Issue 5, January 26, 2010
The enforcement date for the Importer Security Filing (ISF) rule is January 26, 2010 and Customs and Border Protection (CBP) has recently issued details on their enforcement approach. CBP intends to roll out a “graduated” enforcement approach over the next four quarters of 2010 which mirrors its “informed compliance” approach used in previously rolled out programs.
Below are highlights of CBP’s enforcement approach:
- ISF Bonds are required beginning January 26, 2010
- CBP will not use data collected during the delayed enforcement period (January 26, 2009 – January 25, 2010) against the trade. Data collected on and after January 26, 2010 will be used to enforce the filing requirements.
- 1st Quarter of 2010, CBP will concentrate its enforcement efforts on importers who have not made an Importer Security Filling (ISF) since January 26, 2010. Importers who do not file an ISF for shipments after the enforcement date, will be issued warning letters by CBP notifying them that they are required to file an ISF and that failure to file an ISF will result in liquidated damages and other cargo release delays. CBP may also communicate with those importers who file late or incomplete filings – or fail to withdraw a filing – to advise them to take corrective actions. During this quarter, CBP will help to resolve issues with those Importers who are experiencing difficulties in filing ISF. CBP will not be accessing liquidated damagers or issuing Do Not Load (DNL) messages (unless it’s appro priate for national security purposes) during this quarter either.
- 2nd Quarter of 2010, CBP will begin to issue holds on cargo if they are at risk; for noncompliance; and no ISF filing and CBP has informed the responsible party. CBP may also consider other enforcement measures such as increased exams. Although CBP does not plan to access liquidated damages or issue DNL messages in Q2, liquidated damages may be issued if CBP sees repeated instances of not filing and a response is not received from the filer.
- 3rd and/or 4th Quarter of 2010, CBP will begin to assess liquidated damages on ISFs with data or filing problems, including timeliness. Due to increased security precautions, shipments identified as high risk that do not include an ISF may experience delays for documentation, non-intrusive inspections and cargo holds. Cargo holds may also be issued for those members of the trade that fail to file ISFs or who fail to rectify ISF issues that CBP works with them to correct. Currently, CBP is reporting that 80% of the filings are made on Fridays and they would like to see how the filing distributions changes over the next few months as full enforcement begins.
- 4th Quarter of 2010, CBP expects to be in full enforcement mode. There is the possibility of DNL messages being issued for specific high risk shipments. As to liquidated damages, importers will still have the right to petition and mitigate the assessment of liquidated damages. Currently, all liquidated damages for ISF will be reviewed by CBP Headquarters prior to issuance. This is an automated process and if HQ determines that liquidated damages are in order they will advise the port to proceed with issuing the liquidated damages claim. Importers will work with the ports once the liquidated damages claim is issued and not with CBP Headquarters.
- CBP officials have noted that they will continue to conduct outreach and training seminars even after the full enforcement mode begins on January 26, 2010. CBP will hold 10+2 outreach events and anticipates issuing more regular updates to the 10+2 Frequently Asked Questions (FAQs)
Regards,
Information Source -
Ben English
Director, US Import Compliance - ISF
Licensed Customs Broker
