Last week, U.S. Customs and Border Protection (CBP) announced that the agency will begin issuing liquidated damages against importers and ocean carriers filing the Importer Security Filing (ISF) for non-compliance. These penalties will be enforced starting on July 9th (including “10+2″ submissions due to CBP on or after July 9th).
CBP officials stated that ocean carrier compliance with the Stow Plan submission requirements in the “10 + 2″ rule have been very good and are “in the high nineties” in percentage terms. With respect to Container Status Messages (CSMs), CBP stated that compliance has been lower – particularly for carriers that selectively send only the required CSMs to CBP to comply with the rule (i.e. carriers that do not file a “global dump” of their CSMs to CBP).
It was also noted that ISF-5 requirements, which apply to freight remaining on board (FROB), immediate exportation (IE) and transportation and exportation (T&E) shipments, will not be enforced as proposed regulations. Which carrier is responsible for these filings is still under DHS review.
It is understood that for the first few months of enforcement, review of all liquidated damages cases initiated by CBP Port Directors by CBP Headquarters will be undertaken before they are processed. Although there is statutory authorization for CBP to issue civil penalties up to the value of the merchandise, the agency’s current policy is to issue liquidated damages of $5,000.00 for each 10 + 2 rule violation discovered (up to $50,000.00 per arrival for stow plan non-compliance and up to $100,000.00 per arrival for CSM non-compliance).