On December 23, 2009, CBP published technical corrections to the “10 + 2” rule. The corrections expressly permit importers to use single transaction bonds for an Importer Security Filing (ISF) bond, which is required as security for the ISF requirement. The technical corrections also formally specify that, in the event of a breach of the bond, liquidated damages in the amount of US$5,000 per violation must be paid.
Enforcement of the 10 + 2 rule entered into effect on January 26, 2010, and Director of Importer Security Filing, CBP Office of Field Operations, Richard DiNucci announced one day earlier that it will apply an escalated approach as it enters enforcement mode. During the remainder of the first quarter of 2010, CBP will review ISFs for timeliness, completeness and accuracy, and place companies that are not meeting filing requirements on notice to correct any problems. During the second and third quarters, CBP intends to escalate its approach to include placing holds on shipments or conducting nonintrusive inspections (NII) or physical examinations. CBP will not likely issue liquidated damages for ISF violations until the third or fourth quarter. DiNucci notes, however, that CBP reserves the right to take any action necessary to maintain security and ensure compliance.
For more information on requirements under the 10 + 2 rule, please see the October and December 2009 issues of this newsletter.