9 November 2009

CBP installs oversight plan for ISF penalties

The following is excerpted from the 6 November 2009 edition of "American Shipper".

U.S. Customs and Border Protection will require all penalty notices for violations of the new Importer Security Filing to be first reviewed at headquarters by program experts to prevent frivolous actions against importers, Assistant Commissioner Thomas Winkowski said Wednesday.

Under the 10-month-old rule, importers must electronically submit 10 pieces of data about ocean shipments bound for the United States, while ocean carriers must provide two other sets of data about the containers in their custody. The detailed origin, logistics and content data is supposed to be filed 24 hours before a container with the shipment is loaded on a vessel. CBP is operating in an informed compliance mode this year to help international traders adjust their business practices for obtaining and transmitting data at such an early stage in the import process.

The border agency will begin full enforcement of “10+2,” as it’s commonly called, on Jan. 26. At that time, U.S. importers will be subject to $5,000 fines for each instance in which a shipment security filing is late, inaccurate, or not properly withdrawn when necessary.

Winkowski assured trade professionals at the quarterly meeting of the Commercial Operations Advisory Committee that the agency will continue “to take a common sense approach” that focuses on educating importers about their compliance responsibilities instead of trying to ensnare them for technical violations.

“For us it’s not about penalties. It’s about driving compliance,” he said, pointing to CBP’s track record for implementing the 24-hour advance manifest rule and other programs without the penalty levels initially feared by the trade community.

Winkowski said he has ordered that any penalty or liquidated damage being assessed by a local port of entry must first go through a headquarters review to ensure consistency and continuity.

“This is not about nitpicking” over whether a company missed the filing deadline by five minutes, he said.

Winkowski said a team of specialists is developing the penalty review guidelines.

Penalties are inevitable for a small minority of companies that habitually do not comply and ignore the rule, Winkowski said, “But I want to make sure that is going to be done in a judicious and well-thought-out manner.”...