Procedures of Customs Clearance: 10+2 Rule for the ISF Importers

By | 16/09/2014

Global Customs Trends
– Importer Security Filing and Additional Carrier Requirements (10+2 Rule)

1. 10+2 Rule

On January 26, 2009, the new rule titled Importer Security Filing and Additional Carrier Requirements (commonly known as “10+2”) went into effect. This new rule applies to import cargo arriving to the United States by vessel. Failure to comply with the new rule could ultimately result in monetary penalties, increased inspections, and delay of cargo. The information submitted in Importer Security Filing improves the ability of the U.S. Customs and Border Protection (CBP) to identify high-risk shipments with a view to preventing smuggling and ensuring cargo safety and security.
 
Under the 10+2 rule, before merchandise arriving by vessel can be imported into the United States, the “Importer Security Filing (ISF) Importer,” or their agent (e.g., licensed customs broker), must electronically submit certain advance cargo information to CBP in the form of an Importer Security Filing, which consists of as many as 10 importer data elements (the “10” part of the 10+2 rule). This requirement only applies to cargo arriving in the United States by ocean vessel; it does not apply to cargo arriving by other modes of transportation. And the 10+2 rule states that carriers must submit Additional Carrier Requirements, which consists of vessel stow plans and container status messages (the “2” part of the 10+2 rule).
 

2. Importer Security Filing (ISF)

(1) Who is Responsible for the Filing?

The ISF Importer is required to submit the Importer Security Filing. The ISF Importer is the party causing the goods to arrive within the limits of a port in the United States by vessel. Typically, the ISF Importer is the goods’ owner, purchaser, consignee, or agent such as a licensed customs broker. For foreign cargo remaining on board (FROB), however, the ISF Importer is the carrier. For immediate exportation (IE) and transportation and exportation (T&E) in-bond shipments, and goods to be delivered to a foreign trade zone (FTZ), the ISF Importer is the party filing the IE, T&E, or FTZ documentation.

 
(2) What Must Be Filed?

 a. Shipments Consisting of Goods Intended to be Entered into the United States and Goods Intended to be Delivered to a Foreign Trade Zone

ISF Importers, or their agent, must provide eight data elements, no later than 24 hours before the cargo is laden aboard a vessel destined to the United States. Those data elements include:

① Seller name and address – last named overseas seller/address on the transaction invoice/purchase order.
② Buyer name and address – last named buyer and address 24 hours prior to foreign lading.
③ Importer of Record Number – unique identifying number of the entity primarily responsible for the payment of any duties on the merchandise or an authorized agent acting on his behalf. The unique identifying number can be the IRS, EIN, SSN or CBP-assigned number.
④ Consignee Number – unique identifying number of the entity to which the goods are to be consigned. Typically, the consignee is the “deliver to” party at the end of the supply chain who has a fiduciary interest in the cargo. The unique identifying number can be the IRS, EIN, SSN or CBP-assigned number.
⑤ Manufacturer name and address – name and address of the entity that last manufactures, produces or grows the imported commodity.
⑥ Ship to name and address – named party and the address on the transaction that will physically receive the merchandise, which may be different from the consignee.
⑦ Country of Origin – country in which the goods are wholly obtained or produced.
⑧ HTSUS number (six-digit level) – the initial classification required of a shipment prior to entry being filed.

And two additional data elements must be submitted as early as possible, but no later than 24 hours prior to the ship’s arrival at a U.S. port. These data elements are:
 
⑨ Container Stuffing Location – Physical Foreign Location (street, city, country) where the goods are stuffed into the container prior to its closing.
⑩ Consolidator name and address – Foreign Party that physically stuffs the container prior to its receipt by the carrier for shipment to the U.S. The consolidator’s address identifies the physical location of the cargo, which may differ from the usual manufacturer or shipper premises.
 

b. FROB, IE Shipments, and T&E Shipments

For shipments consisting entirely of FROB and shipments consisting entirely of goods intended to be transported in-bond as an IE or T&E, the Importer Security Filing must consist of five elements. Importer Security Filing for IE and T&E shipments must be submitted no later than 24 hours before the cargo is laden aboard a vessel destined to the United States and Importer Security Filing for FROB must be submitted any time prior to lading. The following five data elements must be submitted for FROB, IE and T&E shipments: ~ of FROB and IE, T&E shipments in <Table 1>.

