The Importer Security Filing (ISF) and Additional Carrier Requirements (10+2 Rule) was created by the CBP and went into effect in the beginning of 2009 to require advance electronic submissions regarding ocean imports into the United States. This information is useful to the CBP in identifying high-risk cargo and ensuring the safety of incoming shipments. More information regarding the requirements of the rule are discussed on our blog post: ISF 10+2 Rule Information.

The 10 key data elements for ocean shipments bound for the U.S. (including FTZ – Foreign Trade Zone – shipments) are detailed in this blog post: ISF 10+2 Rule 10 Data Elements.

FROB (Foreign Cargo Remaining On Board); IE (Immediate Exportation); T&E (Transportation & Exportation)

Here we will detail further the 5 required Data Elements for all Transit Cargo (FROB, IE, T&E) and in-bond shipments:

1. Booking Party

Name and Address of the party responsible for reserving cargo shipping arrangements. A widely recognized commercial number or DUNS is acceptable in place of Name/Address.

2. Ship To Party

Name and Address of the party first to receive goods after customs release. Not the corporate address, but actual delivery address or location where goods are unloaded. In-land distribution center may be used if actual ship to location is unknown at the time of filing. A widely recognized commercial number or DUNS is also acceptable.

3. Commodity HTS Number

Commodity categorized number according to the Harmonized Tariff Schedule of the United States (HTSUS) up to at least six digits; ten digits is also acceptable.

4. Foreign Port of Unlading

Port Code of intended final destination foreign port. (T&E in-bond shipments – this may be the inland port). UN LOC Codes and the “Schedule K” Codes (Bureau of Census) are both acceptable.

5. Place of Delivery

City Code for the place of delivery. This is where the carrier’s responsibility for the goods ends. UN LOC Codes and the “Schedule K” Codes are acceptable here as well.

10+2 is the slang for the CBP enforced requirement for advanced electronic submissions of information for vessel shipments into the U.S. called the Importer Security Filing (ISF) and Additional Carrier Requirements. General information about this new security measure can be found on a related blog post: ISF 10+2 Rule Info.

The CBP has put together a document in alphabetical order by topic regarding FAQ’s about ISF.

You can click on any topic below and it will lead you directly to its respective blog post.

ABI

ACE

AGENTS

AMENDMENTS

AMS

ANTIQUE SHIPMENTS

BILLS OF LADING

BONDS

BULK & BREAK BULK

CARNETS

CLIENT REPRESENTATIVES (CBP)

CODED TRANSACTIONS

CONFIDENTIALITY

CONTACT INFO (CBP)

CONTAINER STATUS MESSAGES (CSMs)

CRUISE VESSELS

DATA ELEMENTS

DIPLOMATIC SHIPMENTS

DUPLICATE ISF FILINGS

EMPTY CONTAINERS

ENFORCEMENT MEASURES

EXEMPTIONS

FLEXIBLE ENFORCEMENT PERIOD

ID NUMBERS

IMPLEMENTATION GUIDE

INFORMAL SHIPMENTS

INSTRUMENTS OF INTERNATIONAL TRADE (IIT)

ISF FILINGS

ISF IMPORTER

ISF SUBMISSION TYPE CHANGES

ISO TANKS

LCL SHIPMENTS

LATE ISF FILINGS

LIQUIDATED DAMAGES

MEASURING TIMELINESS

MESSAGING

MID NUMBERS

MILITARY SHIPMENTS

MITIGATION GUIDELINES

MODE OF TRANSPORT REQUIRING ISF

OUTER CONTINENTAL SHELF (OCS)

OUTREACH EFFORTS

POSTAL CODES

POWERS OF ATTORNEY

PROGRESS REPORTS

RECORD KEEPING REQUIREMENTS

REJECTED ISF FILINGS

RETURNED OR REFUSED SHIPMENTS

SELF-FILING

SHIP’S SPARES/EQUIPMENT

SPLITS, DIVERSIONS AND ROLLING CARGO

STRUCTURED REVIEW BOARD

TRANSMISSION METHODS

UNIFIED ISF-10 & ENTRY FILINGS

UNIQUE ISF TRANSACTION NUMBER

U.S. GOODS RETURNED

VESSEL STOW PLANS

The CBP began enforcing new security measures since the beginning of 2009 with a law called Importer Security Filing (ISF) and Additional Carrier Requirements (referred to as “10+2″). Under the 10+2 Rule, all vessel shipments into the United States need to have an advanced electronic filing submission to the CBP by using AMS or ABI (Automated Manifest System or Automated Brokerage Interface).

