CBP Will Implement a New Approach to 10+2 Enforcement
U.S. Customs and Border Protection unveiled details for an updated approach it will take on ISF (Importer Security Filing) enforcement that will begin on January 26, 2010. CBP terms this approach "Graduated Escalated" enforcement under the ISF filings. CBP will review the program on a quarterly basis throughout 2010.
CBP will not issue any liquidated damages during the 1st quarter of 2010. Instead, CBP will issue a warning for the late ISF filing directly to the Filer and not the importer of record. CBP will also monitor the completeness and accuracy of the ISF filings and work with companies to bring their ocean imports into compliance. Importers not filing ISFs may also anticipate that their imports will be subject to further scrutiny. CBP may call for document reviews, non-intrusive inspection, or intensive examination of the cargo.
CBP will have a better understanding by the 2nd quarter of which companies are performing well with ISF as well as the companies that are lacking in compliance and understanding. While CBP does not plan to issue any liquidated damages during this period, it will put shipments on hold if they are at risk, no ISF has been filed, serious errors or discrepancies are found in their importer security filings, and CBP has both identified and informed the non-filing entity.
Should CBP identify repeat incidents of no ISFs being filed as well as no response from the filer by the 3rd quarter of 2010, expect the liquidated damages (penalties) to begin for non-compliance. Starting in the 4th quarter of 2010 (Oct. 1, 2010), expect CBP to begin issuing liquidated damages (penalties) for ISF violations with the proposed assessments to be initiated at the ports of entry. For payment or mitigation of the ISF liquidated damages, importers will deal with the ports of entry.
ISF Filing and Reports Management
Over the past year Mallory has been involved in numerous webinars and discussions and provided informational updates through electronic messaging, all stressing how important it is to manage your Importer Security Filings. If Mallory is filing you ISF, this can be done by obtaining your data filing reports from Mallory or the monthly performance report that is issued by CBP. In December, CBP changed the standard date of export used to measure the timeliness of ISF filings. The "ISF Submission Not Measured" line that appears on the report contains all records that cannot be counted against the new sail date. If CBP has not obtained a sail date from the ocean carrier then the record will not be considered a "Not Measured" submission. Any Replaces, Deletes, Rejections, Unmatched Adds, Unknown Departure Dates, and Vessels Not Departed will result in the submission not being measured. Also, the ISF submission has to match BOTH the bill filed in AMS and the Vessel Departure Message to have a submission measured. Similarly, the bill number and bill type must match in AMS and ISF to have a submission measured.
What Actions Should You Take to Prepare for the New Approach?
It is imperative that you make your best effort to file the ISF in a timely manner (24 hours prior to the vessel departure date) and continue to work with your Mallory ISF account manager. CBP is taking steps to delay issuing liquidated damages and ensure compliance from all. Any ISF warnings received by Mallory should be followed by discussions used to facilitate understanding of the situation and resolving of any and all issues. If you are aware that your ISF filing is late, still make the effort to file the record. In order to know all the updates and corrections that might be needed, you have to ensure that your import process is in place and accurate.
Because the warning process is new to CBP regarding ISF, the timeliness of relaying the warning to Mallory may not be as quick as we like. Please note that we do expect some delays in receiving the warning notices from CBP. Mallory has taken the necessary steps to receive the warning notices and organize internal communication in order to best handle this important matter.
Mallory Alexander International Logistics is prepared to ease the process of submitting your ISF filings. Please contact us at www.mallorygroup.com or 800-257-8464 for more information. Additional concerns may also be addressed by clicking on the “Ask Jennie” link on our website.
*All ISF information was obtained from the U.S. Customs and Border Protection.