Compliance Failures Could Cost U.S. Importers Dearly in 2010

(eyefortransport – Matt Gersper, Global Data Mining)

Failure to comply with the Importer Security Filing (ISF) regulations could cause delays and fines that spell financial disaster for unprepared US businesses, says Matt Gersper, founder & president of Global Data Mining.

Gersper says there are three major reasons why business leaders should make sure that their companies are compliant, and each reason has a direct bottom-line impact.

• The risk of significant penalties for non-compliance: According to the ISF regulations, commonly referred to as 10+2, effective January 26 next year, an importer can be fined $5,000 per filing if an ISF is late, incomplete or inaccurate, and up to $10,000 per filing for two or more violations.

• Custom & Border Protection’s (CBP’s) renewed commitment to trade law enforcement and accurate revenue collection, which is the U.S. government’s No.2 strategic goal – ahead of improving national and economic security.

• The impact of supply chain delays: according to a recent study by the National Association of Manufacturers (NAM), the ISF regulation will create a permanent 2.8 day delay in supply chain speed.

Research into the current state of ISF compliance and the impact this regulation has (and will have) on the supply chain reveals that:

• Providing timely ISF data is a challenge for nearly 60% of companies

• Collecting complete ISF data is a struggle for nearly 40%

• Around 20% have problems with the accuracy of the data they provide

These are the very three issues causing penalties to be assessed. Read more here.