Certain Agency Operations Curtailed, Others Continue Despite Funding Lapse
The October 1, 2025, lapse of federal funding authority has resulted in the significant, if presumably temporary, curtailment of operations of agencies tasked with customs monitoring and enforcement, trade and export licensing and control, and sanctions.
A brief summary of the status of agency operations as of this date:
- Department of Homeland Security – Customs and Border Protection (CBP)Among the agencies engaged in trade regulation and enforcement, CBP may be the least immediately affected by the shutdown. CBP officers are deemed “essential personnel”, and its functions are — according to notice from the Cargo Systems Messaging Service (CSMS) — “fully operational”, with ports of entry staffed and processing/clearing cargo. Cargo examinations, agricultural and other inspections, and tariff and revenue enforcement are ongoing and will continue. The Automated Commercial Environment (ACE) continues to be fully operational and accessible.
- Department of Commerce – Bureau of Industry and Security (BIS)BIS has indicated that during the shutdown, only emergency license applications — those involved in the protection of U.S. life and property, and/or supporting U.S. and allied military operations and activity — will be accepted for review and processing. However, export control enforcement (preventing or intercepting illegal exports), criminal investigations and prosecutions, and all activities in support of national security (and national security agencies) will continue.
- Department of the Treasury – Office of Foreign Assets Control (OFAC)According to a notice posted on its website, OFAC will only respond to inquiries or process applications that fall within certain stated exceptions (such as the protection of U.S. life or property); all others will be held until funding is restored. However, OFAC will continue to administer trade and economic sanctions; will maintain the Specially Designated Nationals (SDN) List; and, as directed by the Treasury Secretary, implement sanctions or designations on or of individuals, entities or countries under any new Executive Orders that may be issued.
- Department of State – Directorate of Defense Trade Controls (DDTC)DDTC advises via its website that its services are “significantly curtailed”, with the Defense Export Control and Compliance System (DECCS) currently unavailable for licenses, registrations, Commodity Jurisdiction determinations or advisory opinions. Requests submitted prior to the October 1 lapse of funding will remain as submitted. However, further review of any inquiries or applications that do not fall within the exceptions for protection of U.S. life or property, or necessary support for U.S. national security, will have to await resumption of funding and operations.
As of this posting, the following agencies have indicated their trade regulation, inspection and oversight functions are (for now) largely unaffected by the shutdown:
- U.S. Trade Representative
- Department of Agriculture
- U.S. International Trade Commission
- Federal Maritime Commission
Should the lapse in funding continue for an extended period, further restrictions on the operations of these agencies are possible. Those engaged in shipping and customs matters, and their counsel, should remain alert for any and all new developments.
