OOCL ISF 10+2 Customer Advisory

US Customs Importer Security Filing – “ 10+2 ”

US Customs and Border Protection (CBP) published the Interim Final Rule for the Importer Security Filing (ISF) “10+2” requirements on November 25, 2008. The new rule is applicable to all cargo loading at foreign ports of load, and destined for direct discharge at, or transiting over, a US Port. Cargo discharging at foreign ports, with final delivery to the US overland, will not be affected by this rule. 

The Federal Register rule comes into effect 60 days after this publication date, on January 26, 2009. CBP has granted a period of 12 months from that date under Informed Compliance, enabling carriers, importers, and their “agents” to comply with the new regulations over a total 14 month period. (Importers are defined as parties causing goods to arrive in the US.) 

Within the trade, the new rule is referred to as the “10+2” rule, due to the number of new data elements CBP requires the carriers and importers to file. Carriers are required to submit two elements: Container Status Messages (CSMs) – accounting for all container activities through to arrival at the US Port of Discharge and Stowage Plans, detailing all containers loaded on board the respective vessel. 

Importers, or their agents, are required to submit the additional 10 elements covering:
• Seller
• Buyer
• Importer of Record number
• Consignee Number
• Manufacturer (or Supplier)
• Ship-to-party
• Country of origin
• Commodity HTSUS (Harmonized Tariff Schedule of the United States)
• Container Stuffing Location, and
• Consolidator (stuffer) 

There is flexibility in the current Rule to submit 8 of the 10 elements 24 hours prior to loading and to supplement the Container Stuffing location and consolidator information as soon as possible, but no later than 24 hours prior to vessels’ arrival at the FIRST US Port of Call. This may not necessarily be the actual port of discharge on the BL, but the first physical call at a US Port of the carrying conveyance or vessel. 

Additional flexibility also is provided for, but still part of a discussion document, on the interpretation of 4 elements - Manufacturer, Country of Origin, HTSUS number, and Ship-to-party. 

These elements are still required 24 hours prior to lading, but to provide better flexibility, the current rule allows the ability to file a range of “acceptable responses”, (multiple entries for each of these 4 elements), based on the “best available information at the time, in lieu of single responses.” Importers will, however, be required to update their filings as soon as more precise or accurate information is available. 

There will be no enforced penalties during the period of informed compliance, but CBP will expect filers of the 10+2 to work towards compliance within the informed period, and will be working with the respective parties towards attaining compliance prior to 26th January 2010. CBP will be monitoring and issuing “report cards” on compliance status during the informed period. 

Additionally, for FROB (Freight Remaining on Board – cargo transiting US ports for discharge at foreign locations), IE (Import to US and immediate Export), and TE (Cargo importing to US, transiting US for ultimate foreign export), there are an additional 5 elements that need to be submitted, 24 hours prior to cargo load at the foreign port of loading, as follows:
• Booking Party
• Foreign port of unlading
• Place of delivery
• Ship-to-Party
• Commodity HTSUS (Harmonized Tariff Schedule of the United States) 

This needs to be submitted at the “lowest” level of BL, either at House BL for consolidated shipments, or straight BL level for simple consigned shipments. It is the responsibility, currently, for the Carrier to submit these elements for FROB, and the party filing the IE, TE documentation, they are considered as the ISF Importer, and have subsequent responsibility for filing the “5”. 

While CBP has allowed a 14 month period of “Informed Compliance” there is, as indicated above, expectation that Importers and carriers will move towards compliance during this period, and demonstrate capability to meet the requirements of the Final Rule. CBP will not assess liquidated damages or apply Do Not Load (DNL) messages due to failure to comply with this rule, during the informed compliance period, provided there is evidence that compliance is being sought, but could use the information within the 10+2 submissions, when coupled with the Manifest information to require additional cargo screening or DNL’s to protect the security of the United States. 

The “ISF Importer” as a business decision, may designate an authorized agent to file these security filings on the importers behalf. Agents who file must have access and capability to file through one of the two CBP automated systems – the vessel Automated Manifest System (AMS) and the Automated Broker Interface (ABI). 

Equally, only the party filing the ISF requirements has the authority and capability to modify, update, or cancel the respective ISF submission. Agents filing must also have a sufficient bond with CBP to facilitate the ISF submissions. 

It is, however, still the ISF Importer, that has ultimate responsibility for the timely, accurate and complete submission of all relevant ISF submissions. 

The new Rule will not replace the current 24 Hour Advanced Manifest Rule, which still remains in force, but will require submission of additional information to support a more effective capability to address CBP’s cargo risk assessment process, and facilitate better management of true threats, while enabling the quicker processing of legitimate cargo.
OOCL is pleased to advise our customers that we have already been testing the process with CBP over the past few months, and we are fully ready to provide the capability of submitting both the 10 on behalf of the importer, and the 2 and 5 carrier elements.
We already have extensive handling experience of the 24 Hour Advanced Manifest submission, and are fully capable of supporting the new ISF initiative when the rule becomes effective on January 26, 2009. 

What does the Customer need to do?
You need to ensure capability to comply with the regulation, effective January 26, 2009, either through direct filing, through your broker, or an assigned agent. 

To enable this you would need to ensure that in addition to the current data supplied for BL creation, through SI, that the additional components are provided, these would include:
1) The 6 digit HTSUS (Harmonized Tariff System US) Number
2) The actual manufacturer / supplier information
3) The seller and Buyer information – if different to the shipper and consignee
4) The Ship-to Name and Address (if different to the consignee)
5) The container stuffing location (where OOCL is not the provider to transport to the loading location)
6) The Consolidator name and address (or “stuffer”)
7) Importer of record number
8) Consignee Number, and
9) ACTUAL country of origin of the goods

This can be supplied through the SI or whenever available to facilitate the submission within the 24 hours prior to lading. 

OOCL will monitor and provide status information on the submission status with CBP, and will coordinate any required updates or changes on the importers behalf, as necessary.
Should you have any questions or require additional information to support your submission of these additional requirements for US Customs and Border Protection, please do not hesitate to contact your nearest OOCL CSU office.