ISF Details

U.S. Department of Homeland Security announced new information requirements on maritime cargo destined for the United States. The Importer Security Filing, or “10 + 2” interim final rule requires maritime cargo importers to submit additional data to U.S. Customs and Border Protection (CBP) 24 hours before vessel sailing. The ISF filing will match based on either the "lowest" bill of lading (i.e. AMS house bill) level or regular (i.e. simple, straight) bill of lading level. Ocean AMS and ISF filings must use the same bill of lading number that is filed in Ocean AMS. The amount of the penalty for violations of the ISF filing is set to be $5000.00 for each violation. Customs has begun enforcing the penalties as of 1/25/2010.

Data Requirements

The rule also requires importers or their agents to submit an Importer Security Filing (ISF) with eight data elements, no later than 24 hours before the cargo is laden aboard a vessel destined for the United States. They are:

• Seller (requires company name, address 1, city, state, zip)
• Buyer (requires company name, address 1, city, state, zip)
• Importer of record number / foreign trade zone applicant identification number (typically your IRS #)
• Consignee number(s) (typically your IRS # or Customs assigned #)
• Manufacturer (or supplier) (requires company name, address 1, city, state, zip)
• Ship to party (requires company name, address 1, city, state, zip)
• Country of origin
• Commodity Harmonized Tariff Schedule of the United States (HTSUS) number (6 digits, unless FTZ where requirement is all 10 digits)

The rule provides flexibility for importers with respect to the submission of four of these data elements. In lieu of a single specific response, importers may submit a range of responses for each of the following data elements: manufacturer (or supplier), ship to party, country of origin, and commodity HTSUS number. The ISF must be updated as soon as more accurate or precise data becomes available and no later than 24 hours prior to the ship's arrival at a U.S. port. When new information becomes available you should amend your ISF filing prior to 24 hours of vessel arrival.

The ISF will also need to include two data elements that 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:

• Container stuffing location; and
• Consolidator.

The final rule requires five data elements in the ISF for shipments consisting entirely of foreign cargo remaining on board (FROB), shipments consisting entirely of goods intended to be transported in-bond as an immediate exportation (IE), or shipments for transportation and exportation (T&E). Importer Security Filings for IE and T&E shipments must be submitted no later than 24 hours before the cargo is laden aboard a vessel destined for the United States, and any time prior to lading for FROB shipments. The following five data elements must be submitted for FROB, IE and T&E shipments:

• Booking party (requires company name, address 1, city, state, zip)
• Foreign port of unlading (schedule K code)
• Place of delivery (schedule K code)
• Ship to party (requires company name, address 1, city, state, zip)
• Commodity HTSUS number

Bonding Requirements

19 CFR 149.5(b) requires that the Importer Security Filing (ISF) importer, or his ISF agent, must possess one of several Customs bonds. The Customs bond ensures CBP's ability to enforce compliance through the assessment of liquidated damages of $5,000 per violation. While the CBP 301 form itself is not changing, the related bond regulations have been expanded as of January 26, 2009, so that these bonds will automatically cover ISF liabilities:

• Activity Code 1 - Basic Importation and Entry Bond (19 CFR 113.62)
• Activity Code 2 - Basic Custodial Bond (113.63)
• Activity Code 3 - International Carrier Bond (113.64)
• Activity Code 4 - Foreign Trade Zone Operator Bond (113.73)

The formula to determine the bond amount for continuous bonds under each of the above activity codes is not expected to change. Further, principals with such bonds will not need to re-file them or file a bond rider to cover ISF changes.

CBP is also adding an Importer Security Filing continuous bond as Appendix (D) to 19CFR 113 as an "ISF only" bonding option. The interim final rule does not indicate the required amount for the new "Appendix D" bond, and in the meantime CBP is expected to provide guidance on calculating the amount of this type of bond as needed.

Single transaction bonds (STBs) may be accepted for an ISF, but their use will be evaluated by CBP on a "case by case basis." CBP has not yet determined an ISF STB process or amount, but is expected to provide guidance as needed.

Click here to learn more about the ISF from CBP.

For additional information, please contact:

Alex Leung by Email or Tel: 650.697.7080 x 103
Russ Romine by Email or Tel: 775.331.8010 x 112