U.S. Importers: $5K Penalties for ISF Non-Compliance Beginning July 9

Carlos GarciaImports, NewsLeave a Comment

U. S. Customs and Border Protection (CBP) will begin enforcement for the Importer Security Filing (ISF), also known as the 10+2 rule, beginning July 9, 2013. The rule affecting U.S. importers has been in effect since January 26, 2009 with a tiered approach to compliance. According to CBP, the agency “may issue liquidated damages of $5,000 per violation for the submission of an inaccurate, incomplete or untimely filing.”

To enforce compliance, the agency has used a tiered approach to allow the U.S. import community to allow time for importing best practices. Per CBP, they will “use of manifest holds and non-intrusive inspections. CBP may issue liquidated damages of $5,000 per violation for the submission of an inaccurate, incomplete or untimely filing. Liquidated damages in simplified terms refer to a penalty secured by a bond. If goods for which an ISF has not been filed arrive in the U.S., CBP may withhold the release or transfer of the cargo. For carrier violations of the vessel stow plan requirement, CBP may refuse to grant a permit to unlade for the merchandise. Additionally, noncompliant cargo could be subject to further inspection on arrival.”

The ISF program has allowed CBP to collect data points earlier to assess high risk shipments into the U.S. ahead of the cargo vessels arrival. ISF only pertains to U.S.-bound ocean shipments, not to other modes of transportation (i.e.: air cargo or trucking).

Necessary communication throughout the supply chain is vital to the ten data elements required by CBP. Partners at origin must be in full cooperation with U.S. import partners.

The ten data elements are as follows (to be filed 24 hours prior to lading):

  • Manufacturer (or supplier) name and address
  • Seller (or owner) name and address
  • Buyer (or owner) name and address
  • Ship-to name and address
  • Container consolidation location
  • Consolidator name and address
  • Importer of record number/foreign trade zone applicant identification number
  • Consignee number(s)
  • Country of origin
  • Commodity Harmonized Tariff Code

The carrier must now provide two additional data elements:

  • Vessel stow plan
  • Container status messages

According to STR Trade, “five data elements are required for shipments consisting entirely of freight remaining on board cargo or goods intended to be transported in-bond as an immediate entry or transportation and exportation entry, including who is paying for the transportation of the goods and where the goods are headed.”

Carlos Garcia

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