From: Chris Koch [mailto:
Sent: Friday, March 01, 2013 11:53 AM
To:
Subject: Update on U.S. Customs Budget Actions
Update: U.S. Customs Budget Restrictions
The “budget sequestration” process will apply to Department of Homeland Security budgets starting today (March 1). CBP has calculated that this will mean a 6.5% budget cut. In order to achieve the reduced spending, CBP is planning various actions.
Overtime: As noted in the March WSC Quarterly Issue Update, CBP will focus first on restricting overtime of CBP employees.
Expected impacts will be reduced hours of operations of radiation portal monitors (RPMs) and for VACIS examinations. Reduced hours of availability for CBP vessel boarding may also occur.
The specific impact of overtime reductions will be calculated and announced at the local CBP port director level, and will vary by port. Each local CBP port director is being instructed by CBP headquarters to communicate its plans locally.
Employee Furloughs:In addition toreductions in overtime, CBP is planning on employee furloughs (unpaid leave). CBP expects that it will begin issuing furlough notices to employees on April 7, and that the furloughs will amount to 14 days of unpaid leave for employees for the remainder of this fiscal year (which ends September 30.)These furloughs will be staggered or “rolling” furloughs so that the effect will not apply to the entire workforce at the same time.
CBP has informed the trade that APHIS, FDA, and CPSC employees will not be furloughed, so those agencies’ cargo review/inspection capabilities should not be affected by this budget sequestration.
If the furloughs happen, the kinds of delays noted above might increase.
Other: CBP has stated that if and when import cargo releases become delayed due to these measures, that it will be sensitive to the need for expeditious treatment of perishable commodities and will favorably consider importers’ C-TPAT status. All implementation measures will be addressed at the local port director level, not from headquarters in Washington.
Congressional Action:No serious effort was made by the Administration or the Congress to avoid this budget sequestration which becomeseffective today.
The political and negotiating dynamics change considerably, however, at the end of March. The “appropriations” or spending bill that funds the Department of Homeland Security and various other government agencies runs out at the end of March. The legislation currently funding the Department and other agencies is referred to as the “continuing resolution” because it continues to fund the agencies in the absence of enactment of a normal annual appropriations bill. Congress and the Administration must agree on a bill to keep these agencies funded through the rest of the fiscal year, or these agencies would need to shut down. Because this will be a “must pass” bill, there will be an opportunity to address the government’s overall fiscal issues and the effects of this current budget “sequester” in that legislation. The need for CBP furloughs may be obviated by that legislation.It remains to see what kind of agreement may be reached later this month, but that will be the legislative focal point of the debate.