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Full Enforcement of ISF Provision
Per CBP's Cargo Systems Messaging Service (CSMS) #09-000371:
"On January 26, 2009, the filing requirements for Importer Security Filing became mandatory. CBP expects all filers to be filing ISF data for any ocean shipment entering the U.S. While CBP has provided a one year flexible enforcement period to allow filers to work through various problems and to come into compliance with these requirements, the end of that time frame is fast approaching. Please be sure ISF data is filed for every applicable ocean shipment that you are importing into the U.S."
The message is simple. Filing the ISF information with CBP has been mandatory since January 26, 2009, and full enforcement of the provision of the rule will begin on January 26, 2010. Anyone who believes that they can wait to create their compliance program has already waited too long.
It is imperative for importers to contact all of their overseas suppliers to make sure that they are on the same page regarding compliance with the ISF regulations. An unexpected shipment of samples could prove costly if communication is not begun early in the shipping process.
ISF applies to all shipments arriving on an ocean vessel into a US ocean port. If ISF has not been filed, no other Customs entry can be filed and that shipment could be seized and moved into a General Order (GO) Warehouse pending filing of ISF and applicable import/transportation entry. If ISF is filed late or contains inaccurate data, the importer will be liable for liquidated damages of up to $10,000 per shipment.
Two ISF topics about which we have had many questions are 1) the timing of the filing and 2) the bill of lading requirement.
ISF must be filed 24 hours prior to the freight (container) being loaded onto the vessel that will be bringing it to the US port of unlading. This may be the vessel at port of export, but the freight may be routed so that it passes through additional foreign ports and is moved from the original vessel onto other ocean vessels before it arrives into the US. The requirement is based on the time of loading onto the last vessel before it arrives into the US port. In practice, the ISF information should be sent to CBP as soon as it is available, but in no case should the ISF data elements be transmitted to CBP after the freight has already been laden onto the vessel that will bring it to the US port of unlading.
The bill of lading (BL) is required by Customs so that the ISF can be linked to the Ocean Automated Manifest Systems (AMS); without this linkage to AMS, CBP has no reference for matching the ISF to a shipment. It is obvious that the BL transmitted with the ISF data to CBP must be the same BL transmitted to CBP in AMS. ISF must be filed using the House bill of lading (HBL) if a HBL was transmitted via AMS, and if no HBL was transmitted via AMS the straight BL must be used.
If an importer feels that too much confidential information is being sent with the ISF data, it is important to note that the ISF information transmitted to CBP is considered to be confidential and exempt from disclosure laws.
CBP's latest ISF FAQ is a good place to find additional information:
http://www.cbp.gov/linkhandler/cgov/trade/cargo_security/carriers/security_filing/
10_2faq.ctt/10_2faq.doc
Report on "First Sale Rule" usage is published
Using the "first sale rule," the transaction value of imported goods (that have been subject to multiple sales transactions) can be set to the value of a transaction prior to one at time of exportation to the US.
From September 1, 2008, to August 31, 2009 US Customs and Border Protection (CBP) collected information regarding whether the entered value of import entries was based on the "first sale rule" prior to the exportation of the merchandise to the US. CBP then passed that data to the U.S. International Trade Commission (USITC). A report based on that data has been published by USITC.
The value of US imports using the "first sale rule" is about 2.4%, and of these more than 21% are for duty free merchandise from Canada, Mexico, and the US Virgin Islands.
The following is a link to the press release on the report:
http://www.usitc.gov/press_room/news_release/2009/er1223gg1.htm
Visit the following link to view the full report:
http://www.usitc.gov/publications/332/pub4121.pdf
Extension of GSP & ATPA
In mid-December both houses of Congress passed a bill to extend both Generalized System of Preferences (GSP) and the Andean Trade Preference Act (ATPA), and on December 28, the President signed the legislation extending both trade acts for another year. The GSP program assigns duty-free treatment to certain merchandise imported from 131 developing countries; the ATPA program currently applies to imports from Colombia, Ecuador and Peru.
