ISF / 10+2 CTPAT Benefits
CBP has announced that they will provide significant benefits to CTPAT members who comply with the Importer Security Filing (ISF) / 10+2 program.
CBP assigns a “risk-value score” to each shipment, based on the ISF/10+2 filing.
In general, CBP will decrease the number of inspections for:
- CTPAT members
- Foreign Suppliers (if eligible) that are CTPAT members
- Foreign Suppliers that have been inspected (validated) by CBP
Since the ISF number must be issued in order for the container to be loaded on the steamship, CBP is made aware of the importer’s CTPAT status in advance of the container’s arrival in the U.S. Therefore, there is no confusion as to whether or not the importer is a CTPAT member, and the importer receives CTPAT benefits well before the container arrives in a domestic port.
Additional benefits to CTPAT members include:
- CTPAT entities will be reliably identified prior to lading
- Tangible CTPAT benefits will be applied far upstream
- Validation of Supply-Chain Security Reviews
Up to 50% Off Penalty Fines Associated with ISF (10+2)
On January 26, 2009, CBP committed to a one year delayed enforcement period with regards to the Importer Security Filing (ISF) Program and the Additional Carrier Requirements, also known as “10 + 2”. In January 2010, CBP will begin to enforce the penalties associated with this program.
CBP has issued guidelines that the agency will follow in determining penalties for importers who violate the ISF. Listed below are four violations subject to penalties.
- Failure to file. This is the most serious violation, subject to the most severe level of potential penalties.
- Late filing. The Interim Final Rule requires the importer to file the ISF no later than 24 hours prior to lading at foreign origin.
- Inaccurate filing. Providing incorrect data, both in an initial filing, but may also apply in subsequent filings (e.g., amended ISF).
- Failure to withdraw a filing. Withdrawal of an ISF that is known to be invalid is required. An invalid ISF includes an order that has been cancelled, discovery of significant change in information necessitating a new ISF, a complete change in routing, or other substantive change.
Each one of the above-listed violations is potentially subject to $5,000.00 in liquidated damages. A single ISF could have more than one violation, and therefore, more than one penalty applied. For instance, an importer can violate both the late-filing rule and the inaccurate-information rule. This importer would be subject to a $10,000.00 penalty for the incorrect ISF.
On July 15, 2009, CBP announced that CTPAT members will be eligible for additional mitigation (up to 50%) of the normal mitigation amount. Based upon the projected CBP penalty fee structure, this benefit can result in significant savings to your company.
For more information regarding the ISF/10+2 program, please visit: http://www.cbp.gov/xp/cgov/trade/cargo_security
Please note, that although your company may have experienced minimal or no customs inspections in the past, the ISF/10+2 program will now result in CBP scrutinizing all import shipments more closely than ever before. This intensified scrutiny may now result in increased inspections for your shipments.
New FDA CTPAT Benefits
On January 15, 2009, the Food and Drug Administration (FDA) announced an opportunity for sponsors and foreign manufacturers of finished drug products and active pharmaceutical ingredients (APIs) intended for human use, which are imported by a secure supply chain, to apply to participate in a voluntary Secure Supply Chain (SSC) pilot program. This program will expedite entry of these products imported into the United States.
In order to be eligible for this pilot program, one of the criteria is that the SSC applicant must have either a pending application or be certified with the CBP Customs Trade Partnership Against Terrorism (CTPAT) Tier II certified secure supply chain. Both applicants to the SSC pilot program and firms identified in the SSC application must be CTPAT Tier II certified or Tier II pending certification at the time an application is submitted for participation in the pilot program.
Below is the link to the FDA announcement. Please contact us for information on joining the CTPAT program (Tier I) and CTPAT validation (Tier II).