DC Velocity - May 2013

U.S. Customs expects to avoid staff furloughs—for now

The continuing resolution to fund government operations through Sept. 30 may give the U.S. Bureau of Customs and Border Protection (CBP) the flexibility to avoid staff furloughs for now, Assistant Commissioner of International Trade Alan S. Gina told a trade group in early April.

The $984 billion legislation drafted by the Senate and signed by President Obama on March 27 continues the budget sequester but provides for continued government operations through the end of fiscal year 2013. It also addresses funding under appropriations bills governing several federal agencies, including the Department of Homeland Security (DHS), which includes CBP.

Language in the legislation appears to allow CBP to shift previously off-limits money from other functional areas to cover personnel expenses, Gina said. If it does, the agency will use those funds to cover staffing costs and—at least for now—eliminate the need to furlough staff.

The language is subject to interpretation, however, and the agency’s Office of Finance is working to determine what the bill actually allows, he said.

Gina spoke to attendees of the Coalition of New England Companies for Trade’s (CONECT) 17th Annual Northeast Trade and Transportation Conference in Newport, R.I.

Gina cautioned that even if CBP’s assessment of the leg-
islation is correct, the agency would still have to get
approval from the Senate and the Office of Management
and Budget (OMB) to shift money from one area to anoth-
er. “We’re in a much better place now, but a lot of discussion
still has to ensue before we can say anything definitive on
furloughs,” he said.

IMPACT ON TRADE

Asked whether the trade community should expect service
degradation or delays due to budget cuts, Gina said, “I do
not believe we will have problems with delays. Hopefully,
with the Senate bill, we’ll be able to maintain the current
level of service.”
He did not specifically discuss previously mandated
reductions in overtime staffing considered crucial to
process and clear cargo at the nation’s busiest ports of entry.
An April 4 statement on CBP’s website about the possible
restoration of overtime duty was noncommittal, saying
only that port directors had identified “current activities,
duties, and hours of operation that could be adjusted to
mitigate the impact of the significant reductions in expen-
ditures” mandated by the sequester.

Customs’ participation at the conference was affected by the sequester. Because the agency has suspended all nonessential travel, Gina spoke to the group via video hookup from Washington. Leon Hayward, assistant director, trade and cargo security, and director of CBP’s Pharmaceuticals, Health, and Chemicals Center of Excellence, spoke in person about customs policy but drove up from New York on his personal time to do so. ;

Old Dominion Freight Line Inc. was named 2013 Carrier of the Year in the Multi-Regional Less-Than-Truckload category by the National Shippers Strategic Transportation Council (NASSTRAC). The carrier was also named one of America’s 100 Most Trustworthy Companies by Forbes magazine. … The International Warehouse Logistics Association presented its 2013 Distinguished Service and Leadership Award to Jere Van Puffelen, president of Prism Team Services Inc. of Danville, Calif. … Hytrol Conveyor Co. Inc. recently honored three retiring members of its Hytrol Distributors Council: Edgar Herreno from Grupo Internacional EICOM, S.A. de C.V.; Dan Helms from Conveyors & Drives Inc.; and Dave Rebata from FloStor Engineering Inc. Hytrol also welcomed two new members to the council, Christina Kheir from Fortna Inc. and Scott Lee from Conveyor Solutions Inc. … Toyota Material Handling,

U.S.A., Inc. (TMHU) and Orbis Corp. have been recog- accolades

nized as partner-level suppliers for 2012 in the John Deere Achieving Excellence Program. The partner-level status is Deere & Co.’s highest supplier rating. … Toyota Logistics Services has presented Crowley Maritime Corp.’s liner and logistics group with its Logistics Excellence Award for export quality. … Derek Leathers, president and chief operating officer of transportation and logistics company Werner Enterprises, was awarded the Tim Rouse Advocate for Women in Leadership Award at the annual ICAN Women’s Leadership Conference in Omaha, Neb. … Hy-Tek Material Handling Inc. has received the Most Valuable Partner award from the Material Handling Equipment Distributors Association. … Sam’s Club has recognized Saddle Creek Logistics Services as its 2012 Service Provider of the Year. … Clark Material Handling Co., a maker of material handling equipment, has been named one of the “Best Places to Work” in Kentucky for 2013.