CBP Finalizes Definition of Importer for ISF Filings

CBP will expand its definition of "importer" under Importer Security Filing (ISF) regulations, the agency said in a notice. Despite some concerns raised by the National Customs Brokers & Forwarders Association of America and the World Shipping Council (see 1609120024), the final rule adopts the definition changes as proposed in 2016 (see 1607050028). The rule will take effect on May 14.

Specifically, for foreign cargo remaining on board (FROB), CBP will "broaden the definition of an ISF Importer to include non-vessel operating common carriers (NVOCCs)," it said. For Immediate Exportation (IE) or Transportation and Exportation (T&E), and for goods to be delivered to a Foreign Trade Zone, CBP will "broaden the definition of an ISF Importer to also include the goods’ owner, purchaser, consignee, or agent such as a licensed customs broker," it said.

CBP declined to make changes to allow for situations in which a shipment booked by an NVOCC is diverted due to unforeseen circumstances, preventing an ISF filing for FROB prior to loading. Such changes would be "outside the scope of this rulemaking," CBP said. While the regulations do "not provide for exceptions from the ISF requirements based on extenuating circumstances, CBP may take the existence of extenuating circumstances into account in determining whether to issue a liquidated damages claim for an untimely or incomplete submission of the ISF," it said.

The agency also didn't remove NVOCCs from the definition of ISF Importer, as requested by the NCBFAA. When a party shipping the goods books a FROB shipment with an NVOCC, the NVOCC is the party most likely to have direct knowledge of these data elements because it, not the vessel operating carrier, has a direct business relationship with the shipping party," CBP said. "With limited exceptions, it is also the party that causes the goods to arrive within the limits of a port in the United States by vessel."

CBP disagreed with concerns over the impact on international carrier bond underwriting related to the increased liability to NVOCCs with late filing penalties, the agency said. The effects, if any, would be "minimal" and "the bond that covers the ISF is broad enough to cover these amendments and this rule simply shifts the liability onto the most appropriate party -- the one with the information," the agency said. The final rule is considered to be a "deregulatory action" because "it simplifies the transmission of ISF information to CBP, eliminates confusion regarding the party responsible for submitting the ISF, and significantly reduces confidentiality concerns raised by the current requirements," it said.

(Federal Register 04/12/18)