10+2 Frequently Asked Questions

1. Who is responsible for ensuring that the ISF has met all of its requirements?

The Import Security Filing (ISF) is required by the party causing the goods to enter the US, known as the ISF Importer. The ISF Importer, as a business decision, may designate an authorized agent to file the Importer Security Filing on its behalf. However, the ISF Importer is ultimately responsible for the timely, accurate and complete submission of the ISF filing.

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2. What are the data requirements of the ISF?

The program is often referred to as the "10+2", however, there are 11 data elements required from the Importer.

These include the 9 data elements 24 hours prior to lading that may result in a "No Load" status from the CBP:

  • Importer of Record Number
  • Consignee Number
  • Seller (Owner) name/address
  • Buyer (Owner) name/address
  • Ship to Party
  • Manufacturer (Supplier) name/address
  • Country of Origin
  • Commodity HTS-6
  • Bill of Lading Number

The remaining 2 data elements are required no later than 24 hours prior to arrival. They are:

  • Container stuffing location
  • Consolidator name and address

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3. Do all of the 10 data elements have to be submitted at once?

Importers can submit the required ISF at any time prior to the deadline, including as the order is being processed. Early filing can ensure that there is plenty of time to review and correct the data prior to the deadline.

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4. How difficult is it to meet these requirements?

With the exception of the BOL number the 8 data elements that may result in a "No Load" response from the CBP are readily available at the time an order is made. The BOL number represents the largest challenge for Importers; it is normally received later in the trade process than is required by CBP. CBP requires it 24 hours prior to lading, this gives a small window of time to ensure that the number is received from the carrier and transmitted in the filing to the CBP.

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5. When is this new program to come into effect?

The new regulation has already come into effect. ISF submissions have been required since January 26, 2009. There is a one year grace period with regards to penalties that will allow Importers time to change business processes in order to meet the new requirements; however, Importers must be fully compliant by January 26, 2010.

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6. How do Importer's file their ISF?

All ISF filings are to be done electronically.

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7. What can the importer do when the carrier/freight forwarder/NVOCC are not providing bill of lading (BOL) numbers timely, 24 hours prior to lading?

The importer should contact their transportation provider to determine what the problem is and work together towards resolving the problem. The World Shipping Council and/or Customs & Border Protection (CBP) can also assist you, if needed.

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8. Performance reports are now being provided to the trade by Customs & Border Protection (CBP), how can a company receive this information?

CBP requires an e-mail be sent to progress_report@cbp.dhs.gov the information required is: Filers corporate name, ISF filer code, contact name and phone number.

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9. My company is very small we average 10 shipments per month the goods move from our overseas facility to the U.S. via Ocean. Are we required to comply, because we’re small are the rules the same as a large importer?

Yes, the ISF requirement applies to small, medium or large enterprises equally. The regulations are specifically intended to fulfill the requirements of section 203 of the Security and Accountability for Every (SAFE) Port Act of 2006 and section 343 (a) of the Trade Act of 2002, as amended by the Maritime Transportation Security Act of 2002.

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10. Explain what the DUNS numbering system is?

Dun & Bradstreet (D&B) is an entity management process that is used globally by both the public and private sector. The DUNS is a unique nine-digit sequential number assigned to companies (location specific) upon requesting a number through the D&B registration process. Refer to the D&B website www.dnb.com for further information.

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11. Should I request DUNS numbers from my trading partners before starting ISF?

Yes, it's highly recommended to use the DUNS number whenever possible. Customs and Border Protection (CBP) allow the following data elements to be populated with a DUNS numbers vs. actual alpha/numeric data: Seller (Owner) name/address, Buyer (Owner) name/address, Manufacturer (Supplier), Ship to Party, Container Stuffing location, Consolidator name/address, and for Transit Cargo the Booking Party Name/Address and Ship to Name.

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12. What are the consequences if the importer chooses to just wait until after January 26, 2010 before submitting the required ISF?

