Trade SecurityImporter Security Filing - 10+2

We’ll Make It Work For You

Mary Jo MuoioSenior Vice President

Barthco Trade Services, division OHLPresident

National Customs Brokers and Forwarders Association of America, Inc.

Where Did ISF Come From? SAFE Port Act of 2006 enacted by U.S. Congress in October of 2006

SAFE Port Act Mandated CBP To:

• Collect additional data elements

• Require data to be received before loading

• Improve the targeting process

Implement Via Importer Security Filing and Additional Carrier Requirements

• Strawman November 2006

• NPRM January 2, 2008 - Proposes 19 CFR 149, amends several other sections

• Final Regulations??

Goal:

• To Ensure Cargo Safety and Security

• To Prevent Smuggling

• To Provide “ATS Enhanced Security Screening”

What is the ISF

Data Elements Transmitted to CBP

• ISF 10 Entry-Level Data Elements*

• ISF 5 Entry Elements for FROB, IE, T&E

• CSF 2 Carrier-Oriented Data Elements

* Plus bill of lading

Who Is Required To File

Importer – the ISF 10

• New Definition of “Importer” under 19 CFR 149- “the party causing goods to arrive within the limits of a port in the United States ”

• The 10 Data Elements

Importer / Filer of Data – the ISF 5

• For IE, T&E, and FTZ - “the party filing the FROB, IE, T&E, or FTZ Documentation”

• For FROB - the international carrier of the vessel arriving in the US

Carrier – the CSF 2

• “Carrier” is Defined by 19 CFR

• The 2 Data Elements

The 10 Required ElementsTechnical Specifications - ISF 10

Manufacturer (or supplier) name and address

Seller name and address

Buyer name and address

Ship to name and address

Container stuffing location

Consolidator (stuffer) name and address

Importer of record number

Consignee number (IRS)

Country of origin

Commodity HTSUS number

The 5 Required Elements

Technical Specifications ISF 5

Booking party name and address

Foreign port of unlading

Place of delivery

Ship to name and address

Harmonized Tariff Schedule at minimum 6-digit level

Current thought is that the carrier will file these data elements in most situations

The 2 Required Elements

Vessel Stow Plan

• vessel name and operator; voyage number; container operator; equipment number, size and type; stow position; hazmat code; and load/discharge ports

Container Status Messages

• terminal container movements, change in container status, focused on container status messaging set: equipment number; event description, date, time and location; and vessel.

Baker’s Dozen

The “importer’s” 10 data elements

The carrier’s 2 data elements

PLUS

The bill of lading no(s)

10 + 2 + X = Security Filing

The Good News

This could have been known as the

5,998 + 2 !

How and When Will the ISF Be Filed?

How

• In the entry message by a customs broker

• In the manifest by a carrier

• As a separate filing by a security filer, broker, or carrier

When

• 24 hours prior to cargo being laden on a vessel destined for the United States

Concerns for ImportersWho Will File?

Importer Bears the Liability for Filing

• Regardless of who transmits the data on behalf of the importer

• Can appoint an agent- Access to ABI or AMS

- Bond

• Caution is urged in selecting a transmitter of the data

Confidentiality of Data is Paramount

Concerns for Importers

Information Flow

Large changes in the data flow may be required

Obtaining additional data elements seen as the most challenging item

Additional parties may be included, such as overseas freight forwarders

Automation changes may be required between supplier – importer – ISF Filer

Planning now is a must

Sources of Information

DATA ELEMENTS IMPORTER SUPPLIER / SHIPPER OVERSEAS FORWARDER

MANF. YES YES ?

SELLER YES YES NO / ?

BUYER YES NO /? NO/ ?

SHIP TO YES YES YES

STUFF LOC. YES / ? YES YES

STUFFER YES / ? YES YES

IOR YES NO NO

CONS. IRS YES NO NO

C/O YES YES / ? ? / NO

HTS YES NO NO

Questions to Consider as an Importer

Where will information come from?

Who will provide information to my filer?

How will the information be given to my filer?

What do I do if I don’t know some of the required information?

Will the information be confidential?

When will the information be needed?

What happens if the cargo ships without my knowledge?

How will I know when the ISF has been filed?

Questions to Consider for an Importer

What if there are changes that need to be made to the ISF?

What happens if the ISF incorrect?

What is the penalty exposure?

Is the ISF subject to recordkeeping regulations?

Who will file the information for me?

Can I use multiple filers?

Can my Customs Broker do my filing for me?

Should I file ISF with the entry, or not?

Questions to Consider as an Importer

Can I avoid all of this shipping by air, land, bulk, sleigh and reindeer?

Does being C-TPAT give me 10 + 2 ‘Lite’?

The Logical Filing Party

The Licensed U.S.- based Customs Broker

• Confidentiality of importer’s information is required by law

• Accountability to client

• Proficient in ever changing U.S. Customs laws and requirements

• Only party in the supply chain licensed by CBP

• Familiarity with importer’s product and requirement

• A part of the importer’s team

When Does This Take Effect?

The regulatory changes must be published as a Final Rule before implementation.

The Final Rule is expected to be published any day now.

The regulations will take effect +/- 60 days after the publication of the final rule.

CBP has indicated that there will be an extended period of “informed compliance” to address changes to the current supply chain.

Mary Jo MuoioBarthco Trade Services, division OHL

mjmuoio@OHL.com

Thank You!

Thank You!