PIBL: Penalty Stage of 10+2 Rule Now Enforced by Custom and Border Protection

International trade show exhibitors planning to send their trade show shipments by sea will now face significant penalties for failing to comply with the Import Security Filing rule (also known as the 10+2 rule). The ISF rule requires importers to submit 10 items of data about their cargo at least 24 hours before it is loaded aboard a vessel at a foreign port. Two additional data items are required by the carrier as well, resulting in what is known as the 10+2 rule.

After four years of employing a measured approach to the enforcement of the ISF rule, encouraging informed compliance but not instituting fines, U.S. Customs and Border Protection recently began the penalty stage of enforcement. CBP announced this summer its intention to enact steep monetary fines for the lack of an ISF submission or inaccurate, incomplete or untimely filing. This rule applies only to shipments by sea. In addition, shipments entered into the U.S. without an ISF may be subject to delays and cargo seizure, until the proper ISF has been filed.

Penalties Applied in the Event of Trade Show Shipments that are Non-compliant International exhibitors attending shows in the United States should ensure that their shipments are fully ISF compliant, or the following penalties will occur:

* $5,000 per non-filed or late ISF
* $5,000 per inaccurate ISF
* $5,000 per inaccurate ISF update
* These penalty amounts will be limited to $10,000 per ISF

Anticipate Delays and Additional Costs with Failure to Follow ISF Rule
Delays due to failure to fully comply with the ISF rules are of significant concern to exhibitors. Merchandise entering the United States without an ISF may be subject to examination and/or cargo seizure until a proper ISF is filed. If CBP determines that the shipment does not comply with reporting requirements, it can withhold the release or transfer of the cargo until all ISF reporting requirements have been satisfied. In that circumstance, exhibitors can expect delays that could impact their trade show participation and result in additional costs such as container/chassis rental fees and port/CES storage charges during the delay.

According to Phil Hobson, President of Phoenix International Business Logistics (PIBL), a U.S. Customs Broker and freight forwarder specializing in trade show shipments, "With the complexities of the ISF rule, and the newly enacted penalty phase, international exhibitors should be prudent and consider using the show's recommended Customs Broker or a broker experienced with handling trade show shipments. The penalties are severe, and perhaps of even greater concern, are the delays that can result with failure to comply with the cargo reporting requirements. Brokers with trade show experience, like PIBL, have the ability to make a combined Customs entry/security filing and ensure compliance with these federal Customs regulations."

Hobson further explains, "The 10+2 rule is an enhanced security measure put in place to respond to concerns about terrorism. Although the regulation was first issued four years ago, CBP realized it was a complicated rule and employed a flexible enforcement period. Now that CBP is moving to instituting penalties for non-compliance, exhibitors must be educated about the extent to which they will be fined, the potential for cargo seizure, and the additional costs they'll incur when CBP withholds release of a shipment. Being unclear about the federal regulations can put an exhibitor's show participation in jeopardy. Now is the time, with fall and early 2014 shows looming, for international exhibitors to investigate the services of an experienced broker to ensure the timeliness of their trade show shipment."

About Phoenix International Business Logistics, Inc.
PIBL (www.phoenixlogistics.com) is a licensed U.S. Customs Broker and the official freight forwarder of more than 50 domestic and international trade shows. Phil Hobson also serves as Chairman of the New York Area Chapter of IAEE (International Association of Exhibitions and Events). The company is located at 1201 Corbin St., Elizabeth, NJ 07201; T-908-355-8900.

Contact: patrusso@earthlink.net