Dear Customer,
The U.S. Customs and Border Protection (CBP) has recently issued several communications on Sequestration including two FAQs and a letter from the Deputy Commissioner David C. Aguilar discussing the impact to the Trade and how CBP will maintain its core priorities. Please find the most important details summarized below:
LETTER FROM CBP DEPUTY COMMISSIONER DAVID AGUILAR
In a letter issued to the Trade and Travel Industry, the Deputy Commissioner stated that for CBP Field Operations, the sequestration cuts, which include furloughs, reductions in overtime and a hiring freeze, would equate to the loss of up to several thousand CBP officers at U.S. ports of entry, in addition to significant cuts to CBP's operating budget and programs.
CBP anticipates significant potential impact to cross border travel and trade such as:
- Increase in waiting times for international airports of up to 50 percent or more with peak waits up to 3-4 hours or more at some gateway airports.
- Decreased service levels in our cargo operations, including increased and potentially escalating delays for container examinations of up to 5 days or more at major seaports, and significant daily back-ups at land border ports of entry.
- Reduced flexibility to maintain or extend operating hours or respond to requests for new services.
These cuts take place in a time when international travel has increased over 12 percent in the past 3 years, and should increase 5 percent this year. Given the importance of commercial activity to the U.S. economy the CBP is very concerned about the ramifications of sequestration. The CBP will continue to keep communicating to the Trade and Travel Industry with its website and direct communications.
CARGO PRIORITIES
In the face of sequestration, CBP has identified the following information to be critical for business resumption:
- Companies that participate in CBP partnership initiatives, such as Customs-Trade Partnership against Terrorism (C-TPAT) and Air Cargo Advance Screening (ACAS), will continue to have access to their respective CBP point of contacts, including Center of Excellence and Expertise (CEE) personnel. Members will continue to receive "front of the line" treatment for examinations.
- CBP stated its core antiterrorism mission will not be compromised, including radiation portal monitors.
- There will be some delays in cargo processing as a result of CBP furlough and cuts to overtime expenses.
- There will be no special procedures for conveyance diversions, such as the business resumption plan during Hurricane Sandy.
- CBP identified that the sequestration plan of the Animal Plant and Health Inspection Service (APHIS) may not have a significant impact on trade transactions at the port level.
- CBP estimates that there may potentially be delays up to several hours at land border crossings, passenger processing times may increase by about 50 percent, and there may be up to an additional five days added to cargo inspections at ocean ports of entry.
- CBP will continue to process perishable commodities as a top priority.
- The sequestration cuts will be made equally across the agency, with no preference by port of arrival, said CBP. The first cuts will reduce overtime beginning March 1 and personnel furloughs may begin in mid-April.
- Website: U.S. Customs and Border Protection Cargo Priorities under Sequestration.
FAQ IMPACT TO TRAVEL AND TRADE
The CBP has posted two Frequently Asked Questions (FAQ) documents on the impact of Sequestration to the Trade. Here is a sampling of some of the key questions and answers:
What is sequestration?
Sequestration is a fiscal policy procedure adopted by Congress as part of the Budget Control Act (BCA) of 2011. The procedure, designed to force Congress to come to an agreement to address the Federal budget deficit, represents a series of automatic government spending cuts, totaling about $1 trillion over the next decade. These spending cuts, which began March 1, 2013, are divided equally between defense and non-defense spending. Government departments and agencies, including the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP), do not have input on how these cuts go into effect since they are required by law to be implemented across the board. Sequestration will end when Congress passes legislation that undoes the legal requirements in the BCA.
How soon will I notice a change as a result of sequestration budget cuts?
You may notice some changes immediately, while many of the anticipated effects of sequestration are likely to increase over time. Over the past three years, CBP Field Operations has maximized its existing resources to accommodate a 12 percent increase in the volume of international air arrivals. This has been achieved through a strong focus on efficiencies, innovation, and expanded use of trusted traveler programs. As such, the resource reductions that CBP Field Operations will face under sequestration will result in significant, noticeable changes. There may also be significant economic impacts because CBP will not be able to accommodate requests for extended hours or new services. These effects will be compounded if the budget cuts are not reversed and employees need to be furloughed.
Do I need to be concerned about CBP employee furloughs?
Many U.S. government departments and agencies are planning for employee furloughs due to the automatic budget cuts. If sequestration continues through April, CBP would begin to furlough all employees. These unpaid furloughs will have a significant, negative impact on our own employees. In addition, the effects will also be noticed at our ports of entry in terms of longer wait times, delayed processing for travel and trade, and less flexibility to accommodate special circumstances.
Will any ports of entry be closed, or will hours be curtailed?
CBP may reduce hours of service at select airports, seaports and land ports of entry; these reductions will be made in a way that minimizes the impact to operations. Any changes to service hours will be port-specific and will be determined at the local level. Information will be shared publicly through various media outlets.
What effect will the sequestration have on shipments designated for examination by the U.S. Department of Agriculture (USDA) or the Food and Drug Administration (FDA)?
CBP's, Office of Field Operations, will continue to perform the required cargo inspections of regulated perishables with associated conditions of entry based on plant pest risks identified by USDA. CBP is working with other partner agencies (PGA) to assess the impact of those PGA's sequestration plans CBP strongly encourages continued dialogue between trade stakeholders and the local partner agency points of contact for specific information on the impacts of the sequestration.
FURTHER DETAILS
HOW DHL GLOBAL FORWARDING CAN HELP MINIMIZE THE IMPACT OF SEQUESTRATION
DHL Global Forwarding can help your company weather the impact of the sequestration. Preferred Partner Programs CBP has stated that companies that participate in CBP partnerships and modernization initiatives such as Customs Trade Partnership Against Terrorism (C/TPAT) will continue to receive priority ("front of the line") treatment for examinations, and faster processing as a general rule.
DHL Global Forwarding can help your company apply for C/TPAT. Speak to your DGF representative about signing up for the program today.
Pre-filing FDA Entry Information DHL Global Forwarding can file the FDA Prior Notice via Automated Broker Interface/Automated Commercial System (ABI/ACS) up to 30-calendar days before the anticipated date of arrival. Let's get the jump on the FDA approval process with early Prior Notice submissions to the FDA.
Continuous updates on Sequestration. Watch for the Spotlight newsletter to update you on the latest events that may impact your business.
No comments:
Post a Comment