CBP Ready to Handle Anticipated Tariffs Even During Government Shutdown
CBP expects to continue to implement new Section 232 tariffs should the government shutdown persist past the effective date of any new tariffs, officials said on an Oct. 1 call with the trade to discuss the government shutdown. CBP also plans to implement expected tariffs, such as the ones for lumber and furniture that take effect Oct. 14, without delays.
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"In CBP, we're moving forward [with] planning to implement it on the day as identified in the [executive order]," a CBP official on the call said. CBP also expects to work "in a timely manner" on any forthcoming tariff on heavy trucks, the official later said.
Though CBP officials on the call declined to address questions about whether the International Trade Commission would be adding new tariff numbers to the Harmonized Tariff Schedule for new tariffs, the ITC's shutdown plan says "maintenance of the Harmonized Tariff Schedule of the United States" will continue during a government shutdown.
CBP officials also sought to reassure those on the call that practically all agency employees were exempted during the shutdown, or required to work.
"All our normal functions will be done as usual. Nothing changes for CBP just because we have a funding hiatus. We are all exempted, and we will continue to do all operations and all functions that CBP normally does on any given day," a CBP official said. This includes those working on fines, penalties and forfeitures and those who work on ruling requests and petitions. It also means the trade will have access to ABI representatives.
The exam to become a licensed customs broker also is on schedule, and CBP plans to give "plenty of notice" if the date changes.
However, there may be more scrutiny on activities like official travel, although CBP officers still will be going out and conducting examinations, validations and visits to in-bond facilities and warehouses. Another change from normal operations is that while CBP may have the staff to process refunds, the actual disbursement via checks and ACH is uncertain because that action occurs under the Treasury Department. CBP may clarify this issue at a later point.
As for questions about CBP coordinating with partner government agencies, officials on the call advised the trade to contact the local CBP port contact as "all of your regular CBP local port contacts are working as normal and should be responsive to you on various PGA issues." These officials may also know more about import clearance issues involving PGAs, such as imports from Mexico requiring an officer from the National Oceanic and Atmospheric Administration be present.
However, if challenges arise with PGAs in clearing imports, CBP does have a "tried and true playbook" where the agency might consider some conditional releases. Should the PGA be non-exempted, there are still staff that can work to release shipments or address other PGA concerns, an official said.
While CBP's website featured a banner on the first day of the shutdown declaring that the website might not be updated during the funding hiatus, agency officials said CBP will continue to issue CSMS messages on the website.
When asked about CBP's plans should the shutdown continue for an extended period, an agency official said that if the White House administration or DHS changes the employment status and decides to furlough CBP employees, then CBP will host another call with the trade on the impacts of such a furlough.
"But, as of now, we're all exempted employees. We're all reporting for work," the employee said.
CBP officials also said the agency would hold another call should there be any major changes to how the shutdown impacts import processing at the borders.
"We're going to monitor [the situation] and have another call, just like this one, if needed," an official said.
"The best place to start if you're having any issues with cargo right now is to contact your local port or the port in which cargo is being processed through because they will know if there's any outside pressures or anything else going on within the port," another official said. "While we have CBP staff there, they'll know best to you or explain to you what the best process is for clearing that cargo."
Separately, the Consumer Product Safety Commission said in an approved shutdown plan that it would continue to interdict consumer product shipments "with a known high risk of containing dangerous or violative products at the U.S. border to prevent entry of products that pose an imminent risk to safety."
USDA said in its shutdown plan that its Trade Policy and Geographic Affairs excepted personnel will participate in critical trade negotiations and review reimbursement requests, while its Global Market Analysis excepted personnel will support trade negotiations and process export sales information.
Meanwhile, USDA's Animal and Plant Health Inspection Service "will continue carrying out activities that are supported by user fees, including services provided outside business hours (such as Agricultural Quarantine Inspection, animal import and export services, and issuing phytosanitary certifications), reimbursable agreements with States and other cooperators (largely for wildlife damage management activities), trust funds (offshore certification and preclearance inspection), and reimbursable agreements with States and other cooperators."