Importer Security Filing andAdditional Carrier Requirements“10+2” Program Update
March 10, 2010

What is the Security Filing?
The Security Filing, commonly known as the “10+2” initiative, is a Customs
and Border Protection (CBP) regulation that requires importers and vessel
operating carriers to provide additional advance trade data to CBP pursuant toSection 203 of the SAFE Port Act of 2006 and section 343(a) of the Trade Actof 2002, as amended by the Maritime Transportation Security Act of 2002, fornon-bulk cargo shipments arriving into the United States by vessel.

Importer Requirements:
U.S.-bound Cargo (Includes FTZ and IT) : requires the electronic filing ofan Importer Security Filing (ISF) comprised of 10 data elements.
Transit Cargo (FROB, IE and TE): requires the electronic filing of anImporter Security Filing (ISF) comprised of 5 data elements.

Carrier Requirements:
Vessel Stow Plans required for arriving vessels with containers.
Container Status Messages required for containers arriving via vessel.

“10+2” Interim Final Rule
 Effective Date: The interim final rule (IFR) took effect onJanuary 26, 2009 (60 days after the publication date) andallowed for certain “flexibilities”:
 Timing of transmission for 2 of the 10 elements
 Range of responses for 4 of the 10 elements All other requirements in this rule were adopted as a finalrule.

 Compliance (Enforcement) Date: January 26, 2010
 The IFR “flexibilities” will stay in effect until the structured review iscompleted and a decision on keeping, modifying or removing them ismade by DHS, OMB and other executive branch agencies.

New Security Filing Data Requirements
ISF-5 “Transit” Cargo

AdditionalCarrier Requirements(3461 Entries, IT, FTZ)(FROB*, IE, TE)

Vessel Stow Plan

24 Hrs Prior to Lading*

24 Hrs Prior to Lading*

NLT 48 Hrs After Departure*

1. Booking Party name/address
2. Ship to Party
3. Commodity HTS-6
4. Foreign Port of Unlading
5. Place of Delivery*Anytime prior to arrival for voyages
less than 48 Hrs

ISF-10 “U.S.-bound” Cargo

1. Importer of Record Number
2. Consignee Number
3. Seller (Owner) name/address
4. Buyer (Owner) name/address
5. Ship to Party
6. Manufacturer (Supplier) name/address
7. Country of Origin
8. Commodity HTS-6*FROB ISF-5 is required anytime
prior to lading

Container Status
Message (CSM) Data
Within 24 Hrs of Creation or Receipt

ASAP, But NLT 24 Hrs Prior to Arrival
9. Container Stuffing Location
10. Consolidator (Stuffer) name/address Must be linked together as a line-item atthe shipment level*ISFs for “exempt” break bulk shipments
are required 24 Hrs prior to arrival.

ISFs must also have the lowest bill of lading
number that is referenced in AMS on theelectronic manifest.

ISF-10 Filing Requirements All ISF filings are to be done electronically via vessel
Automated Manifest System (AMS) or the AutomatedBroker Interface (ABI).
 There will be no paper forms (e.g., CBP Form 3461equivalent)
CBP is not creating an internet-based web portal toaccept the ISF filings. However, some service
providers allow self-filers indirect access to CBPsystems. Contact a CBP Client Representative at571-468-5500 to discuss self- filing options.

ISF-10 Filing Parameters

One ISF Importer per filing

One Importer of Record Number per filingMust be part of the same “shipment”

Must be arriving on the same vessel/voyage

A single ISF may cover multiple bills of lading

While ISF filings may naturally match up with CBP Form 3461
Entries, there is no actual requirement that they do soISFs are to be done at the “lowest” bill of lading level thathas been (or will be) recorded in the vessel AMS system.
CBP will accept an ISF at either the house bill of ladinglevel or regular (i.e., simple, straight) bill of lading level.

Simple ISF Supply ChainMasterISF-10

Bill

Entry

One-to-One RelationshipA “unique” ISF is a combination of the Importer ofRecord # and the lowest AMS bill of lading number(s)More Complex ISF Supply ChainMasterISF-10Bill
1Bill 2

Entry

Bill
3

One ISF can cover multiple bills as long as they are partof the same shipment going to the same importer ofrecord and arriving on the same vessel/voyage.

