CBP updates to the 3 Strike Rule for ISF Penalties

The ISF Filing requirement which started in its initial roll out in 2009, was finally enforced in 2013 which gave CBP the authority to issue fines and penalties to Importers for late or erroneous filings. But on June 17, 2016, US Customs and Border protection issued CSMS updates to the ISF Filing guidelines to the customs brokerage, freight forwarding and international trade community which stated the below:

"For shipments that are on the water on or after June 30, 2016, CBP ports will no longer be required to send requests for liquidated damages (LD) claims to Headquarters for review, and the “three-strikes” approach to LD claims against importers’ bonds will also end. There is no change to cargo holds for ISF non-compliance; ports may hold cargo instead of (or in addition to) initiating LD claims."

With this message, CBP marked the end of the 3 strike rule and the requirement for local ports to send liquidated damage cases against the Importer for CBP Headquarters to review and approve. Now local ports can issue liquidated damages to Importers for late or erroneous filings with ease and no oversight from Headquarters.

*ACCB is a National Licensed Customs Broker in the New York/ New Jersey Area authorized to process Customs Clearance in any US Port*