Shipments which do not comply with Importer Security Filing requirements are subject to a $5,000 penalty per occurrence.

Since January 26, 2009 all ocean cargo bound for the United States are subject to an importer security filing requirement 24 hours prior to loading of the cargo container in the foreign port. This additional cargo information will assist CBP to determine, screen and asses' potential threats risks.

The new 10+2 importer will place the burden of compliance onto the importers and ocean carriers. Obviously this will impact the logistics of your supply chain. The importer will be solely responsible and liable for filing ten data elements in the importer security filing ISF. They may hire a third party (U.S. Customs Broker or Freight Forwarder) having access to U.S. Customs Automated Broker Interface (ABI) or Automated Manifest System (AMS).

A duly authorized Power of Attorney is highly recommended. It is important to know that only Customs Brokers are bound by privacy requirements thru the Code of Federal regulations. For Shipments with a U.S. destination (includes FTZ (Foreign Trade Zone) and IT (In-Transit)) the ten data elements required by importers report.

For Transit of Foreign Cargo covering freight remaining on board the vessel (FROB), Immediate Exports (IE) and Transportation and Exportations (T & E), the five data elements required to report.

CBP has allowed a one-year period of "Flexible Enforcement" and thru informed compliance to smooth the learning curve for importers and carriers adapt to the new requirements without the threat of fines. Unfortunately this one year period will be expiring on January 26, 2010. Shipments which do not comply with ISF requirements are subject to a $5,000 penalty per incident.

To prepare for and avoid any potential fines, as a custom broker expert, I strongly suggest that first consult with your custom broker or logistics service provider and consider implementing procedures that specifically address the ISF requirements. Early participation can be a mitigating factor in the future.
There are several ways to accomplished these but make be sure that it is address properly, taking into account the culture of your company.

Finally monitor compliance for ISF requirements. You can request this report from your custom broker or thru CBP's web portal.



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