For more general information about ISF, please see our blog post: ISF 10+2 Rule Information

Here, we will break down the 10 Data Elements that are required for any U.S.-Bound Cargo (3461 Entries, IT, FTZ):

1. Importer of Record Number

The IRS, EIN, SSN, or CBP assigned number of the party responsible for any duties and compliance with importation requirements. The “importer of record number” for ISF is the same as “importer number” on the CBP 3461 Form. This number may be a foreign entity, but must be a U.S. entity for the Consignee Number element. For FTZ shipments, the Importer of Record Number must be of the same party filing FTZ documentation with the CBP.

2. Consignee Number

The IRS, EIN, SSN, or CBP assigned number of the U.S. individual(s) or business(es) on whose behalf the merchandise is being shipped. This element is the same on the CBP 3461 Form.

3. Seller (Owner)

Name and Address of the party responsible for selling the goods being shipped. A DUNS number or other widely recognized commercial ID number may be accepted in place of Name and Address. This element is the same as what is required on the invoice of imported merchandise: 19 CRF 141.86(a)(2)

4. Buyer (Owner)

Name and Address of the party responsible for purchasing the goods being shipped. A DUNS number or other widely recognized commercial ID number may be accepted in place of Name and Address. This element is the same as what is required on the invoice of imported merchandise: 19 CRF 141.86(a)(2)

5. Ship To Party

Name and Address of the first party to physically receive goods (after customs release). Not a corporate address; if name/address unknown enter name of location where goods will be unloaded. This location can be a FIRMS code of a warehouse, container freight station, or distribution center. A widely recognized commercial ID number or DUNS may also be used.

6. Manufacturer or Supplier

Name and Address of the last manufacturer (assembles, produces, grows) or supplier (finishes goods) in departing country. The name/address used to create the MID (existing manufacturer ID) number may also be used, along with a DUNS or a widely recognized commercial ID number.

7. Country of Origin

Country where goods are grown, manufactured or produced.This element is the same on CBP Form 3461 as well.

8. Commodity HTS Number

Duty classifying number according to the Harmonized Tariff Schedule of the U.S. (HTSUS). At least 6 digits of the HTS code must be provided; 10-digit codes are also accepted.

9. Container Stuffing Location

Name and Address(es) of the physical location(s) where goods are “stuffed” into the container. Provide the Name and Address of physical location where goods are made “ship ready” for break bulk shipments. A “scheduled” stuffing location may also be provided, along with a DUNS or widely recognized commercial ID number. A “factory load” can provide just the name/address of the factory.

10. Consolidator (Stuffer) Name and Address

Name and address of the party responsible for stuffing or arranging for the stuffing of a container.Provide the Name and Address of the party who made or arranged for goods to be “ship ready” for break bulk shipments. If a consolidator is not used (like in “factory load”) then provide the Name/Address of the manufacturer/supplier. A DUNS number is also acceptable.

For FROB, IE and T&E Shipments, please see blog post on: ISF 10+2 Rule 5 Data Elements

Customs and Border Protection are constantly looking for ways to update security measures to help identify high-risk import cargo. Since January of 2009 a new rule has been in effect, the Importer Security Filing and Additional Carrier Requirements, mostly referred to as the “10+2″ Rule. While this rule requires importers and ocean vessel carriers to provide additional data in advance, the CBP is able to use this valuable information to improve safety and security of vessel cargo at U.S. arrival ports. Penalties, additional inspections and cargo delays could ensue upon failure to follow the 10+2 Rule.

What is Importer Security Filing (ISF)?

An ISF is an electronic submission of advanced cargo information that is required under the 10+2 Rule before goods arriving by ocean vessel are able to be imported into the United States (not applicable for other transportation methods).

Who needs to file?

The ISF Importer is responsible for submitting the ISF, which is usually the owner, purchaser, or consignee of the merchandise or an agent such as a licensed customs broker. The carrier will be considered the ISF Importer for FROB shipments (foreign cargo remaining on board). Additionally, for IE (immediate exportation) and T&E (transportation and exportation) in-bond shipments and FTZ (foreign trade zone) shipments, the party filing the documentation will be the ISF Importer.

What needs to be filed?

All ISFs are done electronically through vessel Automated Manifest System (AMS) or Automated Broker Interface (ABI) and are not accepted in paper form. For self-filing options, contact a CBP representative at 571-468-5500.

US Bound Cargo:

The ISF Importer must provide 8 key data elements at least 24 hrs prior to merchandise placed aboard a vessel destined for the U.S. (includes FTZ shipments):

1. Seller
2. Buyer
3. Importer of Record Number/FTZ Applicant ID Number
4. Consignee Number(s)
5. Manufacturer or Supplier *
6. Ship to Party *
7. Country of Origin *
8. Commodity HTS Code (Harmonized Tariff Schedule) *

* These 4 data points allow for ISF Importers to select from a range of responses provided at the time of submission until more precise information can be updated on the ISF and must be completed at least 24 hrs prior to shipment’s arrival in the U.S. port.

