CBP to Begin Issuing Liquidated Damage Claims for ISF Non-Compliance Commencing July 9, 2013


Please take note CBP has issued the following administrative message on June 7, 2013 with respect to ISF enforcement:

In order to achieve the most compliance with the least disruption to the trade and to domestic port operations, CBP has been applying a measured and commonsense approach to Importer Security Filing (ISF or 10+2) enforcement. 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.

Please visit CBP: Security Filing for more information and send questions to security_filing_general@cbp.dhs.gov.

As we have indicated in our previous communications and newsletters, CBP initiated the Importer Security Filing (ISF) or “10+2” rule on January 26, 2009 for the purposes of enhancing U.S. Port security.  Under ISF, importers are required to electronically submit (10) data elements to CBP before cargo is laden on board a vessel destined to the United States. Also, ocean common carriers are required to submit two additional data elements to those previously required.  The ISF data reporting requirements are secured under CF301-1 (single & continuous), 2, 3 or 4 bonds as well as stand along ISF bonds (referred to as Appendix D).  CBP may assess a claim for liquidated damages for ISF non-compliance violations as follows: $5,000 per late ISF, $5,000 per inaccurate ISF, and $5,000 for the first inaccurate ISF update.

Although this requirement has been in effect since 2009, CBP has been working closely with the trade to implement, evaluate and improve the timeliness and the accuracy of the transmission of the required data elements prior to initiating the issuance of liquidated damage claims for breach or non compliance with the ISF regulations.  Effectively, CBP is now ending the liquidated damage grace period afforded to the trade to implement the proper compliance procedures.  With full enforcement of the ISF regulations quickly approaching, we encourage brokers to pass this information to clients who are importers or carriers (including the links provided by CBP in the above referenced message) to ensure they are meeting all necessary ISF reporting requirements no later than July 9, 2013 to avoid any potential liquidated damage claims for non compliance violations which are covered under their U.S. Customs bond.