The ISF became mandatory January 26, 2009, a period of flexible enforcement ends on January 26, 2010. What this means is Customs and Border Protection (CBP) is giving the trade an opportunity to transition providing time to adapt to the new requirement. This does not mean the importer should wait until the last minute to comply. If they do, those importers that are issued liquidated damages after January 26, 2010 for failure to comply with the 10+2 requirements (i.e. timely, accurate and complete filings) will be expected to pay in full the ISF penalty $5K per occurrence with no mitigation factor.

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13. How does the importer register their ISF Importer Number with Customs and Border Protection (CBP)?

The ISF Importer and Importer of Record number are the same in most filings. The registration process begins with the ISF Importer presenting to CBP the completed Importer ID Input Record Form 5106 (19 CFR 24.5). You can find the form right here (http://forms.cbp.gov/pdf/CBP_Form_5106.pdf).

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14. Why does TradeMerit require a power of attorney from the ISF Importer?

TradeMerit is certified by Customs and Border Protection (CBP) to transmit electronically Importer Security Filings (ISF). TradeMerit being an authorized agent of the importer, CBP requires a completed power of attorney between these two parties; the importer and the authorized agent.

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15. Is there a fee for amendments when using TradeMerit "enhanced" ISF service?

No, TradeMerit's Enhanced is $0.99 per ISF filing.

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16. Can I set up a corporate account with TradeMerit and have multiple users?

Yes, a company can have multiple users under the same importer number (corporate account).

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17. Does Customs and Border Protection (CBP) have an ISF web portal available to importers?

No, CBP has no intentions of creating an internet-based web portal to accept the ISF filings.

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18. Are bonds required when filing ISF?

During the period of "flexible enforcement period" CBP will not require bonds. If you already have a bond on file with CBP, they will accept the bond information. Otherwise, a bond will be required after January 26, 2010.

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19. When the importer receives a CBP "warning message" via TradeMerit systems what is the importer to do?

Bonds are not required during the period of "flexible enforcement". CBP is waiving the requirement to update the ISF warning message at this time.

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20. Are ISFs required for; (a) Informal shipments, (b) Military Shipments, (c) U.S. Military Household Goods, (d) U.S. Goods Returned?

Yes, ISFs are required for all of the above named a through d.

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21. When the importer receives a CBP "rejected ISF" via TradeMerit systems, what is required of the importer?

Submit a new filing.

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22. When using TradeMerit ISF services does the importer need a filer identification code?

No, when TradeMerit is designated the authorized agent to file the ISF on the Importers behalf, TradeMerit’s Standard Carrier Alpha Code (SCAC) will be used as the filer identification code.

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23. Will CBP ISF Performance Reports be made available via the importers Automated Commercial Environment (ACE) account web portal?

No.

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24. What is the power of attorney retention period?

CBP requires of the importers designated agent to keep on file a signed power of attorney by the importer. CBP has not specifically stated what the record keeping requirements are for retention of powers of attorney. TradeMerit’s policy is to retain for a period of 5 years.

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25. When using TradeMerit ISF services will CBP assign the Importer a "client representative"?

No. TradeMerit is known as the ISF Filer with CBP therefore, TradeMerit has been assigned a CBP "client representative".

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26. Are "household goods" being exempt from ISF filings?

No.

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27. What is the definition of "container stuffing location"?

The container stuffing location is the physical location where the goods were loaded into the container.

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28. What is the definition of "consolidator/stuffer"?

The consolidator/stuffer is the party who loaded or has arranged the loading of the container.

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29. When will CBP be publishing the ISF Mitigation Guidelines?

The 10+2 "ISF mitigation guidelines" is expected to be published in the "CBP Bulletin" by July 17, 2009.

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30. Where can the ISF mitigation guidelines be found?

On July 17, 2009 CBP published the ISF Mitigation Guidelines in its CBP Bulletin (pages 29-41). The guidelines can be accessed online at: http://www.cbp.gov/linkhandler/cgov/trade/legal/
bulletins_decisions/bulletins_2009/vol43_07172009_no28/
43genno28.ctt/43genno28.pdf

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31. What type of ISF penalties can importers expect for violations when the "flexible enforcement period" ends?

