At midnight today, October 1, the U.S. government entered an official shutdown after Congress failed to pass a short-term government funding bill. Mass furloughs are expected to impact hundreds of thousands of employees, disrupting operations across a wide range of federal agencies.

However, most customs and entry functions remain unaffected. The Department of Homeland Security has declared security and revenue collection an “essential” operation, meaning U.S. Customs and Border Protection (CBP) will continue to collect tariff revenue and businesses will remain subject to all existing and upcoming duties throughout the shutdown.

Specific Impacts on Federal Agencies Related to Trade

• Customs and Border Protection (CBP), the primary federal agency tasked with handling imports and collecting tariff revenue, is entirely exempt from furloughs. The agency does not expect any reductions in capabilities.
  • Operations will continue as normal across all CBP divisions, including Fines, Penalties, and Forfeitures (FPF); agriculture specialist teams; and all “back-end” functions, including support for the Automated Commercial Environment (ACE) and the Automated Broker Interface (ABI).
  • CBP intends to implement all upcoming tariffs as planned, including those set to take effect on October 14. Even if the International Trade Commission (ITC) delays publishing the updated version of the Harmonized Tariff Schedule (HTS), importers should expect new duties to take effect as scheduled.
  • Duty refunds will continue to be processed throughout the shutdown. For importers who have yet to receive a check or ACH payment for a processed refund, note that the U.S. Treasury may currently lack the funds to issue refunds in a timely manner.
  • CBP will continue to send out messages via its Cargo Systems Messaging Service (CSMS).
  • CBP’s Centers of Excellence and Expertise (CEEs), which process entry summaries, protests, liquidations, and other post-release trade activities, will remain open. The shutdown will not impact any liquidation dates.
  • Coordination with Partner Government Agencies (PGAs): Should issues arise, CBP has indicated that it has tools in place to carry out collaborative functions involving PGAs.
• Partner Government Agencies (PGAs), which work closely with CBP to regulate imported goods, will see a number of furloughs and delays.
  • U.S. Fish and Wildlife (FWS) will experience delays in permit processing and exams.
  • The Federal Drug Administration (FDA) will reduce staffing for enforcement, and will see exam delays.
  • The Environmental Protection Agency (EPA) will experience delays in processing Notices of Arrival of Pesticides and Devices (NOAs). Exams will also be delayed.
  • The U.S. Department of Agriculture (USDA) may see delays, but should be fully funded in the short term.
  • The National Oceanic and Atmospheric Administration (NOAA)’s Seafood Import Monitoring Program (SIMP) is expecting a full furlough, with limited import reviews.
  • The Consumer Product Safety Commission (CPSC) is expecting a full furlough, with limited import reviews.
• The U.S. Trade Representative (USTR), which guides CBP on Section 232 duty enforcement and collection, conducts national security investigations, and helps drive trade agreement negotiations, does not intend to furlough any of its employees.
  • The USTR previously indicated that it would furlough 94 of its employees, but the agency walked back those plans yesterday. To continue operations, the USTR intends to leverage funds outside of the annual appropriations process.
  • Active Section 232 investigations will continue during the shutdown.
• The International Trade Administration, which reviews cases related to antidumping and countervailing duties (ADCVD), intends to furlough 1,230 of its 1,300 employees.
  • Given these furloughs, ADCVD investigations will slow considerably.

What Happens Next?

As the shutdown continues, all tariffs will be collected and implemented as usual. Should specific agency circumstances change, we will notify customers accordingly and provide guidance on any next steps.

Reach out to your Flexport account manager with any questions, or contact our customs and trade advisory experts at advisory@flexport.com.