Importing and Exporting: Now I have a penalty $5,000.00 from Importer Security Filing, what do I do?
U.S. Customs and Border Protection, Department of Homeland Security has published in the Federal Register on July 17th, 2009, the guidelines for the assessment and cancellation of claims under the Importer Security Filing requirements.
As your Custom Broker Expert, I mentioned on previous published article “How to save $5,000.00 on your next importation” that for every ocean importation beginning January 26, 2009, ten data elements must be transmitted within 24 hours prior to lading container into the vessel with destination to any port in the USA.
If any changes occur in the original transmission or more accurate information has become available, updates can be done prior to the goods arriving within the limits of the destination port in the USA, but only in two elements.
A violation will trigger a penalty for; failure to file ISF, late filing or inaccurate data. Any of these will carry a potential $5,000.00 penalty. In the case of not file, CBP will withhold release or transfer the goods until ISF requirements has been fulfill.
Fortunately, there are guidelines that will assist in the mitigation of these penalties.
First violation for late filing or inaccurate ISF or an inaccurate ISF updates, claim may be canceled upon payment of an amount between $1,000.00 and $2,000.00, depending on factors and if enforcement goals were not compromised.
Subsequent violations, claim may be canceled upon payment of an amount of not less of $2,500.00, if enforcement goals were not compromised.
No relief will be granted if CBP determines that law enforcement goals were compromised by the violation.
Factors: Mitigating and aggravating.
Mitigating factors
- Early implementation and participation during flexible enforcement period.
- Small percentage of violations.
- C-TPAT certified member under Tier 2 or Tier 3 criteria.
- Remedial action i.e. procedures to prevent future occurrences.
- Factors outside ISF Importer’s control.
- Inaccurate data received from another party.
Aggravating Factors
- Lack of Cooperation
- Evidence of smuggling or attempt to circumvent the law
- Multiple errors on the ISF
- Rising error rate.
As your Custom Broker Expert, there are simple steps you can take to reduce your exposure.
- Early adoption
- Implementation of procedures
- C-TPAT participation
The writer, Francisco Ramirez Jr. is the Managing Partner of Automated Customs Experts Group, Inc. in San Diego, CA. He is also in the process of publishing his first book of most frequent importing mistakes. This will assist importers in developing procedures to avoid potential penalties. You can contact Francisco Ramirez Jr at 619-710-4920 or framirez@acelogisticsgroup.com
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