There are three possible type of violations related to ISF, whereby CBP can assess penalties to importers: (a) ISF late filing (b) Inaccurate filing (c) Failure to withdraw a filing.

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32. During the period of "flexible enforcement" will CBP issue "do not load" messages for importers failure to comply with the ISF requirements?

No, "do not load" messages will not be issued to the carrier by CBP for importers failure to comply with ISF requirements during the period of "flexible enforcement".

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33. Is it a requirement of Importers that bring goods into the U.S. by both ocean and highway mode of transportation to submit ISF’s?

No. The only ISF requirement at this time is for goods arriving into the Customs territory of the United States by ocean (vessel) mode of transport.

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34. What is the ISF timeframe for shipments intended to be transported in-bond (immediate exportation (IE), transportation and exportation (T&E)?

The ISF for in-bonds must be transmitted no later than 24 hours before the cargo is loaded on the vessel destined to the United States.

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35. What are the additional data elements required for ISF in-bonds and what is the timeframe?

CBP requires that the five additional data elements be transmitted to CBP no later than 24 hours before the cargo is loaded on the US bound vessel at the foreign port. The five required data elements are: 1. Booking party 2. Foreign port of unlading 3. Place of delivery 4. Ship to party 5. Commodity HTSUS number

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36. When must ISF amendments be made when data changes?

Amendments must be made before the goods enter the limits of the first port of arrival in the United States. CBP will accept amendments to the ISF at any time after the goods arrive in a port of the United States.

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37. What is a FIRM code? Can it be used in place of a DUNS number?

Facilities Information Resource Management (FIRMS) Codes are assigned and maintained by United States Customs and Border Protection (CBP). FIRMS codes are issued to "bonded warehouses, terminals or container freight station". The goods can remain in a bonded warehouse until released by CBP. The only ISF data element that a FIRMS code can be used in place of the "name and address" or DUNS number is the "Ship To Party".

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38. How important is the Bill of Lading Number (BOL)?

Very important. The BOL number is required as part of the ISF. This information is what links the Importer Security Filing to the Carriers Automated Manifest System (AMS).

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39. What Bill of Lading (BOL) Number is to be used?

The lowest BOL level that is to be recorded in the Carriers Automated Manifest System (AMS). CBP can accept an ISF at either house BOL or straight BOL.

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40. What are Ocean Carriers responsible for in regards to ISF and why?

Carriers are currently required to submit advance cargo information for vessels no later than 24 hours before the cargo is loaded on board a vessel at a foreign port. This is referred to as the "24 Hour Rule". In addition, there is a carriers ISF requirement to submit a Vessel Stow Plan and Container Status Messages (CSM). The reason why, is to improve the high-risk targeting of cargo destined for the U.S. by CBP's Automated Targeting System (ATS). This will enhance the risk assessment process by enabling CBP to more efficiently separate higher-risk shipments from lower-risk shipments.

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41. What is the SCAC code and is it part of the Bill of Lading (BOL) number?

The Standard Carrier Alpha Code (SCAC) is a unique two-to-four-letter code used to identify transportation companies. The ISF BOL number should consist of SCAC + BOL Number.

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42. Is there an ISF timeframe for Ocean Carriers?

Yes. The carriers must transmit the Stow Plan and received by CBP no later than 48 hours after the carrier’s departure from the last foreign port. For voyages less than 48 hours, CBP must receive the information prior to the vessel’s arrival at the first port in the U.S. The carriers also must submit the Container Status Messages (CSM) to CBP daily for certain events, and collects a CSM in its tracking systems. This must be done no later than 24 hours after the message is entered into the carrier’s equipment tracking system.

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43. Are NVOCC’s (Non-vessel operating common carriers) required to submit ISF’s?

Yes. NVOCC is a type of entity that is subject to the rule's requirements.

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44. What significant impact will the rule have on small importers?

