Examining Precedents
All-Ways Forwarding
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A Balancing Act
The Biden administration faces a delicate situation with the potential strike at East and Gulf coast ports–the White House needs to balance supporting union voters ahead of the 2024 election while protecting the economy, as labor disruptions could impact $588 billion in annual trade.
Historically, U.S. labor secretaries have played crucial roles in breaking deadlocks, especially on the West Coast, but this impasse may be harder to resolve.
The ILA, unlike its?West Coast counterpart ILWU, has not yet reached an agreement and has pledged to strike if no contract is in place by October 1.
Federal intervention, such as invoking the Taft-Hartley Act, could harm Biden’s pro-union image, complicating the administration’s decision.
Meanwhile, the ILA is aware of Biden’s involvement in West Coast negotiations and has met with both President Biden and former President Trump.
The outcome hinges on the administration's ability to mediate between union interests and economic stability, similar to its intervention in the 2022 rail workers' strike.
Looking Back, Going Forward
The International Longshoremen’s Association (ILA) has a history of avoiding strikes, preferring timely resolutions.
However, in 1977, the ILA and the International Longshore and Warehouse Union (ILWU) demonstrated solidarity when the ILWU joined the ILA's strike despite having its own master contract.
In 2012, the ILA nearly went on strike due to contentious negotiations with the United States Maritime Alliance (USMX) over wages, overtime payments, and automation concerns. These talks were complicated by disputes over container royalties, a system compensating dockworkers for hours lost to containerization, and the rising costs that employers wanted to limit.
Despite several breakdowns in the negotiations, federal mediation helped avoid a strike. The resulting contract favored the ILA in areas like job security against automation but reintroduced a cap on container royalties.
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The ILWU and ILA continue to show solidarity in opposing automation, with both unions emphasizing the importance of protecting dockworkers' jobs and safety.
Compliance Is Key
U.S. Customs and Border Protection (CBP) issued a reminder to drawback claimants and filers about the consequences of non-compliant claims.
Claims that do not follow CBP regulations, ACE Business Rules, and other specified guidelines may be liquidated without the benefit of drawback or reduced as necessary.
Claimants may also face penalties under 19 CFR 190.62. Non-compliance could result in revocation of accelerated payment approval.
Examples include claiming drawback on duties already refunded, claiming on Section 232 duties, failing to adjust claims after receiving refunds, and not following specific requirements for substitution claims under 19 USC 1313(b) and 1313(j)(2).
Complete claims must meet the standards in 19 CFR 190.51.
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