Importer Security Filing (ISF) Liquidated Damages Penalties
Flegenheimer International would like to remind our ocean importers and shippers and/or freight forwarders to provide us with the Importer Security Filing form at least 48 to 72 hours prior to loading the container into the vessel at the point of origin. We urge everyone to take this matter seriously as CBP has been issuing not just ISF holds to your cargo but also penalties for liquidated damages. To access our ISF form, please contact us at 310-322-4366 or email us at firstname.lastname@example.org.
REMEMBER: No relief will be granted if CBP determines that law enforcement goals were compromised by the violation.
On January 26, 2009, the new rule titled Importer Security Filing and Additional Carrier Requirements went into effect. This rule applies to import cargo arriving to the United States by vessel. Failure to comply with the rule could ultimately result in monetary penalties, increased inspections and delay of cargo.
This rule is under the regulations in 19 C.F.R. Part 149 and the Interim Final Rule that CBP published as CBP Decision 08-46 in the Federal Register (73 FR 71730) on November 25, 2008.
ISF Importers, or their agent, must provide these data elements, no later than 24 hours before the cargo is laden aboard a vessel destined to the United States. Those data elements include:
• Importer of record number / FTZ applicant
• Consignee number(s)
• Manufacturer (or supplier)*
• Ship to party *
• Country of origin *
• Commodity Harmonized Tariff Schedule of
the United States (HTSUS) number*
• Container stuffing location; and
IMPORTERS’ BEST PRACTICES
• Know what you are importing before you import it
• Decide who will transmit the ISF and how
• Know your supply chain partners
• Require that the Importer Security Filing data elements be collected and provided earlier in the process
Why is it important that the trade should educate themselves about the ISF rules?
It is a violation to fail to submit an ISF when one is required, to submit a late ISF, to submit an inaccurate ISF, to fail to update an ISF, to submit an inaccurate update, or to fail to withdraw an ISF when required.
If an ISF Importer submits a late ISF, Port Directors may assess a claim for liquidated damages against the party in the amount of $5,000 per late ISF under 19 C.F.R. 113.62(j), 113.63(g), 113.64(e), 113.73(c), or Appendix D to Part 113 of 19 C.F.R. for violation of 19 C.F.R. 149.2.
If an ISF Importer submits an inaccurate ISF, Port Directors may assess a claim for liquidated damages against the party in the amount of $5,000 per inaccurate ISF under 19 C.F.R. 113.62(j), 113.63(g), 113.64(e), 113.73(c), or Appendix D to Part 113 of 19 C.F.R. for violation of 19 C.F.R. 149.2. With regard to liquidated damages claims assessed for an inaccurate ISF, CBP will consider the transmission closest in time to, but prior to, 24 hours prior to lading, prior to lading, or 24 hours prior to arrival, whichever is applicable.
If an ISF Importer submits an inaccurate ISF update pursuant to 19 C.F.R. 149.2(d), Port Directors may assess a claim for liquidated damages against the party for the first inaccurate ISF update in the amount of $5,000 under 19 C.F.R. 113.62(j), 113.63(g), 113.64(e), 113.73(c), or Appendix D to Part 113 of 19 C.F.R. for violation of 19 C.F.R. 149.2
The following resources are very helpful:
Importer Security Filing ’10+2′
ISF Violations and Penalties Mitigation Guidelines