“This means that no applications that were pending prior to the shutdown have been further processed and any new applications will not be reviewed until the government shutdown has stopped,” said Paul DiVecchio, principal of Boston-based export control consultancy firm DiVecchio & Associates.
DiVecchio said even if the federal government received budget relief from Congress and restored operations on Friday, it will take BIS, DDTC and other export control agencies weeks to work through the license backlog. BIS, for example, processes about 2,000 applications a month.
The last time that U.S. exporters experienced a similar administrative backlog in the federal government regarding export licenses and requests occurred during the 17-day shutdown in October 2013.
“Suffice to say that exporters who need these licenses from Commerce and State operate in an extremely competitive global marketplace and these types of delays only harm our exports and economy at large,” said Eric Hirschhorn, who served as undersecretary for industry and security and head of BIS during the Obama administration.
“Obviously, it’s going to take some time to clear out the license backlog,” he added. “BIS is already stretched thin.”