CBP Updates its Importer Self-Assessment Handbook

The ISA Handbook contains an introduction to the ISA program, as well as chapters regarding program description and requirements; application, processing, and acceptance; procedures and acceptance; revocation procedures; and various appendices.

(ISA is a voluntary approach to trade compliance. The program provides the opportunity for importers who have made a commitment of resources to assume responsibility for monitoring their own compliance in exchange for benefits.)

The Handbook has been revised to include an updated Appendix H on notification requirements and a new Appendix I on self testing:

Revised Appendix on Annual Notification Requirements

Appendix H, ISA Annual Notification Requirements, of the ISA Handbook has been revised. This appendix provides instructions for preparing the ISA Annual Notification Letter (ANL). All approved ISA companies must follow these instructions.

The following are highlights of the appendix:

Participant Must Submit ANL to Confirm They Meet C-TPAT/ISA Requirements

The purpose of the ANL is to confirm that the participant continues to meet the requirements of the ISA Program and informs CBP of any business modifications that may have a potential impact on the company’s CBP operations.

The ISA participant must submit its first written ANL to the Chief, Partnership Programs Branch (with a copy to its CBP Account Manager) 13 months after its ISA Program acceptance date. The ANL is due every 12 months thereafter.

Certain Information Must be Included in ANL

Below is information that is required to be included in the ANL. CBP notes that this list is not all-inclusive and represents the minimum requirements:

• Summary of organization changes* (e.g., mergers/divestitures, additions/deletions of importer of record numbers from the ISA Program)
• Summary of personnel changes
• Summary of import activity changes (e.g., changes in commodities imported, CBP trade programs, country of origin, brokers, compliance department organizational structure, etc.)
• Summary of internal control policy or procedure adjustments and changes
• Summary of risk assessment results
• Summary of periodic testing results
• Summary of post-entry amendments and/or disclosures made to CBP

*An amended MOU must be prepared and attached to the ANL if additional importer of record numbers and/or merged/acquired entities with its own unique importer of record number will be added to an ISA approved business unit/division.

(See Appendix H for sample ANL.)

ANL Can be Sent to CBP via Email or Regular Mail

The ANL should be sent to the Chief, Partnership Programs Branch via email tppb-isa@dhs.gov or to the following address.

U.S. Customs and Border Protection

Office of International Trade

Chief, Partnership Programs Branch

1400 L Street, N.W.

Washington, D.C. 20229-1143

New Appendix on ISA Self Testing Plan Guidance

A new Appendix I, ISA Self Testing Plan Guidance, has been added to the Handbook. The following are highlights of the new appendix:

ISA Self-Testing Plan is a Key Component to ISA Program

The ISA self-testing plan is a key component of the ISA program since it is the documented process of how a company will conduct its self-monitoring once approved for participation in the ISA program. CBP’s expectation is that the self-testing plan will be detailed with regard to what will be reviewed, how often, and by whom.

There is no ‘cookie cutter’ template nor is there a ‘right’ or ‘wrong’ when it comes to the development of an ISA self-testing plan. The plan is unique to each company based upon risk factors associated with its business, imported commodities, processes, and procedures.

The factors and questions below are meant to help guide the thought process as a company documents its ISA self-testing plan.

Factors to Consider:

• Volume of imported goods by value and quantity
• Complexity and variety of Harmonized Tariff Schedule classifications
• Valuation Basis of Appraisement
• Related party transactions
• Additional payments (e.g., assists, royalties, indirect payments)
• Special Trade Programs
• Free Trade Agreements
• Special Classification Provisions (e.g., Chapter 98)
• Priority Trade Issues
• Requirements of other government agencies at the time of importation
• Number of Customs brokers utilized
• Quality/quantity of pre- or post-entry reviews

Questions to Consider:

• What areas will be reviewed, and how will that be determined (e.g., classification, valuation, special trade programs, etc.)?
• How will the areas be reviewed (e.g., the types of documents to be reviewed, the documentation elements being reviewed, etc.)?
• How frequent are the review (i.e., daily, monthly, quarterly, and/or annually)?
• Who will conduct the reviews?
• How many entries or line items will be reviewed? How will they be selected?
• How will the sampled items and results of the review be tracked and maintained?
• How will errors be addressed (e.g., post-entry amendment, prior disclosure, etc.)?

(See ITT’s Online Archives or 09/09/05 news, 05090910, for BP summary announcing the most-recent previous update to the ISA Handbook in 2005, etc.

See ITT’s Online Archives or 01/25/10 news, 10012510, for BP summary of CBP discussing ISA at the Trade Symposium.)