10 + 2 Importer Security Filing

8/22/2019 10 + 2 Importer Security Filing

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Importer Security Filing and

Additional Carrier Requirements

10+2 Trade Outreach Webinar

Spring 2010


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Todays Presentation on 10+2

Overview of the ISFRequirements

Program Update

Enforcement Strategy

Top ISF Issues

Q & A Session Los Angeles - Long Beach Seaport


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What is the Security Filing?

Carrier Requirements:Vessel Stow Plans required for arriving vessels with containers.

Container Status Messages required for containers arriving via vessel.

The Security Filing, commonly known as the 10+2 initiative, is

a Customs and Border Protection (CBP) regulation thatrequires importers and vessel operating carriers to provide

additional advance trade data to for non-bulk cargo shipments

arriving into the United States by vessel.

Importer Requirements:

U.S. Bound Cargo: requires the electronic filing of an Importer Security

Filing (ISF) comprised of10 data elements (a.k.a., ISF-10).

Transit Cargo: requires the electronic filing of an ISF comprised of

5 data elements (a.k.a., ISF-5).


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Importer Security Filing (ISF) Importer

The party required to submit the Importer Security Filing (ISF) is

the party causing the goods to enter the limits of a port in theUnited States. This party is known as the ISF Importer.

Could be the owner, purchaser, consignee, or agent (e.g. customs

broker).

The ISF Importer, as a business decision, may designate an

authorized agent to file the Importer Security Filing on the ISF

Importers behalf.

If an agent is used for ISF purposes, a power of attorney (POA) is

required.

The ISF Importer is ultimately responsible for the timely,

accurate and complete submission of the ISF filing.


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ISF-10 Data ElementsU.S.-bound Cargo (3461 Entries, IT, FTZ)

1. Importer of Record Number2. Consignee Number

3. Seller (Owner) name/address

4. Buyer (Owner) name/address

5. Ship to Party

6. Manufacturer (Supplier) name/address7. Country of Origin

8. Commodity HTS-6

9. Container Stuffing Location

10. Consolidator (Stuffer) name/address

11. Bill of Lading Number (house or reg.)

12. ISF ImporterCBP Form 3461


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ISF ImporterImporter of Record #

Consignee #

Buyer (Owner)

Ship To Party

From Order to Delivery

Manufacturer (Supplier)

Seller (Owner)

ISF Importer

Ship To Party

Container Stuffing Location

Manufacturer (Supplier)

Consolidator (Stuffer)

ISF Importer

Seller (Owner) Purchase Order

Ship To PartyConsolidator (Stuffer)


Invoice

The ISF-10 is due 24 hours

prior to vessel lading

Overseas Factory/Warehouse Shipper/Carrier Distribution Center

Importer/RetailerVendor/Supplier


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ISF Filing Requirements All ISF filings are to be done electronically via the vessel

Automated Manifest System (AMS) or the AutomatedBroker Interface (ABI)

ISFs cannot be done at the Port of Entry (i.e., Custom House) on

a walk-in basis

There is no paper form

(e.g., 3461)

Bonds are required to cover

most ISF transactions


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ISF Filing Options

CBP has begun development of an internet-based web

portal to accept ISF filings Importers must pre-register their importer ID numbers with CBP (i.e., IRS#

or SSN#)

Registration of the importer ID number can be done in person at a local Port

of Entry or by a licensed customs broker via the use of CBP Form 5106

Portal will be available no earlier than August 2010

Use of the portal will probably be limited to no more than two (2) ISF filingsper day, with a maximum of twelve (12) per year

In addition, some service providers allow self-filers

indirect access to CBP systems via the internet

Contact a CBP Client Representative at 571-468-5500to discuss self-filing options


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10+2Interim Final Rule

Effective Date: The interim final rule (IFR) took effect on

January 26, 2009(60 days after the publication date) andallowed for certain flexibilities:

Timing of transmission for 2 of the 10 ISF data elements

Range of responses for 4 of the 10 ISF data elements

All other requirements in this rule were adopted as a finalrule.

Compliance (Enforcement) Date: January 26, 2010

The IFR flexibilities will stay in effect until the structured review is

completed and a decision on keeping, modifying or removing them ismade by DHS, OMB and other executive branch agencies.


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Structured Review and Flexible Filing

CBP monitors all ISF submissions for timeliness, accuracy and

completeness. On the basis of information obtained during the structured

review and public comments, DHS will undertake an analysisof the elements subject to flexibilities.

Analyze Flexible Range of Responses (FR) Elements Ship to Party

Manufacturer (Supplier) name/address

Country of Origin

Commodity HTS-6

Analyze Flexible Timing (FT) Elements Container Stuffing Location

Consolidator (Stuffer) name/address

Only 2% of all filings

claim to use the

flexible filing option

If you choose to use a

flexible option, you

MUST amend your

filing with a CT


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40 Container

NEW SECURITY FILING DATABED LINEN 630210 CN MFR/Supl. XINJIANG TOP BEDDING PRODUCTS

Seller XINJIANG TOP BEDDING PRODUCTS

Stuffing Location XINJIANG, CN Buyer BE & D IMPORT INC (PHX., AZ)

Consolidator XYZ LOGISTICS Importer BE & D IMPORT INC (PHX., AZ)

Ship ToName/Add. THE TRANSFER WHSE (L.B., CA) Consignee BE & D IMPORT INC (PHX., AZ)

ISF Data Improves Targeting Capabilities

Source Description HTS C/O Role PartyBILL OF LADING SHEET N/A N/A Shipper XYZ LOGISTICS

Consignee ABC TRUCKING

Whats in the box?

