’s a quick look at the top trade and logistics trends that have emerged so far:
Rising Tariffs, Retaliations, and Recourse
U.S. tariff policy took a sharp turn in Q1 and Q2. What began with Section 301 tariff expansions turned into reciprocal surcharges, some climbing as high as 145% on Chinese-origin goods. Pauses and negotiations followed but uncertainty remains the new norm.
Importers have responded by leaning into FTZs, bonded warehousing, and smarter country-of-origin planning to protect margins and mitigate exposure.
Shipping Delays and Maritime Disruptions
Two major choke points: the Red Sea crisis and Panama Canal drought restrictions have lengthened delivery times and rerouted global traffic.
Freight costs have climbed again, and transit times between Asia, Europe, and the Americas remain volatile.
This has forced many 4PLs and freight logistics providers to rethink lane strategy and accelerate investment in port diversification and inland staging.
Nearshoring Momentum in North America
The U.S., Mexico, and Canada are seeing increased infrastructure investment as companies seek resiliency over low cost.
Sectors like electronics, automotive, and consumer goods are shifting supply lines closer to home, with importers looking to ITC and other trade consultants for support with customs structuring, FTZ applications, and cross-border coordination.
Increased Customs Enforcement
Customs and Border Protection (CBP) has stepped up enforcement efforts in 2025, with a sharper focus on valuation, classification, and origin particularly for tariff-sensitive goods and businesses operating within Foreign Trade Zones.
Importers should anticipate a rise in audits, site visits, and detailed reviews of FTZ admission documentation. Staying ahead means creating a proactive approach to compliance systems and recordkeeping.
At ITC Diligence International, we’re working closely with clients to strengthen their customs strategies, reduce exposure, and stay agile in a fast-changing trade environment.
