Import Security Filing for US importers – Potential $5,000 penalty

As all US importers should already know, on 26th January, the U.S. Customs and Border Protection has begun to enforce a new program designed to enhance import security. This new program requires ocean carriers and importers to provide shipment-related information through an Importer Security Filing (ISF) to be sent to customs before leaving a foreign port, data can be analyzed for potential security risks. By changing processes and obtaining information earlier, the trade community has made adjustments to follow the mandates of this program as customs begins enforcement. The idea is to bring more transparency to ocean cargo shipments and allow customs to target freight that is a potential security threat.

It is important to realize that it is the importers that are responsible to provide the shipment–related information even if they do not arrange the shipping of their imported goods and that Customs will penalize the US importer even if the importer did not arrange the shipping.

The Custom will start issuing penalties and liquidated damage claims on shipments arriving without an ISF being filed. The Custom will issue penalties for Liquidated Damages in the amount of $5000 per ISF for untimely or inaccurate filings.

For ease of reference, we have provided a little more information.

In order to screen incoming cargo more effectively, importers (or their agent, such as a licensed customs broker or a freight forwarder) are required to submit 10 data elements plus two from the ocean carrier with an ISF-10 filing. Therefore, the program is commonly referred to as “10 + 2.” For shipments that are transiting the U.S. (for example, shipments arriving at a U.S. port but destined for Mexico) five elements need to be reported along with the ocean carrier’s two, called an ISF-5.

The ocean carrier is already responsible for filing advance cargo information via the Vessel Automated Manifest System (AMS). With the 10 + 2 program, all vessels that transport freight containers are also required to provide the vessel stow plan with standard vessel information and container details, and all of the container status messages that record container-related events.

The 10 pieces of information for U.S. bound cargo are:

1. Importer of Record Number
2. Consignee Number
3. Seller (Owner) name/address
4. Buyer (Owner) name/address
5. Ship to Party
6. Manufacturer (Supplier) name/address
7. Country of Origin
8. Commodity HTS-6
9. Container Stuffing Location
10. Consolidator (Stuffer) name/address

The five pieces of information for goods transiting the U.S. are:

1. Booking Party name/address
2. Ship to Party
3. Commodity HTS-6
4. Foreign Port of Unlading
5. Place of Delivery

For more information on the ISF or any queries, please kindly contact your forwarder or ET2C for your further assistance.