Ocean shipping-Port Security: GAO report provides progress update for CBP’s Import Security Filing

A report from the Government Accountability Office (GAO) stated that data from the United States Customs and Border Protection (CBP) subsidiary of the Department of Homeland Security found that as of July 2010 roughly 80 percent of U.S.-bound ocean shipments were Import Security Filing—or 10+2—compliant.

By ·

A report from the Government Accountability Office (GAO) stated that data from the United States Customs and Border Protection (CBP) subsidiary of the Department of Homeland Security found that as of July 2010 roughly 80 percent of U.S.-bound ocean shipments were Import Security Filing—or 10+2—compliant.

In its most basic form, 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 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.

According to the most recent GAO report, “CBP has assessed the submitted 10+2 data elements for risk factors…[and] access to information on stow plans has enabled CBP to identify more than 1,000 unmanifested containers—containers that are inherently high risk because their contents are not listed on a ship’s manifest.”

ISF went live last January, following a January 2009 interim final rule, which included a delayed enforcement date (of January 26, 2010) 12 months after the interim final rule took effect. During this one-year period, CBP said it would “show restraint in enforcing the rule…and take into account difficulties that importers may face in complying with the rule as long as importers are making a good faith effort and satisfactory progress toward compliance.”

When the delayed enforcement period since expired, CBP can issue liquidated damages of $5,000 per violation for the submission of an inaccurate, incomplete or untimely filing.

And CBP officials said that if goods for which an ISF has not been filed arrive in the U.S., CBP may withhold the release or transfer of the cargo or refuse to grant a permit to unlade for the merchandise, among other actions.

Albert Saphir, president of international trade consultants ABS Consulting in Fort Lauderdale, Fla., told LM that the 80 percent figure for ocean import shipments being ISF-compliant 48 hours prior to arrival in the U.S. is surprisingly low.

“80 percent cooperation 48 hours before arrival does not seem to be very compliant at least in my view,” said Sapphire. “But it is light years better than where we were a year ago. As to why there are 15-to-20 percent of shipments with no ISF 48 hours prior to arrival is unclear.”

In most cases, other than short sea shipping, vessels in Asia and Europe to U.S. main trade lanes are on the ocean, on average, at least 10-to-20 days, which is a large time gap two days prior to arrival compared to a day prior to sailing, noted Saphir.

This data also indicates that CBP has not yet updated its automated targeting system to take advantage of the data they are getting from ISF, which may be the reason it has not commenced enforcement, he said. 

In terms of future recommendations, the GAO report recommended that “CBP should, if it updates its regulatory assessment, include information to improve transparency and completeness, and set time frames and milestones for updating its national security criteria.” The GAO added that DHS has said it plans to integrate these updates by November 2010.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Albert Saphir · GAO · ISF · All Topics
Latest Whitepaper
Improving E-Commerce Fulfillment Through Business Integration
As e-commerce continues to outpace conventional retail, companies of all sizes are finding ways to disrupt traditional business models and seize market share.
Download Today!
From the February 2017 Issue
As the new administration sends waves of uncertainly through the global trade community, this could be the best time ever for shippers to build an investment case for GTM. Here are five trends you need to watch if you’re about to put these savvy systems to work
Carrier Consolidation Keeps Shippers Guessing
Getting Value from the Cloud
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Advance your career with the fastest growing logistics certification – APICS CLTD
During this webcast presenters will give an overview of APICS and the new Certified in Logistics, Transportation and Distribution (CLTD) designation. Learn how the CLTD program can help you stay on top of current trends and advance your career.
Register Today!
EDITORS' PICKS
ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...

Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...