June 24, 2008
Overview
The Importer Security Filing (ISF) initiative, also known as 10+2, is right around the corner.
Based on the proposed rule by Customs and Border Protection (CBP), U.S. importers must submit required security data electronically to CBP 24 hours prior to loading ocean containers on vessels destined for the U.S.
For additional information on ISF requirements, please visit the following web site: http://www.cbp.gov/xp/cgov/newsroom/news_releases/archives/2008_news_releases/jan_2008/01022008.xml
As your ISF agent, UPS will capture ISF information in a simple, compliant, and timely manner from both internal and external sources. Additionally, our solution will share data between our transportation and brokerage systems, submit data to CBP, and provide accurate and timely client visibility, messaging, and reporting.
Below is the first in a series of questions and answers to help familiarize you with ISF.
Frequently Asked Questions
Scope
1. Are all the Importer Security Filing (ISF i.e. 10+2) requirements applicable to shipments that fall under Section 321?
Yes, at this time, the only exemption is for bulk cargo. However the ISF requirement currently only applies to ocean freight. We do anticipate it will be expanded to include other modes of transportation in the future.
Responsibility
2. If Freight Remaining on Board (FROB) is subject to the ISF requirements, is the importer responsible for all 18 pieces of data including the 2 the carrier is responsible for?
For FROB, the importer is defined as the carrier. There are five pieces of data the carrier must file for FROB: booking party name and address, foreign port of unlading, place of delivery, ship to name and address, and commodity HTSUS number.
3. What happens if the ISF is not filed? Fines or shipment rolls?
CBP has proposed liquidated damages against the importer equal to the value of the shipment in the event the ISF is not filed or not timely filed. No mitigation guidelines have been issued.
Timing
4. How many days in advance of the goods arriving can the entry be filed?
We assume that you are referring to the Importer Security Filing. The notice of proposed rulemaking only requires that the ISF be filed 24 hours in advance of vessel lading. CBP has publicly stated that the regulations for entry filing timelines will not be changed.
5. When will 10+2 take effect?
CBP has not provided a date for implementing the ISF rule. We anticipate implementation will be phased in beginning in late 2008 or early 2009.
6. Will it roll out to all ports immediately, or will CBP do a phased-in rollout at a few select ports prior to implementing nationwide?
CBP has not indicated their plan for implementation at this point.
Visibility
7. How do carriers know the ISF is done for the containers they are carrying? Is there any impact for the carrier?
The exact communication messages have not been defined or released for public information. There is clearly a need for effective communications between all parties.
8. How do importers know the +2 is filed by the carrier? If the +2 is not filed, will it cause delays or other impact for the importer?
Importers will not know whether the “+2” has been filed by the carrier unless the carrier provides this information directly to them. The Vessel Stow Plan must be submitted 48 hours after departure and the Container Status Messages must be sent no later than 24 hours after the event has been entered into the carrier’s equipment tracking system. At this time, CBP is not proposing to hold importers liable for untimely or un-filed “+2” requirements.
9. How is the ISF information to be supplied to the ocean carrier?
Communication to the ocean carrier is one of the key elements of concern with the ISF and there is no mention of this issue in the NPRM.