It's unknown and CBP cannot certify that the rule will not have a significant impact on a substantial number of small importers. TradeMerit created ISF "Enhanced" service specifically for the small importer. By using this service the impact should be significantly lower for the small importer.

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45. Will there be ISF educational programs provided to the Trade by CBP?

Yes. CBP fully supports the trade community in its efforts to successfully implement the new ISF requirement.  CBP offers the trade ISF "outreach programs" periodically throughout the U.S. You can find out more information via Customs and Border Protection (CBP) web site.

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46. Where can the Small to Middle size importer get additional information?

CBP just published a SME brochure (08/2009) that will be handed out at the Port’s.  For a copy please click on the link here.

 

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47. There is concern that large bi-national companies will have more difficulty complying with the new rule because of the complexity in their supply chain?

The ISF rule is applicable to all importers no matter what size. There are ISF services available such as TradeMerit’s "collaborative" and "premium" especially created for the larger importer.

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48. Can Importers expect that their NVOCC's and Customs Brokers will ISF file for them?

Don't assume that the NVOCC and/or Customs Broker will file the ISF on your behalf. This arrangement must be made separately from the "import" process.  In addition, expect additional costs will be added to the process. It is a benefit for importers to check out other ISF services being offered in the marketplace.

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49. My company's IT department will not be able finish the ISF programming by January, 2010. Will CBP understand and accept our participation later in 2010 for this reason?

No.  All importers have until January 26, 2010 to comply with the ISF rule. CBP has given all importers time to comply between January 26, 2009 – January 26, 2010.  After this period penalties will be accessed.  It's recommended for companies that can't meet the 2010 deadline, to use ISF service providers until there ISF internal systems are ready.

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50. When the importer has an Automated Commercial Environment (ACE) account, is it possible to file ISF-10 via the ACE web portal?

No.  ACE does not support ISF's at this time.

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51. Are U.S. Goods Returned exempt from ISF?

No.  ISF's are required for U.S. Goods Returned. In addition, the HTSUS Chapter 98 and HTSUS commodity number are required.

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52. Can the importer access the vessel carriers CSM and stow plan ISF data?

 No.

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53. Did CBP change the “ISF Accepted with Warnings” ISF filer message?

 Yes. Effective August 15, 2009 (CSMS #09-000286) CBP switched the “ISF Accepted with Warnings” message to “ISF Rejected”.  TradeMerit will forward all messages received from CBP as “alerts” to the account holder. 

 

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54. Is it true, CBP will reject an ISF if a party uses their IRS number or Social Security Number as an identification number?

 No.  If the Social Security Number or IRS number is being used as an ISF identification number, it’s the importer’s responsibility to have the number on file with CBP.  Importer’s that submit their ISF using one of these numbers, and has not filed the number with CBP will receive an “ISF Rejected” message. TradeMerit will forward all messages received from CBP as “alerts” to the account holder.

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55. What authority will CBP use for published guidelines for the assessment and cancellation of claims for liquidated damages incurred by carriers and ISF Importers.

 Under the authority of 19 U.S.C. 1623, Effective July 17, 2009 CBP published (CBP Dec.09-26)(Vol.43,No.28) “Guidelines for the Assessment and Cancellation of Claims for Liquidated Damages for Failure to Comply with the Vessel Stow Plan, Container Status Message, and Importer Security Filing Requirements “.

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56. What are some of the benefits of ISF to the Importer?

 The primary benefits to the importer are; increase visibility (inventory, in-transit, etc) better management and controls throughout their supply chain. 

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57. What is the Importer to do when sellers and manufactures are not organized to generate the documents containing the ISF data within the required time frame?

 The importer must communicate the process change of the ISF requirements to their foreign suppliers.  Critical attention to detail is a must.  The importer may incur unnecessary costs (CBP liquidated damages) and/or possible shipment delays for mistakes made by their off-shore suppliers.  It’s recommended, the importer provide their foreign suppliers a means to which they can submit electronically ISF data specific relative to the importer requirements.

