On January 26, 2009, the interim final rule on the Importer Security Filing and Additional Carrier Requirements, “10+2” initiative, took effect with an initial one year flexibility period. As of July 9, 2013, U.S Customs and Border Protection (CBP) policy requires the CBP Headquarters to review all liquidated damages enforcement action for Importer Security Filing (ISF). The HQ review period began on July 9, 2013, was renewed and will conclude today, May 13, 2015. The CBP has not expressed a desire to extend this review period. The difference between the enforcement under CBP review and without CBP review is that without CBP review port directors retain the authority to enforce ISF regulations by using the cargo holds introduced on July 9, 2013.
Ports have been advised to concentrate their efforts on severe violations and repeat offenders. Severe violations are classified as “significantly late” or missing ISFs. “Significantly late” will be defined by individual ports and is intended to only apply to shipments where the ISF filing (or lack thereof) negatively affected the CBP’s ability to assess the risk and hold cargo. ISF filings received after arrival of the shipment are always late and will be exposed to both ISF holds and liquidated damages claims. A three warning system, before CBP’s pursuit of a liquidated damage claim against the importer’s bond, will be enacted to help identify repeat offenders and expose geographic regions where increased enforcement is needed.
Liquidated damages claims are expected within a 6 month period of the violation, but this policy will not hinder CBP’s six-year statute of limitations for liquidated damages claims. CBP’s goal is to ensure the violation and ensuing liquidated damages support the enforcement strategy.
So, are you concerned or have questions about your Importer Security Filings?
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The information in this article was obtained from the U.S. Customs and Border Protection website. The link can be found at the bottom of this article.