Penalties for ISF-5 filings begin March 15, 2019

Posted on Mar 14

Effective March 15, 2019, U.S. Customs and Border Protection is ending its delayed enforcement period for ISF-5 type violations and will begin issuing liquidated damage claims.

ISF-5 is for cargo passing through the U.S. in the form of Freight Remaining on Board (FROB), or cargo intended to move through the US under a Transportation & Exportation (T&E) or Immediate Exportation (IE) bond. It is called ISF-5 because there are only 5 data elements required prior to vessel loading, rather than the typical ISF-10.

The ISF-5 data elements are:
• Booking Party
• Foreign Port of Unlading
• Place of Delivery
• Ship to Party
• Commodity HTSUS Number

Note: CBP published a rule on April 12, 2018 (effective May 14, 2018) which expanded the definition of the Importer Security Filing (ISF) “Importer” for certain types of shipments. The changes were necessary to ensure that the ISF Importer included parties that have a commercial interest in the cargo, and have best access to the required data. 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.

CBP is ending its delayed enforcement period for ISF-5 violations and will begin issuing liquidated damages claims for violations of the ISF-5 requirements on March 15, 2019. Filers will want to be compliant before that date to avoid penalties.

If you have any questions, please contact your account team.