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Liquidated Damages being Issued for Violations of ISF-5

On March 15, 2019, U.S. Customs and Border Protection (CBP) ended their delayed enforcement period of the Importer Security Filings (ISF-5) and began issuing liquidated damage claims for the violations of the ISF requirements for Freight Remaining on Board (FROB) cargo, cargo intended to be transported as immediate exportation (I.E.), and transportation and exportation (T&E) in-bond shipments. These shipments, which are docking at United States ports, require the transmission of five (5) data elements 24 hours in advance of cargo being laden on board a vessel.


The initial ISF-5 regulations limited the definition of the ISF importer for FROB, I.E., and T&E shipments:

  • FROB cargo — ISF importer was considered to be the vessel-operating common carrier (VOCC).
  • I.E. and T&E in-bond shipments — ISF importer was the party filing the I.E. and T&E, which was typically the carrier, freight forwarder, or customs broker.

In April 2018, CBP expanded the definition of the ISF Importer to place responsibility for filing the ISF with the party causing the goods to enter the limits of a port in the U.S., including:

  • the non-vessel operating common carrier (NVOCC) and the VOCC for FROB cargo;
  • the goods’ owner, purchaser, consignee, or agent (i.e., a licensed customs broker or freight forwarder) for I.E. and T&E in-bond shipments.

The expanded definition more accurately reflects commercial reality by placing liability on the party with a commercial interest in the shipment. While the rule shifted the legal responsibility for filing the ISF in these instances, it did not change who actually submits the data.

CBP recently reported  ISF-5 compliance to be about 88 percent overall.

MIQ Logistics, a company of Noatum Logistics (MIQ), will continue to file the ISF-5 for our clients who now bear this responsibility.

For more information, please contact your local MIQ Representative.