ACE Portal Accounts
Customs published CSMS #09-000362 to reconfirm to the public that applications for new ACE Portal Accounts are being accepted and processed by CBP on a continual basis. If you are interested in obtaining an ACE Portal Account, information and the ACE Application can be found by visiting the following link:
http://www.cbp.gov/xp/cgov/trade/automated/modernization/ace_app_info/
Intellectual Property Rights: CBP, ICE Release Annual Report on Counterfeit Goods Seized
Intellectual Property Rights (IPR) is one of CBP's Priority Trade issues. The annual report on what has been seized and where it originated has been published by Customs. The top 10 categories of IPR infringing products seized include footwear, consumer electronics, wearing apparel, computers/hardware, pharmaceuticals, and toys/electronic games. The number one source country for counterfeit and pirated goods seized is China.
Here is a link to the news release:
http://www.cbp.gov/xp/cgov/newsroom/news_releases/12032009_2.xml
Here is a link to the report:
http://www.cbp.gov/linkhandler/cgov/trade/priority_trade/ipr/seizure/fy09_stats.ctt/
fy09_stats.pdf
And here is a link to CBP's Informed Compliance publication on the Enforcement of IPR:
http://www.cbp.gov/linkhandler/cgov/trade/legal/informed_compliance_pubs/
enforce_ipr.ctt/enforce_ipr.pdf
Customs Rulings
CBP has recently posted a new Informed Compliance Publications titled "U.S. Customs & Border Protection Rulings Program."
Obtaining a ruling from CBP can be very beneficial for an importer. This publication describes what ruling is and explains the process of requesting a ruling. It also details what can be done after CBP has responded to the ruling request.
Here is a link to CBP's informed compliance publication on their Ruling Program:
http://www.cbp.gov/linkhandler/cgov/trade/legal/informed_compliance_pubs/
cbp_rulings_prog.ctt/cbp_rulings_prog.pdf
Travel Advisory
The attempted bombing of a passenger airplane on Christmas day brings into focus the possibility of terrorist actions against civilian targets.
You can find valuable information for packing/preparing for a trip at the US Customs and Border Protection (CBP) site:
http://www.cbp.gov/xp/cgov/travel/
and Transportation Security Administration (TSA) travel site:
http://www.tsa.gov/travelers/index.shtm
If you are planning on traveling outside the country, it is a very good idea to check the State Department's Travel website for country specific information, traveler warnings, and travel alerts. The following website is constantly updated:
http://travel.state.gov/
To follow is a link to a December 29 alert regarding security in India:
http://travel.state.gov/travel/cis_pa_tw/pa/pa_4624.html
Remote Location Filing (RLF)
The final rule for the RLF was published in the Federal Register on December 30, 2009.
RLF has been active as a pilot program for many years. It allows a broker to electronically file a consumption entry with related electronic documentation from a location other than where the goods will arrive into the US.
The full text of the article contains many comments and the applicable changes to Customs regulations.
A copy of the article in text format can be found at:
http://edocket.access.gpo.gov/2009/E9-30736.htm
A copy of the article in pdf format can be found at:
http://edocket.access.gpo.gov/2009/pdf/E9-30736.pdf
Consumer Product Safety Improvement Act (CPSIA)
Information is constantly being published pertaining to this far reaching piece of legislation. It's a good idea to check back to the website frequently for the latest news: http://www.cpsc.gov/about/cpsia/cpsia.html
Some of the updates in December involved:
- The policy on Component Testing and Certification of Children's Products and Other Consumer Products to the August 14, 2009 Lead Limits.
- A new rule requiring manufacturers of durable infant or toddler products to establish and maintain a registration card program.
- The United States Consumer Product Safety Commission lifting of the stay of enforcement as previously announced; as of February 11, 2010, with some exceptions, manufacturers (including importers) and private labelers of consumer products and children's products must comply with the testing and certification requirements of the Consumer Product Safety Act (CPSA), as amended by the Consumer Product Safety Improvement Act (CPSIA). Products subject to CPSA or FHSA bans which are not expressly addressed by the Commission in this document do not require certification at this time.
- A Q&A on Third Party Testing and Firewalled Laboratories.
- The Interim Enforcement Policy on Component Testing and Certification of Children's Products and Other Consumer Products to the August 14, 2009 Lead Limits.
If you have any questions or comments regarding the Compliance eNewsletter,
please contact Paul Codere from the Customs Brokerage Department. |
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