"10+2" Program Update

March 10, 2010

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What is the Security Filing?

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• CBP will continue to provide outreach and guidance beyond the start of full compliance
  
• CBP will exercise the least amount of force necessarty 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 of potential timeliness)
• Amendment and rejected filings are not included

• 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

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.

• Regular Bill – is defined as a non-Master bill of lading issued by a Vessel 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 a receipt 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.

Measurement of ISF "Timeliness"

• CBP began measuring timeliness by using the first bill of lading file date as a proxy indicator of ISF timeliness since the bill of lading must also 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 advance of actual vessel lading. Therefore, some of the “untimely” ISFs that were showing up on the older ISF Progress Reports may actually have been timely.
  
• CBP is now using the Vessel Departure Date minus 24 hours to better assess ISF timeliness.

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

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