Potential Government Shutdown on the Horizon and No Contingency Plans in Sight | Customs & International Trade Law Blog

Authorities funding will lapse at midnight on Tuesday, September 30, absent Congressional motion. With quite a lot of contentious points nonetheless at play, together with spending limits, immigration coverage, and healthcare funding, some say a shutdown is wanting increasingly seemingly.

What makes this potential shutdown totally different from earlier lapses in funding is the shortage of contingency plans throughout the related companies. The White Home’s Company Contingency Plan web page is clean. 

Till companies replace their steerage, we will solely look to earlier contingency plans.

Under is a breakdown of beforehand issued company steerage. 

U.S. Customs and Border Safety

In keeping with the Division of Homeland Safety’s most up-to-date contingency plan (March 2025), cargo inspection capabilities at ports of entry will stay energetic throughout a shutdown. Nonetheless, sure actions, akin to coaching and auditing, are usually not required to be carried out throughout this time. As well as, back-office help positions are usually not prone to be deemed important and will likely be furloughed. Refunds, audits, ruling requests, and so on., could be delayed till the shutdown ends.

There stays uncertainty round which particular places of work will likely be deemed important. For instance, Compelled Labor Communications could also be furloughed, leading to delays in reviewing the Implement and Shield Act (EAPA) and Uyghur Compelled Labor Prevention Act (UFLPA) allegations.

U.S. Division of Commerce

In keeping with the Division of Commerce’s most up-to-date contingency plan (September 2023), some Worldwide Commerce Administration (ITA) actions, akin to commerce coverage negotiations, will likely be thought of essential for nationwide safety and can function throughout a shutdown. Nonetheless, many different actions are usually not prone to be deemed important. For instance, within the final shutdown in 2019, the ITA and the Bureau of Business and Safety operated with a considerably lowered employees and funds. All antidumping and countervailing responsibility (AD/CVD) investigations and administrative proceedings will cease.

U.S. Division of State

In keeping with the division’s most up-to-date contingency plan (August 2023), many administrative capabilities will likely be topic to furloughs, which can lead to a delay in licensing and different regulatory capabilities.

Meals and Drug Administration (FDA)

Not like many different companies which are funded solely by authorities appropriations, nearly all of FDA employees is funded by different income (company charges) and is due to this fact exempt from a authorities shutdown. In keeping with the company’s most up-to-date contingency plan (December 2023), 77% of FDA employees will likely be retained within the occasion of a lapse of appropriation. Entry opinions and exams will proceed, in addition to high-risk investigations. Nonetheless, importers ought to count on delays within the processing of import transactions.

Whereas many companies and workers crucial to worldwide commerce won’t be topic to furloughs throughout a shutdown, firms ought to nonetheless count on delays and disruptions. Diaz Commerce Legislation will proceed to watch developments and supply updates after they turn out to be out there.