CBP to Soon Move to Liquidated Damages Phase of I0+2 Enforcement
During a recent interview with Broker Power, U.S. Customs and Border Protection officials stated that CBP is continuing to move forward with its enforcement of 10+2, including Importer Security Filings (ISF).
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CBP continues to primarily focus its enforcement efforts on those who are still not complying with the 10+2 interim final rule -- either by not filing required ISFs or committing egregious errors.
CBP Continues to Issue NII Holds
CBP is continuing to contact those that are not filing or who are committing egregious errors and is allowing the ports to place a non-intrusive inspection (NII) hold on such shipments.
As for those that are making minor mistakes, CBP has been contacting them and has noticed that they tend to fix the problems and become compliant.
CBP Working on Programming Fix for ISF Holds, Will Then Move to Liq Damages Claims
CBP is working on a programming fix that will allow the trade to go in and file an ISF after a shipment has been placed on hold by CBP, as the trade currently does not have the ability to do so. CBP expects to have this programming change completed within the next few months.
After the new ISF holds programming has taken effect, CBP will move to the liquidated damages phase of 10+2 enforcement. Officials note that claims for liquidated damages could come as soon as the next few months, and they expect to begin issuing claims in 2011. CBP will initially focus the claims on those that are not filing or whose violations are egregious.
There will be no major announcement to the trade when the first claim for liquidated damages is actually issued.
CBP Not Yet Using DNL Messages for Compliance Purposes
At this stage, CBP is not considering using Do Not Load (DNL) messages for compliance purposes; they will only be used for national security purposes. However, at some point in the future, DNLs may be used for compliance purposes.
(CBP has previously stated that DNLs will also be issued on a case-by-case basis as the agency views a DNL as an extreme enforcement measure.)
(The 10+2 interim final rule mandates that importers and vessel carriers submit additional maritime cargo information (10 data elements for importers and 2 data elements for vessel carriers) to CBP before it is brought into the U.S.1 Collection of the additional cargo information and their incorporation into CBP’s Automated Targeting System (ATS) are intended to enhance CBP’s ability to identify high-risk shipments and prevent the transportation of potential terrorist weapons into the U.S.)
1Although the effective date of the 10+2 interim final rule was January 26, 2009, the rule allowed for a one-year flexible enforcement period. Since the end of the flexible enforcement period, CBP has stated that it has been applying a “measured, common sense approach” to enforcement, which includes exercising the least punitive measures necessary to obtain full compliance, evaluating noncompliance on a case-by-case basis, and continuing to provide outreach and guidance to trade industry entities.
(See ITT’s Online Archives or 10/28/10 news, 10102809, for BP summary of CBP officials providing a 10+2/ISF update at the October 2010 Western Cargo Conference (WESCCON) of the Pacific Coast Council of Customs Brokers and Freight Forwarders Associations, where they stated that liquidated damage claims would be case-by-case, etc.)