ISF - 10+2

IMPORTER SECURITY FILING (ISF) 10+2

The 10+2 is a new business process that the importer will have to implement and create a new Standard Operating Procedure.  This new program will result in the importer having to be accountable for their shipments at the point of stuffing.  10 + 2 is meant to enhance cargo targeting by requiring additional data elements prior to loading at the foreign port.  Improved targeting of high risk shipments will result in fewer exams of low risk shipments.  10 + 2 also will identify all parties in the supply chain and will provide a more concise description of the commodities being shipped into the US.

10+2 is for security and targeting purposes only.  It is not intended for commercial or trade enforcement purposes or for determining entry.  However, customs will be comparing the ISF to the entry data to analyze and assess risk and to validate the ISF data. 

10+2 is also referred to as Importer Security Filing and Additional Carrier Requirements.  The Importer Security Filing (ISF) covers the 10 elements, whereas the Additional Carrier Requirements cover the +2 elements.

Customs has been working on this program for many years as an effort to push supply chain security beyond our borders and back to the point of stuffing.  The Security and Accountability for Every Port Act (SAFE) was passed in October 2006.  It put into law the requirement to report advance cargo information prior to loading on the vessels at foreign ports. 

The effective date of the 10+2 (ISF) is January 26, 2009.  Customs will hold off on the enforcement during the first year.  Full enforcement will become effective on January 26, 2010; however Customs reserves the right to push this date back depending on the first year results.

10 + 2 DATA ELEMENTS:

1.       Manufacturer (or Supplier) name and address – Name and address of the entity that manufacturers, assembles, produces, or grows the commodity, OR the name and address of the party supplying the finished goods in the country from which the goods are being exported.  Customs will be flexible for the first year on this data element, but it must be updated once know, and no later than 24 hours prior to arrival at the port of discharge. 

2.       Seller Name and address – Name and address of the last known entity by which the goods are sold or agreed to be sold.  The seller information is usually available on the commercial invoice.

3.       Buyer name and address – Name and address of the last known entity to which the goods are being sold or agreed to be sold.  If the goods are sold in transit and the buyer information changes, the ISF must be amended.

4.       Ship to name and address – Name and address of the first deliver-to party scheduled to physically receive the goods after the goods have been released from Customs.  Customs believes this information gives predictability for targeting.  If the ship to party is unknown, the facility where to goods will be unladen (i.e. pier) can be reported.  If there are multiple delivery stops, only the first one is reported.   Customs will be flexible for the first year on this data element, but it must be updated once know, and no later than 24 hours prior to arrival at the port of discharge. 

5.       Container stuffing location – Name and address(es) of the physical location(s) where the goods were stuffed into the container.  For break bulk shipments (LCL) the name and address(es) of the physical location(s) where the goods were made ship ready must be provided.  A “scheduled” stuffing location will be acceptable, but once the actual stuffing location is known the ISF must be amended, prior to arrival. 

6.       Consolidator (stuffer) name and address – Name and address of the party who stuffed the container or arranged for the stuffing of the container.  For break bulk (LCL), the name and address of the party who made the goods “ship ready” or the party who arranged for the goods to be made “ship ready” must be provided.

7.       Importer of Record number  - The IRS number, EIN number, Social Security number, or customs assigned importer number of the entity liable for payment of all duties and responsible for meeting all statutory and regulatory requirements incurred as a result of importation.   If the importer of record on the entry is not the same as the importer that files the ISF, any ISF penalty would be against the party whose bond is posted for the ISF.

8.       Consignee number  - The IRS number, EIN number, Social Security number or Customs assigned imported number of the individual or firm in the U.S. on whose account the merchandise is shipped.

9.       Country of origin – The country of manufacture, production, or growth of the article, based upon the import laws, rules and regulations of the U.S. This is the same information that is declared on the Customs entry.  Customs will be flexible for the first year on this data element, but it must be updated once know,  and no later than 24 hours prior to arrival at the port of discharge. 

10.    Commodity HTSUS number Tariff number which the article is classified in the HTSUS.  The final rule requires 6 digits, but Apex Logistics will be reporting the full 10 digit HTS numbers.  This will require that all goods will need to be pre-classified.  Customs will be flexible for the first year on this data element, but it must be updated once know,  and no later than 24 hours prior to arrival at the port of discharge. 

The manufacturer, country of origin, and HTS number must be linked to each other at the ISF line item level.  Customs will allow the entry/entry summary to be filed at the same time as the ISF.

In addition to the 10 ISF elements, the bill of lading number must be entered to tie the ISF, to the manifest data and to the entry.  If the bill of lading is split in transit, a new ISF will need to be filed for each new B/L and the original ISF will need to be amended.

The +2 data elements which is the responsibility of the steamship line are:

1.        Vessel stow plan

2.       Container status messages

All of the above data requirements must be complete and accurate, if not it will be considered as non-compliance and will result in the importer receiving a $5000.00 penalty per violation.  We cannot stress enough the importance of putting together a standard operating procedure (SOP) to ensure that you are prepared for the implementation of the 10 +2 program.

We are recommending that our customers be proactive with all of your vendors and suppliers and suggest requesting all of the required information and commercial documents to be submitted to your designated 10+2 filer no later than 72 hours prior to loading of the vessel.

Apex Logistics, Inc. is a fully licensed U.S. Customs broker and we are able to present all the required 10 +2 data to U.S. Customs via the ABI system on your behalf.  This will eliminate any delay that introducing a third party may cause as only the entering party may make any changes that may arise.