ISF Enforcement
C-Air Los Angeles - Eric Jones / www.c-air.com
US Customs and Border Protection announced last week that they will begin full enforcement of Importer Security Filings, (ISF). Liquidated damages will be issued to importers for ISF non-compliance, effective July 9, 2013.
ISF’s is an electronic message to customs by an importer, or their authorized agent (customs broker or forwarder) that provides information to customs prior to export about every shipment covered by each bill of lading number. This program has been in effect since 2010 but without penalty for non-compliance, until now.
For an ISF to be considered timely all ISF elements must be submitted no later than 24 hours before cargo is laden onboard a vessel destined to the United States. ISF’s may be amended after export to provide customs with more accurate information as it becomes available, as long as completed prior to the vessel entering the first port of arrival into the United States.
Importers need to have in place a continuous bond for their ISF filings. For importers that clear shipments with a single transaction bond, a separate single bond is required for the ISF. Bonding companies will not allow the issuance of a single transaction bond for an ISF after the export date without providing the bonding company with an indemnity agreement. All importers without a continuous bond in place should consider the benefits of securing one in the next month.
Liquidation damage claims will be in the amount of $5,000 per circumstance. Customs may issue a claim for the following reasons.
1. Failure to file an ISF. Customs can also withhold the loading or unloading of the container, withhold customs release in addition to the monetary penalty for this error.
2. Inaccurate submission of information.
3. Successive filings of ISF data against the same shipment. Customs will only consider the latest filing within the allowed filing timeframe for an inaccurate submission claim. Importers should check their internal business practice of having ISF data sent to multiple parties, thus causing the successive filings against the same shipment.
4. Failure to withdraw a filing when it is known by the importer to be invalid.
There will be mitigating factors to petition customs for a lower penalty amount but the guidelines have not been made available yet by customs. We will continue to update our importers as more information is published by customs and the bonding companies.
Containerized Cargo Sealing Policy
U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/fact_sheets/port_security/container_sealing.xml
This policy is applicable to containerized cargo that arrives, departs, or transits the United States via sea or land and are opened by a CBP officer pursuant to a CBP inspection. This policy applies to U.S. bound containers that are opened at a Container Security Initiative (CSI) port pursuant to a CBP inspection if permitted by the host nation.
Cargo that arrives by land includes trailers, containers, and rail cars. “Containerized Cargo” covers merchandise shipped in an enclosed container or trailer that is capable of having a seal affixed. The policy does not apply to empty containers, or to examinations that are conducted under the auspices of other agencies.
These procedures will:
- Establish uniformity in the sealing of containerized cargo at the conclusion of a CBP inspection
- Preserve the integrity of containerized cargo leaving CBP possession
- Eliminate any confusion within the trade community that might result in the refusal of delivery and unnecessary delay in legitimate cargo entering the United States commerce
- Standardize the type of seal CBP officers are authorized to affix
Effective August 8, 2005, U.S. Customs and Border Protection (CBP) officers, including Agriculture Specialists and Border Patrol Agents, will affix an International Organization for Standardization/Publicly Available Specification 17712 (ISO/PAS 17712) compliant high-security bolt seal immediately upon the conclusion of a CBP inspection. The seal will be marked with the letters “CBP” and have a unique alphanumeric serial number.
Prior to resealing an examined container, the removed seal(s) shall be placed inside the examined container or trailer at the conclusion of the inspection.
In the event a carrier chooses to fasten an additional seal, the CBP-installed, high-security bolt seal must not be removed, replaced, or manipulated in any way.
CBP officers shall notify the appropriate parties of the number of the container that has been examined and the serial number of the newly installed high-security bolt seal before the arrival of the container at the receiving facility. Such parties might include the carrier, broker, or importer. Depending on the circumstances, notification can be made by facsimile, telephone, annotating the shipping/bill of lading or other transportation document, or via another mutually agreed upon method.
Questions regarding this policy may be directed to CBP officers at your local port of entry. A complete directory of the various ports of entry can be found on the CBP Web page.
Treatment Certificate Required to Import Canadian Firewood Into the U.S.
U.S. Customs & Border Protection / http://www.cbp.gov/linkhandler/cgov/newsroom/fact_sheets/agriculture/canada_imp_wood.ctt/canada_imp_wood.pdf
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Millions of pounds of fresh fruits, vegetables, cut flowers, herbs, and other items enter the United States via commercial shipments from other countries every year.
Although these items appear to be harmless, there could be hidden threats in that baggage and in those truckloads, trainloads and containers of fresh items that could seriously threaten U.S. agriculture, our natural resources and our economy.
