CBP Considers ISF Data Dumps, Penalties to be Case-by-Case
On October 22, 2010, a U.S. Customs and Border Protection official provided an update on 10+2/Importer Security Filing at the Western Cargo Conference (WESCCON) of the Pacific Coast Council of Customs Brokers and Freight Forwarders Associations.
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The following are highlights of the official’s comments:
CBP to Continue Common Sense Enforcement Approach
The official reiterated past statements that CBP will continue to apply a “measured, common sense approach” to enforcement1. 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.
CBP Looking at Non-Filers, Penalty Claims to be Case-by-Case
The official stated that he is now looking at those who are not filing because he is going to be focusing on them. He gets a daily compliance report and looks at compliance and has already started calling/writing letters to those not filing.
The official added that CBP will be issuing claims for liquidated damages on a case-by-case basis. He said that CBP will not make a statement that as of November 1, December 1, or January 1, CBP will do X, Y, and Z as enforcement measures. He said that CBP will do what it needs to do when that time comes.
(In August 2010, CBP announced that it was moving towards the third quarter of ISF enforcement and would continue focus on non-filers. Also in August, CBP stated that it would give the trade advance notice before moving into the liquidated damages realm of ISF enforcement.)
DNLs Seen as Extreme Measure, to also be Case-by-Case
Do Not Loads (DNLs) 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.
CBP Wants ISF Data Dumps Using ACE, Instead of Progress Reports
CBP is 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 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 any way they want.
According to the official, the ISF Progress Reports were not designed to help CBP enforce the new data requirements. They are merely intended as a guide to help importers and filers gauge their level of participation and guide compliance during CBP’s flexible enforcement period.
CBP to Create Single Webpage for 10+2 and ISF Information
CBP is currently working with its Public Affairs office to create a webpage on the CBP.gov website for all information related to 10+2/ISF. Currently, the data is on different webpages and the official is working to have it consolidated in one place.
1Although the effective date of the 10+2 interim final rule was January 26, 2009, the rule allowed for a one-year flexible enforcement period. Since the end of the flexible enforcement period, CBP has stated that it has been applying a “measured, common sense approach” to enforcement.
(See ITT’s Online Archives or 10/13/10 news, 10101307, for BP summary of GAO’s recent report on CBP’s progress in implementing ISF.
See ITT’s Online Archives or 08/11/10 news, 10081121, for BP summary of the ISF enforcement and other issues discussed at the August 4, 2010 COAC meeting.)