CLEAN FTZ Act of 2025

The CLEAN FTZ Act of 2025 establishes a U.S. government system to monitor and classify foreign free trade zones (FTZs) based on their efforts to combat illicit trade, such as drug trafficking, counterfeiting, and money laundering. It requires the U.S. Customs Commissioner to publicly list all foreign FTZs, then classify countries hosting them into four tiers (I-IV) annually using criteria like crime rates, compliance with international standards (e.g., UN conventions), and government actions against illicit activity. Countries in tiers III or IV face potential U.S. economic sanctions and visa restrictions for foreign individuals or entities involved in illegal trade within their FTZs, while tier II countries may receive assistance to improve compliance. The bill directly affects foreign nations operating FTZs, U.S. trade agencies, and businesses operating in these zones, which must report illicit activities via a dedicated hotline.