One ISF Becomes Multiple Entries
Master1
ISF-10Bill
1Bill 2

Entry
1

Master
2
Bill
3
Bill
4

Entry
2

Multiple ISFs to One Entry
Master1
ISF-10 A

Bill
1Bill 2
Entry
Master2

ISF-10 BBill
3
Bill4

From Order to Delivery
Overseas Factory/Warehouse

Container Stuffing Location
Manufacturer (Supplier)
Consolidator (Stuffer)
ISF Importer
Seller (Owner)

Shipper/Carrier

Distribution Center

Consolidator (Stuffer)
Container Stuffing Location

Ship To Party

Vendor/Supplier

Importer/Retailer

Invoice
Purchase Order

ISF-10 is due 24 hours prior tovessel lading

Manufacturer (Supplier)
Seller (Owner)
ISF Importer
Ship To PartyISF Importer
Importer of Record #Consignee #Buyer (Owner)
Ship To PartyISF Best Practices Outreach• Since the publication of the Interim Final Rule, CBP has implemented an
extensive trade outreach process which included numerous trade round tablediscussions, the issuance of monthly progress reports, publishing technicalguidelines as well as FAQs documentation on the CBP web site.
• CBP has participated several 20 webinars, meetings, conferences, and otheroutreach activities sponsored by the trade since the publication of the interim
final rule.
• CBP has met with numerous trade organizations including:• American Association of Exporters and Importers (AAEI)• The Departmental Advisory Committee on Commercial Operations of Customs andBorder Protection and Related Homeland Security Functions (COAC)• National Customs Brokers and Forwarders Association of America (NCBFAA)• National Association of Manufacturers (NAM)• Overall, CBP reached well over 20,000 participants at these outreach activities.

Mitigation Guidelines Liquidated damages cannot be assessed for the failure to
file an ISF if no bond is in place. However, CBP may also
withhold the release or transfer of the cargo until CBP
receives the required information and has had the opportunity toreview the documentation and conduct any necessary
examination.

ISF JAIL

Mitigation Guidelines Mitigating Circumstances Evidence of progress in the implementation of the ISF requirement during
the flexible enforcement period (i.e., January 26, 2009 through January 26,2010)
 Small number of violations compared to the number of shipments for which
ISFs were required Tier 2 or Tier 3 C-TPAT member may receive additional mitigation

 Aggravating Circumstances Lack of cooperation with CBP or CBP activity is impeded with regard to thecase Multiple errors on the ISF

No relief will be granted if CBP determines that law
enforcement goals were compromised by the violation.

Security Filing Enforcement StrategyThe full compliance (enforcement) date for the “10+2” requirementscommenced on January 26, 2010, thus ending a 12-month delayed
enforcement period in which CBP provided extensive outreach to educate
the trade community on the new requirements.
 CBP will continue to provide outreach andguidance beyond the start of full compliance CBP will exercise the least amount of force
necessary to obtain full compliance CBP will apply a measured, commonsense
approach to enforcement CBP HQ will review all actions for the first year

ISF Progress Reports
 The ISF Progress Reports focus on the numbers and types of filings;
the status of the filings (e.g., accepted vs. rejected) and the potential
timeliness of the filings
 Each ISF Report is broken down by Filer Code and Importer of Record
Number and details three (3) specific areas:
 Submission Volume
 Numbers, Status (Accepted or Rejected) and Format

 Rejection Error Messages
 Reasons for the rejections
 Error codes

 Timeliness Performance As compared to the first bill of lading file date (merely used as a proxy indicator ofpotential timeliness) Amendment and rejected filings are not includedISF Progress Reports
 In production since May 10, 2009
 ISF Reports are being routed through the ISF Filers and Tier 3 & Tier 2
C-TPAT Importers
 Registration is required Over 1,105 ISF Filers have been registered and “verified”
 The ISF Progress Reports cover more than 122,251 ISF Importers
 C-TPAT Importer Progress Reports – 385
 C-TPAT IORs represented – 1,452

 Reports are on a monthly cycle
 CBP has also developed a specific Filer-based summary report

Progress_Report@cbp.dhs.gov

Top ISF Issues Identified
Bill of Lading Numbers: Initially, some ocean carriers were not providing the bill numbers
timely (i.e., until a vessel had actually sailed). Most of these issues
have been resolved.
 Need to identify the lowest AMS bill of lading number (i.e., house or
regular/simple bill).
 If dealing with a non-automated freight forwarder, you most likely
need to provide the ocean carrier’s “regular/simple” bill.

