There is progress to report on ISF bonding requirements, but there are still some important items requiring further clarity by CBP. We are hopeful that CBP's next FAQ (said to be released very soon) will provide further guidance to the trade on setting bond amounts, the use of STBs, and when/where bonds for ISF will be filed.

During several meetings and calls with CBP, Roanoke Trade has presented information to CBP on how ISF impacts the use of customs bonds and carnets. CBP has already adopted some recommendations including: how the bond that obligates the ISF will be identified in the ISF data; and identifying goods moving under a carnet by a unique "Shipment Type Code" in order to make it easier for the trade while still allowing CBP to apply appropriate targeting rules.

The information below focuses on importer requirements and does not address carrier filing responsibilities for stow plans and container status messages.

• CBP Form 301, Single Transaction or Continuous, Activity Code 1 (importer/broker bond)
• CBP Form 301, Continuous, Activity Code 2 (bonded carrier bond)
• CBP Form 301, Single Transaction or Continuous, Activity Code 3 (international carrier bond)
• CBP Form 301, Continuous, Activity Code 4 (foreign trade zone operator bond)
• Importer Security Filing Bond, (a new bond form found in Appendix D to Part 113 of the Customs Regulations)

• The use and filing of STBs and the new Importer Security Filing Bond.
• Setting the bond amount, including any non-discretionary bond minimum.

During our discussions with CBP on these issues we have been informed that the process will be finalized in the near future. We will keep you apprised of the details when CBP has confirmed the process.

In the July 17, 2009, Customs Bulletin and Decision, CBP published CBP Decision 09- 26 (see pages 29-41) advising the trade on its guidelines for assessing and cancelling liquidated damages for the 10+2 obligations. A summary of the ISF portion is below, and we encourage everyone to review the full notice.

Violation	Consequences
Failure to file complete, accurate, and timely ISF.	CBP shall withhold release or transfer of cargo until ISF is received. CBP may limit the permit to unlade so that cargo is not unladen, and may seize cargo that has been unladen without permission.
Filing an inaccurate update 19 CFR 149.2(d).	Assess liquidated damages against the bond for $5,000 for the first inaccurate update.
Failing to withdraw a filed ISF 19 CFR 149.2(e).	Assess liquidated damages against the bond for $5,000.
Filing an untimely ISF.	Assess liquidated damages against the bond for $5,000 per late ISF.
Filing an incomplete or inaccurate ISF.	Assess liquidated damages against the bond for $5,000 per incomplete or inaccurate ISF.

Mitigation:

• When law enforcement goals are compromised, there is no relief.
• First Offense: pay between $1,000 and $2,000, based on mitigating or aggravating factors.
• Subsequent Offense: Pay not less than $2,500, based on mitigating or aggravating factors.
• Certified Tier 2 or 3 C-TPAT participants can get up to an additional 50% reduction of the above amounts.
• See CBP Decision 09-26 for full details of mitigating and aggravating factors.

As always, Roanoke Trade is working closely with CBP and our valued clients in order to achieve the best solution for all interested parties. We will advise you of any information we learn as it becomes available.