Importer Security Filing Information Template

ISF Report Card Explanation

In addition to the current information required under the 24-Hour Rule, the SAFE Port Act of 2006 requires importers and carriers to supply additional data elements at least 24 hours prior to vessel loading. The additional elements will allow CBP to further screen cargo for risks prior to it entering the U.S. After a year of flexible enforcement, on January 26, 2010 ISF enforcement officially began. Currently, the Importer Security Filing ruling only applies to ocean shipments that call a U.S. port directly. Initially, shipments moving through a Canadian or Mexican port and trucked to a final U.S. destination would not be affected.

These data elements include sensitive information and go much more in-depth than the information currently required by the Automated Manifest System (AMS). It is important to note that this is an additional filing and does not replace the Customs entry. However, CBP has stated that Customs brokers will be given the option to file the normal entry and the 10+2 filing in a unified transmission to help ensure compliance by reducing conflicting data.

1. Manufacturer/shipper/supplier Name & Address or Duns number in lieu of

2. Container Stuffing Location - name/address or Duns number in lieu of

3. Seller Name & Address or Duns number in lieu of

4. Consolidator Name & Address or Duns number in lieu of

5. Buyer Name & Address

6. Ship to Name & Address/Consignee Number

7. Importer of Record

8. Master Bill of Lading and House Bill of Lading Number for LCL Cargo

9. Country of Origin

10. Harmonized Tariff Schedule Number (6 digit)

11. Lowest AMS Bill of Lading/AMS HB or MBL if AMS HBL does not exist

1. Stow Plan – which includes:
a. Vessel Name
b. Vessel Operator
c. Container Operator
d. Equipment Number
e. Equipment Size/Type
f. Hazmat-UN Code
g. Vessel Location
2. Container Status Messages – which includes:
a. Equipment Number
b. Event
c. Event Data and Time
d. Event Location
e. Vessel Identification Associated with Message

A message of acceptance or rejection is being sent to the ISF filer confirming that the Importer Security Filing has been successfully submitted. However, they will not validate whether the data is complete and accurately transmitted, as this is the responsibility of the Importer of Record.

As of January 26, 2010 bonds are required for ISFs. There are four options that will satisfy the ISF bond coverage:

1.Single Transaction Bond (STB) Options ($10,000 liability amount required)

a. Appendix D ISF Stand-Alone STB

b. Unified filing, CBP Form 301 STB

a. Appendix D ISF Stand-Alone Continuous Bond

b. Existing CBP Form 301 Continuous Bond

The trade can use their existing CBP Form 301 activity code 1, 2, 3, or 5 continuous bonds to cover the ISF bond requirements. Filers do not have to do anything new, special, or different with their bonds, and bond riders are not required on the existing bonds.

During Q1 of 2010, enforcement will not be as strict. CBP will be sending letters of notice first, working their way up to fines and DNL messages in Q3 & Q4 of 2010. Failure to comply with this new rule would not only result in shipment delays and the potential loss of sales, but could also mean the assessment of penalties. The final rule states, “If the principal fails to comply with the Importer Security Filing requirements, the principal and surety (jointly and severally) would pay liquidated damages in the amount of $5000.00 per ISF transmission, including amendments to the originally filed ISF." Carriers also face penalties if they do not submit the two additional data elements. Therefore, shipping companies will be adjusting cut off dates to ensure that all of the proper information is submitted prior to loading the vessel. If companies are unable to supply the information for the filing prior to loading, then their goods will not be loaded and shipments will be delayed. Demurrage charges, along with longer transit times to customers, can inflate landed costs very quickly.

Mitigating Factors:

1. Evidence of filings during flexible enforcement

2. Small number of violations compared to number of filings

3. C-TPAT standing (Tier 2 or 3)

4. Demonstration of remedial action to prevent future violations

5. Late filing due to vessel diversion outside of ISF importer's control

6. Inaccurate filing due to acquisition of data from another party that was not readily verifiable

1. Lack of cooperation with CBP

2. Evidence of smuggling or attempt to introduce merchandise contrary to law

3. Multiple errors on ISF

4. Rising error rates

How Deringer Can Help:

Deringer has an exemplary relationship with CBP and plays an important role in the formation of trade policies. Deringer’s senior executives sit on committees with CBP, including almost every Trade Support Network (TSN) committee. Deringer also worked very closely with CBP during the test phase of eManifest and was the first company to submit an eManifest on a carrier’s behalf. Based on its strong relationship with CBP and its commitment to service excellence, Deringer beta tested ISF transmissions with importers and was one of the first brokers to provide assistance with the new Importer Security Filing.

Deringer offers an electronic solution to satisfy the new Importer Security Filing requirements. The electronic solution not only ensures the submission of required data elements in a timely and compliant manner, but also helps them manage the data in a central location, as well as add visibility to their supply chain. Based on a client’s specific processes, Deringer offers a variety of options to enable clients to store and manage pertinent information on all products and assist in making the Importer Security Filing requirements as seamless as possible. To learn more about the new requirements, as well as Deringer’s filing options, please email us at 10plus2@anderinger.com.