|IMPORTS AND EXPORTS|
Importer Security Filing Enforcement Progresses
Starting with Importer Security Filings (ISF) due on or after July 9, 2013, US Customs and Border Protection (CBP) will begin to use liquidated damages as an enforcement tool for compliance. For over 3 years, CBP relied on outreach, education, and port examinations for non-compliant ISF Importers.
ISF liquidated damages arise from the bond contract. Any ISF Importer with certain continuous bonds on file (Activity Codes 1, 2, 3, 4 or 16) automatically agrees to comply with all ISF requirements. Breaches of those requirements results in a claim for liquidated damages of $5,000, subject to $10,000 in total per ISF transaction number. (Caution: the cap is a policy decision by CBP, which can be easily changed without formally rewriting the regulations or statute.)
Ports will be responsible for identifying the ISF violations, and for a while, CBP HQ will review all violations before the port will issue a CBP Form 5955a. A proper ISF is complete, accurate, and timely. Some ports may focus more attention on missing ISFs, while others may see most problems with late or inaccurate ISFs. Any violation of the ISF regulations can result in liquidated damages.
It is CBP's policy to identify ISF violations promptly (within a month of the occurrence). However, workload fluctuations and HQ review may delay the issuance of the CBP Form 5955a. Additionally, CBP is not waiving any of its rights, including the right to pursue violations at any time up to 6 years after the breach of the regulations occurred.Note: For late or no ISF filing and no continuous bond, Customs may issue examination and/or penalty upon entry into the United States. For importers using single transaction bonds instead of continuous bonds, failure to complete ISF accurately and timely may cause your cargo to be denied entry into the United States.
International Freight Systems (of WA) LLC Newsletter is a bulletin for customers and partners. Information contained in this publication has been gathered from a number of public sources that, to the best International Freight Systems’ knowledge, are true and correct. It is our intent to present only accurate information. However, in the event any information contained in this newsletter is erroneous, International Freight Systems (of WA) LLC accepts no liability or responsibility.