Importer Security Filing and Additional Carrier Requirements 10+2 - PowerPoint PPT Presentation

Importer Security Filing and Additional Carrier Requirements “10+2” Trade Outreach Webinar Spring 2010 1

Today ’ s Presentation on “ 10+2 ”  Overview of the ISF Requirements  Program Update  Enforcement Strategy  Top ISF Issues  Q & A Session Los Angeles - Long Beach Seaport 2

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 for non-bulk cargo shipments arriving into the United States by vessel. Importer Requirements: U.S. Bound Cargo : requires the electronic filing of an Importer Security Filing (ISF) comprised of 10 data elements (a.k.a., “ISF-10”) . Transit Cargo : requires the electronic filing of an ISF comprised of 5 data elements (a.k.a., “ISF-5”) . Carrier Requirements: Vessel Stow Plans required for arriving vessels with containers. Container Status Messages required for containers arriving via vessel. 3

Importer Security Filing (ISF) Importer  The party required to submit the Importer Security Filing (ISF) is the party causing the goods to enter the limits of a port in the United States. This party is known as the “ISF Importer”.  Could be the owner, purchaser, consignee, or agent (e.g. customs broker).  The ISF Importer, as a business decision, may designate an authorized agent to file the Importer Security Filing on the ISF Importer’s behalf.  If an agent is used for ISF purposes, a power of attorney (POA) is required.  The ISF Importer is ultimately responsible for the timely, accurate and complete submission of the ISF filing.

ISF-10 Data Elements “U.S.-bound” Cargo (3461 Entries, IT, FTZ) 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 9. Container Stuffing Location 10. Consolidator (Stuffer) name/address 11. Bill of Lading Number (house or reg.) 12. ISF Importer CBP Form 3461 5

From Order to Delivery Overseas Factory/Warehouse Shipper/Carrier Distribution Center Consolidator (Stuffer) Ship To Party Container Stuffing Location Vendor/Supplier Importer/Retailer Container Stuffing Location Manufacturer (Supplier) Invoice Consolidator (Stuffer) ISF Importer Purchase Order Seller (Owner) Manufacturer ( Supplier ) ISF Importer The ISF-10 is due 24 hours Seller (Owner) prior to vessel lading Importer of Record # ISF Importer Consignee # Ship To Party Buyer (Owner) Ship To Party 6

ISF Filing Requirements  All ISF filings are to be done electronically via the vessel Automated Manifest System (AMS) or the Automated Broker Interface (ABI)  ISFs cannot be done at the Port of Entry (i.e., Custom House) on a walk-in basis  There is no paper form (e.g., 3461)  Bonds are required to cover most ISF transactions 7

ISF Filing Options  CBP has begun development of an internet-based web portal to accept ISF filings  Importers must pre-register their importer ID numbers with CBP (i.e., IRS# or SSN#)  Registration of the importer ID number can be done in person at a local Port of Entry or by a licensed customs broker via the use of CBP Form 5106  Portal will be available no earlier than August 2010  Use of the portal will probably be limited to no more than two (2) ISF filings per day, with a maximum of twelve (12) per year  In addition, some service providers allow self-filers indirect access to CBP systems via the internet  Contact a CBP Client Representative at 571-468-5500 to discuss self-filing options

“ 10+2 ” Interim Final Rule  Effective Date : The interim final rule (IFR) took effect on January 26, 2009 (60 days after the publication date) and allowed for certain “flexibilities”:  Timing of transmission for 2 of the 10 ISF data elements  Range of responses for 4 of the 10 ISF data elements  All other requirements in this rule were adopted as a final rule.  Compliance (Enforcement) Date : January 26, 2010  The IFR “flexibilities” will stay in effect until the structured review is completed and a decision on keeping, modifying or removing them is made by DHS, OMB and other executive branch agencies. 9

Structured Review and Flexible Filing  CBP monitors all ISF submissions for timeliness, accuracy and completeness.  On the basis of information obtained during the structured review and public comments, DHS will undertake an analysis of the elements subject to flexibilities.  Analyze Flexible Range of Responses (FR) Elements  Ship to Party Only 2% of all filings  Manufacturer (Supplier) name/address claim to use the  Country of Origin  Commodity HTS-6 “flexible filing” option  Analyze Flexible Timing (FT) Elements If you choose to use a  Container Stuffing Location “flexible option”, you  Consolidator (Stuffer) name/address MUST amend your filing with a “CT” 10

