NCBFAA held an hour-long webinar for members on Friday, Sept. 29, to offer key insights on what to expect from Customs and Border Protection (CBP) and key Partner Government Agencies (PGAs) with trade hold authority during a government shutdown which is anticipated to begin at midnight, Oct. 1.
The discussion was led by NCBFAA President Jose D. (JD) Gonzalez and included NCBFAA Legislative Advisor Nicole Bivens Collinson, Customs Committee Vice Chair Ralph De La Rosa, Richard DiNucci representing NCBFAA Transportation Counsel, Air Freight Subcommittee Chair Donna Mullins, Regulatory Agencies Committee (RAC) Chair Mike Lahar, RAC Vice Chair Karen Damon, and RAC Counsel Cindy Thomas.
On behalf of the NCBFAA Legislative Committee, NCBFAA Legislative Advisor Nicole Bivens Collinson provided an update, as of 1 p.m. ET, regarding activity on Capitol Hill to provide pass a funding legislative to keep the federal government temporarily operating past Oct. 1, but it appears highly unlikely at this point.
NCBFAA Customs Committee Chair Ralph De La Rosa and Richard DiNucci, representing NCBFAA Transportation Counsel, said CBP operations, including inspections at the ports of entry, Centers, and ACE, will continue during a shutdown. CBP is expected to stand up a “war room” with the PGAs to maintain fluid operations. The committee recommended downloading a copy of the HTS by going to hts.usitc.gov in case there are system glitches. Also, the Customs Committee noted the importance of sending any ABI Client Representatives questions to CBP Headquarters atcbptechnologyservicedesk@cbp.dhs.gov, since ABI Client Representatives in the field are expected to be on furlough. In addition, CBP will continue to hold the October Customs Broker License Exam, but it is recommended to bring printed materials to the exam.
On behalf of the NCBFAA Transportation Committee, Air Freight Subcommittee Donna Mullins said since most of the operations under Transportation Security Administration (TSA) are critical, the agency’s cargo operations will continue unchanged during a shutdown, although some administrative functions such as processing IAC and ITS applications might be delayed. Richard DiNucci, on behalf of the NCBFAA Transportation Counsel, noted that the association expects the Office of Foreign Assets Control (OFAC) will continue its sanctions enforcement activities during a shutdown, while the Bureau of Industry and Security (BIS) license processing will slow and the Census Bureau, with the exception of its hotline number, will be largely furloughed.
NCBFAA RAC Chair Mike Lahar, Vice Chair Karen Damon, and Counsel Cindy Thomas briefed members about the expected response to the government shutdown by the following PGAs:
- Food and Drug Administration (FDA)—Overall, the FDA will do better than most federal agencies, retaining approximately 80 percent of its workforce, due in part to carryover funding from user fees. This compares to 60 percent staffing levels in the 2019 shutdown. Most FDA import operations will continue to function because those positions are deemed necessary for the safety of human life or protection of property and are not subject to furloughs. The trade can expect Prior Notice review and entry processing to continue, as well as sampling and examination of high-risk products. RAC leaders cautioned, however, that staffing levels may not be equal across the board, with delays likely, especially in some of the smaller ports.
- Consumer Product Safety Commission (CPSC)—Most CPSC staff will be furloughed. Some CPSC will be available in the ports to assist CBP, but with limited capacity. Automated “May Proceeds” from CPSC are expected to continue. What is not yet clear is whether there will there be any support for the agency’s automated processes. What if those systems fail?
- Environmental Protection Agency (EPA)—Regional staff will be furloughed. This means no processing of Notices of Arrival for pesticide shipments and no response to emails or calls from the trade. Automated “May Proceeds” should still be viable, but any entry requiring EPA’s attention (such as unregistered pesticide products or entries where customs defined country of origin does not match the country of the EPA establishment number) cannot be approved.
- Fish & Wildlife Service (FWS)—FWS inspectors are user-fee funded and will continue working. The agency will not issue Designated Port Waivers and most other permits and licenses. During the last government shutdown, the e-Decs automated entry processing system was temporarily halted, causing delays due to manual clearance processes. Key import-related staff at Headquarters will continue to work during the shutdown.
- National Oceanic and Atmospheric Administration (NOAA Fisheries)—NOAA Fisheries employees are expected to be furloughed. This will not significantly impact trade, since NOAA approval is not required for most seafood shipments. Only toothfish imports require pre-approval by NOAA. CBP is not likely to clear any toothfish shipments during the government shutdown.
- USDA Animal and Plant Health Inspection Service (APHIS)—With nearly 80 percent of its staff funded by trust funds or user fees, APHIS import and export processing will remain largely intact. Preclearance and inspection of fruits and vegetables will continue, as will animal quarantine import and export activities. Nevertheless, delays and local holds can be expected since staffing will not be 100 percent.
- USDA Agricultural Marketing Service (AMS)—Ninety percent of staff is funded by user fees or other non-appropriated funding. Grading and inspection services and lab operations will continue.
- Alcohol, Tobacco, Firearms and Explosives (ATF)—The ATF Imports Branch will not be processing import applications generally during a shutdown. The agency is limited to only expending resources for critical activities. So, they will still process, on a case-by-case basis, applications that will be part of filling government contracts, but not for routine commercial or personal reasons.
| RAC Chairman Mike Lahar encouraged NCBFAA members to keep the RAC informed of their experiences with the PGAs during the shutdown. “Tell us what you are seeing on the ground,” Lahar said, “We can help to troubleshoot with the agencies now. And it will also help us to identify problem areas going forward as we work with the PGAs to do better in future shutdowns.” Emails can be sent to RAC@ncbfaa.org. In case you missed it, a recording of the webinar, “Everything You Need to Know to Prepare for a Lapse in Government Funding,” is available here. On Sept. 22, NCBFAA took the lead with 40 other trade associations to develop acomprehensive strategy with CBP and PGAs to ensure that legitimate trade is permitted to efficiently enter and exit our nation’s ports during a shutdown. NCBFAA will provide daily eblast updates to members regarding trade flows through the duration of the government shutdown. You are welcome to download the PDF version of this message to share with your customers. A chronological compilation of eblasts and other documents related to the potential government shutdown are available to members on this dedicated NCBFAA webpage. |