<Table 1> Importer Security Filing

Shipment Type

Goods to be Entered into the United States

FROB

IE, T&E shipments

Goods to be delivered to an FTZ

Who

Goods’ owner, purchaser, consignee, or agent such as a licensed customs broker

Carrier Party filing the IE or T&E documentation Party filing the FTZ documentation

When

No later than 24 hours before the cargo is laden aboard a vessel destined to the United States

Any time prior to lading No later than 24 hours before the cargo is laden aboard a vessel destined to the United States No later than 24 hours before the cargo is laden aboard a vessel destined to the United States

What

* Ten data elements
① Seller
② Buyer
③ Importer of record number / FTZ applicant identification number
④ Consignee number(s)
⑤ Manufacturer (or supplier)
⑥ Ship to party
⑦ Country of origin
⑧ Commodity HTSUS number
⑨ Container stuffing location
⑩ Consolidator FROB, IE Shipments, and T&E Shipments

 * Five data elements
① Booking party
② Foreign port of unlading
③ Place of delivery
④ Ship to party
⑤ Commodity HTSUS number

* Five data elements
① Booking party
② Foreign port of unlading
③ Place of delivery
④ Ship to party
⑤ Commodity HTSUS number
* Ten data elements
① Seller
② Buyer
③ Importer of record number / FTZ applicant identification number
④ Consignee number(s)
⑤ Manufacturer (or supplier)
⑥ Ship to party
⑦ Country of origin
⑧ Commodity HTSUS number
⑨ Container stuffing location
⑩ Consolidator FROB, IE Shipments, and T&E Shipments

 
 
3. Additional Carrier Requirements

In addition to submitting the cargo manifest information electronically to the CBP by way of its AMSs, the carrier is now required to electronically submit two additional data elements; a Vessel Stow Plan and Container Status Messages to the CBP for all containerized ocean vessel shipments inbound to the United States.
 

(1) Vessel Stow Plan

A Vessel Stow Plan must include information on the physical location of the cargo, in particular, dangerous goods and other high-risk containerized cargo, loaded onboard the vessel destined for the United States. The CBP must receive the vessel stow plan no later than 48 hours after the carrier departs from its last foreign port. If the voyage is less than 48 hours, the CBP must receive the vessel stow plan prior to the vessel’s arrival at its first U.S. port. The vessel stow plan must include standard information regarding the vessel and each container onboard the vessel. According to the CBP, the vessel operating carrier, not the NVOCC, is responsible for filing the vessel stow plan. For bulk and break-bulk carriers shipping part container cargo, the CBP requires the carrier to submit a vessel stow plan for all containerized cargo aboard the vessel.

(2) Container Status Messages

Container Status Messages (CSM) report container movements and changes in status, e.g., whether full or empty. If a carrier is currently creating or collects CSMs in an equipment tracking system, that carrier must submit CSMs to the CBP regarding certain events relating to all containers destined to arrive at a U.S. port by vessel. Carriers must submit CSMs electronically via the secure file transfer protocol no later than 24 hours after the message is entered into the carrier’s equipment tracking system. As with the Vessel Stow Plan, the CBP requires the vessel carrier, not the NVOCC, to submit CSMs.

<Table 2> Additional Carrier Requirements

Requirements

Vessel Stow Plan

Container Status Messages

When

No later than 48 hours after the departure of the vessel from the last foreign port, or prior to arrival at the first U.S. port for voyages less than 48 hours in duration.

If any of the required events occurs, when the carrier creates or collects a CSM in its equipment tracking system reporting that event.

What

 * Information regarding the Vessel
① Vessel Name & IMO Number
② Vessel Operator
③ Voyage Number

* Information regarding Each Container
① Container Operator
② Equipment Number
③ Size and Type
④ Stow Position
⑤ Hazmat-UN Code
⑥ Load port
⑦ Discharge port

 Equipment Number
 Event Description, Date, Time and Location
 Vessel

 

4. Enforcement

If the ISF is not filed, cargo will not move and in addition, CBP may issue liquidated damages of $5,000 per violation for the submission of an inaccurate, incomplete or untimely filing. If goods for which an ISF has not been filed arrive in the U.S., CBP may withhold the release or transfer of the cargo; CBP may refuse to grant a permit to unlade for the merchandise; and if such cargo is unladen without permission, it may be subject to seizure. Additionally, noncompliant cargo could be subjected to “Do Not Load” orders (DNLs) at origin or further inspection on arrival.

5. More Information

For more detailed information about the Importer Security Filing, visit the CBP website at
http://www.cbp.gov/border-security/ports-entry/cargo-security/importer-security-filing-102.

The website includes fact sheets, FAQs, and other public outreach sources. Additionally, questions may be sent to Security_Filing_General@cbp.dhs.gov.

 

Global Customs Trends Series:
(1) U.S. – Automated Manifest System (AMS)
(2) U.S. – Import Security Filing (ISF) Regulation
(3) Canada – Advance Commercial Information (ACI)
(4) China – China Customs Advance Manifest (CCAM) Regulation
(5) Europe – Entry Summary Declaration (ENS)
(6) Japan – Advanced Filing Rule (AFR)

Posted by Ki-Nam Kim, a solution specialist, who has researched and developed a business solution related to customs and logistics.

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