Top ISF Issues Identified
Bill of Lading Numbers:
 Regular Bill – is defined as a non-Master bill of lading issued by aVessel Operating Common Carrier with NO UNDERLYING house bills.
This bill type is also referred to as “Straight Bill” or “Simple Bill”.
 House Bill – is defined as a bill of lading issued by a Non-Vessel
Operating Common Carrier or Freight Forwarder to a customer as areceipt for the goods being shipped with other cargo as one
consignment.
 Master Bill – is defined as an ocean bill of lading issued by a Vessel
Operating Common Carrier covering at least one or more underlying
house bills of lading.

Top ISF Issues Identified
Measurement of ISF “Timeliness”
 CBP began measuring timeliness by using the first bill of lading filedate as a proxy indicator of ISF timeliness since the bill of lading mustalso be filed at least 24 hours prior to vessel lading under the current 24
Hour Manifest Rule.
 However, many bills of lading are actually filed several days in advanceof actual vessel lading. Therefore, some of the “untimely” ISFs thatwere showing up on the older ISF Progress Reports may actually havebeen timely.
 CBP is now using the Vessel Departure Date minus 24 hours to better
assess ISF timeliness.

Top ISF Issues Identified
 Enforcement & Liquidated Damages Concerns
 $5,000 per transmission ($10,000 max per ISF) Do-not-load holds
 CBP will use the least amount of force to enforce compliance Domestic Holds
 Domestic Exams

 Bonds
 Appendix D bonds are routinely accepted for ISF filings Sufficiency questions are still being addressed Some coded transaction types are exempt (by policy); for example:
Type 03 HHG/PEType 04 Government/MilitaryType 05 DiplomaticType 06 Carnet

Type 09 International Mail

Best Practices
 Know what you are importing before you import it Identify the proper HTS numbers earlier in the process Consider a pre-classification system Decide who will transmit the ISF and how Consider using the Unified Entry Option

 Know your supply chain partners
 The Shipper has access to important information

 Require that the new “10+2” data be collected and provided
earlier in the process Add data to existing forms (e.g., purchase orders, advance shipping notices,
commercial invoices, etc.)

Available Resources Available Today on www.CBP.gov:
 Copy of the Interim Final Rule
 ISF Presentation
 Copy of the Regulatory Assessment
 General Frequently Asked Questions (FAQs) Document
 Implementation Guides (Technical File Formats) Mitigation Guidelines News Releases
 Outreach Schedule Security_Filing_General@cbp.dhs.gov mailbox

Questions?
Security Filing “10+2”
Customs and Border Protection

Security_Filing_General@cbp.dhs.gov
Richard Di Nucci, Director, Cargo Control Division
John Jurgutis, Branch Chief, ISF/Vessel Manifest
Stephen Silvestri, Branch Chief, Air and Rail Manifest
Joseph Martella, Program Manager, New York Field OfficeCraig Clark, Program Manager, CBP Headquarters

ISF 10 Data Elements

Importer of Record Number
 Internal Revenue Service (IRS) number, Employer Identification
Number (EIN), Social Security Number (SSN), or CBP assigned
number of the entity liable for payment of all duties andresponsible for meeting all statutory and regulatory requirements
incurred as a result of importation.
 The importer of record number for Importer Security Filing purposes is the same
as “importer number” on CBP Form 3461.
 The importer of record number can be a foreign entity. However, a U.S. entity
must be provided for the consignee number element.

 For goods intended to be delivered to an FTZ, the IRS number,EIN, SSN, or CBP assigned number of the party filing the FTZ
documentation with CBP must be provided.

BackConsignee Number
 Internal Revenue Service (IRS) number, Employer Identification
Number (EIN), Social Security Number (SSN), or CBP assigned
number of the individual(s) or firm(s) in the United States on
whose account the merchandise is shipped. This element is thesame as the “consignee number” on CBP Form 3461.

BackSeller (Owner) Name and address of the last known entity by whom thegoods are sold or agreed to be sold. If the goods are to beimported otherwise than in pursuance of a purchase, thename and address of the owner of the goods must beprovided.
 The party required for this element is consistent with theinformation required on the invoice of imported merchandise.
See: 19 CFR 141.86(a)(2).
 A widely recognized commercially accepted identification
number for this party may be provided in lieu of the name andaddress. CBP will accept a DUNS number in lieu of the nameand address.
BackBuyer (Owner) Name and address of the last known entity to whom the goods
are sold or agreed to be sold. If the goods are to be imported
otherwise than in pursuance of a purchase, the name andaddress of the owner of the goods must be provided.
 The party required for this element is consistent with theinformation required on the invoice of imported merchandise.
See: 19 CFR 141.86(a)(2).
 A widely recognized commercially accepted identification
number for this party may be provided in lieu of the name andaddress. CBP will accept a DUNS number in lieu of the nameand address.

