U.S. Customs and Border Protection has issued an interim final rule that will require importers and carriers to electronically submit additional information on cargo brought into the United States by vessel. This cargo security filing, also known as "10+2", is another step in the CBP's on-going strategy to better assess and identify high-risk shipments so as to prevent smuggling and ensure cargo safety and security. The rule is specifically intended to fulfil the requirements of the SAFE Port Act of 2006 and the Trade Act of 2002.
Under this new rule, importers will be required to submit an Importer Security Filing for cargo other than foreign cargo remaining on board no later than 24 hours before the cargo is laden aboard a vessel destined to the U.S. Because FROB is frequently laden based on a last-minute decision by the carrier, the ISF for FROB may be filed at any time prior to lading. Importers or their agents must transmit the ISF filing via a CBP-approved electronic data interchange system, which in this case is the Automated Broker Interface and Vessel Automated Manifest System.
Unless specifically exempted, the following 10 elements will have to be provided for shipments other than those consisting entirely of FROB or goods intended to be transported in-bond as an immediate exportation or transportation and exportation. The manufacturer (or supplier), country of origin and commodity HTSUS number must be linked to one another at the line item level.
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Seller. The name and address of the last known entity by whom the goods are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a purchase, the name and address of the owner of the goods must be provided. A widely recognised commercially accepted identification number for this party may be provided in lieu of the name and address.
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Buyer. The name and address of the last known entity to whom the goods are sold or agreed to be sold. If the goods are to be imported otherwise than in pursuance of a purchase, the name and address of the owner of the goods must be provided. A widely recognised commercially accepted identification number for this party may be provided in lieu of the name and address.
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Importer of Record Number / Foreign-Trade Zone Applicable Identification Number. The Internal Revenue Service number, Employer Identification Number, Social Security Number or CBP-assigned number of the entity liable for payment of all duties and responsible for meeting all statutory and regulatory requirements incurred as a result of importation. For goods intended to be delivered to a foreign-trade zone, the IRS number, EIN, SSN or CBP-assigned number of the party filing the FTZ documentation with CBP must be provided.
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Consignee Number(s). The IRS number, EIN, SSN or CBP-assigned number of the individual(s) or firm(s) in the United States on whose account the merchandise is shipped.
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Manufacturer (or supplier). The name and address of the entity that last manufactures, assembles, produces or grows the commodity, or the name and address of the supplier of the finished goods in the country from which the goods are leaving. In the alternative, the name and address of the manufacturer (or supplier) that is currently required by U.S. import laws, rules and regulations may be provided (this is the information that is used to create the existing manufacturer identification number for entry purposes). A widely recognised commercially accepted identification number for this party may be provided in lieu of the name and address.
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Ship to Party. The name and address of the first deliver-to party scheduled to physically receive the goods after they have been released from customs custody. A widely recognised commercially accepted identification number for this party may be provided in lieu of the name and address.
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Country of Origin. The country of manufacture, production or growth of the article, based upon U.S. import laws, rules and regulations.
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Commodity HTSUS Number. Duty/statistical reporting number under which the article is classified in the HTSUS. The HTSUS number must be provided to the six-digit level and may be provided up to the 10-digit level. This element can only be used for entry purposes if it is provided at the 10-digit level or greater by the importer of record or its licensed customs broker.
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Container stuffing location. The name and address(es) of the physical location(s) where the goods were stuffed into the container. For break bulk shipments, the name and address(es) of the physical location(s) where the goods were made "ship ready" must be provided. A widely recognised commercially accepted identification number for this party may be provided in lieu of the name and address.
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Consolidator (stuffer). The name and address of the party who stuffed the container or arranged for the stuffing of the container. For break bulk shipments, the name and address of the party who made the goods "ship ready" or the party who arranged for the goods to be made "ship ready" must be provided. A widely recognised commercially accepted identification number for this party may be provided in lieu of the name and address.
All information must be filed no later than 24 hours before the cargo is laden aboard the vessel at the foreign port, with the exception of data on container stuffing location and consolidator (stuffer), which may be filed no later than 24 hours prior to arrival in a U.S. port (or upon lading at a foreign port that is less than a 24 hour voyage to the closest U.S. port).
