CBP Official Outlines Policy on Enforcement of Importer Security Filing Rule
November 10 , 2009
World Trade/Interactive
According to press reports, Assistant Commissioner Thomas Winkowski told a Nov. 4 meeting of the Commercial Operations Advisory Committee that U.S. Customs and Border Protection will “take a common sense approach” to imposing penalties for violating the 10+2 importer security filing rule once the current period of informed compliance ends Jan. 26, 2010. Winkowski assured the trade community that CBP’s focus will be more on aiding compliance with the rule than penalizing minor violations and stated that as a result all ISF penalties will first be reviewed at CBP headquarters.
Under the ISF rule, importers and maritime cargo carriers must submit additional cargo data to CBP before vessels are permitted entry into the country. Importers have to report 10 data elements on each ISF, including information that identifies the manufacturer, supplier, seller, buyer and consignee; the country of origin and tariff classification number; where and by whom the goods were stuffed into the container; and the party responsible for compliance with applicable import requirements. 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. CBP’s goal is to have all data elements filed 24 hours prior to lading, but it has allowed for some flexibility either in timing or interpretation for six of the data elements.
The ISF rule took effect Jan. 26, 2009, but full enforcement will not take effect until Jan. 26, 2010, following a year of education, outreach and informed compliance efforts. As of that date, importers will be subject to fines of $5,000 each time an ISF filing is late or inaccurate. At the recent COAC meeting, however, Winkowski said “it’s not about penalties” or “nitpicking” for CBP, which will seek to avoid levying penalties for minor ISF filing mistakes and instead continue efforts to inform filers of the rule’s requirements. Those efforts have thus far included the issuance of ISF penalty mitigation guidelines and the posting of a list of answers to frequently asked questions on the CBP Web site, and Winkowski said enforcement guidelines are also being developed.
Importers are legally responsible for the accuracy and timeliness of their ISF filings, regardless of whether a customs broker or other intermediary does the actual filing. To help importers and their brokers meet the requirements of the 10+2 rule and prepare for full enforcement, Sandler, Travis & Rosenberg, P.A., and Sandler & Travis Trade Advisory Services have developed a 10+2 ToolBox that includes the following.
• preparedness survey for evaluating your readiness to comply with the regulations
• compliance checklist detailing the steps you and your supply chain partners need to take
• ACE e|Business Profile that identifies additional cost-saving strategies
• frequently-asked questions
• ready-to-send templates for letters of instruction to your supply chain partners
For more information, please contact Laura Siegel Rabinowitz at (212) 883-1300 or Melissa Miller Proctor at (415) 986-1088.
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