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58. Will Importers who participate in the Customs-Trade Partnership Against Terrorism (C-TPAT) be held liable for ISF mistakes?

 Yes.  The ISF mitigation guidelines recently issued by CBP directly addressed C-TPAT Tier 2 and 3 Importers.  CBP will allow those importers an additional 50 percent reduction in any mitigated penalties.

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59. Do in-bond moves require ISF? If so, what type of in-bonds?

 Yes.  Shipments moving via Vessel and intended to move on an immediate exportation (IE) or Transportation and Exportation (T&E) in-bond at first U.S. port of arrival require submission of ISF-5.  For timeframes refer to Federal Register/Vol.74/No.133/Tuesday, July 14, 2009. 

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60. What is the Advance Trade Data Initiative?

The ATDI (2004-2008) was a voluntary program for companies to share their import data electronically with CBP.  CBP was able to see what was coming into the country before the goods actually arrived at the port of entry.  ATDI was the precursor to 10+2.

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61. In preparation of ISF what type of questions should importers be asking?

 Here are a few to start with:
  1. Have you identified all entities in your supply chain?
  2. Have you communicated with these entities the new ISF data requirements and how it will be collected?
  3. Do you know what’s being shipped before it is loaded on the vessel for departure. 
  4. Have you looked at the different external security filing vendors offering ISF services? Compare the different functionalities.
  5. Have you performed a cost analysis of the process?

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62. What is the “24 hour rule”?

 The Trade Act of 2002 requested additional data elements be provided by the trade which CBP could then use for security and enhanced targeting purposes.  In 2002, the 24-Hour Rule went into effect requiring advance electronic information on all cargo shipped to the U.S. before it arrives at the U.S. ports of entry.

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63. Does CBP require a copy of the bill of lading in addition to the ISF?

No.  The BOL number is a required ISF data element.

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64. Is the Manufacturers Identification Number (MID) an acceptable ISF data element?

 No.  The MID cannot be used in lieu of providing the name/address of the manufacturer or supplier of the goods on the ISF.

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65. Where can the importer get more detailed ISF information?

 U.S. Customs and Border Protection (CBP) web site.

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66. Is there a CBP e-mail address available to send our questions to?

 Yes. The e-mail address is Security_Filing_General@cbp.dhs.gov  You need to know that CBP will send an automatic e-Mail response to you.  The general response being sent out by CBP is for you to check periodically CBP ISF FAQ’s. 

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67. If the importer has a “bond” can they include it in their ISF filing?

 Yes.

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68. I’m a small importer that only receives approximately 5 shipments a year via ocean vessel. Next year, my 1st shipment will be arriving a US port sometime during the first quarter. What if I wait until that time to begin submitting ISF?

By waiting until you receive your first shipment (next year) before submitting your ISF you’re giving up the right to mitigate with CBP if things go wrong. In addition, you may also experience possible shipment delays.  For any infractions after January 26, 2010 there will be penalties associated.  Since last January, 2009 CBP is giving the trade community an opportunity to transition providing time to adapt to the new ISF requirement. 

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69. Who is in charge of ISF at CBP?

 Richard DiNucci, is the director of Secure Freight Initiative for CBP.  He and his staff are leading the ISF initiative.

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70. Will CBP be delaying ISF enforcement scheduled to begin January 26, 2010?

 There is serious doubt at this time that CBP will be delaying ISF enforcement after January 26, 2010. 

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71. What is PIERS data?

Port Import Export Reporting Service (PIERS) database collects, edits, and cleans import data obtained from the Vessel AMS and vessel manifest before providing the information for sale to the public.

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72. How often are Container Status Messages (CSM) updated by the vessel carrier?

 CSM’s are issued every time there is a container event to report.

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73. Are ISF’s required for Immediate Transportation (IT) in-bonds?

Yes.  ISF is applicable for IT’s. The same ISF-10 rules apply.   

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74. How confidential is the “importers” ISF data?

 To avoid the information from getting into the hands of an unwanted party, it’s recommended that importers file an “inward or outward manifest confidentiality request” with CBP.

