ISF To Enter Into Liquid Damages Phase

On July 9, 2013 CBP will begin full enforcement of ISF, and will start issuing liquidated damages against ISF importers and carriers for ISF non-compliance.  Prior to July 9, 2013 CBP has been applying a measured and commonsense approach to Importer Security Filing (ISF or 10+2) enforcement to achieve the most compliance with the least disruption to the trade and to domestic port operations.  For your reference please click here to read the formal CSMS Message issued from US Customs.  Below is a recap of the requirements to be compliant with your Importer Security Filing.

 What is the advance Importer Security Filing?

The advance Importer Security Filing (known as 10 + 2) is pursuant to section 203 of the Safe Port Act.  US Customs began implementation January 2009.  Importers are responsible for the filing of specific data elements (listed below) with CBP at least 24 hours prior to container loaded about a US bound ship.

Trade Data Elements:

• Importer of Record Number – IRS, EIN, SSN or CBP assigned number of importer
• Consignee number – IRS, EIN, SSN or CBP assigned number of consignee
• Seller (owner) name and address – last known entity by whom the goods are sold or agreed to be sold.
• Buyer name and address – last known entity by whom the goods are sold or agreed to be sold
• Ship to Party name and address – physical address of the facility receiving the goods in US
• Manufacturer (Supplier) name and address – entity that last manufactures, assembles, produces, or grows the commodity.
• Country of Origin
• Harmonized tariff schedule number (to the 6^th digit)
• Container Stuffing Location name and address – physical location where the goods were stuffed into the container.  For break-bulk shipments, the name and address of the physical location where the goods were made “ship ready”.
• Consolidator name and address – party who stuffed the container or aggranced for the stuffing of the container. For break-bulk shipments, the name and address of the party who made the goods “ship ready” or the party who arranged for the goods to be made “ship ready”.

Most Important – **Bill of Lading number** – The bill of lading number will be the only way to link the ISF filing to US Customs system.

Responsibility and Compliance

It is the importers responsibility to provide CBP with timely and accurate ISF Filings for all their shipments.  CBP will monitor the filings and could take enforcement action for any violations, which may include increased inspection upon arrival and/or monetary penalties.

Enforcement

CBP may issue liquidated damages of $5,000 per transmission ($10,000 max per ISF) for the submission of an inaccurate, incomplete or untimely filing. 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; CBP may refuse to grant a permit to unlade for the merchandise; and if such cargo is unladen without permission, it may be subject to seizure. Additionally, noncompliant cargo could be subject to “do not load” orders at origin or further inspection on arrival.

More Details

For more detailed information about the Importer Security Filing, please visit the CBP website.  The website includes fact sheets, FAQs, and other public outreach sources.