Sequestration to Possibly Impact CBP Operations and Trade

On March 1, 2013, government budget cuts will become effective under the Sequestration Transparency Act of 2012, unless a deficit reduction proposal is agreed upon before this date.

These reductions would impact Customs and Border Protection (CBP) operations and, consequently, affect trade flow. It is likely that many CBP agents would face furloughs; in addition, overtime would be cut, contributing to cargo release and examination delays. Administrative initiatives, such as Automated Commercial Environment (ACE), would be put on hold. CBP also advised that it would utilize a risk-based approach to reduce cargo and passenger processing times, relying on C-TPAT and other intelligence.

Samuel Shapiro & Company, Inc. is closely monitoring the situation and will keep you posted on further updates. Please contact your Shapiro representative if you have further questions or concerns.