BackShip To Party Name and address of the first deliver-to party scheduled tophysically receive the goods after the goods have beenreleased from customs custody.
 CBP is looking for the actual deliver to name/address; not the corporate
address If unknown, provide the name of the facility where the goods will be unladen.
 May provide a FIRMS code of a warehouse or terminal if the specific ship toname/address is unknown at the time of the filing. For example, a container
freight station is acceptable.
 May provide the name and address of an in-land distribution center if thespecific ship to name/address is unknown at the time of the ISF filing.

 A widely recognized commercially accepted identification number forthis party may be provided in lieu of the name and address. CBP
will accept a DUNS number in lieu of the name and address.
BackManufacturer or Supplier
1. Name and address of the entity that last manufactures, assembles,produces, or grows the commodity; or
2. Name and address of the supplier of the finished goods in the country
from which the goods are leaving
3. Alternatively, the name and address of the manufacturer (or supplier)that is currently required by the import laws, rules and regulations of
the United States (i.e., entry procedures) may be provided (this is theinformation that is used to create the existing manufacturer
identification (MID) number for entry purposes)

A widely recognized commercially accepted identification
number for this party may be provided in lieu of the name andaddress. CBP will accept a DUNS number in lieu of the nameand address.
Back

Country of Origin
 Country of manufacture, production, or growth of the article,
based upon the import laws, rules and regulations of theUnited States. This element is the same as the “country oforigin” on CBP Form 3461.

Back

Commodity HTS-6 Number Duty/statistical reporting number under which the article isclassified in the Harmonized Tariff Schedule of the United States(HTSUS). The HTSUS number must be provided to the six-digit
level.
 Alternatively, the filer may choose to provide the HTSUS
number to the 10-digit level.

Back

Container Stuffing Location
 Name and address(es) of the physical location(s) where the goods
were stuffed into the container. For break bulk shipments, thename and address(es) of the physical location(s) where the goods
were made “ship ready” must be provided.
 The “scheduled” stuffing location may be provided.
 This may be the same name/address as the manufacturer (supplier) If a “factory load”, simply provide the name and address of the factory A widely recognized commercially accepted identification number
for this party may be provided in lieu of the name and address.
CBP will accept a DUNS number in lieu of the name and address.

BackConsolidator (Stuffer) Name/Address Name and address of the party who stuffed the container orarranged for the stuffing of the container. For break bulk
shipments, the name and address of the party who made thegoods “ship ready” or the party who arranged for the goods to bemade “ship ready” must be provided.
 If no consolidator is used, e.g., “factory load” shipments, provide thename/address of the manufacturer (supplier).

 A widely recognized commercially accepted identification
number for this party may be provided in lieu of the name andaddress. CBP will accept a DUNS number in lieu of the nameand address.

BackISF 5 Data Elements

Booking Party Name/Address Name and address of the party who initiates the reservation ofthe cargo space for the shipment.
 A widely recognized commercially accepted identification
number for this party may be provided in lieu of the name andaddress. CBP will accept a DUNS number in lieu of the nameand address.

BackShip To Party Name and address of the first deliver-to party scheduled tophysically receive the goods after the goods have beenreleased from customs custody.
 CBP is looking for the actual deliver to name/address; not the corporateaddress If unknown, provide the name of the facility where the goods will be unladen.
 May provide the name and address of an in-land distribution center if thespecific ship to name/address is unknown at the time of the ISF filing.

 A widely recognized commercially accepted identification
number for this party may be provided in lieu of the name andaddress. CBP will accept a DUNS number in lieu of the nameand address.

BackCommodity HTS-6 Number Duty/statistical reporting number under which the article isclassified in the Harmonized Tariff Schedule of the United States(HTSUS). The HTSUS number must be provided to the six-digit
level.
 The HTSUS number may be provided to the 10-digit level.

BackForeign Port of Unlading Port code for the foreign port of unlading at the intended finaldestination.
 Note: This may be the inland foreign port code for TE in-bond movements

 CBP will accept UN LOC Codes and the Bureau of Census“Schedule K” codes.
 MX NLD for Nuevo Laredo, Mexico
 MX TIJfor Tijuana, Mexico

 CA REG for Regina, Canada CA SNIfor Sarnia, CanadaBack

Place of Delivery
 City code for the place of delivery.
 Foreign location where the carrier’s responsibility for thetransport of the goods terminates.
 UN LOC codes and Bureau of Census “Schedule K” codes are
acceptable.

Back