ISF (10+2) Importer Security Filing Overview

• On November 25, 2008, U.S. Customs and Border Protection (CBP) published in the Federal Register an interim final rule regarding its Importer Security Filing and Additional Carrier Requirements program, commonly known as Importer Security Filing (ISF) or “10 + 2”.
• The rule requires importers and vessel carriers to electronically submit additional data items about imported cargo to Customs other than data currently submitted when making entry or manifesting ocean cargo destined for the U.S.
• Rule is designed to enhance national security and applies to all goods imported into the United States by sea.
• ISF regulations mandate that the ISF Importer or its agent, transmit, via the carrier Automated Manifest System (AMS) or Automated Broker Interface (ABI), ten (10) data elements per ocean house bill of lading to CBP 24 hours prior to lading goods on a vessel destined to the United States.
• Carriers must submit to CBP an additional two (2) categories of data elements (vessel stow plans and container status messages) via AMS 24 hours prior to vessel loading in a foreign port.
• The interim final rule reflects certain changes from the proposed rule published in the Federal Register on January 2, 2008 and the flexibility in some of the ISF elements may be presented.

Important Dates

Effective Date：This rule is effectives 60 days from the date of publication in the Federal Register (November 25, 2008), which is January 26, 2009.
Compliance Date：ISF Importers and carriers must comply with the "10+2" filing requirements one year from the effective date or, on and after January 26, 2010.
Comment Period：CBP invites written comment on the six data elements for which some type of flexibility has been provided, and on the revised Regulatory Assessment and Final Regulatory Flexibility Analysis. Comments must be received on or before June 1, 2009.

Violation

The liquidated damages amount for violations of the ISF requirements were changed from the value of the merchandise, as proposed, to $5000 for each violation.
Provisions were made for the creation of an Importer Security Filing bond.
Violations relating to the vessel stow plan may result in liquidated damages of $50,000. Violations relating to the container status message may result in liquidated damages of $5,000 for each violation up to $100,000 per vessel arrival.

Importer

• The importer is defined as “the party causing the goods to arrive within the limits of a port in the United States”.
• Neither the supplier nor freight forwarder is responsible to file the data. Although a broker is allowed to transmit the data, the importer is ultimately solely responsible for the accuracy of the filing. Brokers, or Authorized Agents, must possess a basic import bond, an international carrier bond or foreign trade zone bond. Authorized Agents must also be an approved filer under ABI or AMS.
• For FROB shipments, the Importer is viewed as the carrier. Importer is the entry filing party for IE, T&E, and FTZ shipments.

10 Importer Data Elements

1. Manufacturer or supplier’s name and address. Entity that last manufactures, produces, grows or assembles the commodity, or name and address of the supplier of the finished goods in the country where goods are exported from.
2. Seller (or Owner) name and address. Name and address of last known entity whom the goods are sold by. If non-purchase, the name and address of owner of goods. DUNS Number for Seller may be provided in lieu of address.
3. Buyer (or Owner) name and address. Name and address of last known entity whom the goods are sold to. If non-purchase, buyer is the owner of the goods.
4. Ship To Party Name and Address Name and address of the first deliver-to party that is to physically receive the shipment of goods after release from U.S. Customs. FIRMS Code for Ship To Party may be provided instead of address.
5. Scheduled Container Stuffing Location Name and address(es) of the physical location(s) where the goods were stuffed into the container. For break bulk, report location where goods were made ship-ready. DUNS Number for Container Stuffing Location, if available, may be provided instead of address.
6. Consolidator (Stuffer) Name and Address Name and address of the party who stuffed the container or arranged for the stuffing. For break bulk cargo, the address where the goods were made ship ready or party who arranged for goods to be ship ready.
7. Importer of Record Number / FTZ Application ID Number The IRS, SSN, CBP assigned Number or Passport number of the entity liable for payment of all duties and responsible for meeting all regulatory requirements incurred as a result of importation. For goods intended to be delivered into FTZ, provide IRS, SSN of CBP assigned number of party filing FTZ Documentation, as reported in CBP Form 3461 or 7501. If Importer Number is Passport Number, Importer must provide Date of Birth and Country of Issue.
8. Consignee Identification Number The IRS, SSN, CBP assigned Number or CBP encrypted ID Number of the individual(s) or firm(s) in the United States on whose account the goods are shipped.
9. Country of Origin ISO Country Code of country where goods were produced, manufactured or grown.
10. Harmonized Tariff Schedule Duty (tariff) Number where under which the articles for shipment are classified under the HTSUS (Harmonized Tariff Schedule of the United States). This is required at a minimum 6-digit level.

Different Shipment Types

     1.  Shipments intended to be entered into the U.S. or FTZ

• Need to provide all 10 + 2 Data Elements including the 10 importer data elements for each good listed at the 6 digit HTSUS number at the lowest bill of lading level (House Bill of Lading). House B/L or Ocean B/L (Regular Bill) must be provided.
• Manufacturer (or supplier) name and address, country of origin, and HTSUS number must be linked to one another at the line item level. So for each manufacturer field provided, there must be an HTSUS number field and country of origin field as well. 

     2.  FROB, T&E or IE shipments. Need to Provide:

• Booking Party Name and Address
• Foreign Port of Unlading.
• Place of Delivery.
• Ship To Party Name and Address
• Harmonized Tariff Schedule at minimum 6-digit level.

     3.  Bulk Cargo. No Separate Filing Required.

Data

• The data elements must be transmitted no later than 24 hours prior to the cargo being laden on board the vessel at the foreign port.
• Data must be based on best information available. All 10 data elements are required with the initial filing.
• The importer is required to amend the ISF if any information changes prior to entering the limits of a port in the United States.
• Due to the sensitive nature of the ISF data, it is considered highly confidential. The data is for targeting purposes only and will not be used for commercial enforcement purposes by CBP. The CBP will not release any data publicly, even to the importer. Any ISF records must be maintained by the importer.

Confirmation and Verification

• CBP has indicated that it will return a Transaction # after each ISF Filing as an electronic acknowledgement that the filing was received. Transaction # must be provided if an amendment for the ISF filing is made. Transaction # will act as a unique identifier. (e.g. ITN number in the AES System.)
• If the information changes or more accurate information becomes available before arrival, the presenting party must update the transmission by creating an amendment and replacing the ISF Filing.
• If shipment of goods covered by the ISF Filing is cancelled, the presenting party must withdraw and delete the ISF Filing.

Moving Forward - Solutions

• E-Freight has been developing an ISF program based on the Interface Requirements released by CBP that will run on a platform that is similar to AMS.
• Over the next month, before the final rule is issued, we encourage importers to build their supplier list and work with the suppliers on collecting ISF Related Data. In our ISF program, we will allow importers, as well as suppliers, the ability to logon remotely and enter in the ISF Related Data into the system.
• The final ISF application will not be available until the final rule has been released by CBP.
• The E-Freight ISF Program will record and store ISF Filing records in a database for each user, although the official CBP records will not be made available by Customs.

Moving Forward - Issues

• How will CBP enforce the accuracy of the ISF data provided? It has been indicated that they won’t return a message regarding whether a filing has been accepted or rejected, that importers and designated agents will shoulder the burden of communicating the completeness and accuracy of filing. How will filers determine if an ISF filing is complete, identify who filed the ISF, and confirm the ISF data is accurate?
• What are the specific rules on to whom and under what conditions penalties are issued? What if no Importer Number is provided in the filing? Who would the liquidated damages apply to?
• Will CBP compare the ISF Filing to the Entry?
• When does testing with CBP begin?