Importer Security Filing – Commence Filing These days
Posted by M. Stone 15 January, 2012
Importer Security Filing (ISF) has been in effect for months. We are nearly half way by means of the trial period and more than 48,000 importers are filing. Even even though the numbers are escalating there are companies out there that are subject to this regulation that are not filing ISF. If you are 1 of those companies it is time to face reality and start filing. Those companies who decide on to neglect this regulation will really feel the pain come January 2010.
Here is a series of excellent factors why you must be concerned if you are a maritime importer and have not but addressed Importer Security Filing:
First, to implement ISF a quantity of modifications or new procedures may be necessary within your supply chain to gather all ten (ten) of the information components you are required to offer (actually it really is eleven (11) information components with the requirement to offer the bill of lading number).
And of course with modify comes the want for intensive communication, education, testing and debugging.
As with most US import laws and regulations, the importer of record owns 100% of the liability for filing a timely and accurate Importer Security Filing. This liability cannot be absolved or otherwise abdicated, even if you have an agent file on your behalf. You may possibly have recourse in a civil proceeding against that agent, but in the eyes of CBP the importer owns all of the liability and penalties that might be assessed. In reality it is the importer of record´s surety bond that assures and guarantees the payment of potential penalties.
And speaking of penalties, a sensitive and at times painful topic for some importers, CBP and Congress are deadly significant about ISF infractions or errors when complete enforcement of the rule begins in January 2010.
As this went to press, the Importer Security Filing mitigation recommendations had not been issued, they are expected to be released any day. But from all indications, each publicly and privately, CBP is getting pretty challenging-nosed about the enforcement phase and errors or untimely filings right after January 26, 2010 will cost ,000 every single. Furthermore, unless it is just posturing, citing their opinion that the trade has had adequate time to make the required adjustments, CBP has publicly advised that they are unwilling to push out or take into account a additional delay in the enforcement period.
We are currently almost half way by way of the enforcement moratorium and the retail peak season lies just ahead. Ahead of you know it January will be upon us and you do not want to be caught in the final minute rush to implement.
CBP (aka the “Government”) is keeping track of your Importer Security Filing Efficiency, or as the case could be lack thereof. The first series of 100 ISF Efficiency reports were released by CBP to the trade the week of Could 4th. Far more reports are expected any day now. The report consists of 3 areas of interest your company´s Submission Volume, Rejection Error Frequency and Timeliness Performance. Organizations interested in receiving their report ought to read CBP Message CSMS #09-000161 dated April 6, 2009, and follow the directions contained therein. According to CBP early adaptors are likely to obtain specific consideration throughout the mitigation method if errors resulting in penalty actions happen following the enforcement date. Those companies who adopt late will be at the mercy of the Fines, Penalties and Forfeiture Officer.
Lastly, if you are holding out on Importer Security Filing implementation since you assume at the final moment it will be repealed, drastically diluted or otherwise delayed, the likelihood of such actions at this juncture are practically nonexistent in my humble opinion. This initiative or regulation has a “national security tag” on it which affords it unique deference inside the government and tends to make it nearly invincible. ISF is but one more layer of CBP’s multi-layered provide chain security approach.
Many importers, given the significant nature of the penalties and liability, are electing to prepare and file the Importer Security Filing directly. Furthermore, absorbing new charges (ranging from a low of to a high of ) is a bitter pill to swallow during these tough economic times. Net-based Importer Security Filing solutions, make direct-filing an ISF simple and really price useful. An ISF can literally be filed in a matter of seconds and takes only two screens to full. Direct-filing makes sense because it is the importer who will generally gather the necessary ISF information, and it is also the importer who is liable for timely and correct filing. And, simply because filing an Importer Security Filing is not considered to be “customs organization” by CBP, direct-filing importers do not require to be concerned about obtaining a CBP Filer Code, and there are no permits or licenses needed.
