Government Shutdown: Impact on Trade

With the government shutdown in effect as of Friday evening, certain federal entities remain closed at the start of the work week. Under the shutdown, "essential services" will continue, and essential employees will remain on the job – although they will be working without pay. An essential service, as defined by the International Labor Organization,  refers to a "service (whether provided by a public or private undertaking) without which the safety, health, or welfare of the community...would be endangered or seriously prejudiced." For this shutdown, essential service providers include, but are not limited to, Social Security, Air Traffic Control, TSA, Military Operations, and the United States Postal Service.

Thankfully, this government shutdown is not expected to negatively impact incoming shipments or operations at ports of entry. While some entities within the CBP are closed today, such as the CBP Information Center and the Global Entry Enrollment Centers, the "federal government deems U.S. Customs and Border Protection officers to be essential personnel who are largely exempt from ceasing operations due to their law enforcement function and role in securing the nation's borders," according to the National Law Review. This means that port of entry operations are expected to continue as usual despite the lapse in appropriations.

Additionally, ABC News' Ted Hessen reports, "Like the rest of Homeland Security, most of the employees at U.S. Customs and Border Protection (CBP) - 88 percent - are viewed as essential. That includes Border Patrol. Of the 59,561 CBP employees overall, 52,673 are expected to keep coming to work."

We will keep you advised if we hear of any changes in regards to any of the key functions of the CBP or related areas that could affect the flow of import and export cargo. Please contact us with any questions or concerns.