CBP has proposed significant penalties for non-compliance with the regulation. The draft regulation provides as follows: “If the principal fails to comply with the proposed Importer Security Filing requirements, the principal and surety (jointly and severally) would pay liquidated damages equal to the value of the merchandise involved in the default.”

Penalties for violating other requirements outlined in the regulation may also apply. For instance, holds may be placed on cargo that does not comply with the proposed ISF regulations.

Update: Guidelines on Liquidated Damages for Importer Security Filing Violations is now available here.