Import Security Filing (ISF)
What is an Importer Security Filing (ISF)
"ISF" stands for Importer Security Filing. Also known as the "10+2" rule, it requires importers to submit certain information to US Customs and Border Protection (CBP) before goods are imported into the United States. This information includes details about the cargo, the shipper, the consignee, and other relevant parties involved in the transaction. The purpose of the ISF is to enhance security and facilitate the screening of cargo entering the country. Failure to comply with ISF requirements can result in penalties and delays in the clearance of goods.
When should ISF be filed to CBP?
The Importer Security Filing (ISF) must be filed before the cargo is loaded onto the vessel destined for the United States. Specifically, the required elements must be submitted prior to lading aboard a vessel destined to the United States, not the feeder vessel. In some cases, for shipments that are less than a full container load (LCL), the ISF may need to be filed earlier, typically when the goods are delivered to the consolidator or freight forwarder. It's crucial for importers to ensure that the ISF is filed accurately and on time to avoid penalties and delays in the clearance of their cargo upon arrival in the United States. CBP is measuring timeliness based on the vessel departure date of the vessel destined to the United States minus 24 hours. We understand this to be the local time zone from where the vessel is departing minus 24 hours. ISFs are considered LATE if accepted less than 24 hours prior to vessel departure. An accepted ISF that is later replaced retains the original file date for timeliness purposes.
What kinds of shipments need to file the ISF?
The Importer Security Filing (ISF), applies to most shipments of goods entering the United States by ocean vessel. It's essential for importers to determine whether their shipments are subject to the ISF requirement and ensure compliance to avoid penalties and delays in customs clearance.
What are the importer
requirements to file an ISF?
I. ISF-10 “U.S.-bound” cargo
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. U.S. bound Cargo (Includes Free Trade Zone (FTZ) and In-Transit (IT)): requires the electronic filing of an Importer Security Filing (ISF) comprised of 10 data elements. Those data elements include:
Two additional data elements must be submitted as early as possible, no later than 24 hours prior to the ship's arrival at a U.S. port. These data elements are:
Two additional data elements must be submitted as early as possible, no later than 24 hours prior to the ship's arrival at a U.S. port. These data elements are:
II. ISF-5 “Transit” cargo
Transit Cargo (FROB, IE and TE): requires the electronic filing of an Importer Security Filing (ISF) comprised of 5 data elements. The following five data elements must be submitted for FROB, IE and T&E shipments:
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Booking party
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Foreign port of unlading
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Place of delivery
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Ship to party
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Commodity HTSUS number
III. Additional information
The ISF must also have the lowest bill of lading number that is referenced in the Automated Manifest System (AMS) to tie the ISF and manifest data to the customs entry.
What penalties apply if the importer submits inaccurate, incomplete and/or untimely ISF data?
If an importer fails to submit the Importer Security Filing (ISF) on time or submits inaccurate or incomplete information, they may face penalties from U.S. Customs and Border Protection (CBP). These penalties can include:
Monetary fines:
CBP may impose monetary penalties for late or inaccurate filings. The amount of the fine can vary depending on factors such as the severity of the violation and the importer's compliance history. Fines can range from a few hundred dollars to thousands of dollars per violation as per CBP Publication Number EO13891-OT-062. (Mitigation Guidelines: VESSEL STOW PLAN, CONTAINER STATUS MESSAGE, AND IMPORTER SECURITY FILING REQUIREMENTS)
Cargo holds and examinations:
Failure to comply with ISF requirements may result in CBP placing a hold on the importer's cargo or subjecting it to intensive examination upon arrival in the United States. This can lead to delays in the clearance process and additional costs for storage, demurrage, and other related expenses.
Loss of privileges:
Repeat violations or egregious non-compliance with ISF requirements could lead to the loss of privileges such as participation in CBP's trusted trader programs like the Customs-Trade Partnership Against Terrorism (C-TPAT).
It's essential for importers to understand and adhere to ISF requirements to avoid these penalties and ensure smooth customs clearance for their shipments entering the United States.
Important:
Enforcement in General
“In addition to liquidated damages that may be assessed,”...”the failure of an arriving carrier or Importer Security Filing (ISF) Importer to provide the required advance electronic cargo information in the time period and manner prescribed by the regulations in Title 19, CFR, may result in the issuance of a do not load (DNL) hold, the delay or denial of a vessel carrier’s preliminary entry-permit/special license to unlade and/or the assessment of any other applicable statutory penalty. CBP may also withhold the release or transfer of the cargo until CBP receives the required information and has had the opportunity to review the documentation and conduct any necessary examination.”