COAC Recommends Shortening of ISF Statute of Limitations, Online Reports, Etc.

Highlights of the Subcommittee’s recommendations include:

ISF Statute of Limitations Should be Shortened

The Subcommittee argues that since the ISF transaction is not an entry, it has no liquidation cycle and the ISF obligation should end when CBP releases the goods subject to an ISF.

As a result, the Subcommittee recommends the current six year statute of limitations for ISF bonds/transactions be adjusted as follows:

• Consumption entries - upon acceptance of the entry by CBP;
• Carrier filings - 30 days after the date of arrival of the vessel;
• Immediate Exportation (IE) and Transportation & Exportation (T&E) shipments - upon exportation of the merchandise;
• Foreign Trade Zone and bonded warehouse entries - upon admission into the FTZ or bonded warehouse; and
• Foreign Cargo Remaining on Board (FROB) - after vessel departure from last U.S. port.

The Subcommittee states that if notice of liquidated damages is not provided to the importer and surety within the above timeframes, the ISF is considered accepted and no liquidated damages may be issued. (This would not preclude CBP from taking appropriate measures under the statute for fraudulent and/or criminal activity associated with the ISF.)

ISF Progress Reports Should be Online, Available to All Importers

The ISF Subcommittee has also made recommendations for improvements to ISF progress reports for Tier 2/3 C-TPAT members, highlights of which include:

• Reports should be available/accessible on-line in some capacity (either via ACE or the C-TPAT Secure Portal);
• Report frequency should be at least monthly, preferably more frequently;
• Report should reflect the percentage rating for accepted and on-time;
• ISF progress reports that cover multiple importer of record numbers for large importers should be sent as one report, with individual IOR breakouts;
• In the future, progress reports should be available to all importers (not just C-TPAT members) as ISF is a mandatory requirement for all importers transporting goods via vessel. Specific details on the importer’s compliance with the regulation should be available to all -- not just C-TPAT -- importers; and
• CBP should continue to pursue the option of providing large importers with a data dump, extract or download for ease of handling.

Auto Letters to Non-Compliant Filers, Online Training Recommended

COAC’s recommendations for CBP’s continued ISF outreach for 2010 include:

• Automated CBP letters to non-compliant filers;
• Engagement of the Small Business Administration to help with outreach to small and medium sized businesses;
• Engagement of the Federal Maritime Commission to help with outreach to supply chain partners in foreign markets (forwarders and non-vessel-operating common carriers);
• Targeted outreach to C-TPAT members; and
• Online training.

(See ITT’s Online Archives or 05/13/10 news, 10051310, for BP summary of May 11, 2010 COAC meeting.

See ITT’s Online Archives or 04/19/10 and 04/29/10 news, 10041905 and 10042915, for BP summaries of the ISF’s plans to submit recommendations to CBP.)

ISF Subcommittee recommendations on ISF finalization (posted 05/14/10) available at http://www.cbp.gov/linkhandler/cgov/trade/trade_outreach/coac/meetings/isf_transaction_2.ctt/isf_transaction.doc.

ISF Subcommittee recommendations on ISF progress reports (posted 05/14/10) available at http://www.cbp.gov/linkhandler/cgov/trade/trade_outreach/coac/meetings/progress_rpt.ctt/progress_rpt.doc.

ISF Subcommittee recommendations on ISF outreach (posted 05/14/10) available at http://www.cbp.gov/linkhandler/cgov/trade/trade_outreach/coac/meetings/outreach_recomm.ctt/outreach_recomm.doc.