CBP Begins Active Enforcement of ISF Rules

According to a public notice issued by U.S. Customs and Border Protection’s office in Dallas/Fort Worth, starting from Tuesday, January 26, 2010 it will start enforcing a new Importer Security Filing (ISF, 10+2) rule, which will require importers and carriers to file with CBP 12 data elements not normally included on the cargo manifest. The new rule has been in works for more than 2 years and is designed to help CBP step up security and improve anti-terror monitoring. The new rule, referred to as ISF (Importer Security Filing), requires importers and carriers to file 12 data elements 24 hours before a vessel departs a foreign port. As of January 26, 2010, there are 115,000 importers that are already complying with the regulation, but the major concern is small and infrequent importers that are not aware of the rule change.

According to Richard DiNucci, who is a Customs director of the Security Initiative, companies have been having problems in meeting the filing deadlines. As of January 26, 2010 some 70 to 80 % of filings are late or do not meet filing guidelines in some other ways; but he added that situation is stabilizing and they expect to be able to normalize process by the end of the 3 quarter of 2010. Until then, CBP has announced a plan to deal with the problem in a manner that will avoid back logs and give importers and carriers some time to adjust to the new rules. The process will be implemented in 3 stages:

In the 1st quarter of 2010, CBP will concentrate its attention on importers who are not filing ISFs. Measures of enforcement will be used in the form of warning letters. According to CBP, Do Not Load (DNL) holds and Liquidated damages are not expected to be enforced at this time.

In the 2nd quarter of 2010, violators can expect increases in manifest holds and shipment examinations. Additionally, companies who are members of the Customs-Trade Partnership Against Terrorism, and violate ISF requirements, can expect warnings which might affect their status as a C-TPAT participant as well. CBP does not expect DNL holds and Liquidated damages to be enforced in 2nd quarter.

In 3rd and 4th quarters, violators can expect major increases in the manifest holds and shipment examinations with no ISFs. Additionally, status as a member of C-TPAT can be terminated, temporarily suspended or reduced for the companies who will continue to fail to comply with the new rules. DNL and Liquidated damages will be strictly enforced and all relevant procedures followed through by the CBP.

At all times CBP reserves the right to take any measures deemed appropriate for the national security purposes.

According to the U.S. Customs and Border Protection’ office, every case that violates ISF 10+2 will be reviewed on an individual basis before any enforcement action is taken. Penalties for each case will be determined by the local ports and approved by CHQ. If you need more information regarding ISF 10+2, you can contact U.S. Customs and Border Protection’s Office or log on to the web site: http://www.cbp.gov/xp/cgov/home.xml