A Complete Guide to Importer Security Filing (ISF) for U.S. Imports

When importing goods into the United States, adherence to stringent regulations is essential to ensure smooth customs clearance and avoid penalties. Among the critical documents required is the Importer Security Filing (ISF), often referred to as the “10+2” rule. This document must be submitted to the U.S. Customs and Border Protection (CBP) to validate the import and guarantee compliance with safety and security standards. Below, we delve into the details of ISF, its importance, the filing process, and essential considerations to streamline your import operations.

What is ISF?

Importer Security Filing (ISF), officially known as “Importer Security Filing and Additional Carrier Requirements,” is a mandatory document for U.S.-bound ocean shipments. This regulation was implemented to enhance cargo safety and facilitate the identification of high-risk shipments. Commonly called the “10+2 rule,” ISF mandates importers or their agents to electronically file specific data points with the CBP at least 24 hours before the departure of the vessel from the last foreign port.

Key Features of ISF:

Scope: While ISF is not used to determine shipment entry into the U.S., CBP compares ISF data with other documentation to assess risk and validate accuracy.

Applicability: ISF is applicable only to ocean freight shipments. It does not apply to goods transported via air, rail, or road, nor to bulk cargo shipments.

Implementation: ISF became effective in 2009, following its official publication in 2008. This regulation builds on the Security and Accountability for Every (SAFE) Port Act of 2006, which required advance cargo information before loading shipments at the origin port.

Why is ISF Needed?

The ISF regulation primarily serves as a security measure to ensure that shipments entering the U.S. do not pose a threat. By requiring detailed information about the cargo, ISF enables CBP and the Department of Homeland Security (DHS) to:

• Identify high-risk shipments, reducing the likelihood of smuggling or illegal activities.
• Maintain cargo safety and security by monitoring containerized goods.
• Facilitate efficient customs clearance and minimize delays caused by insufficient or incorrect documentation.

Non-compliance with ISF regulations can lead to significant penalties, including monetary fines, cargo delays, and even shipment rejection.

When to File ISF?

ISF must be filed within specific timeframes to avoid penalties and ensure timely shipment clearance:

1. Standard Cargo:

File no later than 24 hours before the goods are loaded onto the vessel at the foreign port.

2. Break-Bulk Cargo:

File no later than 24 hours before the vessel’s arrival at the U.S. discharge port.

Failure to meet these deadlines can result in penalties of up to $5,000 per violation, as well as shipment delays or detentions.

Who is Responsible for Filing ISF?

The responsibility for ISF filing lies primarily with the importer or their designated agent. Accurate and timely filing is crucial to avoid penalties and ensure compliance.

Responsibilities of Each Party:

Importer:

• Provide complete and accurate data for the 10 required data points.
• Ensure the ISF is filed electronically with CBP.

Shipping Line/Carrier:

• Provide the two additional data points (“+2”) related to the vessel stow plan and container status messages.

For FTZ Shipments:

• The entity filing customs documentation is responsible for submitting the ISF.

Types of ISF Filings

ISF filings are categorized into two types, depending on the nature of the shipment:

ISF 10+2

This filing is required for all U.S.-bound containerized cargo shipments. The “10” refers to the data points provided by the importer, while the “+2” pertains to the carrier’s responsibilities. Below is a breakdown of the 10+2 data points:

Importer’s 10 Data Points:

1. Seller Name and Address:

Details of the party selling the goods, usually found on the commercial invoice.

2. Buyer Name and Address:

Information about the purchaser or consignee. If the goods are sold during transit, the buyer’s details must be updated.

3. Importer of Record EIN/IRS Number:

Employer Identification Number, Social Security Number, or Customs-assigned importer number of the entity paying duties and taxes.

4. Ultimate Consignee EIN/IRS Number:

Identification details of the U.S.-based party receiving the goods.

5. Manufacturer (or Supplier) Name & Address:

Information about the party manufacturing or supplying the goods.

6. Ship-to Name and Address:

Details of the physical recipient of the goods after customs clearance.

7. Country of Origin:

Country where the goods were produced, per U.S. regulations.

8. Harmonized Tariff Schedule (HTS) Number:

Classification number for the imported goods, typically 8 or 10 digits long.

9. Container Stuffing Location:

Location where the goods were loaded into the container.

10. Consolidator Name and Address:

Information about the entity responsible for loading the container.

Carrier’s 2 Data Points:

1. Vessel Stow Plan:

Blueprint of the vessel showing the location of all containers.

2. Container Status Messages (CSM):

Notifications exchanged by transport companies regarding container events and movements.

ISF 5

This filing applies to Foreign Cargo Remaining Onboard (FROB), Immediate Exportation (IE), and Transportation & Exportation (T&E) cargo. The five data points required are:

1. Booking Party:

Entity responsible for booking cargo space.

2. Foreign Port of Unlading:
3. Name and code of the port where the cargo will be unloaded.

4. Place of Delivery:

Final destination where the carrier’s responsibility ends.

5. Ship-to Party:

Physical recipient of the goods after customs clearance.

6. HTS Number:

Classification number for the goods.

How to File ISF Online?

Filing ISF electronically through CBP’s Automated Commercial Environment (ACE) Portal is straightforward but requires meticulous preparation. Here are the steps:

1. Prepare Required Information

Ensure all necessary data is collected and verified before submission to prevent errors or delays. Key details include:

• Manufacturer, seller, and buyer details.
• Container stuffing location and consolidator details.
• Importer and consignee identification numbers.
• Country of origin and HTS classification.

For ISF 5 filings: booking party, foreign port, place of delivery, ship-to party, and HTS code.

2. File ISF Through Certified Platforms

Submit ISF data electronically via:

• ACE Portal: Direct filing with CBP.
• Third-Party Providers: Approved intermediaries authorized by CBP.

A unique identification code, such as an SCAC (Standard Carrier Alpha Code) or ABI (Automated Broker Interface) filer code, is required for filing. CBP assigns a four-character identifier if needed.

3. Monitor Filing Status

After submission, track your ISF status to ensure it aligns with the manifest data. Discrepancies may result in rejection or penalties, so timely corrections are crucial.

Digital ISF Filing Services

To simplify the process, digital platforms like EezyImport offer cost-effective solutions for ISF filing. These platforms provide user-friendly interfaces, enabling importers to:

• Submit ISF data without requiring customs brokers.
• Verify and amend information as needed.
• Monitor filing status and track progress in real-time.

Penalties for ISF Non-Compliance

CBP imposes strict penalties for violations, including:

• Filing Errors: Up to $5,000 per incorrect or incomplete filing.
• Untimely Submission: Penalties for late filings can escalate to $10,000.
• Shipment Delays: Detention or inspection of cargo due to filing errors.

To mitigate risks, importers should prioritize accuracy and timeliness in ISF filing.

Key Considerations for Filing ISF

• Accuracy: Ensure all data points are precise and verified.
• Timeliness: Adhere to submission deadlines to avoid penalties.
• Monitoring: Regularly check filing status and address discrepancies promptly.
• Use Trusted Platforms: Leverage certified digital tools for streamlined filing.

By understanding the nuances of Importer Security Filing and adhering to best practices, importers can facilitate smooth customs clearance, enhance cargo security, and avoid costly penalties. Whether filing independently or through digital platforms, meticulous preparation and compliance are key to successful import operations.

Also Read: Simple Steps to File ISF for Importing Goods into the US