Shipments which do not comply with Importer Security Filing requirements are subject to a $5,000 penalty per occurrence.
Since January 26, 2009 all ocean cargo bound for the United States are subject to an importer security filing requirement 24 hours prior to loading of the cargo container in the foreign port. This additional cargo information will assist CBP to screen and asses’ potential risks.
All importers and ocean carriers are required to provide U.S. Customs and Border Protection CBP with this advance notification for all ocean vessel shipments inbound to the United States. The new 10+2 importer will place the burden of compliance onto the importers and ocean carriers. Obviously this will impact the logistics of your supply chain. The importer will be solely responsible and liable for filing ten data elements in the importer security filing ISF. Importers may hire a third party (U.S. Customs Broker or Freight Forwarder) having access to U.S. Customs Automated Broker Interface (ABI) or Automated Manifest System (AMS) and with a duly authorized Power of Attorney to file the ISF on their behalf. It is important to know that only Customs Brokers are bound by privacy requirements thru the Code of Federal regulations.
For Shipments with a U.S. destination (includes FTZ (Foreign Trade Zone) and IT (In-Transit)) the ten data elements required by importers report:
1. Manufacturer (or supplier) name and address
2. Seller (or owner) name and address
3. Buyer (or owner) name and address
4. Ship to name and address
5. Container stuffing location
6. Consolidator (container stuffer) name and address
7. Importer of record or Foreign Trade Zone applicant ID number
8. Consignee number(s)
9. Country of origin
10. Commodity Harmonized Tariff Schedule of the United States (HTSUS) number
For Transit of Foreign Cargo covering freight remaining on board the vessel (FROB), Immediate Exports (IE) and Transportation and Exportations (T & E), the five data elements required to report:
- Booking Party
- Foreign port of unlading
- Place of delivery
- Ship to party
- Commodity HTSUS number (minimum 6 digit level)
CBP has allowed a one-year period of “Flexible Enforcement” and thru informed compliance to smooth the learning curve for importers and carriers adapt to the new 10+2 regulations without the threat of fines. Unfortunately this one year period will be expiring on January 26, 2010. Shipments which do not comply with ISF requirements are subject to a $5,000 penalty per occurrence.
To prepare for any potential fines, we strongly suggest that first consult your custom broker expert or logistics service provider and consider implementing procedures that specifically address the ISF requirements. There are several ways to accomplished these requirement but your must make sure that it is address properly, taking into account the culture of your company. Finally monitor compliance with ISF requirements.
The writer, Francisco Ramirez Jr. is the Managing Partner of Automated Customs Experts Group, Inc. in San Diego, CA. He is also in the process of publishing his first book of most frequent importing mistakes. This will assist importers in developing procedures to avoid potential penalties. You can contact Francisco Ramirez Jr at 619-710-4920 or framirez@acelogisticsgroup.com
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