CBP Identifies Top 10+2 ISF Issues, New Measure of Timeliness

(The interim final rule was effective on January 26, 2009; however, it provided a one year delayed enforcement period (until January 26, 2010) to allow the trade to work through various problems and to come into compliance with the requirements.)

Top ISF Issues Identified

CBP identified the following as the top Importer Security Filing issues:

Measurement of ISF Timeliness:

CBP began measuring timeliness by using the first bill of lading (BOL) file date as a proxy indicator of ISF timeliness since the BOL must also be filed at least 24 hours prior to vessel lading under the current 24-hour manifest rule. However, many BOLs 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.¹

CBP is now using the vessel departure date minus 24 hours to better assess ISF timeliness.

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 BOL number (i.e., house or regular/simple bill).

If dealing with a non-automated freight forwarder, filers will most likely need to provide the ocean carrier's "regular/simple" bill.

Enforcement and Liquidated Damage Concerns

Up to $5,000 per transmission ($10,000 maximum per ISF).

Do Not Load (DNL) holds.

CBP will use the least amount of force to enforce compliance (such as domestic holds and domestic exams).

Bonds

Appendix D bonds are routinely accepted for ISFs.

Sufficiency questions are still being addressed.

Some coded transaction types are exempt (types 03, 04, 05, 06, and 09).

ISF Progress Reports

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. Reports have been in production since May 2009 and are on a monthly cycle.

Each report is broken down by Filer Code and Importer of Record (IR) Number and details three specific areas:

Submission volume - numbers, status (accepted or rejected), and format.

Rejection error messages - reason for the rejections and error codes.

Timeliness performance - as compared to the first BOL file date (merely used as a proxy indicator of potential timeliness); amendment and rejected filings are not included.

ISF Progress Reports are being routed through the ISF Filers and Tier 2 and Tier 3 C-TPAT Importers:

Registration is required to receive the reports.

Over 1,105 ISF Filers have been registered and "verified."

The reports cover more than 122,251 ISF Importers.

C-TPAT Importer Progress Reports: 385.

C-TPAT IRs represented - 1,452.

CBP has also developed a specific Filer-based summary report.

Flexibilities Remain in Effect

CBP notes that the flexibilities (both timing and interpretive) provided for in the 10+2 interim final rule will stay in effect until the structured review is completed and a decision on keeping, modifying, or removing them is made by the Department of Homeland Security, the Office of Management and Budget, and other executive branches.

¹CBP had erroneously assumed that if the ISF was filed "days after" the BOL, it was untimely, even though it could have still been filed 24 hours prior to vessel lading.

(See ITT's Online Archives or 03/02/10 news, 10030205, for BP summary of CBP officials discussing 10+2 at the recent COAC meeting.)

CBP presentation (posted 03/22/10, dated 03/10/10) available at http://www.cbp.gov/linkhandler/cgov/trade/cargo_security/carriers/security_filing/10_plus_prgm.ctt/10_plus_prgm.ppt