ISF 10+2 is CBP's Importer Security Filing rule for cargo arriving by vessel: the importer side files ten data elements before loading, and the carrier side provides two more, the vessel stow plan and container status messages. NVOCCs sit in the middle, so it helps to know exactly which part is theirs.
The Importer Security Filing rule, formally “Importer Security Filing and Additional Carrier Requirements”, applies to import cargo arriving in the United States by vessel. CBP lists its effective date as January 26, 2009 (CBP: Importer Security Filing 10+2), and the regulation at 19 CFR 149.2 sets the general compliance date as January 26, 2010. CBP warns that failing to comply can lead to monetary penalties, more inspections and delayed cargo.
The name describes the split. Ten data elements come from the importer side, describing who sold and bought the goods, who made them, where they come from and where they were stuffed. Two come from the carrier side and describe the vessel and the containers. Together with the carrier's advance cargo declaration (the ACE manifest), they let CBP screen a shipment before it is loaded abroad.
The elements are defined in 19 CFR part 149. They are reported for each good at the six-digit HTSUS level at the lowest bill of lading level, which means the house bill when there is one.
| Element | What it is | Deadline |
|---|---|---|
| 1. Seller | Last known entity that sold or agreed to sell the goods | 24 hours before lading at the foreign port |
| 2. Buyer | Last known entity to whom the goods are sold | 24 hours before lading |
| 3. Importer of record number / FTZ applicant ID | IRS, EIN, SSN or CBP-assigned number | 24 hours before lading |
| 4. Consignee number(s) | Number of the U.S. party on whose account the goods are shipped | 24 hours before lading |
| 5. Manufacturer (or supplier) | Entity that last made, assembled, produced or grew the goods | 24 hours before lading |
| 6. Ship to party | First party scheduled to physically receive the goods after release | 24 hours before lading |
| 7. Country of origin | Country of manufacture, production or growth | 24 hours before lading |
| 8. Commodity HTSUS number | At least six digits, up to ten | 24 hours before lading |
| 9. Container stuffing location | Where the goods were stuffed into the container | As early as possible, no later than 24 hours before arrival at a U.S. port |
| 10. Consolidator (stuffer) | Party that stuffed the container or arranged it | As early as possible, no later than 24 hours before arrival |
The rule has some flexibility. For manufacturer, ship to party, country of origin and HTSUS number, the ISF Importer may first file the best data available and must then update it as soon as better information exists, and no later than 24 hours before arrival at a U.S. port. The filer also has to update the ISF whenever information changes before the goods arrive, and withdraw it, with a reason, if the goods will no longer be imported.
The two carrier elements are not filed by the importer at all. They are obligations of the incoming vessel carrier under 19 CFR 4.7c and 4.7d:
Vessel bulk and break bulk carriers have their own exemptions, and an exclusively bulk or break bulk vessel does not need a stow plan. The carrier's cargo declaration itself is a separate filing; see what ACE AMS manifest filing is and who must file.
This is where most confusion starts. The ISF Importer is defined in 19 CFR 149.1 as the party causing the goods to arrive in the United States, which for imported cargo is the goods' owner, purchaser, consignee or an agent such as a licensed customs broker. An NVOCC is usually not the ISF Importer for cargo entering the U.S. commerce. It does, however, carry information the importer needs, such as the stuffing location and consolidator for its own consolidations, and it may act as the importer's authorized agent if it has the CBP connection to file.
Two situations change the picture. For FROB, foreign cargo that stays on board while the vessel calls at U.S. ports, the regulation makes the carrier or the NVOCC the ISF Importer. For shipments moving in-bond as an immediate exportation (IE) or transportation and exportation (T&E), the party filing the IE or T&E documentation can be the ISF Importer. In these cases a shorter set of elements applies.
Every ISF Importer must hold a bond that covers ISF obligations. The regulation accepts a basic importation and entry bond, a custodial bond, an international carrier bond, a foreign trade zone operator bond or a dedicated ISF bond. If the importer has none of these, the agent filing for it may post the agent's bond.
For a carrier or NVOCC, the relevant one is usually the international carrier bond. Its conditions in 19 CFR 113.64(f) state that if the principal elects to provide ISF information and defaults, the principal and surety agree to pay liquidated damages of $5,000 for each violation. Agents must also keep powers of attorney in English until revoked, and keep revoked ones for five years. Confirm with your customs broker or surety how your specific bond is written.
Liquidated damages are not the only exposure. Cargo whose security data is missing or inconsistent tends to draw questions and examinations, and the cost of a delayed container usually falls on the party closest to the customer, which is often the NVOCC. Our guide on avoiding CBP manifest penalties and holds covers the data problems that most often trigger them.
Even when the importer files the ISF, the NVOCC's data drives much of it. A short routine prevents most problems:
Doing this by hand across e-mail threads is where shipments slip. Systems such as GDZ-ISIS for NVOCCs keep the booking, the house bill of lading and the customs data in one record, which makes it easier to hand clean, consistent data to whoever files.
For goods entering U.S. commerce the ISF Importer is the owner, purchaser, consignee or its agent, such as a licensed customs broker. An NVOCC files only if it is that agent, or when it is the ISF Importer for FROB cargo.
Most importer elements are due no later than 24 hours before the cargo is laden aboard the vessel at the foreign port. The container stuffing location and consolidator are due as early as possible and no later than 24 hours before arrival at a U.S. port.
The vessel stow plan and container status messages. The stow plan is due within 48 hours after departure from the last foreign port, and CSMs within 24 hours after the carrier records the event.
It is the common name for the five elements required for FROB cargo and for in-bond shipments moving as an immediate exportation or as a transportation and exportation: booking party, foreign port of unlading, place of delivery, ship to party and commodity HTSUS number.
Under the international carrier bond, a principal that elects to file ISF and defaults agrees to liquidated damages of $5,000 per violation. CBP also warns of more inspections and delays. Ask your customs broker about current enforcement.