As reported earlier, all “non-essential” federal workers were furloughed and federal agencies cannot continue their routine operations. However, not all agency operations will cease. Agencies can continue to provide essential services and those services funded outside of the appropriation process. While the length of the shutdown still remains uncertain, there is a clear impact on trade operations both domestically and around the globe.
Customs and Border Protection
The shutdown has varying effects on each government agency. For importers, Customs and Border Protection (CBP) will retain up to 90 percent of its existing employees, while for exporters, the Commerce Department’s Bureau of Industry and Security (BIS) will retain only 40 percent of its personnel.
According to CBP, Port of Entry Operations, including CBP Cargo Security and Revenue Collections, as well as Border Security programs, including Border Patrol and CBP Air and Marine Operations, will remain operational under a government shutdown because they have been deemed law enforcement necessary or necessary for the safety of life and protection of property. The clearance of passengers and cargo remains uninterrupted.
Front line officers and Agriculture officers are essential personnel and are in full force. Revenue collection areas such as import specialists, entry specialists, Fines, Penalties & Forfeitures, Seizure are all in full force. All hours of service at all ports are normal at this time—which includes overtime. The areas that could be impacted would be post release functions and there will likely be challenges due to the absence of mission support and technical personnel.
While little impact has been seen at the U.S. Customs and Border Protection (CBP) frontline, most of its Partner Government Agencies (PGAs) have been experiencing delays.
EPA, FDA and USDA Experiencing Delays
As the government shutdown continues, import shipments regulated by the Environmental Protection Agency (EPA), the Food and Drug Administration (FDA), and the United States Department of Agriculture (USDA), seem to have been experiencing delays and limitations.
According to a news update published by the American Association of Exporters and Importers, “Several EPA region offices (regions 4, 5, 7 & 8) are not approving Notices of Arrival (EPA Form 3540-1 for pesticide/FIFRA-regulated products) during the government shutdown.” Importers of pesticides need to notify the EPA of arrival, however, the majority of the agency’s workers have been furloughed and this process has been delayed.
The FDA will continue to review imports offered for entry into the U.S., but will cease certain safety activities, including some compliance and enforcement activities, as well as the monitoring of imports. Agency staff that conduct sample analyses on products will continue to work, which is good news for companies whose products have been or may be detained by FDA on import pending the outcome of sample testing.
The current limitations causing additional delays include the following:
Importing
– The USDA’s website is down but the agency remains open; mail addressed to the USDA is not being received; notifications or permits for importation are not being reviewed or authorized
– APHIS’ management, administrative and oversight employees have been furloughed
– The majority of the ITC’s ADD/CVD employees are furloughed; all deadlines for ADD/CVD duty proceedings will be extended by the amount of days that the shutdown lasts
– The Fish and Wildlife Services’ (FWS) website is down; manual forms will need to be submitted to F&W including documents and checks
– The FDA is operating with reduced staff. The FDA has stated that import operations should be proceeding as normal, however, delays are being reported in select locations around the U.S.
– EPA – Offices are closed; Notices of arrival are not being processed
– The Steel License Office is closed. Temporary license number to be used is “STEELX103”
– The Federal Communications Commission (FCC) is closed
– CBP Technicians and Program Managers have been furloughed, which will cause delays in Bonds and Licensing, In-bond Desk, and Processing FDA Refusals
– The HTSUS website has been turned off
– C-TPAT- Validations will not be processed
– Currency Exchange Rates were not being received from CBP via ABI, but as of today this function has resumed operation
– Centers of Excellence and Expertise are open, but National Account Managers have been furloughed
– Client representative offices are closed
– Bonds – Although Revenue Division bond filing operations continue, notifications sent in response to bond filings state they will be operating with a limited staff and the trade should expect processing delays. The Division’s main focus will be on processing and as a result, they will not be able to return phone calls and/or answer status questions in a timely manner. Status of submissions will be difficult to confirm as the Revenue Division has stated they are not able to respond at this time. Current processing times may likely exceed 5 business days.
Exporting
– Census website (including FTR, Schedule B) is down
– Export Licensing – The Department of Commerce’s Bureau of Industry and Security (BIS) is no longer accepting export license applications, classification requests (CCATS), encryption reviews, encryption registrations, or advisory opinion requests. Similarly, BIS will not be issuing any final determinations. The SNAP-R application on BIS’s Website is not available and will not reopen until the Federal Government shutdown ends. All pending export license applications, commodity classification requests, encryption reviews, encryption registrations, and advisory opinion requests will be held without action by BIS until the shutdown ends. Applicants may request emergency processing of export license applications for national security reasons by submitting email requests to Deputy Assistant Secretary for Export Administration Matthew Borman at Matthew.Borman@bis.doc.gov.
– USDA – Certain USDA certificates (USDA Veterinary Certificates and Additional Declarations) are not being issued which are required by certain foreign jurisdictions for U.S. products, and there is no alternative document that can be furnished as a substitute. If you have export shipments that are not shipped due to these types of certifications, please let us know. Additionally, as you may know, October 15th is the implementation date for the revised export control regulations. BIS intends to post guidance on license and other processing on the BIS web site (bis.doc.gov ) and on SNAP-R later today or tomorrow.
CBP has established a section on their website for this topic: http://www2.go2uti.com/e/22412/room-advisories-govt-shutdown-/2w6kx/45652161
The list of all governmental agency contingency plans can be accessed online at:
http://www2.go2uti.com/e/22412/omb-contingency-plans/2w6l2/45652161
UTi will continue to monitor the effects of the shutdown as it develops, and will provide additional information as it becomes available.
With our extensive network of offices and participation in various national trade organizations such as ICPA, NCBFAA, and AAEI, as well as our membership in many trade associations on a local or port-specific level, UTi does receive various communications and updates that are not distributed to the general public. Should you have challenges or questions regarding a specific port or product, please let us know and we will be happy to assist.