The CBP Agriculture Specialist and the CBP Officer at U.S. ports of entry and international mail facilities target, detect, intercept, and thereby prevent the entry of these potential threats before they have a chance to do any harm.
Each year, CBP Agriculture Specialists intercept tens of thousands of “actionable pests” – those identified through scientific risk assessment and study as being dangerous to the health and safety of U.S. agricultural resources.
- They check containers and trucks for smuggled agricultural products or packaging materials that might contain invasive species that could harm our agriculture and environment.
- They examine wooden pallets that could hide the larvae of wood-boring insects poised to attack native trees or nursery stock.
- They make sure that imported fruits and vegetables are pest-free.
The CBP Agriculture Specialists work with specialized x-ray machines that detect organic materials. They utilize agricultural canines specifically trained to sniff out meat and plant materials in international airport passenger areas.
Agro-terrorism
Unfortunately, our post 9/11 world includes a new and dangerous threat. Th is threat is agroterrorism. Agro-terrorism is terrorism targeting some component of agriculture or the food supply. Examples include the intentional introduction of a plant or animal pest or disease or contamination of food materials with a toxic substance. Agricultural inspections have traditionally focused on unintentional introduction of pests or diseases – those unnoticed in someone’s luggage or hitchhiking on the walls of a container. Now we need to also focus on the deliberate introduction of these threats.
With the added danger of agro-terrorism the role of the CBP Agriculture Specialists at our ports of entry is more crucial than ever.
Global Travel and Trade
One in five food items is now imported. We can now have fresh strawberries when it’s 20 degrees below zero. American consumers demand fresh limes and blueberries all year round. In fact, during the winter months in the United States, nearly 80 percent of the fresh fruits and vegetables on our tables come from other countries.
With the ever-increasing amount of trade, new pest pathways are discovered, and the agricultural risks to the United States grow. Th e threat to crops and livestock is real.
USITC Institutes Section 337 Investigation of Certain Opaque Polymers
U.S. International Trade Commission / http://www.usitc.gov/press_room/news_release/2013/er0618ll2.htm?source=govdelivery
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain opaque polymers. The products at issue in this investigation are opaque polymers for uses including the manufacture of paints, and in the building, packing, leather, and textile industries.
The investigation is based on a complaint filed by Rohm and Haas Company of Philadelphia, PA; Rohm and Haas Chemicals LLC of Philadelphia, PA; and The Dow Chemical Company of Midland, MI on May 20, 2013. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain opaque polymers that infringe patents asserted by the complainants. The complainants request that the USITC issue an exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Organik Kimya San. ve Tic. A.S of Istanbul, Turkey;
Organik Kimya Netherlands B.V. of Rotterdam-Botlek, Netherlands;
Organik Kimya US, Inc., of Burlington, MA;
Turk International LLC of Aptos, CA; and
Aalborz Chemical LLC d/b/a All Chem of Grand Rapids, MI.
By instituting this investigation (337-TA-883), the USITC has not yet made any decision on the merits of the case. The USITC's Chief Administrative Law Judge will assign the case to one of the USITC's six administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
Truck Cargo Pre-inspection Pilot to Begin
U.S. Customs & Border Protection / ttp://www.cbp.gov/xp/cgov/newsroom/news_releases/national/06172013_5.xml
Beyond the Border Initiative at Pacific Highway Crossing Starts June 17
Blaine, Wash. — U.S. Customs and Border Protection (CBP) begins Phase I of a truck cargo pre-inspection pilot today, June 17, 2013 at the Pacific Highway crossing adjacent to Surrey, British Colombia (BC). The project is a collaborative effort by CBP, Canada Border Services Agency (CBSA) and Public Safety Canada under the U.S/Canadian “Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness” initiative. Transport Canada and the BC Ministry of Transport are also participating in the pilot.
Phase I of the pilot is designed as a “proof of concept” to determine the viability of assigning CBP officers to Canadian border crossings to pre-inspect southbound trucks, drivers and cargo prior to arrival into the United States. It will also test the viability of developed technologies and joint U.S.-Canada procedures to conduct CBP primary truck processing in Canada. CBP will monitor wait times and provide traffic mitigation as needed.
Only trusted traders participating in CBP’s Free and Secure Trade (FAST) program will be eligible to use the dedicated CBP pre-inspection commercial primary booth located on the Canadian side of the border. Participation is not mandatory. Pre-inspection in Canada will include radiation screening and basic primary processing. Secondary inspections, when required, will continue in the U.S. port of entry.
The pilot will continue in Blaine for up to six months and will operate Monday through Friday between 8 a.m. to 4 p.m. Phase II will test the feasibility of reducing cargo wait times.
