CBP Says it Will Not be "Trigger Happy" with Penalties, May Provide More Details in ISF Report Cards

(In November 2008, CBP issued its interim final rule that amended 19 CFR effective January 26, 2009, to require Security Filing information from importers and additional information from carriers (10+2) for maritime cargo before it is brought into the U.S. The interim final rule establishes the date of January 26, 2010 for full compliance. However, beginning January 26, 2009, CBP expected importers to make a good faith effort to comply with the interim final rule to the extent of their ability.)

The following are highlights of their comments:

CBP Will Not be "Trigger Happy" in Assessing Penalties in 2010

A member of the trade asked CBP how "trigger happy" it will be in assessing the $5,000 penalties for failure to comply with the interim final rule's requirements when the flexible enforcement period ends and full compliance begins (January 26, 2010). Officials stated that they do not expect CBP to be "trigger happy," and added that CBP is not there to nitpick at the filings. CBP will be mainly concerned with those who are refusing to file and those who are not correcting their data.

Officials added that it will likely cost CBP more than $5,000 to collect a penalty. However, CBP is committed to ensuring that they receive accurate and reliable data.

(See ITT's Online Archives or 07/17/09 and 07/20/09 news, 09071705 and 09072010, for BP summaries of the 10+2 penalty and mitigation guidelines.)

CBP is Looking into Providing More Detail on ISF Report Cards

In response to multiple trade requests seeking additional details in the ISF report cards, CBP is looking for ways they can provide more information, such as providing data at a summary level. However, this is a major undertaking for CBP and it does not expect to make any changes quickly.

One attendee also asked that CBP consider issuing the report cards in an Excel format and send them out to the trade twice a month instead of once a month.

CBP Not Currently Looking to Expand 10+2 to Other Modes of Transportation

In response to questions, CBP officials stated that CBP is not currently looking to expand 10+2 to other modes of transportation (other than maritime).

CBP Aware of Problem with First BOL File Date and Timeliness

CBP is aware that there is an issue with timeliness when using the first Bill of Lading (BOL) file date. BOLs are often filed several days in advance of actual vessel lading; therefore, some of the "untimely" ISFs are actually timely.

CBP states that this problem seems to center on non-automated entities. However, CBP is aware of the problem and is looking for an equitable way to resolve the issue. CBP noted that it has already relayed some BOL issues regarding certain lines and/or routes to the World Shipping Council, which has helped them resolve the issues.

(CBP has previously stated that it will use the "vessel departure date" in addition to the first BOL filing date to better assess ISF timeliness.)

Updated 10+2 Statistics

CBP provided the following updated 10+2 statistics:

Over 2.3 million ISFs received. In total, CBP has received over 2.3 million ISFs, which represents about 80-82% of the entries that have been filed since January 2009.

3% error rate. The error rate for ISFs is 3%. CBP noted that the main cause for errors is now data input errors. Previously, the main cause for errors was duplicate ISF transactions.

CBP Holding Internal Conference to Promote Uniformity in the Field

CBP will soon hold an internal conference that will provide a second round of training to supervisors from the field offices. This training will be used to make sure that officers know what to expect from the data, how to react to the data, and how CBP expects them to deal with the trade when they get late filings or experience problems with the data. CBP hopes that this training will promote uniformity in how the field deals with the interim final rule requirements.

CBP to Attend Outreach Events in China, Europe

CBP will be attending 10+2 outreach events in China in late October. After China, it will be going to Europe to participate in additional events.

(See ITT's Online Archives or 09/15/09 news, 09091505, for BP summary of the Senate Customs Reauthorization bill that would repeal the provision prohibiting the use of 10+2 data for commercial enforcement, etc.

See ITT's Online Archives or 08/20/09 news, 09082005, for BP summary of CBP providing a 10+2 update at the August 5th COAC meeting.)