Trade Processing, CBP Operations Largely Would Continue During Government Shutdown

A federal government shutdown at 12:01 a.m. Dec. 22 looked likely as President Donald Trump dug in his heels on $5 billion in funding for a border wall. “If the Dems vote no, there will be a shutdown that will last for a very long time,” President Donald Trump tweeted Dec. 21.

Appropriations for the current fiscal year have not been passed for about a quarter of the federal government, with the Department of Homeland Security the largest agency operating on temporary funding that runs out at midnight. CBP revenue collections continue during a shutdown, according to a contingency plan for DHS. All but 5,200 of CBP's 60,100 employees would have to continue working without pay during the shutdown. The contingency plans don't specify which CBP operations are not exempt, but during the 2013 shutdown CBP stopped processing ruling requests (see 13100413), among other things. Ahead of a possible shutdown in late 2017, Arent Fox compiled a list of potential effects on CBP and trade processing. All but 3,800 of ICE's 20,050 employees would also work without pay for the duration. The Coast Guard also continues to operate.

The FDA would continue to review import entries during a shutdown, according to the contingency plan of the Department of Health and Human Services. Still, "FDA would be unable to support some routine regulatory and compliance activities," it said. "This includes some medical product, animal drug, and most food related activities. FDA will also pause routine establishment inspections, cosmetics and nutrition work, and many ongoing research activities."

The Commerce Department's Physical Oceanographic Real-Time System, PORTS, would be operational, according to the American Association of Port Authorities, which is tracking the issue for its members. If a continuing resolution for the unfunded agencies is eventually passed and signed, it does not include the ability to spend the entire Harbor Maintenance Tax collection, irrespective of budget caps. The top Senate appropriator does support full spending of the HMT, AAPA noted, so it will try again in 2019 for an appropriations bill that will achieve that goal.

The International Trade Commission would close during the shutdown, potentially delaying its report on the economic effects of the new NAFTA deal, if the shutdown were to last "a very long time," as Trump vowed. Any investigations would halt. The ITC commissioners would not be furloughed, as they are presidential appointees.