Global Trade



Importer Security Filing (10+2) ― Overview and FAQ, Part 1

November 10, 2008

The Importer Security Filing (ISF) initiative, also known as 10+2, may soon take effect. As your business partner, Customs Brokerage from UPS will be able to file the additional information for you electronically. This will affect ocean freight only.

The proposed regulation will require carriers to submit 2 additional pieces of information (the 2 of the 10+2) in order to enhance the security of the maritime environment. The additional information includes: (1) a vessel stow plan used to transmit information about the physical location of cargo loaded aboard a vessel bound for the U.S; and (2) container status messages, which report container movements and changes in status (e.g., empty or full).

The Importer Security Filing requires the following 10 data elements from the importer or importer's agent (the 10 of the 10 + 2):


  • Manufacturer (or supplier) name and address

  • Seller (or owner) name and address

  • Buyer (or owner) name and address

  • Ship-to name and address

  • Container stuffing location

  • Consolidator (stuffer) name and address

  • Importer of record number/foreign trade zone applicant identification number

  • Consignee number(s)

  • Country of origin, and

  • Commodity Harmonized Tariff Schedule number


Based on the proposed rule, U.S. importers must submit the 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

Under the proposed rule, CBP will allow an importer to designate an agent to act on their behalf to submit the ISF. It is our intent to offer our services as an agent for your convenience at a reasonable cost. Our pricing for this service will be determined after CBP issues the final rule later this year, and we've had the opportunity to finalize our systems and processes.

We plan to capture the ISF information in a simple, compliant, and timely manner from both internal and external sources. Additionally, the solution we envision will be able to share data between multiple systems, submit data to CBP, and provide accurate and timely client visibility, messaging, and reporting.


Below are the first in a series of questions and answers to help familiarize you with 10+2.

Frequently Asked Questions

Scope


1. Will ISF requirements be applicable to low value shipments entered 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 data submission, including the carrier’s 2 elements?

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 are the consequences for not filing ISF? Will fines be incurred?

CBP has proposed liquidated damages 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.  However, CBP has indicated that in the first year, Informed Compliance Notices will be issued in lieu of liquidated damages.

4. Will importers be able to correct data elements inaccurately reported in the ISF record (HTS for example)?

The agent who filed the initial ISF record is the only party authorized to correct inaccurate data, and must do so prior to the arrival of the cargo in the U.S.  CBP has not indicated whether post arrival correction will be possible.

5. Will importers be able to reconcile instances where the harmonized tariff code of the exporting country differs from the U.S. harmonized tariff code? 

This shouldn't occur due to the fact that ISF requires HTS reporting at the 6-digit level; however, if discrepancies occur, the HTS submitted in the ISF record should meet U.S. HTS requirements.  Any corrections to the HTS must be made by the agent who filed the initial ISF record.

6. Is it expected that an ISF worksheet will be used by the shipper to provide ISF information? Alternatively, could a shipper incorporate required ISF elements into their invoice?

Both methods are acceptable.  UPS expects to capture ISF data from a variety of means, one of which is a Webform that a shipper, or any party in the supply chain, can complete.

7. Does ISF have separate data requirements for foreign cargo remaining on board (FROB), shipments for immediate exportation (IE), and transportation and exportation (T&E) in-bond shipments as opposed to shipments intended for entry into the United States?

Yes, there are 5 data elements that must be reported for FROB, IE, and TE cargo: booking party name/address, foreign port of unlading, place of delivery, ship to name/address, and the 6-digit HTS.

Timing

8. How many days in advance of the container lading at origin can the ISF record be submitted

The notice of proposed rulemaking only requires that the ISF be filed 24 hours in advance of vessel lading and does not restrict submission to any timeframe in advance of the 24 hours.

9. When is ISF expected to take effect?

CBP has not provided a date for implementing the ISF rule. We anticipate implementation will begin in late 2008 or early 2009.

10. Will ISF be effective at all ports immediately, or will CBP do a phased-in rollout at a few select ports prior to implementing worldwide?

CBP has not indicated their plan for implementation at this point.

11. What is the expected response time for the electronic acceptance message from CBP?

CBP has not indicated what the response time will be, though if similar to current ABI   messaging (via MQ), the response should be near real time.

12. How do carriers know the ISF has been accepted for the containers they are loading?

Carriers have been clear that they don’t wish to receive ISF acceptance messages nor intend to police loading of containers based on ISF acceptance.  Controls must be in place with the shipper or forwarder to ensure a container isn’t delivered to a steamship line without ISF acceptance.

13. How will importers be aware that the carrier has filed their 2 required elements? If the 2 elements are not filed, will it cause delays or other impact for the importer?

Importers will not know whether the carrier has filed their 2 elements 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 holds the carrier solely responsible for their submission and is not proposing to hold importers liable for the carrier’s untimely or un-filed 2 elements.

14. How will the ISF information be supplied to the ocean carrier?

Carriers have been clear that they don’t wish to receive ISF acceptance messages nor intend to police loading of containers based on ISF acceptance.  Controls must be in place with the shipper or forwarder to ensure a container isn’t delivered to a steamship line without ISF acceptance.

15. What will happen when an ISF acceptance message has not been received from CBP once the submission has occurred?

CBP has not yet indicated what the escalation process will be.

16. What reporting tools will be available for review of accepted ISF transactions?

Transactional, exception, and ad hoc reporting will be available to importers.