Why ISF compliance does not have to be complex or expensive?

As importers begin to implement the processes that will create the checks and balances ensuring they are compliant with the ISF regulation, they are being inundated with misinformation.

"In truth, the process for compliance with ISF is much simpler than is being portrayed within the trading community, most of the data elements required for compliance are readily available at the time a purchase order is created," said Sandra Scott, VP of Trade Compliance at TradeMerit.

In fact, 8 of the 11 data elements are available at the time an order is created. There are 9 required data elements that must be submitted 24 hours prior Lading, with the Bill of Lading number being the only one not immediately available at the time an order is created.

With information available early in the process, the ISF should be part of the ordering process and not customs processing; this will greatly reduce the risk of non-compliance. This implies that importers can implement a strategy that will give to them sufficient time to make corrections if issues with the data arise.

The Bill of Lading number is the only piece for which there is going to be a small window of time. Issues with submitting an ISF are really related to how difficult it is to obtain a Bill of Lading number from the Carrier or Freight Forwarder. This is solely the responsibility of the importer and so the use of a third party may hinder the process. Not only is more time required to transmit data, but there is a greater chance for error.

Sandra Scott of TradeMerit says, "Importers need to take advantage of the time and flexibility offered to them by the CBP for these filings. It makes a lot of sense for Importers to leverage the information that they have readily available and manage this process themselves. Ultimately, they can reduce the risk of penalties and decrease the cost of filing."

The remaining two data elements are less critical at the beginning of the order process. In fact, this data would not be made available to importers until after the goods have left the Port of Departure. CBP has recognized this fact and has made the deadline for the filing of these two elements, 24 hours prior to arrival at a US port. This implies that importers have time to ensure that their filings are correct.

Certainly there are many existing technology solutions that could provide to Importers the means to manage their own ISF process. These services vary greatly, with some being as simple as manually filling out the required data elements of the filing, to more collaborative services that will automatically create and submit the ISF by integrating the Importers’ systems with various trading partner.

Sandra Scott of TradeMerit, "The best services are those that address the needs of each Importer, without requiring major changes to their systems and processes. At TradeMerit we offer three distinct services that will help Importers take control of their filing process. The service that best suits an Importer’s needs is really dependent on the sophistication of the ordering process they wish to employ and the volume of filings they perform. By answering just a few simple questions before importers commit to any service they can determine which service will work best for them."

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