Importer Security Filing (ISF), also known as “10+2,” is a crucial requirement for importers shipping goods to the United States by ocean. It involves submitting specific information about the shipment to U.S. Customs and Border Protection (CBP) before it arrives. Understanding ISF requirements and meeting deadlines is essential to avoid penalties and ensure smooth customs clearance.
Why ISF Was Introduced
The ISF rule was enacted as part of the Security and Accountability For Every Port Act (SAFE Port Act) of 2006. The goal was to enhance border security and prevent terrorist activities by improving the visibility of cargo before it reaches U.S. shores. While the Trade Act of 2002 laid the groundwork, the full enforcement of ISF, with penalties for non-compliance, began in January 2010.
About Importer Security Filing: What is 10+2
The 10+2 refers to the data elements required for ISF filing. Importers are responsible for 10 of these, while carriers provide the remaining 2.
The ISF-10 Elements
- Seller Name & Address: Complete legal name and address of the entity selling the goods. This information is crucial for verifying the origin and legitimacy of the shipment.
- Buyer Name & Address: The full legal name and address of the party purchasing the goods. This ensures transparency in the transaction and helps identify the final recipient of the shipment.
- Importer of Record Number/FTZ Applicant ID Number: The identification number (Internal Revenue Service (IRS), Employer Identification (EIN), Social Security (SSN), or CBP-assigned number) of the importer or Foreign Trade Zone applicant, essential for customs clearance and tracking.
- Consignee Number (IRS, EIN, SSN, or CBP-assigned): The identification number of the party who will receive the goods in the U.S. This is distinct from the buyer and is often a freight forwarder or customs broker.
- Manufacturer (or Supplier) Name & Address: Name and address of the entity responsible for the final manufacturing, assembly, production, or growth of the commodity, or the supplier of the finished goods in the exporting country.
- Ship-to Party Name & Address: The location where the goods are ultimately being delivered. This might be a warehouse, distribution center, or the buyer’s premises. Name and address of the first party scheduled to receive the goods after customs release. If unknown, provide the unlading facility’s name or a FIRMS code for the warehouse/terminal. An inland distribution center can also be provided if the exact address is unavailable during filing.
- Country of Origin: The country where the goods were manufactured or produced. This information is used for determining tariffs and trade agreements.
- Commodity HTS Number: The Harmonized Tariff Schedule code (6-digits minimum) classifying the goods. This is essential for calculating duties and taxes. The HTSUS number must be provided to the six-digit level. Alternatively, the filer may choose to provide the HTSUS number to the 10-digit level.
- 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 location(s) where the goods were made “ship ready” must be provided.
- Consolidator (Stuffer) Name & Address: The name and address of the party who stuffed or arranged for stuffing of the container (or made goods “ship ready” for break bulk). If not applicable (e.g., “factory load” shipments), provide the manufacturer/supplier details. A recognized identification number can be used instead of the name and address.
The Carrier’s 2 Data Elements:
- Vessel Stow Plan: A detailed plan showing the exact location of the cargo on the vessel. This aids in efficient loading and unloading and is crucial for security purposes.
- Container Status Message (CSM): A message indicating the container’s status (e.g., loaded, empty, gate out). This provides real-time updates on the shipment’s progress.
ISF Filing Deadlines for U.S. Imports
Meeting the correct ISF filing deadlines is crucial for smooth customs clearance and avoiding costly penalties. There are two primary deadlines to be aware of:
ISF-10 Filing Deadline: The standard requirement for most shipments is to submit the ISF-10 at least 24 hours before the cargo is loaded onto the vessel at the foreign port. This provides CBP ample time to assess the information for security purposes.
ISF-5 Filing Deadline: While the ISF-5 filing requires fewer data elements, the filing deadline remains the same as the ISF-10. It must be submitted at least 24 hours before the cargo is loaded onto the vessel at the foreign port. These 5 elements must be filed before the vessel arrives in the U.S. and include:
- Booking Party (Name & Address)
- Foreign Port of Unlading (Port code)
- Place of Delivery (City code)
- Ship-to Party (Name & Address)
- Commodity HTS Number
ISF Late Filing Fees & Penalties
Failing to adhere to ISF regulations can have serious consequences for importers, including hefty fines and operational disruptions. The U.S. Customs and Border Protection (CBP) strictly enforces these rules to maintain security and efficiency in the supply chain.
Here’s a breakdown of the potential penalties for non-compliance:
- Late Filing: Submitting the ISF after the mandatory deadline incurs a late filing fee of up to $5,000 per late submission. The initial late filing fee is $5,000 per shipment, but additional fees may be incurred for repeated violations. CBP can exercise discretion in assessing the final penalty amount, considering factors such as the severity of the violation and your compliance history.
- Inaccurate Filing: Providing incorrect or incomplete data in the ISF, or failing to ensure it matches the Bill of Lading, can result in fines of up to $5,000 per violation.
- Failure to File: Neglecting to submit the ISF entirely carries the most severe penalty of up to $5,000 per violation.
In addition to monetary penalties, CBP may place holds on cargo that is associated with non-compliant ISF filings. These holds can significantly delay the release of your goods, leading to increased storage costs and potential disruptions to your supply chain.
It’s crucial to prioritize ISF compliance to avoid these costly penalties and delays. Ensure accurate and timely filings to keep your shipments moving smoothly.
Tips For Accurate ISF Filing
Ensure Timely ISF Filing
Submitting your ISF well before the deadline is crucial. Aim to file the ISF at least 24 hours before the cargo is loaded onto the vessel. This provides ample time to gather all the necessary information, double-check for accuracy, and address any unexpected issues that may arise. Remember, rushing the process increases the risk of errors, so prioritize timely preparation and submission.
Ensure Bill of Lading (B/L) Match
Maintaining consistency between the Bill of Lading (B/L) and the Importer Security Filing (ISF) is paramount. The B/L is the official contract of carriage and contains detailed shipment information. Before submitting the ISF, meticulously cross-check all details, such as the shipper/seller, consignee, commodity descriptions, and container information, to ensure they match perfectly. Discrepancies between the ISF and B/L can trigger customs delays and even penalties.
Check & Amend ISF
After submitting the ISF, it’s essential to review it thoroughly for any errors or omissions. Even small mistakes can have significant consequences. Fortunately, you have the opportunity to amend the ISF until the cargo arrives in the U.S. If you discover any discrepancies or if changes occur to the shipment details, update the ISF promptly. By proactively identifying and rectifying errors, you can prevent potential delays in cargo release or incurrence of penalties.
Remember, accuracy and timeliness are key to a successful ISF filings. By following these best practices and utilizing AI-powered platforms like CrimsonLogic’s ISF filing software, you can streamline the process, minimize errors, and ensure smooth customs clearance for your cross-border shipments.
Avoid Late Fees & Penalties with Accurate ISF Filing
Accurate and timely Importer Security Filing (ISF) is not just a regulatory checkbox—it’s your key to avoiding hefty fines, cargo holds, and disruptions to your supply chain. By prioritizing ISF compliance, you ensure the smooth and efficient flow of your goods into the U.S.
Take control of your ISF process with CrimsonLogic’s expertise and intuitive customs filing software to streamline your compliance process. Our solution empowers you to file with confidence, ensuring accuracy and timeliness, while freeing you to focus on growing your business.
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