Quest News™

January 07, 2013

CBP Amends Mitigation Guidelines for Late Filed Petitions and Provides Date for Publication of Final ISF Rule


Avalon would like to wish all our Quest readers a happy, healthy and prosperous New Year. We thank you for your continued support and readership of our Quest newsletter to keep you informed of the latest trends. We kick off 2013 with some timely updates from CBP:

CBP Amends Mitigation Guidelines for Late Filed Petitions

Through our active involvement with COAC and our Surety Association (ITSA), we have received advance notice of a Customs Bulletin on the new mitigation guidelines for late filed petitions that will be published by CBP on Wednesday, January 9.  Unfortunately, the new mitigation guidelines for late filed petitions will also take effect on Wednesday, January 9 so please review the bulletin and draft FAQ that CBP has provided to ensure you properly file any late petitions prior to January 9, 2013. 

Avalon has reviewed our open claim inventory to proactively try to identify any liquidated damage claims that may be considered late due to outstanding document requests, and we will be filing appropriate petitions and/or extensions with CBP before this Wednesday.  We recommend our broker clients do the same to avoid the higher mitigation guidelines that will apply to liquidated damages if petition is filed late on or after Wednesday, January 9.  If you need any assistance securing a list of liquidated damage claims for you and/or your importer clients, please contact your local Avalon representative or Zuleika Medina in our Claims Department at zmedina@avalonrisk.com.

Publication of Final Rule on ISF

According to a Broker Power article on CBP’s regulatory agenda, the Final Rule on ISF is expected in February of 2013.

CBP has indicated that ACE deployment for AMS and publication of the Final Rule needed to be in place before CBP could proceed with full enforcement of ISF and begin assessment of liquidated damages. With the Final Rule scheduled to be published in February 2013, liquidated damages for ISF could be on the near horizon.  Through our involvement with the NCBFAA ISF Sub-committee, CBP continues to stress that there will be a CSMS message to the trade at least 30 days prior to full enforcement of ISF. CBP indicates enforcement efforts will focus initially on non-filers with repetitive and negligent errors.

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