CBP Details its 10+2 Enforcement Approach That Begins Jan 26th
During the January 19, 2010 NCBFAA webinar, U.S. Customs and Border Protection officials publicly detailed the enforcement approach it will take beginning January 26th, when it "fully enforces" the 10+2 interim final rule that amended 19 CFR to require Security Filing information from importers and additional information from carriers for vessel (maritime) cargo before it is brought into the U.S.
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CBP now terms its enforcement approach as "graduated, escalated". It will be a more lenient approach than previously expressed by CBP officials on January 14th, and its initial phases will mirror an "informed compliance" approach.
(The interim final rule was effective on January 26, 2009; however, it provided a one year delayed enforcement period (until January 26, 2010) to allow the trade to work through various problems and to come into compliance with the requirements.)
CBP Will Not Use Data Collected During Delayed Enforcement Period
CBP officials state that they will not use data collected during the delayed enforcement period against the trade. The data that CBP begins to generate starting January 26, 2010 will be used as CBP moves towards stricter enforcement of the filing requirements.
No Liquidated Damages for 1st Quarter; Will Issue Warning Letters, Work with Filers
CBP will not be issuing any liquidated damages during the first quarter (until April or May 2010). Instead, CBP will be issuing warning letters.
For an importer that is not filing its Importer Security Filings, CBP will send a letter stating that the importer has not filed its ISF and is required to file and that the lack of filing will result in liquidated damages and other delays in the release of the importer's cargo.
For those that are filing and are having trouble filing, CBP will work with them to resolve issues during the first quarter.
CBP Will Take Actions, Issue DNLs Only for Issues Other Than ISF
If there are issues involved that require CBP to take specific actions for other reasons (other than ISF), such as smuggling, CBP will move against those entities with the full penalty tools that it has in place. CBP will issue "do not loads" (DNLs) where it's appropriate for national security purposes. However, ISF stand-alone issues will not see DNLs.
CBP Will Put Shipments on Hold, Issue Liquidated Damages During Second Quarter
When CBP moves into the second quarter, the trade will see CBP putting shipments on hold if they are at risk, no ISF has been filed, and CBP has identified and informed the non-filing filer. If CBP sees repeated incidents of no ISFs being filed and there is no response from the filer, CBP may issue a claim for liquidated damages.
CBP Will Take More Enforcement-Minded Approach in Third and Fourth Quarters
CBP will take a more enforcement-minded approach in the third and fourth quarters where liquidated damages, holds, etc. would be what the trade sees if they continue to not file or have issues with filings where CBP has worked with them to rectify the issues but the corrections have not taken place.
High-Risk Shipments Could See Delays in Release Due to Terrorism Concerns
Given the security environment, CBP cannot guarantee that the trade will not see delays if ISFs are not filed. Officials explained that the attempted terrorist attack that occurred on December 25, 2009 will have ramifications in both the passenger and cargo environments.
If CBP has no ISF for a specific shipment and targeting regards it as a high-risk shipment, the trade may see a delay in release. There could a request for documents a non-intrusive inspection (NII), or they put a hold on it so that they can do a physical exam on the cargo if needed.
CBP to Further Discuss its "Graduated, Escalated" Approach Soon
CBP officials will soon provide further details on its "graduated, escalated" approach. Broker Power will report on the details once the information is made available.
Bonds to be Required for ISF Purposes Beginning January 26th
The use of bonds for Importer Security Filing purposes will be required beginning January 26, 2010. Bonds for ISF purposes have been accepted by CBP, but not required, during the delayed enforcement period.
CBP officials provided an update on bonds for ISF purposes; see future issue of ITT for details.
(See ITT's Online Archives or 01/14/10 news, 10011405, for BP summary of CBP saying it will take a "measured approach" to enforcing 10+2.
See ITT's Online Archives or 12/11/09 news, 09121110, for BP summary of CBP discussing how it will "fully enforce" the interim final rule.
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.
See ITT's Online Archives or 10/15/09 news, 09101530, for the final part of BP's summary of CBP's updated 10+2 FAQs, with links to previous parts.
See ITT's Online Archives or 07/17/09 news, 09071705, for BP summary of CBP's 10+2 penalty and mitigation guidelines.)