01/19/2009

News / Carnet and the Importer Security Filing

The purpose of this note is to advise US exporters that effective January 26, 2009 any Carnet shipment (whether bearing a US or foreign number) and entering the U.S. via vessel will be required to complete an Importer Security Filing (aka 10+2).



This requirement only applies to those goods entering via ship. Moreover, the ISF must be submitted to U.S. Customs and Border Protection (CBP) 24 hours prior to the cargo being loaded onto a U.S. bound vessel.



Following the passage of the Safe Port Act of 2006, and at the behest of the U.S. Congress, CBP proposed in January 2008 that all goods entering the United States via vessel be required to provide new data elements (10 data elements for the importer and 2 for the carrier).



The ten data elements required are:

(1) Manufacturer (or supplier) name and address,

(2) Seller name and address,

(3) Buyer name and address

(4) Ship name and address,

(5) Container stuffing location,

(6) Consolidator (stuffer) name and address,

(7) Importer record number,

(8) Consignee number(s),

(9) Country of origin,

(10) Commodity HTSUS (Harmonized Tariff Schedule of the United States) number



The ISF must be transmitted to CBP by an approved electronic means, e.g., Automated Broker Interface (ABI). CBP will not accept filings by fax, e-mail, or paper.



To assure compliance, CBP will also require that all ISFs be accompanied by a third-party bond. CBP will impose penalties (i.e., liquidated damages) of $5,000 per violation when it is determined that the ISF is not timely, complete or accurate.



On behalf of the world community of Carnet users, in March 2008, USCIB requested that Carnets be exempt from the above requirements. Likewise, World ATA Carnet Council urged CBP to do the same. However, on November 25, 2008, CBP published the interim final rule wherein it rejected USCIB’s request for an exemption, noting that Carnet “shipments are no less of a [security] risk than other shipments.” See Federal Register Vol 73., No. 228 pages 71730-71785, http://www.gpoaccess.gov/fr.



U.S. Carnet Holders are therefore advised that as of January 26, 2009 all Carnets entering the U.S. by vessel will also need an ISF and a suitable bond. It is our assumption that the customs house brokers/freight forwarders clearing the shipments will, working directly with the Holder (or representative), gather the necessary information to fulfill ISF requirements. It is our understanding that customs bonds presently in place with CBP (Activity Codes 1-4) will fulfill the ISF obligation, though it would be prudent to confirm such with your customhouse broker.



From January 26, 2009 to January 26, 2010, CBP will be evaluating any compliance difficulties resulting from the new provisions. It is expected that penalties will not be imposed during this period. However, this "informed compliance" approach notwithstanding, CBP reserves the right to take enforcement action when an importer is not achieving "satisfactory progress" or making a "good faith effort to comply" during this period.



USCIB will continue to press CBP to exempt Carnets from these new requirements. Failing that, USCIB will work with CBP to determine how Carnet shipments can reasonably comply with these new requirements, including having the ISF compliance secured by the Carnet itself.



We will update you as new information becomes available. Please contact me if we can be of assistance.



With regards,



Cynthia Duncan

Sr. VP, Carnet Operations

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