MEMO TO CLIENTS ISSUE 24-022 – December 20, 2024

GSP Will Probably Not be Passed in the Lame Duck Session and Possible Government Shutdown

We have been expressing our hopes that GSP would be passed and attached to the stopgap spending bill. There are now last-minute concerns over the costs of some programs that were included in the package that are being discussed to be pulled from the spending package to try to avoid a government shutdown.  GSP was one of the first to go.

Congress has until midnight Saturday, December 21, 2024, to put together a revised proposal for short-term spending to avoid a shutdown.  If there is a shutdown, most Customs and Border Protection (CBP) employees will be considered as “essential’ and stay on the job.  Shipments will continue to be released, exams will be completed, and the processes at the Centers of Excellence will not be interrupted. Some other government agencies involved with imports will be staffed, such as the Food Drug Administration and U.S. Fish & Wildlife. If the shutdown occurs, we will get an update on which agencies will be open for import processing. We expect that Congress will pull all-nighters to try to avoid the shutdown.

Trump Expresses Support for ILA Stand Against Automation

President-elect Donald Trump has twice voiced his support for the International Longshoremen Association (ILA) in its labor dispute with the U.S. Maritime Alliance (USMX) over port automation.  He has stated that he opposes port automation because the cost savings do not outweigh the potential harm to American workers. The ILA has continued to share its strong concerns about automation’s impact on jobs with semi-automated equipment that will require little human intervention. The USMX has responded that modernization is vital for industry sustainability, worker safety, and increased efficiency, which benefits both ports and the broader economy. They contend that higher port capacity translates to greater earnings for workers and strengthened national supply chains. With the upcoming ILA set a deadline of January 15, 2025, for a contract to be completed there is a strong chance that a strike may be coming that would disrupt major East and Gulf Coast ports.

December 24, Christmas Eve day Has been Designed for the Federal Government to Be Closed

President Biden has issued an Executive Order designating that on Christmas Eve day, December 24, 2024, the government will close on that day with holiday staffing only.  This is separate from any possible full government shutdown. The Executive Order can be found at: https://www.whitehouse.gov/briefing-room/presidential-actions/2024/12/19/executive-order-on-providing-for-the-closing-of-executive-departments-and-agencies-of-the-federal-government-on-december-24-2024/

USTR Has Initiated a 301 Review on Nicaragua

The Office of the U.S. Trade Representative (USTR) has opened a Section 301 investigation on Nicaragua looking at its actions on labor and human rights and how this violation may affect U.S. commerce.  The USTR could remove Nicaragua from the Dominican Republic-Central American Agreement (CAFTA-DR).  The notice on this action  can be found on the USTR’s website at: USTR Initiates Section 301 Investigation on Nicaragua’s Acts, Policies, and Practices Related to Labor Rights, Human Rights, and the Rule of Law | United States Trade Representative

Vice President of Operations, Asim Faiz

Please join us in congratulating Asim Faiz on his well-deserved promotion to Vice President of Operations!  He has consistently demonstrated exceptional leadership and strategic thinking throughout his tenure at Carmichael Int’l Service.

Most notably, he has been involved in implementing new business and plays a critical role in working with IT, making him an asset to our executive team.  Asim is essential to Carmichael’s achievements and growth and is deserving of this change. We are confident that he will continue to drive our company’s success to new heights. Congratulations, Asim Faiz!