Expeditors Newsflash 02 December 2008 - #44

Importer Security Filing (10+2) Interim Final Rule: Penalties, Bonds and Outreach

Editor’s Note: The following is part of a series of Newsflashes detailing individual sections of the interim Final Rule issued by U.S. Customs and Border Protection titled Importer Security Filing and Additional Carrier Requirements. 

On November 25, 2008, U.S. Customs and Border Protection (Customs, CBP) published in the Federal Register an interim final rule regarding its Importer Security Filing and Additional Carrier Requirements program, commonly known as Importer Security Filing (ISF) or “10 + 2”. The rule requires importers and vessel carriers to electronically submit additional data items about imported cargo to Customs other than data currently submitted when making entry or manifesting cargo. 

The interim final rule reflects certain changes from the ISF proposed rule published in the Federal Register on January 2, 2008 which outlined the new additional data requirements, and explained other regulations related to the ISF program. One of the changes deals with liquidated damages for violations of the ISF filing requirement. Instead of damages in the amount of the merchandise value as previously proposed, Customs stated the damages amount would be $5,000 per violation. 

Customs also added new statutes related to bonds. Under the ISF program, Customs created an importer security filing bond and added corresponding regulations into relevant sections of the current Code of Federal Regulations (CFR). The new importer security filing bond and basic custodial bond are added to the list of bonds that may be posted for ISF purposes. Additionally, in responding to a public comment, Customs explained that “CBP is allowing the use of the basic importation and entry bond, as modified by this rulemaking, for Importer Security Filing purposes.” 

Customs has also proposed an outreach program to support the trade in its efforts to successfully implement the rule. The outreach program will consist of seminars and round table discussions in all regions of the country, which will focus on “topics related to this rule, technical, operational, and process components.” Customs’ proposed beginning its outreach activities 30 days after the interim final rule was published in the Federal Register, and concluding around 135 days after publication. 

The effective date for the rule is January 26, 2009. 

Expeditors Newsflash, 44 20 8745 8600, expeditors.newsflash@expeditors.com