New ISF (10+2) Rule May Be Coming in May

CBP has not issued any penalties yet for ISF violations and failures.

By ·

Given the fast-paced nature of the logistics and supply chain sectors, it can be challenging at times to keep an eye on every single thing that is happening at any given time.

Today, that thing, for many, is the Import Security Filing (ISF), which is also commonly known as 10+2.

10+2 requires importers and carriers to electronically submit additional information on cargo at least 24 hours before ocean freight is loaded onto a vessel bound for the U.S.

This additional information requires importers to provide 10 data elements and vessel carriers to provide 2 data elements on containers and their cargo to United States Customs and Border Protection (CBP), adding to the information available to CBP and improving its ability to identify containers that may pose a risk for terrorism for additional scrutiny like scanning or physical inspection, according to an October 2009 report by the GAO on Supply Chain Security.

Earlier this year, the National Industrial Transportation League (NITL) cited customs and international trade law firm Sandler/Travis’s reporting in its Daily Report that “CBP is expected to issue by the end of May a proposed rule that would make various changes to increase the accuracy and reliability of the advance information submitted under the importer security filing, or ‘10 + 2 rule.”

It added that while fines for non-compliance were set at $5,000 per incident, Sandler/Travis said that CBP has not strongly required full compliance and that the proposed rule could set forth the agency’s intention to do so and establish standards under which full compliance could take place.

Considering that shippers have not heard or seen much recent news regarding ISF/10+2 of late, SCMR thought it might be a good idea to ask someone in the know, Albert Saphir, principal of ABS Consulting, in Bradenton, Florida:

“CBP has stated that a final ISF rule (the current one is still not a final one legally speaking) should be forthcoming this year, and everyone expecting penalties (liquidated damages) to then be enforced by CBP,” he said. “From what I know, CBP has not issued any penalties yet for ISF violations and failures.  In my view this is resulting in many importers and customer brokers (and forwarders) taking a relaxed approach which often means late and inaccurate filings from what I have seen.  Many have stated to me privately that ‘CBP does not care so why should we?’ It is not a good attitude but understandable if ISF is not enforced.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

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