ISF Data Improves Targeting Capabilities 40’ Container Source Description HTS C/O Role Party BILL OF LADING SHEET N/A N/A Shipper XYZ LOGISTICS Non Intrusive Inspection (NII) X-Ray Image Only Consignee ABC TRUCKING NEW SECURITY FILING DATA NII Image and Manifest Data BED LINEN 630210 CN MFR/Supl. XINJIANG TOP BEDDING PRODUCTS Seller XINJIANG TOP BEDDING PRODUCTS Stuffing Location XINJIANG, CN What’s in the box? Buyer BE & D IMPORT INC (PHX., AZ) Consolidator XYZ LOGISTICS Importer BE & D IMPORT INC (PHX., AZ) Ship To Name/Add. THE TRANSFER WHSE (L.B., CA) Consignee BE & D IMPORT INC (PHX., AZ) 11

ISF Data Improves Cargo Identification Bullet Casings Bomb Casings Gear Casings Motor Casings HTS 9306.30 What Are “ Casings ” ? Computer Casings Sausage Casings Tire Casings Pipe Casings HTS 1601.00 HTS 7304.20 12

“10+2” Program Update 13

ISF-10s “By the Numbers” January 26, 2010 – May 2, 2010 Total Submissions: 2,453,200 Total Rejected: 80,293 3% Total Accepted: 2,372,907 97% Adds: 79% Note: Do NOT send in a “REPLACE” to Replaces: 19% simply force an ISF- Bill match message! Deletes: <1% Filers: 2,226 Importers (IOR #s): 123,000+ 14

Top Five Error Messages ISF-10 Errors from January 26, 2010 – April 25, 2010 60,000 52,259 50,000 40,000 30,000 19,791 17,502 20,000 13,231 9,010 10,000 0 Duplicate ISF Invalid ISF Invalid Country Invalid HTS # Invalid ID Code Transaction # Code 15

ISF Progress Reports  In production since May 10, 2009  Registration is Required  Reports are on a Monthly Cycle  Reports Cover 122,251 ISF Importers  We Offer .pdf, .csv, and .xls Formats  Four Types Currently in Production:  Importer by Filer Reports (most common) - Over 1,105 ISF Filers are registered  Filer Summary Report  C-TPAT Importer Reports (Tier 3, 2)  C-TPAT Importer Transactional Reports (Tier 3) 16

Importer Security Filing (ISF) Progress Reports 1. ISF10 Submission Volume:

C-TPAT Benefits of “10+2” Customs - Trade Partnership Against Terrorism  Earlier Decision Making  C-TPAT entities are reliably identified prior to vessel lading  Based on Importer of Record Number on the ISF  No longer tied solely to entry data (24 hours or more prior to arrival)  Better Decision Making  Tangible C-TPAT benefits are applied much further upstream  Receive targeting credit based upon their tier status  Stabilization of Automated Hold Process  Immediate Transportation (IT) in-bond risk assessments are more stable  Validation of Supply Chain Security Reviews  New Entities and Locations Identified and/or Verified  Container Stuffing Location  Consolidator (Stuffer) name/address

“10+2” Enforcement Strategy CBP’s Vessel Stow Plan Module Used to identify unmanifested containers 19

ISF Enforcement Strategy The full compliance (enforcement) date for the “10+2” requirements commenced 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:  Apply a measured, commonsense approach to enforcement  Exercise the least amount of force necessary to obtain full compliance  Evaluate non-compliance on a case-by-case basis  Continue to provide outreach and guidance to the trade X 20

Enforcement Measures  Informed Compliance Efforts  Public outreach (incl. webinars, meetings, ISF Progress Reports)  Informal and formal notification (e.g., warning letters)  Mid-level Compliance Measures  Domestic NII examination manifest holds  Domestic physical examinations  Re-evaluation and possible reduction of C-TPAT status  Strictest Enforcement Measures  ISF Jail (i.e., lengthier manifest holds)  Liquidated Damages  Suspension or Revocation of C-TPAT Status  Do Not Load or Do Not Discharge Orders 21

“10+2” Challenges 22