CBP Indicates ISF Penalties and DNL Notices will be Case-by-Case

10/28/2010

Recently, a U.S. Customs and Border Protection (CBP) official provided an update on 10+2/Importer Security Filing (ISF) at the Western Cargo Conference (WESCCON) of the Pacific Coast Council of Customs Brokers and Freight Forwarders Associations.  The official reiterated past statements that CBP will continue to apply a “measured, common sense approach” to enforcement.  The official further indicated that CBP has been and will continue to exercise the least punitive measures necessary to obtain full compliance, evaluate noncompliance on a case-by-case basis, and continue to provide outreach and guidance to trade industry entities.

CBP again stated that the goal of 10+2 is not to generate claims for liquidated damages; it is to get data for security targeting purposes.  The CBP official stated that CBP is now identifying and examining those importers who are not filing.  CBP receives a daily compliance report and has already begun contacting non-filers.

The official added that CBP will issue claims for liquidated damages on a case-by-case basis.  However, CBP will not make a definitive statement as to when enforcement measures will take place.  The official further indicated that CBP will do what is necessary when the time comes. Sources indicate that Do Not Load (DNL) notices will also be issued on a case-by-case basis. CBP views a DNL as an extreme enforcement measure and DNLs will not be used as a routine enforcement tool.

It has been reported that CBP is also looking to move away from the ISF Progress Reports that it currently sends out to ISF filers and certain Customs-Trade Partnership Against Terrorism (C-TPAT) members. All other ISF importers must currently obtain a copy of their ISF Progress Report from their authorized ISF Filer.

In place of ISF Progress Reports, CBP is looking at doing data dumps in ACE. The data dumps would allow the filer and their clients to get their data back from CBP and manipulate the data as they choose.

Finally, sources indicate that CBP is currently working with its Office of Public Affairs to create a webpage on the CBP.gov website for all information related to 10+2/ISF. Currently, the data is contained on different webpages.

Additional detail on the ISF requirements is available here or by contacting a Barnes/Richardson attorney.