Importer Security Filing

1. Importer Security Filing AKA 10+2

2. Background • The ISF and Additional Carrier Requirements were borne out of the Security and Accountability For Every (SAFE) Port Act of 2006 which required the filing of additional advance data elements. This was to assist CBP in making earlier and more informed targeting decisions for high-risk U.S.-bound containerized vessel cargo prior to its arrival in the U.S. • The 10+2 rule was published in the Federal Register on November 25, 2008 and has been in effect since January 26, 2009.

3. What must be filed? • 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 for goods being entered into the US or and FTZ.

4. Who is responsible? • The goods’ owner, • Purchaser, • Consignee, • or agent such as a licensed customs broker.

5. Requirements Carrier Requirements: (the “ + 2” ) Vessel Stow Plans required for arriving vessels with containers. Container Status Messages required for containers arriving via vessel.

6. ISF-10 Data Elements “U.S.-bound” Cargo (3461 Entries, IT, FTZ) • Due 24 hours prior to lading . Importer of Record Number 2. Consignee Number 3. Seller (Owner) name/address 4. Buyer (Owner) name/address 5. Ship to Party 6. Manufacturer (Supplier) name/address 7. Country of Origin 8. Commodity HTS-6 • Due 24 hours prior to arrival • 9. Container Stuffing Location • 10. Consolidator (Stuffer) name/address • Carrier requirements: • 11. Bill of Lading Number (house or reg.) • 12. ISF Importer

7. Importer Flexibility • Manufacturer (or supplier) • Ship to party • Country of origin • Commodity Harmonized Tariff Schedule of the United States (HTSUS) number

8. ISF Importer flexibility • For these data elements, importers may submit a range of acceptable responses based on facts available to the ISF Importer at the time of submission. • The Importer Security Filing 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.

9. Bulk vs. Break Bulk • Bulk cargo is exempt and is defined as ‘homogenous cargo that is stowed loose in the hold and is not enclosed in any container such as a box, bale bag, cask or the like, and is also described as bulk freight and ‘free flowing articles’. • Break bulk is defined as cargo that is not containerized but which is otherwise packaged, crated or bundled, and exempt from the vessel stow plan and Container Status Message requirements, require the filing of an ISF. And can include vehicles (RORO).

10. Break bulk exemption • A carrier of break bulk cargo may apply for an exemption from the 24 hour rule filing requirements. The preferred method of requesting an exemption is through email. Requests may be submitted to: • 24hour.exemptions@dhs.gov

11. Any bundling of the following commodities must only be for the purposes of securing the cargoand can still be considered Bulk Cargo • Coils of steel and other metals • Rails of steel and other metals • Wire rods of steel and other metals (may be coiled or flat) • Ingots of metal (precious or otherwise) • Round bars of steel or other metal • Deformed bars/rebar (of metal) • Plates (of metal) • Billets (of metal) • Slabs (of metal) • Pipes (of metal) • Beams (of metal) • Tubes/tubing (of metal) • Angles, shapes, and sections (of metal) • Sheets (of metal) • Expanded metal • Flat bars (of metal) • Strand wire (of metal) • Sawn timber/lumber as a commodity (not as packaging material) • Paperboard/fiberboard/plywood as a commodity (not as packaging material) • Paper products as commodity (wood pulp, newsprint, and paper rolls) • Certain perishable goods, not in boxes, bags, or containerized, and not frozen, but laden and stowed in a way similar to other types of bulk cargo (includes seafood and produce) • Blooms (similar to billets and of metal) • Anodes/cathodes, in sheets only (may be corrugated)

12. FROB, IE Shipments, and T&E • ISF for FROB must be submitted any time prior to lading. • ISF 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. • Shipments consisting entirely of goods intended to be transported in-bond as an IE or T&E, the ISF must consist of five elements.

13. Five data elements must be submitted for FROB, IE and T&E shipments: • Booking party • Foreign port of unlading • Place of delivery • Ship to party • Commodity HTSUS number

14. Compliance ‘flexible’ enforcement • CBP will assess liquidated damages in accordance with the relevant mitigation guidelines which were published in the CBP Bulletin on July 17, 2009. • CBP initially only put holds on cargo for non-compliance.

15. As of July 2013 • While there may be multiple errors on an ISF transmission, in accordance with the guidelines, CBP may assess a claim for liquidated damages as follows: $5,000 per late ISF, $5,000 per inaccurate ISF, and $5,000 for the first inaccurate ISF update.

16. http://www.cbp.gov/xp/cgov/trade/cargo_security/carriers/security_filing/http://www.cbp.gov/xp/cgov/trade/cargo_security/carriers/security_filing/

17. Available Today on www.CBP.gov: • Copy of the Interim Final Rule • ISF Presentation • Copy of the Regulatory Assessment • General Frequently Asked Questions (FAQs) Document • Implementation Guides (Technical File Formats) • Mitigation Guidelines • News Releases • Outreach Schedule • Security_Filing_General@cbp.dhs.gov mailbox

18. Top ISF Issues Identified How does CBP measure ISF “Timeliness”? • The regulation states 24 hours prior to lading (Legal) • CBP will measure by the Vessel Departure Date minus 24 hours (Practical) Which bill of lading number do I use? • Must use the lowest bill of lading transmitted in AMS (houseorregular) • Contact your shipper • New ABI query functionality will help • CBP allows for the bill of lading number to be updated on the ISF I can’t get a bond because I missed the filing deadline • CBP is considering creating a Type 13 “Late ISF” coded transaction • Importers are acknowledging that they violated the regulations • Will probably not be available for longer than one (1) year

19. You can contact CBP directly with your questions at: Security_Filing_General@cbp.dhs.gov. Maureen.blanchard@dhs.gov Questions?

20. Validating the Power of Attorney From CBP info dated 09/04/2009 • Because the Power of Attorney (POA) can authorize the movement of conveyances and merchandise into the United States, it is critical that it be examined carefully. By ensuring that each POA is valid, the broker joins U.S. Customs and Border Protection on the national security frontlines in verifying the data used to screen what enters this country. • Reasonable Care: In addition to security, the broker’s own professional business interests and continuing obligation to demonstrate “reasonable care” require verification of the POA grantor’s identity and legal authority (position in a company or partnership) to enter into a POA.

21. Here are some ways the broker can validate a Power of Attorney: • To the greatest extent possible, have POAs completed in person so the grantor’s personal identification (driver’s license, passport, etc.) can be reviewed. • Check applicable Web sites to verify the POA grantor’s business and registration with State authorities. • If the principal uses a trade or fictitious name in doing business, confirm that the name appears on the POA. • Verify that the importer’s name, importer number and Employer Identification Number (also known as the Federal Tax Identification Number) on the POA match what is in ACS. • Check whether the POA grantor is named as a sanctioned or restricted person or entity by the U.S. Government. See the Bureau of Industry and Security's Export Enforcement page. ( Export Enforcement )