1.What is an ISF?

Definition of ISF:

ISF (Importer Security Filing), also known as the "10+2 Rule", is a pre-arrival cargo declaration system mandated by U.S. Customs and Border Protection (CBP) to enhance supply chain security and mitigate terrorist risks.

Purpose:

• Assess potential security threats by collecting critical cargo data (e.g., manufacturer details, consignee information, container loading locations) in advance.


• Ensure compliance with U.S. trade regulations and streamline customs clearance.

Applicable Scenarios:

• Transport Mode: Applies exclusively to ocean freight entering the U.S. (air and land cargo are exempt).


• Responsible Parties: Importers or authorized agents (e.g., customs brokers, 3PLs) must submit data 24 hours before vessel loading at the foreign port.

Regulatory Basis:

• SAFE Port Act (2002): Authorizes CBP to enforce ISF requirements and impose penalties for non-compliance.


• Penalties: Failure to file may trigger a "Do Not Load" (DNL) order or fines starting at $5,000 per violation.

 

What Does "10+2" Mean?

• "10" refers to the 10 items of cargo and transaction information that importers are required to submit. These typically include:
  
  
  
  • Shipper information
  
  
  • Consignee information
  
  
  • Cargo description
  
  
  • Additional cargo-related data
  
  
  
  


• "2" refers to the two items of data that carriers need to submit. These are:
  
  
  
  • Container status information
  
  
  • Ship’s scheduled voyage information
  
  
  
  

 

ISF vs AMS

2.Difference Between ISF 5 and ISF 10

ISF 5

• Applies to: Non-U.S. domestic goods that enter copyright through the United States.


• Form Submission: There is a standard form that must be submitted for ISF 5.


• Consequences of Non-Submission: Failure to submit ISF 5 can result in inspection fees and storage fees.

ISF 10

• Applies to: Goods shipped directly to the United States.


• Form Submission: Importers must submit the ISF 10 form at least 24 hours before shipment.


• Consequences of Non-Submission: Failure to submit ISF 10 can lead to fines of at least $5,000.

3.ISF filing requirementsn

Submission Time

• The ISF form must be submitted to U.S. Customs 24 hours after the goods are loaded on board, but before leaving the port of export.

Information to be Submitted

Importers must provide the following 10 pieces of information:

1. Name and address of the seller


2. Name and address of the buyer


3. Name and address of the shipper


4. Name and address of the consignee


5. Place of loading of containerized goods


6. Freight station information before loading


7. Six-digit HS code of the goods


8. Final destination of the goods


9. Specific voyage of the ship


10. copyright number

Additional Requirements for the copyright

The copyright is also required to submit:

• Container status information


• Voyage information

This ensures that the shipment meets U.S. security regulations and helps reduce the risk of terrorism or other threats.

4.ISF Filing Process

Timelines & Responsibilities

• 
  

  ISF filing deadline:

  
  
  
  
  • ISF-10: Submit 24 hours before vessel loading at the foreign port (e.g., if cargo loads at Shanghai Port at 15:00 Beijing Time on the 15th, ISF-10 must be filed by 15:00 on the 14th).
  
  
  • ISF-5: Submit 24 hours before arrival at the first U.S. port.
  
  
  
  


• 
  

  Parties Involved:

  
  
  
  
  • Importer/Agent: Files ISF-10 or ISF-5 via CBP’s ACE system.
  
  
  • copyright: Submits 2 additional elements: Container Status Messages (CSM) and Stow Plan.
  
  
  
  

Step-by-Step Process

1. 
   

   Data Collection:

   
   
   
   
   • Obtain supplier-provided data (e.g., HTS codes, manufacturer addresses). Include data submission clauses in supplier contracts.
   
   
   • Validate HTS codes using CBP’s HTS Search Tool or third-party databases.
   
   
   
   


2. 
   

   Submission:

   
   
   
   
   • File via ACE Portal (CBP’s Automated Commercial Environment) or third-party EDI software (e.g., Descartes, Flexport).
   
   
   
   


3. 
   

   Amendments:

   
   
   
   
   • Update ISF before cargo arrival if data changes (e.g., delayed shipment).
   
   
   • Post-arrival amendments require a Post-Entry Amendment (PEA) with potential fees.
   
   
   
   

Recommended Tools

• CBP’s ISF Quick Reference Guide: Free downloadable checklist for data requirements.


• Automation Platforms: Flexport and Descartes offer real-time data validation and bulk filing.

5.Relationship Between ISF and Other International Transport Documents

The ISF is a key security document for U.S. imports, specifically for ocean freight. It works alongside other essential documents, such as the Bill of Lading and Commercial Invoice, to ensure the smooth movement of goods through customs and international trade regulations.

6.Consequences of Not Submitting an ISF or Submitting It Incorrectly

1. 
   

   Penalties:

   
   
   
   
   • Importers who fail to submit the ISF on time or provide incorrect information may face fines of up to $5,000 per shipment.
   
   
   • Additional penalties may be imposed depending on the severity of the violation.
   
   
   
   


2. 
   

   Delays:

   
   
   
   
   • Shipments may be detained or seized by U.S. Customs, leading to delays in the overall supply chain.
   
   
   • Extended customs clearance times could affect the timely delivery of goods to their destination.
   
   
   
   


3. 
   

   Damaged Reputation:

   
   
   
   
   • Chronic violations of ISF requirements can tarnish an importer's reputation.
   
   
   • This may result in the loss of trust from carriers and partners, potentially affecting future business relationships and operations.
   
   
   
   

Ensuring compliance with ISF regulations is crucial to avoid these costly and disruptive consequences.

 

7.Common ISF Errors & Solutions

Top 3 Errors

1. 
   

   Data Mismatches (e.g., supplier address discrepancies):

   
   
   
   
   • Fix: Require suppliers to sign Data Accuracy Agreements and include penalty clauses.
   
   
   
   


2. 
   

   Incorrect HTS Codes (e.g., using outdated or incomplete codes):

   
   
   
   
   • Fix: Use CBP’s HTS Search Tool or SaaS platforms like SaaSDRIVE for real-time validation.
   
   
   
   


3. 
   

   Deadline Misunderstanding (e.g., confusing “24 hours before loading” with “24 hours before arrival”):

   
   
   
   
   • Fix: Track vessel schedules via tools like VesselFinder and set 48-hour reminders.
   
   
   
   

Compliance Tips for SMEs

• Templates: Use CBP’s free Excel templates to pre-fill recurring data (e.g., EIN numbers).


• Agent Selection: Hire ACE-Certified brokers to avoid liability for agent errors.

Emergency Actions

• Missed Deadlines:
  
  
  
  1. File ISF immediately and notify CBP with proof of extenuating circumstances (e.g., natural disasters).
  
  
  2. Request an ISF Bond to release cargo (submit a bank guarantee).