Two additional data elements are also required as soon as possible and at least 24 hrs prior to U.S. port arrival:

1. Container Stuffing Location
2. Consolidator

Transit Cargo:

FROB, IE and T&e Shipments

These shipments require an ISF of 5 key elements:

1. Booking Party
2. Foreign Port of Unlading
3. Place of Delivery
4. Ship To Party
5. Commodity HTS Code

FROB shipments ISF’s must be submitted anytime prior to lading, whereas IE and T&E shipments ISF’s are required least 24 hrs prior to lading.

*One ISF can cover multiple Bills of Lading as long as they are part of the same shipment going to the same importer of record and arriving on the same vessel.

The CBP has also been offering outreach programs and webinars to help provide additional information and to answer FAQ’s about the rule to the trade community. See this CBP webpage to check for updates on the next available program.

Related Blog Posts: ISF 10 Data Elements, ISF 5 Data Elements, and 10+2 FAQ’s

Sources: WCS Logistics and CBP

When importing into the United States, Harmonized Tariff Schedule (HTS) Codes are required to classify your commodity to determine the duty rate that will apply at customs. Since using HTS codes can be overwhelmingly complicated, and wrongly classifying an item can be a costly mistake, it would be in your best interest to contact an import specialist for assistance. You will need to actually call the import specialist at the port where your goods will arrive as they are not accessible by email. You will find the telephone listings to contact an import specialist at each port by going to this CBP webpage and scrolling down to the state where the port is located.

The U.S. International Trade Commission webpage for HTS codes is organized into sections and chapters that your commodity should fall under. Once you find the section and chapter that applies, the link will first show you introductory guidance notes, then following the notes, the classification codes and associated duty rates will be displayed.

More information on how duty rates are determined:  Tariff Classification Informed Compliance Publication

Source: CBP – Harmonized Tariff Schedule

According to an entry specialist at U.S. Customs, 1265 people took the customs broker license exam nationally in April 2010.  11.1% of the test-takers achieved the 75% score required to pass the test.

Passing the license exam on its own does not guarantee a person will get the customs brokers license.  They must also pass an FBI background investigation and be 21-years of age (you can take the test at 18).

Customs and Border Protection allows customs brokers and importers, who have been certified, to file customs entries electronically.  With an “electronic Customs entry,” the customs broker transmits all information electronically to CBP using the Automated Broker Interface (ABI).

Certified ABI software vendors provide secure linkages to U.S. Customs servers, allowing importers and their brokers to file immediate delivery, customs entry, and entry summary records instantly.   To qualify for electronic entry processing, Customs must authorize the entry filer to use the ABI statement processing system.

After an importer submits their information to CBP, the agency reviews the data using its proprietary blackbox algorithms to evaluate the risk associated with the entry.  Depending on the result of that analysis, the shipment will undergo either general examination, general examination with document review, or intensive examination. Entry Summary transactions will be subject to system review or summary document review.  If the importer’s data is approved and found to be error-free, CBP will accept it and not require the filer to actually submit any official Customs forms to clear their shipment.

Remote Location Filing (RLF) is a type of electronic entry that allows importers and customs brokers to clear shipments at ports far from their own location.  Only customs brokers with a national permit can take advantage of remote location filing, so you should make sure that your broker is eligible for the program.  Remote location filings can only be done on a continuous bond, so smaller importers using single entry customs bonds will not be able to take advantage of the flexibility.

How long will it take for Customs to release my shipment?

In most cases, your customs broker can get Customs to release your shipment the same day they file the entry for you. The process can take a lot longer if your shipment is chosen for physical inspection or your documents are not in order. Customs only inspects a small percentage of shipments; however if your company is new to importing, the odds of your shipment being picked are higher.

Which documents will U.S. Customs require for my shipment?

There’s no generic answer to this question because the exact documents you’ll need will depend on what you’re importing.  A few documents required for almost all shipments include the commercial invoice, packing list, shipping manifest and arrival notice.  In addition, you’ll also be required to have a valid customs bond on file, as well as a signed Customs Power of Attorney authorizing our brokerage to clear your shipments on your behalf.

What is a Customs Bond?

A Customs bond is a joint promise to pay U.S. Customs between you (the importer) and a surety company that acts as a guarantor on any debts you may incur as a result of your imports.  The debts could be merely tariffs.   These financial instruments are designed to protect the Treasury in the event of a default on any debt you may owe. This protection gives CBP the flexibility it needs to process so many shipments while minimizing delays to commerce.

When should I provide CBP with information about my shipment?

How can I reduce delays from physical inspections?

If your shipments are being selected frequently for physical inspections and you can’t afford all the delays, you may benefit from certification under the Customs-Trade Partnership Against Terrorism (C-TPAT) program. By providing Customs with more visibility into your supply chain, sharing additional data elements, and undergoing more thorough background checks, qualified companies can reduce the number of inspection-induced delays.