HSI Arrests 7-11 Franchise Owners in Illegal Alien Employment Scheme
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) -
http://www.ice.gov/news/releases/1306/130617brooklyn.htm
BROOKLYN, N.Y – Two indictments were unsealed Monday charging eight men and one woman from Long Island with conspiring to commit wire fraud, stealing identities and concealing and harboring illegal aliens employed at 7-11 Inc. franchise stores located throughout Long Island and Virginia. The charges, arrests and seizures resulted from an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Social Security Administration’s Office of the Inspector General, the New York State Police and the Suffolk County Police.
The defendants are Farrukh Baig, 57, and Bushra Baig, 49, a married couple who owned, co-owned or controlled 12 of the 7-11 franchise stores located on Long Island and in Virginia; Zahid Baig, 52, and Shannawaz Baig, 62, Farrukh Baig’s brothers who helped to manage and control the stores; and Malik Yousaf, 51, Tariq Rana, 34, and Ramon Nanas, 49. Brothers Ahzar Zia, 49, and Ummar Uppal, 48, indicted separately, owned and controlled two other Suffolk County 7-11 franchise stores.
Through this scheme, the defendants allegedly hired dozens of illegal aliens, equipped them with more than 20 identities stolen from U.S. citizens, housed them at residences owned by the defendants and stole substantial portions of their wages. If convicted, the defendants face 20 years in prison on wire fraud conspiracy and alien harboring charges, as well as multiple counts of aggravated identity theft, which carries a mandatory, consecutive two-year term of incarceration. In addition, all property used to facilitate the harboring of illegal aliens, together with all proceeds of the wire fraud conspiracy and alien harboring charges, are subject to forfeiture.
The victims of the identity theft hail from seven states, ranging in age from 8 to 78 years old, and include a child, three deceased people and a U.S. Coast Guard cadet. The defendants, allegedly together with others, caused the 7-11 payroll service to transmit this false information, including the stolen identity information, to U.S. regulatory agencies, such as the Internal Revenue Service and the Social Security Administration.
During the scheme, the defendants allegedly generated more than $182 million in proceeds from the 7-11 franchise stores. Profits from those stores were shared by the defendants and 7-11.
"As set forth in the indictments, the defendants used 7-11 as a platform from which to run elaborate criminal enterprises. From their 7-11 stores, the defendants dispensed wire fraud and identity theft, along with Slurpees and hot dogs. In bedroom communities across Long Island and Virginia, the defendants not only systematically employed illegal immigrants, but concealed their crimes by raiding the cradle and the grave to steal the identities of children and even the dead. Finally, these defendants ruthlessly exploited their immigrant employees, stealing their wages and requiring them to live in unregulated boarding houses, in effect creating a modern day plantation system," stated U.S. Attorney for the Eastern District of New York Loretta E. Lynch. "As this case shows, we are committed to preserving the rule of law and protecting our communities from the abuses of corrupt businessmen seeking to gain illegal advantage. I would like to thank our partners at HSI, New York State Police, Suffolk County Police and the Social Security Administration’s Office of Inspector General for their hard work on this important investigation."
"The 7-11 franchises seized today will be better known for their big fraud than their Big Gulp. As alleged, the franchise owners knowingly and repeatedly employed an illegal workforce and abused and exploited that workforce for more than 13 years," said James T. Hayes Jr., special agent in charge of HSI New York. "This charged criminal scheme had a vast detrimental effect on both the employees who were overworked and cheated out of wages, as well as the more than 25 American citizens whose lives were upended by the theft of their identities in furtherance of the scheme."
The indictments, arrests and seizures are the result of one of the largest criminal alien employment investigations ever conducted by the U.S. Department of Justice and the U.S. Department of Homeland Security (DHS). As set forth in court filings, the government has moved to forfeit the franchise rights to ten 7-11 stores in New York and four 7-11 stores in Virginia. In the indictments, the government has also moved to forfeit five houses in New York worth more than $1.3 million. According to DHS, this case constitutes the largest criminal alien forfeiture in its history.
In addition to the charges already filed, federal agents fanned out early Monday across the country to execute multiple search and seizure warrants and inspect approximately thirty 7-11 franchise stores. The actions taken are the initial results of an ongoing investigation into the employment and exploitation of illegal aliens at 7-11 franchise stores nationwide.
HSI encourages the public to report suspected labor trafficking, forced labor or the exploitation of undocumented workers through its toll-free hotline at 1-866-347-2423 (from the U.S. and Canada), or from anywhere in the world at 1-802-872-6199, or online at
www.ice.gov/tips.