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Late ISF Filing Penalty
The Importer Security Filing (ISF) Importer, or its agent, must submit an ISF
before cargo is laden at a foreign port for all non-bulk cargo destined to
arrive in the United States by vessel. It is a violation to fail to submit an ISF
when one is required, to submit a late ISF, to submit an inaccurate ISF, to
fail to update an ISF, to submit an inaccurate update, or to fail to withdraw
an ISF when required. For more information on ISF requirements, refer to
the regulations in 19 C.F.R. Part 149 and the Interim Final Rule that CBP
published as CBP Decision 08-46 in the Federal Register (73 FR 71730) on
November 25, 2008.
CBP will assess liquidated damages in accordance with the relevant mitigation guidelines
which were published in the CBP Bulletin on July 17, 2009. While there may be multiple
errors on an ISF transmission, in accordance with the guidelines, CBP may assess a claim
for liquidated damages as follows: $5,000 per late ISF, $5,000 per inaccurate ISF, and
$5,000 for the first inaccurate ISF update.
In addition to liquidated damages that may be assessed as provided for below, the
failure of an arriving carrier or Importer Security Filing (ISF) Importer to provide the
required advance electronic cargo information in the time period and manner
prescribed by the regulations in Title 19, CFR, may result in the issuance of a do
not load (DNL) hold, the delay or denial of a vessel carrier’s preliminary entrypermit/special
license to unlade and/or the assessment of any other applicable
statutory penalty. CBP may also withhold the release or transfer of the cargo until
CBP receives the required information and has had the opportunity to review the
documentation and conduct any necessary examination.
Assessment of Liquidated Damages Claims for Importer Security Filing
Violations
The ISF Importer must provide a bond (or use an agent’s bond) when
the ISF is submitted to CBP. The following bonds can be obligated to
secure an ISF: Basic Importation and Entry Bond (19 C.F.R. 113.62), Basic
Custodial Bond (113.63), International Carrier Bond (19 C.F.R. 113.64),
Foreign Trade Zone Operator Bond (19 C.F.R. 113.73), or Importer Security
Filing Bond (Appendix D to Part 113 of 19 C.F.R.).
- Late filing. If an ISF Importer submits a late ISF, Port Directors may
assess a claim for liquidated damages against the party in the amount
of $5,000 per late ISF under 19 C.F.R. 113.62(j), 113.63(g), 113.64(e),
113.73(c), or Appendix D to Part 113 of 19 C.F.R. for violation of 19
C.F.R. 149.2.
- Inaccurate filing. If an ISF Importer submits an inaccurate ISF, Port
Directors may assess a claim for liquidated damages against the party
in the amount of $5,000 per inaccurate ISF under 19 C.F.R. 113.62(j),
113.63(g), 113.64(e), 113.73(c), or Appendix D to Part 113 of 19 C.F.R.
for violation of 19 C.F.R. 149.2. With regard to liquidated damages
claims assessed for an inaccurate ISF, CBP will consider the
transmission closest in time to, but prior to, 24 hours prior to lading, prior
to lading, or 24 hours prior to arrival, whichever is applicable.
- Updates. If an ISF Importer submits an inaccurate ISF update pursuant
to 19 C.F.R. 149.2(d), Port Directors may assess a claim for liquidated
damages against the party for the first inaccurate ISF update in the
amount of $5,000 under 19 C.F.R. 113.62(j), 113.63(g), 113.64(e),
113.73(c), or Appendix D to Part 113 of 19 C.F.R. for violation of 19
C.F.R. 149.2.
- Withdrawals. If an ISF Importer fails to withdraw an ISF as required by
19 C.F.R. 149.2(e), Port Directors may assess a claim for liquidated
damages against the party in the amount of $5,000 under 19 C.F.R.
113.62(j), 113.63(g), 113.64(e), 113.73(c), or Appendix D to Part 113 of
19 C.F.R. for violation of 19 C.F.R. 149.2.
Cancellation of Liquidated Damages Claims for ISF Violations
- First violation. If an ISF Importer incurs a liquidated damages claim for
filing a late or inaccurate ISF or an inaccurate ISF update, the liquidated
damages claim may be cancelled upon payment of an amount between
$1,000 and $2,000, depending on the presence of mitigating or
aggravating factors, if CBP determines that law enforcement goals were
not compromised by the violation.
- Subsequent Violations. If an ISF Importer incurs a subsequent
liquidated damages claim for filing a late or inaccurate ISF or an
inaccurate ISF update, the liquidated damages claim may be cancelled
upon payment of an amount not less than $2,500 if CBP determines that
law enforcement goals were not compromised by the violation.
- No relief will be granted if CBP determines that law enforcement goals
were compromised by the violation.
Failure to File
If goods for which an ISF has not been filed arrive in the United States,
CBP shall withhold the release or transfer of the cargo until CBP
receives the required ISF information and has had the opportunity to
review the documentation and conduct any necessary examination.
CBP also reserves the right to limit the permit to unlade so as to not
permit unlading of merchandise for which no ISF has been filed, and, if
such cargo is unladen without permission, it may be subject to seizure.
All seizures will be approved by CBP Headquarters.