ISF 10 + 2
ISF is "Importer Security Filing and Additional Carrier Requirements." The Importer Security Filing (ISF) covers the "10" and the Additional Carrier Requirements cover the "+2".
U.S. Customs requires the importer to provide the concise description of commodities being shipped to the U.S. 24 hours before the goods are loaded onto the vessel. For the security reasons, Customs will compare the ISF to the entry data to analyze and assess risk and validate the ISF data.
10 + 2 Data Elements
- Seller - Name and address of the last known entity by whom the goods are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a purchase, the name and address of the owner of the goods must be provided. The seller information is generally available on the commercial invoice.
- Buyer - Name and address of the last known entity to whom the goods are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a purchase, the name and address of the owner of the goods must be provided. The buyer information is generally available on the commercial invoice. If the goods are sold in transit and the buyer information changes, the ISF must be amended.
- Importer of Record number/FTZ Applicant ID number - The IRS number, EIN, 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. For Foreign Trade Zone shipments, the IRS number of the party who files the documentation must be reported. 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.
- Consignee number - The IRS number, EIN, Social Security number, or Customs assigned imported number of the individual or firm in the U.S. on whose account the merchandise is shipped.
- Manufacturer (or supplier) - Name and address of the entity that last 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 leaving. Customs will be allowing some flexibility with this data element during the first year, but it must be updated once known, no later than 24 hours prior to arrival at the port of discharge. Remember that for textiles, we must have the actual manufacturer for entry purposes.
- Ship to party - Name and address of the first deliver-to party scheduled to physically receive the goods after the goods have been released from Customs custody. Customs believes this information will give predictability to targeting. If the ship to party is unknown, the facility where the goods will be unladen (e.g., pier) can be reported. If there are multiple delivery stop offs, only the first one is reported. Customs will be allowing some flexibility with this data element during the first year, but it must be updated once known, no later than 24 hours prior to arrival at the port of discharge.
- Country of origin - 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 declared on the Customs entry. Customs will be allowing some flexibility with this data element during the first year, but it must be updated once known, no later than 24 hours prior to arrival at the port of discharge.
- Harmonized Tariff Schedule number - Tariff number under which the article is classified in the HTSUS. The final rule requires 6 digits, but Shapiro will be reporting the full 10 digit HTS number. This means all goods will need to be pre-classified. Customs will be allowing some flexibility with this data element during the first year, but it must be updated once known, no later than 24 hours prior to arrival at the port of discharge.
- Container stuffing location - Name and address(es) of the physical location(s) where the goods were stuffed into the container. For break bulk shipments, the name and address(es) of the physical locations(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. We do not need to report which container was stuffed where (the container number is not required to be reported with the ISF).
- Consolidator (stuffer) - Name and address of the party who stuffed the container or arranged for stuffing of the container. For break bulk shipments, 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.
These are the "+2" data elements which are entirely the responsibility of the steamship line:
- Vessel stow plan
- Container status messages
The manufacturer, country of origin, and HTS number must be linked to one another at the ISF line item level. Customs allows the entry/entry summary to be filed at the same time as the ISF.
Bill of Lading Number
In addition to the 10 ISF data elements, we must report the bill of lading number 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.
Who is responsible?
The ISF Importer (with the help of the shipper) is responsible for the timely, accurate, and complete submission of the 10 data elements in the ISF. The steamship line is responsible for the +2 container tracking reports.
A customs broker usually files the ISF on behalf of an importer. The importer could send this form to the shipper or shipping agent to have them fill out, then send it to the customs broker at least 2-3 days before the departure of the shipment from the foreign port.
What kinds of shipments need 10+2?
10+2 is for ocean cargo only. An ISF must be filed for containerized cargo, break bulk shipments, and for Ro-Ro shipments. Bulk cargo (e.g., grain, coal, oil) is exempt. Goods arriving via vessel into Canada or Mexico and subsequently trucked or railed into the U.S. are exempt from 10+2.
When must the ISF be filed?
The following data elements must be filed no later than 24 hours before cargo is laden aboard the vessel at the foreign port:
- Importer of record number/FTZ applicant ID number
- Consignee number
- *Ship to party
- *Country of origin
- *HTS number
The following data elements must be filed as early as possible, but no later than 24 hours prior to arrival at the port of discharge:
- Container stuffing location
- Consolidator (stuffer)
For the * items, submit the best available information. Customs will be flexible during the first year and allow updates up to no later than 24 hours prior to arrival at the port of discharge.
ISF for break bulk cargo must be filed no later than 24 hours prior to arrival at the port of discharge.
Amending/Canceling the ISF
If the ISF needs to be amended, it must be updated before the shipment enters the limits of the port of discharge. Only the party who originally filed the ISF is permitted to update the ISF. If you are converting a consumption entry to an I.E./T&E, then the 5 data elements (ISF-5) must be reported.
The ISF may be withdrawn if the goods are no longer intended to be imported into the U.S. Only the party who originally filed the ISF is permitted to withdraw it. You must include a reason for the withdrawal.
Bonds and Penalties
The ISF Importer is required to post a bond to secure the timely, accurate, and complete ISF. Customs has amended the entry bond conditions to include ISF provisions where the importer agrees to comply with ISF requirements. An importer's existing continuous bond will now cover the Importer Security Filing. There will be no need to get a new bond, nor is Customs requiring additional coverage (increased liability) on existing bonds. If you do not have a continuous bond, you need to buy an ISF bond separately which is only for one time use. Your customs broker can assist you in purchasing the bonds.
Customs will be enforcing 10+2 through the assessment of liquidated damages, in addition to penalties applicable under other provisions of law. Customs can assess liquidated damages up to $5,000.00 for violations, such as failure to submit the ISF timely, accurately, or completely. Liquidated damages will be assessed against the holder of the bond posted for the ISF. Mitigation will be the exception, not the rule. C-TPAT status will be taken into account with mitigation, but each liquidated damages case will stand on its own.
Copyright © 2012 Logishouse, All Rights Reserved