February 2013

Imports

Exports

IMPORTS AND EXPORTS

URGENT MESSAGE FROM CUSTOMS REGARDING BUDGET CUTS - SEQUESTRATION

DHS Secretary Janet Napolitano appeared before the Senate Appropriations Committee on February 14, 2013. During her testimony and Statement for the Record, and in recent public statements, Secretary Napolitano told the Committee that the agency will confront serious challenges if automatic sequestration budget cuts begin March 1. 2013.

Customs and Border Protection (CBP) is concerned about the ramifications of sequestration, and will operate in a way that is least disruptive to border security and the facilitation of lawful travel and trade. However, sequestration will undermine the significant progress DHS has made over the past 10 years in building the Nation's preparedness and resiliency.

Under sequestration, CBP will not be able to maintain its mandated staffing levels. All hiring will stop, including the backfill of frontline border positions. If sequestration continues through April 1, CBP would begin to furlough all employees (including CBP Officers) for 12-14 days. These budget cuts and employee furloughs would result in:

  • Increased wait times with peaks of up to 5 hours or more at our largest land border ports functionally closing these ports during core hours.
  • Increased wait times at major international airports of 50 percent or more, potentially leading to gridlock situations at peak periods.
  • Increased delays of container examinations of up to 5 days at seaports would escalate costs to the trade community and reduce the availability of consumer goods and raw materials.

CBP will focus resources on its core mission areas, but sequestration will have an impact on the U.S. economy:

  • Department of Commerce reports wait times at our five busiest southern border land ports will result in an average economic loss of $116 million per minute per day.
  • According to the U.S. Travel Association, one new American job is created for every 33 travelers arriving from overseas. In FY 2012, CBP processed more than 98 million travelers and $2.3 trillion worth of trade.
  • On a typical day, CBP collects $105 million in fees, duties and tariffs — over $38 billion last year. We are the second largest revenue generator for the United States, after the Internal Revenue Service.

CBP looks forward to working with our partners to minimize any disruptions to our operations that may result from sequestration.

Secretary Napolitano's referenced Statement for the Record may be found online at:

Hearings & Testimony

(click on "Secretary Napolitano's Testimony.)

We realize that there will be many concerns in connection with the information contained in this Notice. CBP intends to host an additional CBP-Trade meeting in the near future -- as soon as we receive further clarification on the issues presented.



Reminder Ocean Carrier Chassis update

In the past months, more ocean carriers have elected not to provide chassis for your incoming containers at port of discharge. Please note that so far lines including OOCL, Evergreen, CMA-CGM, Hanjin (June 1, 2012), U.S. Lines, Hapag Lloyd, Hyundai, Maersk, Safmarine and NYK (July 1, 2012) have implemented this policy. More and more lines are following this cost cutting procedure due to costly repair and maintenance of the ocean carrier owned chassis pool. This means to you that the trucker picking up your loads will have to use their own chassis. There will be an additional charge for this.

International Freight Systems (of WA) LLC Newsletter is a bulletin for customers and partners.  Information contained in this publication has been gathered from a number of public sources that, to the best International Freight Systems’ knowledge, are true and correct.  It is our intent to present only accurate information.  However, in the event any information contained in this newsletter is erroneous, International Freight Systems (of WA) LLC accepts no liability or responsibility.
For more information on importation and U.S. Customs please click on the link directly to Customs & Border Protection website: www.cbp.gov
For more information on air cargo matters, please click on: www.tsa.gov