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75. Will CBP be conducting any ISF Webinars?

 Our sources state CBP is considering holding ISF Webinars in the future. 

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76. Which trading partners should importers be looking at to create an efficient ISF supply chain?

 When preparing for the ISF transition importers should be looking at their trading partners to avoid shipment delays from occurring, gain better visibility into shipment status and to avoid fines.  The trading partners that are critical to the process are consolidators, carriers and brokers.

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77. Will CBP put a hold on in-bond cargo when the ISF has not been filed?

 Effective January 26, 2010 CBP may not allow in-bond cargo to proceed for failure to file ISF.

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78. If the importer is a non-resident can they file ISF?

 Yes.

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79. Is there a fee for requesting a D&B D-U-N-S number?

 There is no fee for requesting a D-U-N-S Number.

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80. What are the most common ISF errors made by importers?

CBP has stated the most common errors made by importers are:

1.  Duplicate filings
2.  Invalid transaction number
3.  Invalid HTS number
4.  Invalid country code
5.  Missing surety information 

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81. Are there any ISF statistics available?

 Yes, CBP is watching closely ISF filings.  CBP announced YTD statistics recently at one of their trade outreach sessions:
1.  2.4 million ISF’s have been filed
2.  5% rejection rate
3.  1,758 Filers
4.  84,540 Importers of Record
5.  50+ Carriers/filers are participating in CMS, Stow Plan and ISF-5 filings,
6.  Delete rate is less than 1%

7.  Averaging 350,000 filings per month   

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82. Define who the supplier is?

The party supplying the finished goods in the country from which the goods are leaving and that this party does not necessarily need to be in the country from which the goods are leaving?

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83. Can importers access ISF performance reports from their ACE portal account?

No.  To obtain ISF filer progress reports the ISF Filer must register with CBP by sending an e-mail to progress_report@cbp.dhs.gov  content should include: Filer’s corporate name, Filer code used for filing Security Filings, Point of Contact, Point of Contact’s telephone number, and Corporate email address to which to send the Performance Report.

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84. What measurement is CBP using for ISF timeliness as reflected on the ISF Progress Reports?

Timeliness is based upon the 1st bill of lading file date. This date is merely a potential indicator of timeliness.  In the future, CBP will also utilize the vessel departure date minus 24 hours as secondary potential indicator ISF timeliness.

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85. Are there unique ISF transaction numbers assigned to the filer by CBP? When?

 Yes.  After ISF filer submission to CBP, upon receipt CBP will then process the data and provide immediate feedback to the ISF filer.  The return messages will include an acceptance or rejection message. For filings that CBP accepts, CBP will return a unique ISF transaction number.   If there are any errors, or if the submission is rejected CBP will provide a reason code.

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86. Is it true that ISF updates can be sent at any time?

 No.  ISF updates are to be sent at any time prior to or after arrival of the cargo in the U.S.

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87. Is it a requirement to amend the ISF filing after arrival at the first U.S. Port of unlading?

 No.

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88. Can agents utilize their own bond?

 Yes.  If there are breaches, the agents bond will be charged. 

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89. Is there an ISF query functionality in ABI or AMS?

 no.

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90. When will CBP develop detailed amendment codes?

  CBP will post a list of amendment codes in the next set of implementation guides.

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91. When is the bill of lading number required for ISF?

 The bill of lading is part of the ISF filing.  The ISF needs to be submitted at the lowest bill of lading level that is transmitted into AMS. The bill of lading number is the only common “link” between the ISF and the carriers manifest data.  

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92. There are many types of bill of ladings, can you explain those that are applicable for ISF?

Regular, Straight or Simple Bill – is defined as a non-Master, bill of lading issued by the ocean carrier with No underlying house bills.
 
House Bill – is defined as a bill of lading issued by a NVOCC or Freight Forwarder to a customer as a receipt for the goods beiong shipped with other cargo as on consignment.
 

Master Bill – is defined as an ocean bill of lading issued by a ocean carrier covering at least one or more underlying house bills of lading.

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