CBP Updates its 10+2 FAQ (Liq Damages, Duplicates, Empty Containers, Garment Hangers)

This is Part IV of a multi-part series of summaries detailing CBP's updated FAQ document and highlights new information for Importer Security Filings (ISFs) regarding liquidated damages, duplicate ISFs, empty containers, Instruments of International Trade (IIT) and garment hangers. See future issues of ITT for additional summaries of the FAQ.

Liquidated Damages

CBP has expanded its answer to a FAQ question on multiple violations for a single ISF as follows:

Multiple violations on one ISF. CBP was asked whether it would assess liquidated damages for multiple violations on one ISF. CBP stated that in accordance with the mitigation guidelines which were published in the CBP Bulletin on July 17, 2009, CBP may assess a claim for liquidated damages as follows: $5,000 per late ISF, $5,000 per inaccurate ISF, and $5,000 for the first inaccurate ISF update.

Duplicate Filings

CBP has expanded its answer to a question on how CBP is handling duplicate ISF filings:

Duplicate from same filer to be rejected. In response to a question, CBP stated that it allows one ISF filing which has a unique combination of a bill of lading number and importer of record number per ISF filer. The only exception is a "Unified Entry Filing", which also includes the entry number as part of the unique combination.

If a second ISF filing is received with the same combination of these elements the second filing will be rejected if the ISF is submitted by the same filer. A reason for the rejection will be returned to the ISF filer in addition to the unique transaction number.

Duplicate from another filer to be accepted w/warning. However, if a duplicate ISF is filed by a different filer, CBP will accept the duplicate ISF and send a warning message to the initial ISF filer that a duplicate was filed. In addition, CBP will send an "accepted with warning" message to the subsequent ISF filer to let them know that a different party previously filed an ISF against the same shipment. CBP expects the parties involved to contact the ISF importer in order to ascertain which ISF is the accurate one. Failure to do so may incur enforcement and/or compliance actions.

Instruments of International Trade

CBP has added a new FAQ section on IITs, as follows:

Intercompany moves. CBP answered a question by stating that an Importer Security Filing is not required for ship's equipment. or ship's spares. However, unless otherwise exempted, the ISF Importer must submit an Importer Security Filing for intercompany moves.

Empty containers. A question asks if empty shipper (or importer) owned containers are subject to the Importer Security filing requirements? CBP answered no, but they must still be reported via vessel stow plans and container status messages where appropriate by the carrier.

ISO Tanks

A new question and answer on ISO tanks has also been added to the FAQ:

ISO tanks and residues. In response to a question on whether ISO tanks are exempt from the ISF Requirements, CBP answered that ISO tanks are treated like any other containers. If the ISO tanks contain cargo, then they require the filing of an ISF. If the ISO tanks are empty (no residue), they do not require the filing of an ISF.

Garments on Hangers

CBP has also added the following new question and answer on garments on hangers:

Garments on hangers. A question states that at the time of shipping, the importer's electronic purchase orders that are provided to their overseas third party logistics provider (3PL) do not specify when garments will ship with hangers. Upon entry, however, their U.S. customs brokers have this information and classify the hangers separate from the garments because they qualify for the lower duty treatment. For ISF purposes, are the 6-digit HTS number for the hangers in addition to the HTS number for the garments that are hanging on them, needed for the ISF?

CBP answered that the ISF needs to include the 6-digit HTS number for the hangers if the ISF importer is aware of the existence of the hangers. If the ISF Importer is initially unaware that the hangers are shipped with the garments, then the ISF Importer should update the ISF as soon as they become aware of this information.

FAQ Non-Binding, Ruling Requests May be Submitted

CBP notes that its responses to the FAQs are for informational purposes only and are non-binding. Questions relating to specific facts and circumstances of a prospective transaction can be the subject of a ruling request under 19 CFR Part 177. Additional questions that are not included in this document can be sent to Security_Filing_General@cbp.dhs.gov. CBP notes that it will be continually updating and clarifying its FAQ document as necessary.

(See ITT's Online Archives or 10/07/09 news, 09100705, for Part III, which covered coded transactions, bulk/break bulk, carnets, and antiques.

See ITT's Online Archives or 10/06/09 news, 09100610, for Part II, which covered the structured review period, progress reports, and ISF amendments.

See ITT's Online Archives or 10/05/09 news, 09100505, for Part I, which covered bill of lading numbers and bonds.

See ITT's Online Archives or 08/20/09 news, 09082005, for BP summary of CBP officials discussion of ISF bonds, etc. See ITT's Online Archives or 03/10/09 news, 09031015, for BP summary of CBP's previous 10+2 FAQ, with links to previous parts. See ITT's Online Archives or 12/23/08 news, 08122310, for the final part of BP's summary on the details of CBP's 10+2 interim final rule, with links to previous parts.)

CBP's 10+2 FAQs (updated 09/30/09) available at http://www.cbp.gov/linkhandler/cgov/trade/cargo_security/carriers/security_filing/10_2faq.ctt/10_2faq.doc