Customs Reauthorization Bill Would Allow CBP to Use Mandatory 10+2 Data for Commercial Enforcement

August 18, 2009

A controversial provision in the customs reauthorization bill, currently pending in the Senate, would allow U.S. Customs and Border Protection (CBP) to use the confidential information submitted in importer security filings (ISF, also known as 10 + 2 filings) to be used for commercial enforcement purposes. Under the Trade Act of 2002, the confidential information, which importers will be required to submit 24 hours in advance of lading cargo aboard a vessel bound for the U.S. beginning January 26, 2010, was to be used only for security reasons.

Specifically, the new legislation repeals section 343(a)(3) of the Trade Act of 2002, which barred CBP from using the 10 + 2 information for commercial enforcement. By doing so, the legislation seeks to boost CBP’s ability to target shipments that may need determinations with regard to duty rates and qualifications for preference programs, and to interdict counterfeit goods, prior to arrival in the U.S.

However, several importers have already objected to this provision. While developing the 10 + 2 rule, CBP promised importers that the information, which includes the name of the manufacturer and country of origin among other things, would not be used for commercial enforcement.

We will continue to provide information on our website as to the status of this legislation as it develops. For additional information concerning the new customs reauthorization, please contact a Barnes/Richardson attorney.