Non Intrusive Inspection (NII) X-Ray Image OnlyNII Image and Manifest Data


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What Are Casings?

ISF DataImproves Cargo Identification

Bullet Casings

Pipe Casings

Gear Casings Motor Casings

Computer Casings

Bomb Casings

Tire CasingsSausage Casings

HTS 1601.00

HTS 9306.30

HTS 7304.20


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10+2 Program Update


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ISF-10s By the NumbersJanuary 26, 2010 May 2, 2010

Impo rters (IOR #s):

2,453,200Tota l Subm issions:

Total Accepted:

Total Rejected:

2,372,907

80,293 3%

97%

123,000+

Filers: 2,226

79%

19%


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Top Five Error MessagesISF-10 Errors fromJanuary 26, 2010 April 25, 2010

0

10,000

20,000

30,000

40,000

50,000

60,000

Duplicate ISF Invalid ISFTransaction #

InvalidCountry

Code

Invalid HTS # Invalid IDCode

52,259

19,79117,502

13,231

9,010


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ISF Progress Reports

In production since May 10, 2009

Registration is Required

Reports are on a Monthly Cycle

Reports Cover122,251 ISF Importers

We Offer .pdf, .csv, and .xls Formats

Four Types Currently in Production: Importer by Filer Reports (most common) - Over1,105 ISF Filersare

registered

Filer Summary Report

C-TPAT Importer Reports (Tier 3, 2) C-TPAT Importer Transactional Reports (Tier 3)


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Importer Security Filing (ISF)

Progress Reports

1. ISF10 Submission Volume:


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C-TPAT Benefits of 10+2

Earlier Decision Making C-TPAT entities are reliably identified prior to vessel lading

Based on Importer of Record Number on the ISF

No longer tied solely to entry data (24 hours or more prior to arrival)

Better Decision Making

Tangible C-TPAT benefits are applied much further upstream Receive targeting credit based upon their tier status

Stabilization of Automated Hold Process

Immediate Transportation (IT) in-bond risk assessments are more stable

Validation of Supply Chain Security Reviews

New Entities and Locations Identified and/or Verified


Consolidator (Stuffer) name/address

Customs - Trade Partnership Against Terrorism


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10+2 Enforcement Strategy

CBPs Vessel Stow Plan Module

Used to identify unmanifested containers


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ISF Enforcement StrategyThe full compliance (enforcement) date for the 10+2

requirements commenced on January 26, 2010, thus ending a

12-month delayed enforcement period in which CBP provided

extensive outreach to educate the trade community on the new

requirements. CBP will:

Apply a measured, commonsense approach to enforcement

Exercise the least amount of force necessary to obtain full

compliance

Evaluate non-compliance on a case-by-case basis

Continue to provide outreach and guidance to the trade

X


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Enforcement Measures

Informed Compliance Efforts

Public outreach (incl. webinars, meetings, ISF Progress Reports) Informal and formal notification (e.g., warning letters)

Mid-level Compliance Measures

Domestic NII examination manifest holds

Domestic physical examinations

Re-evaluation and possible reduction of C-TPAT status

Strictest Enforcement Measures

ISF Jail (i.e., lengthier manifest holds)

Liquidated Damages

Suspension or Revocation of C-TPAT Status

Do Not Load or Do Not Discharge Orders


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10+2 Challenges


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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 (house orregular)

Contact your shipper

New ABI query functionality will help

CBP allows for the bill of lading number to be updated on the ISF

I cant 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


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Top ISF Issues Identified

I didnt receive the ISF Bill on File match message.

This is common; especially when the ISF filing precedes the filing of thecustoms manifest (i.e., bill info).

Make sure you (or your agent) annotated the correct bill type on the ISF.

Regular BillThis bill type is also referred to as an Ocean" or Simple Bill

and is issued by a Carrier. There are no underlying house bills.

House Bill Typically issued by a NVOCC (sometimes referred to as anautomated freight forwarder). A house bill of lading always falls under a

carriers Master bill of lading.

ISFs cannot be filed against Master Bills

Do NOT Send in a REPLACE to force an ISF-Bill Match message

Do I need to file 24 Hours prior to lading of the feeder ormother vessel?

The ISF is due 24 hours prior to lading of the mother vessel


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Available Resources

Go to: www.cbp.gov

Copy of the Interim Final Rule

ISF PowerPoint Presentation

General Frequently Asked Questions (FAQs) Document

Copy of the Regulatory Assessment

Implementation Guides (Technical File Formats)

Mitigation Guidelines

News Releases

Outreach Schedule

[email protected]


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Questions?

[email protected]

10+2 ContactsRichard Di Nucci, Director, Cargo Control Division

John Jurgutis, Branch Chief, ISF & Vessel Manifest

Stephen Silvestri, Branch Chief, Air & Rail Manifest

Craig Clark, Program Manager, ISF

Joseph Martella, Program Manager, New York Field Office

www.cbp.gov


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10 + 2 Importer Security Filing

Documents

Transcript of 10 + 2 Importer Security Filing