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.

The information in this notice is based on the CBP ISF Regulations, CBP ISF FAQ’s, and public statements CBP has made to media outlets and to trade groups.

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. Please click here for a full detailed version of this notice.

Roanoke Trade is continuously active in advocating for the international and domestic trade community and finding solutions for our clients to work more effectively. If you have any questions regarding this notice, or any other related subject, please contact us via email or call 1-800-ROANOKE to speak with a service representative.

This information is provided by Roanoke Trade, a division of Roanoke Insurance Group Inc. as a public service and for discussion of the subject in general. It is not to be construed as legal advice. Readers are urged to seek professional guidance from appropriate parties on all matters mentioned above. Insurance and surety risk management solutions for supply chains and transportation have been Roanoke Trade’s focus since 1935. Roanoke Trade is a subsidiary of Münchener Rückversicherungs-Gesellschaft (Munich Re) and an affiliate of Munich Re Syndicate, Ltd. Roanoke Trade closely follows the ever-changing government policies that affect the movement of goods, and works only with insurance companies financially rated as “A-” (Excellent) or better