As we have recently reported, Congress has yet to agree on a new budget. Sequestration has begun, with immediate cuts to overtime already taking affect as of March 1. Personnel furloughs may begin mid-April. Due to the estimated magnitude of reductions, CBP estimates that there will potentially be delays in all aspects of cargo facilitation.
CBP has offered the following advice for importers:
- Pre-filing Entry Data – While not all importers are participating in CBP trade facilitation initiatives, we cannot over-emphasize the importance of pre-filing entry information. Pre-filing the entry gives CBP and other federal agencies and opportunity to conduct risk assessments and resolve outstanding issues before the cargo arrices in the US and allows agencies to provide the trade with a release decision as early as possible,
- Perishable Commodities – CBP will continue to process perishable commodities as a top cargo priority
- Other Government Agencies – CBP will work with its partner government agencies that have oversight responsibilities for import and export shipments to minimize the disruption caused by sequestration.
- CBP Partnership Program – At this time, there are no plans to eliminate or reduce trade facilitation benefits for CBP trusted trader participants. Customs-Trade Partnership Against Terrorism (C-TPAT) members will continue to receive priority (“front of the line”) treatment for examinations. As a tangible benefit for the substantial efforts taken to secure the supply chain, C-TPAT companies are 4-6 times less likely to undergo and inspection. During the first 30 days of the sequestration, (March1-30) we expect minimal delays. However, once the furloughs commence, delays will impact shipments for trusted partners that have been designated for examination.
Communication – CBP is committed to ongoing communication with the trade community, both at the national level and through communication at the port level, as port directors reach out to their local stakeholder groups. Additionally, CBP managed accounts have their assigned CBP account managers to assist them with any issues that arise and the CEE staff to provide guidance
ILA Delegates Approve, in Principle, Master Contract
Wage scale delegates for the International Longshoremen’s Association on Tuesday afternoon approved, in principle, the proposed aspects of a master contract for its dockworkers on the U.S. East and Gulf coasts.ILA spokesman Jim McNamara said the union and representatives of the U.S. Maritime Alliance (USMX), the group that represents employers, will meet jointly on Wednesday at 1:30 p.m. to review the complete master contract proposal. The 200-plus wage scale delegate, who will make a recommendation to the union’s rank-and-file on whether or not to approve the contract are meeting in Tampa, Fla., through Thursday.
On Feb. 1, the ILA and USMX announced they had reached tentative agreement on a new, six-year master contract covering about 14,500 ILA workers who work at 14 container ports on the East and Gulf coasts, and the two sides agreed to keep ports operating normally while negotiations on local contract issues continued.The master contract is subject to formal ratification by both sides and successful conclusion of negotiations on local contracts. Last week, the ILA said it reached a tentative agreement on local contract issues with the New York Shipping Association (NYSA). That agreement was said by the union to be “subject to some tweaking,” but will be presented to local union officials this week. Some other local negotiations are also continuing.
Following this week’s meeting of wage scale delegates, the ILA said it hopes to schedule a date for ratification of both the master contract and local contracts for its members on the Atlantic and Gulf coasts.