Most importers know about the new US Import Security Policy that went into effect January 26, 2009. It requires importers and vessel operating ocean carriers to provide US Customs and Border Protection CBP with advance notification for all ocean vessel shipments inbound to the United States. The U.S. Import Security Policy is commonly known as the 10+2 ISF Importer Security Filing.
The new US Import Security Policy places the burden of compliance to the new security filing on the U.S. importer. Generally most importers do not clear their own goods directly with US Customs and know little about customs bond requirements. In many cases, customs bonds are arranged by the customs broker when the importer provides a signed Power of Attorney to the customs broker authorizing them to interface with US Customs on their behalf.
The new US Import Security Policy requires an Importer Security Filing ISF bond. The bonding requirement has created confusion with small importers. Recently US Customs and Border Protection (CBP) issued some clarification regarding the Importer Security Filing ISF bond. Below is clarification that US Customs and Border Protection (CBP) provided:
When will the bonds, including the stand alone ISF bonds be required? January 26, 2009 or January 26, 2010? Can we file ISFs during the delayed compliance period without obtaining a bond first? CBP Answer: Due to the structured review and flexible enforcement period, bonds will not be required until January 26, 2010. Therefore, ISFs may be filed during this period without obtaining a bond first. However, CBP is prepared to accept bond information in the ISF filing starting on January 26, 2009.
If an ISF agent allows his bond to be obligated, is he considered the ISF Importer with all of the liabilities associated with the ISF filing? CBP Answer:
If an agent is submitting an ISF on behalf of another party and the agent posts its bond, the agent agrees to have its bond charged if there are breaches of obligations regarding the filing. However, the ISF Importer remains ultimately liable for the complete, accurate, and timely ISF filing.
If the importer does not have a bond, can the ISF filer obligate its own bond? CBP Answer: Yes, the filer can obligate its own bond. See 19 CFR 149.5(b)
Will an import bond rider be required to fulfill the regulatory changes required in the ISF rule? CBP Answer: No. The Rule amends the terms and conditions of the activity code 1 (basic importation), 2 (custodial), 3 (international carrier) and 4 (foreign trade zone operator) bonds to include the obligation to meet ISF filing requirements. No rider is necessary for any of these bonds.
What is the process of notifying CBP that a bond is actually on file? CBP Answer: Use of single transaction bonds may be allowed on a case-by-case basis. CBP is currently in discussions with trade groups regarding the process for the use of a single transaction bond for an ISF filing.
Can a single transaction bond be utilized for the ISF filing? If a broker does not have a continuous bond and the importer does not have a continuous bond how will a bond for ISF be filed? Will CBP allow the use of a single transaction bond? If so, how will this actually work? Will there be paperless single transaction bonds for ISF purposes? CBP Answer: Use of single transaction bonds may be allowed on a case-by-case basis. CBP is currently in discussions with trade groups regarding the process for the use of a single transaction bond for an ISF filing.
As single transaction bonds for entry require a paper submission to CBP, how will an ISF single transaction bond be matched to an electronic ISF filing? CBP Answer: Use of single transaction bonds may be allowed on a case-by-case basis. CBP is currently in discussions with trade groups regarding the process for the use of a single transaction bond for an ISF filing.
Will CBP accept one bond for the ISF filing and a second bond for entry? Is this true for a continuous bond as well as Single Transaction Bonds? CBP Answer: Yes, if the ISF Importer and the importer of record on the entry are not the same party. And that is true for continuous and single transaction bonds. However, if the ISF Importer and the Importer of Record are the same party and the ISF and entry are submitted to CBP via the same electronic transmission ("unified filing option"), that party must submit one bond for both ISF and entry purposes.
How will ISF bonding requirements be determined when the value of the cargo is unknown? CBP Answer: The liquidated damages amounts are not based on the value of the cargo. That was changed from the proposed to the interim final rule.
How does the agent agree in writing to allow its bond to be used for an importer who doesn't have a bond and why is this necessary? Is there draft language for such "agreement"? Will the agreement be acceptable on a per-ISF basis, a blanket basis, or either (at the filer's option)? CBP Answer: The written agreement could be a power of attorney or other similar document. It is necessary to make clear the authority to use the bond. CBP will not intervene in how this agreement is to be drawn up.
The Interim Final Regulations provide that every ISF Filer/Importer must have a Basic Importation Bond under which the principal agrees to comply with the new provisions of part 149. To the extent that many ISF Filers/Importers have existing bonds, how does CBP intend to enforce this provision when the existing bonds do not contain this language? Is CBP suggesting that ISF Filers/Importers will need to obtain bond riders to reflect this change? How will CBP monitor compliance with this new bond requirement? CBP Answer: All existing activity 1, 2, 3, and 4 bonds now contain this language. Riders are unnecessary.
Will the Bond tie to the entry or will they have to have a Bond for Security Filing and a Bond for entry? CBP Answer: The same bond can guarantee the ISF and the entry if the ISF Importer and the importer of record on the entry are the same party.
For additional information about ISF bond requirements, talk with CBP or your customs broker.
