CBP Expands ISA Eligibility to Importers that Passed Focused Assessments

CBP is expanding its Importer Self-Assessment (ISA) program to allow importers that have gone through other stringent government reviews to take advantage of the program, according to an Oct. 5 Federal Register notice. The agency will now allow companies that have gone through a CBP Focused Assessment (FA) audit to take part in ISA without additional reviews. The change formalizes an informal and not widely known practice that CBP has had over the last couple of years, said an industry executive.

(ISA is a voluntary program for resident importers that work with CBP to improve trade compliance. Those that have two years of importing experience and are certified in the C-TPAT program, are eligible. ISA participants take responsibility for self-assessment, and they must control their environment and activities by assessing risk areas and communicating, informing and monitoring their customs operations. ISA has fewer members than other CBP trusted trade programs, due in part to the thorough government reviews of internal processes that some companies have found too burdensome to engage in.)

Expanded Eligibility

Under the new rules, companies that have successfully gone through a CBP Focused Assessment (FA) audit are eligible to transition into the ISA program without further CBP review within a year from the FA, said CBP. The FA is a more rigorous and thorough method of examining a company’s internal systems for compliance with customs laws and regulations than the ISA review process, said CBP. The company must also: be a U.S. or Canadian resident importer, a Customs-Trade Partnership Against Terrorism (C-TPAT) program member, have developed risk-based self-testing plan, and agrees to meet all of the ISA program requirements. An Application Review Meeting, which is normally required for ISA applicants, isn't required, said CBP.

Applications for Inclusion

Companies that have gone through a FA within the last year and want to join the ISA program should send an application Requests to Chief, Partnership Programs Branch, Office of International Trade, U.S. Customs and Border Protection, 1400 L Street, N.W., Washington, D.C. 20229. Applications must include:

• An ISA Memorandum of Understanding (MOU) listing the importer of record number(s) included in the FA and the MOU must be signed by an officer of the company
• A written, risk-based, self-testing plan that should include: the risk assessment methodology used by the company; the testing methodology; the frequency of selftesting activities (i.e., monthly, quarterly, etc.); the number of sample items to be tested; and the name and contact information for the person who will review the selftesting results. The self-testing process should be conducted at least annually.

ISA Benefits

Benefits to the ISA Program include:

• Entitled to receive entry summary trade data, including analysis support, from CBP.
• Consultation, guidance, and training by CBP if requested and as resources permit (for compliance, risk assessments, internal controls, CBP audit trails, etc.).
• Opportunity to apply for coverage of multiple business units.
• Removal from Regulatory Audit’s audit pool established for Focused Assessment (FA). However, companies may be subject to a single issue audit to address a specific concern.
• A written notice from CBP of a possible violation of 19 U.S.C. 1592 or 1593(a). CBP will allow thirty days for the company to assess and, if necessary, to file a prior disclosure
• Consideration of the company’s participation in the ISA program in the disposition of a case involving civil penalties or liquidated damages assessed against the company, though it doesn't preclude the issuance of a penalty or liquidated damages claim, or other enforcement action, if warranted.
• Assignment of a National Account Manager (NAM), who will ensure that issues, questions, and concerns are addressed in a timely fashion and are directed to the appropriate area.
• Expedited cargo release and internal advice/consultation from Regulations & Rulings, Office of International Trade.
• Priority consideration for applications to participate in the Centers of Excellence and Expertise tests.