Possibility of New Importer Security Filing Rules
The Import Security Filing, which is also known as the 10+2 information, requires importers and carriers to electronically submit information to US Customs and Border Protection (CBP) for ocean cargo on vessels bound to the US at least 24 hours prior to the cargo being loaded onto the vessel. ISF filing requires importers to provide 10 data elements and carriers to provide 2 data elements on ocean freight shipments that are destined to the US.
The idea behind ISF filing was to allow US Customs and Border Protection (CBP) to better identify shipments which may pose a risk of terrorism, and help implement additional checks such as x-ray exams or physical inspection for shipments seen as higher risk. This system was phased into effect on January 26, 2009 for a 12 month period under which importers who failed to file were given warnings. After the phase-in period was completed on January 26, 2010 importers have been required to comply with ISF rules. If compliance is not met, importers can face fines up to $5,000 for each violation. However, many sources in the industry agree that CBP has not strongly required full compliance or taken a hard stance regarding fines, which is causing importers to not take Importer Security Filing as seriously as they should be.
An October, 2010 report from the Government Accountability Office (GAO) stated that data from the CBP subsidiary of the Department of Homeland Security found that as of July, 2010 roughly 80% of US-bound ocean shipments were Import Security Filing, or ISF 10+2, compliant. While this data is older, it does show that roughly 20% of current ocean imports into the US are not compliant. The reasons for non-compliance are unclear, but regardless, there is a lot of room for improvement and importers should take the ISF filing very seriously.
Earlier this year, the National Industrial Transportation League (NITL) reported that CBP is expected to a new proposed rule by the end of May. This new rule would involve numerous changes to increase the accuracy and reliability of the information submitted for the importer security filing or ISF 10+2 rule. Many expect CBP will begin to more strongly enforce the ISF filing and begin to issue penalties to importers who are not compliant with the issuance of the new rule. Importers who are not taking the filing seriously, should begin to contemplate how they will improve their process of filing to help ensure accurate and timely filings.
At PNG Worldwide, we help importers to understand their requirements for filing the ISF accurately and on a timely basis. We can file the ISF 10+2 on your behalf, removing the guesswork that many importers face when it comes time to file.
For additional information, or any questions related to filing the ISF 10+2, please contact firstname.lastname@example.org