Four elements are subject to flexibility as to interpretation: the manufacturer (or supplier), ship to party, country of origin and commodity HTSUS number. While these elements must be filed 24 hours prior to lading, ISF importers may provide in their initial filing a range of acceptable responses based on facts available to the importer at the time in lieu of a single specific response (which may become known to the importer only at a later time). ISF importers will be required to update their filings with respect to these elements as soon as more precise or more accurate information is available, in no event later than 24 hours prior to arrival in a U.S. port (or upon lading at the foreign port if that is later than 24 hours prior to arrival in a U.S. port).
For shipments consisting entirely of FROB or goods intended to be transported in-bond as an immediate exportation or transportation and exportation, the following five data elements must be provided.
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Booking Party. The name and address of the party who initiates the reservation of the cargo space for the shipment. A widely recognised commercially accepted identification number for this party may be provided in lieu of the name and address.
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Foreign Port of Unlading. The port code for the foreign port of unlading at the intended final destination.
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Place of Delivery. The city code for the place of delivery.
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Ship to Party. The name and address of the first deliver-to party scheduled to physically receive the goods after they have been released from customs custody. A widely recognised commercially accepted identification number for this party may be provided in lieu of the name and address.
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Commodity HTSUS Number. The duty/statistical reporting number under which the article is classified in the HTSUS. The HTSUS number must be provided to the six-digit level and may be provided to the 10-digit level.
The final rule requires carriers to submit the following information.
Vessel Stow Plan. A vessel stow plan is used to transmit information about the physical location of cargo loaded aboard a vessel. CBP must receive the stow plan for vessels transporting containers no later than 48 hours after departure from the last foreign port. For voyages less than 48 hours in duration, the stow plan must be received prior to the vessel's arrival at the first port in the U.S. Bulk and break bulk carriers are exempt from this requirement for vessels exclusively carrying bulk and break bulk cargo.
The vessel stow plan must include standard information relating to the vessel and each container laden on the vessel. Vessel information must include vessel name (including International Maritime Organisation number), vessel operator and voyage number. With regard to each container, the information must include the container operator and equipment number, size and type; stow position; hazardous materials code (if applicable); port of lading; and port of discharge.
Container Status Messages. Carriers are required to submit container status messages daily for certain events relating to all containers laden with cargo that are destined to arrive within the limits of a port in the U.S. by vessel. Specifically, carriers must submit a CSM when any of the following events occurs, provided the carrier creates or collects a CSM in its equipment tracking system reporting that event: (i) the booking relating to the container is confirmed; (ii) the container undergoes a terminal gate inspection; (iii) the container arrives or departs a facility; (iv) the container is loaded on or unloaded from a conveyance; (v) the container departs from or arrives at a port; (vi) the container undergoes an intra-terminal movement; (vii) the container is ordered stuffed or stripped; (viii) the container is confirmed stuffed or stripped; and/or (ix) the container is shopped for heavy repair. Each CSM submitted must include the event code being reported, the container number, the date and time of the event being reported, the status of the container (empty or full), the location where the event took place, and the vessel identification associated with the message if the container is associated with a specific vessel. Carriers are exempt from the CSM requirement for bulk and break bulk cargo.
Because it may be cost beneficial for some carriers to transmit all CSMs, rather than those relating only to containers destined to the U.S. or only to the required events, CBP is allowing carriers to transmit such "global" CSM messages. However, carriers who transmit CSMs other than those required by the rule would be authorising CBP to access and use the data they include.
While the interim final rule is scheduled to enter into force on 26 January 2009, CBP advises that it will show restraint in enforcing the new requirements so long as importers are making satisfactory progress toward compliance and a good faith effort to comply with the rule to the extent of their current ability. This enforcement policy will be pursued through 25 January 2010 and will apply to all aspects of the ISF rule. CBP will conduct a review during this period to determine any specific compliance difficulties that importers and shippers may experience in submitting all the required data elements. This review will cover a range of enterprises, from small to large, and will include both integrated and non-integrated supply chains. CBP will also accept comments from interested parties through 1 June 2009.
