Penalties for ISF-5 Violations Begin March 15th, 2019


By Misty Gibbins, Pacific Customs Brokers Inc. 2019-03-12

On May 14, 2018, CBP expanded the definition of the Importer Security Filing (ISF) Importer for ISF-5 filing requirements.

 

ISF-5 filings include Foreign Cargo Remaining on Board (FROB) as well as shipments imported in bond for export under Immediate Export (IE), Transportation & Exportation (T&E) Bonds, and goods entered into a Foreign Trade Zone (FTZ).

 

CBP advised that the changes were necessary to ensure that the ISF Importer included parties that had a commercial interest in the shipments and therefore would have the best access to the data required.

 

Prior to the expanded definition the ISF Importer for ISF-5 shipments was limited to the carrier in the case of FROB cargo; for shipments filed under the IE, T&E or FTZ the Importer was defined as the party filing the bond.

 

Under the expanded definition the importer for FROB cargo was expanded to include non-vessel operating common carriers (NVOCC’s); for shipments entered under IE and T&E in-bond shipments and FTZ entries, the importer was expanded to include the goods owner, purchaser, consignee or agent such as a licensed customs broker.


 

Enforcement on the expanded definitions was due to become effective on January 21, 2019, however was pushed back due to the government shutdown.

 

The new enforcement date for compliance is March 15, 2019.  Violations occurring after this date will be subject to Liquidated Damages (penalties) for non-compliance.


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