Understanding the terms and definitions related to ISF filing is crucial for businesses and individuals involved in international trade. The Importer Security Filing (ISF), also known as “10+2”, is a U.S. Customs and Border Protection (CBP) regulation that requires importers and vessel operating carriers to provide advance shipment information to CBP for security purposes. This glossary aims to provide comprehensive explanations of the key terms and definitions associated with ISF filing.
ISF filing can be a complex process, filled with industry-specific jargon and acronyms. This glossary will serve as a detailed guide, breaking down these terms and providing clear, in-depth explanations. Whether you’re an importer, a freight forwarder, or simply interested in understanding more about the world of international trade, this glossary will be an invaluable resource.
ISF Filing: An Overview
ISF filing is a requirement set by the U.S. Customs and Border Protection for all importers and vessel operating carriers. The purpose of ISF filing is to provide CBP with advance information about goods being imported into the United States, allowing for enhanced security and risk assessment procedures. Failure to comply with ISF filing requirements can result in penalties, increased inspections, and delays in cargo release.
The ISF must be filed at least 24 hours before the cargo is loaded onto the vessel destined for the United States. The filing includes 10 data elements from the importer and 2 from the carrier, hence the nickname “10+2”. These data elements provide detailed information about the importer, seller, buyer, ship-to party, manufacturer, country of origin, Harmonized System (HS) numbers, container stuffing location, consolidator, and the vessel operating carrier.
ISF Importer
The ISF Importer is the party responsible for ensuring that the ISF is filed correctly and on time. This can be the goods’ owner, purchaser, consignee, or agent such as a licensed customs broker. The ISF Importer is also responsible for the accuracy of the information provided in the ISF filing.
It’s important to note that the ISF Importer may be different from the party listed as the importer of record on the CBP Form 3461. The ISF Importer is defined by CBP as the party causing goods to arrive within the limits of a port in the United States by vessel, which may not always be the same as the importer of record.
ISF-10 and ISF-5
ISF-10 and ISF-5 are two types of ISF filings. ISF-10, also known as the “full ISF”, applies to most shipments arriving in the United States by vessel. It requires the submission of the full set of 10 data elements from the importer and 2 from the carrier.
ISF-5, on the other hand, applies to goods transiting through the United States, such as those being transported to a foreign destination via a U.S. port. ISF-5 requires fewer data elements, including booking party, foreign port of unlading, place of delivery, ship to party, and commodity HTSUS number.
Key ISF Filing Terms
There are several key terms that are crucial to understanding ISF filing. These include the Bill of Lading, Bond, CBP Form 3461, and more. Each of these terms represents a specific aspect of the ISF filing process, and understanding them is key to ensuring compliance with ISF regulations.
Below, we will delve into each of these terms, providing a comprehensive explanation and detailing their role in the ISF filing process.
Bill of Lading
The Bill of Lading (BOL) is a legal document issued by a carrier to the shipper, acknowledging the receipt of cargo for shipment. In the context of ISF filing, the BOL number is a crucial piece of information that must be included in the filing. The BOL number allows CBP to match the ISF filing to the corresponding cargo.
The BOL serves several functions. It acts as a receipt for the goods shipped, evidence of the contract of carriage, and a document of title. It contains details about the goods, the shipper, the consignee, the vessel, and the ports of loading and discharge.
Bond
A Bond is a contract that the ISF Importer enters into with CBP. The bond guarantees that the importer will comply with all laws and regulations governing the importation of goods into the United States, including the payment of all duties, taxes, and penalties.
There are two types of bonds: Single Transaction Bonds and Continuous Bonds. A Single Transaction Bond covers one shipment, while a Continuous Bond covers all of an importer’s shipments over a 12-month period. The bond amount for an ISF filing is typically set at $10,000.
ISF Filing Data Elements
The data elements required for ISF filing provide CBP with detailed information about the shipment. These include details about the parties involved in the transaction, the goods being shipped, and the shipment itself. Understanding these data elements is crucial for accurate and timely ISF filing.
Below, we will explore each of these data elements in detail, explaining their significance and providing examples where appropriate.
Importer of Record Number
The Importer of Record Number is the identification number of the party legally responsible for the payment of duties and the fulfillment of all legal requirements associated with the importation of goods. This can be the importer’s IRS number, Social Security number, or CBP assigned number.
The Importer of Record Number is crucial for ISF filing, as it allows CBP to identify the party responsible for the shipment. It’s important to note that the Importer of Record Number must match the number used on all other import documentation.
Consignee Number
The Consignee Number is the identification number of the party to whom the goods are being shipped. Like the Importer of Record Number, this can be the consignee’s IRS number, Social Security number, or CBP assigned number.
The Consignee Number is important for ISF filing as it allows CBP to identify the party receiving the goods. It must match the number used on all other import documentation.
Penalties for Non-Compliance
Failure to comply with ISF filing requirements can result in severe penalties. These can include monetary penalties, increased inspections, and delays in cargo release. Understanding the potential penalties for non-compliance is crucial for importers and vessel operating carriers.
Below, we will explore the potential penalties for non-compliance with ISF filing requirements, providing a comprehensive explanation of each.
Monetary Penalties
CBP can issue monetary penalties for non-compliance with ISF filing requirements. The maximum penalty for a single violation is $10,000. This can include a $5,000 penalty for late filing, a $5,000 penalty for inaccurate filing, and a $5,000 penalty for failure to file.
It’s important to note that these penalties are per shipment. This means that an importer could potentially face multiple penalties for a single shipment if they fail to comply with ISF filing requirements.
Increased Inspections
Non-compliance with ISF filing requirements can also result in increased inspections. CBP may hold cargo for inspection if the ISF has not been filed, is filed late, or is filed inaccurately. These inspections can result in significant delays and additional costs for the importer.
Increased inspections can also disrupt the importer’s supply chain, causing further financial and operational impacts. Therefore, it’s crucial for importers to ensure compliance with ISF filing requirements to avoid these potential issues.
Conclusion
Understanding the terms and definitions related to ISF filing is crucial for anyone involved in international trade. This glossary has provided comprehensive explanations of these terms, helping to demystify the ISF filing process and ensure compliance with CBP regulations.
By understanding these terms and definitions, businesses and individuals can navigate the complex world of ISF filing with confidence, ensuring the smooth and efficient importation of goods into the United States.