Preparation for Liquidated Damages Phase Begins.

On 9 July 2013 the U.S. Customs and Border Protection (CBP) entered into the liquidated damages phase of the Importer Security Filing (ISF) enforcement process.

“The Importer Security Filing and Additional Carrier Requirements are part of CBP’s layered enforcement strategy,” said Acting Commissioner Thomas S. Winkowski. “CBP works collaboratively and collectively with the other agencies and the trade to maintain the highest level of security and safety for our nation while facilitating legitimate trade.”

CBP began the liquidated damages phase of ISF enforcement on July 9, 2013, adding to the use of manifest holds and non-intrusive inspections to enforce ISF compliance. In order to achieve maximum compliance with the least amount of disruption to the trade and to domestic port operations, CBP has been applying a measured and common sense approach to enforcement.

CBP may now issue liquidated damages of $5,000 per violation for the submission of an inaccurate, incomplete or untimely filing. Liquidated damages in simplified terms refer to a penalty secured by a bond. If goods for which an ISF has not been filed arrive in the U.S., CBP may withhold the release or transfer of the cargo. For carrier violations of the vessel stow plan requirement, CBP may refuse to grant a permit to unload for the merchandise. Additionally, non-compliant cargo could be subject to further inspection on arrival.

The ISF and Additional Carrier Requirements were borne out of the Security and Accountability For Every (SAFE) Port Act of 2006 which required the filing of additional advance data elements to help CBP to make earlier and more informed targeting decisions and improve CBP’s ability to target high-risk US-bound containerised vessel cargo prior to its arrival in the U.S.

The 10+2 rule was published in the Federal Register on 25 November, 2008 and has been in effect since 26 January, 2009.

Photo: If goods for which an ISF has not been filed arrive in the U.S., CBP may withhold the release or transfer of the cargo.