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					 Importer Security Filing and
Additional Carrier Requirements




 Korean Chamber of Commerce
         April 5, 2011
                              1
      Today’s Presentation on “10+2”

 Compliance Update
 Enforcement Strategy
 Top ISF Issues
 Q & A Session


                         Los Angeles - Long Beach Seaport




                                                            2
What is the Security Filing?
The Security Filing, commonly known as the “10+2” initiative, is a Customs
and Border Protection (CBP) regulation that requires importers and vessel
operating carriers to provide additional advance trade data to CBP pursuant to
Section 203 of the SAFE Port Act of 2006 and section 343(a) of the Trade Act
of 2002, as amended by the Maritime Transportation Security Act of 2002, for
non-bulk cargo shipments arriving into the United States by vessel.

Importer Requirements:
        U.S. Bound Cargo (Includes FTZ and IT) : requires the electronic filing of an
        Importer Security Filing (ISF) comprised of 10 data elements.
        Transit Cargo (FROB, IE and TE): requires the electronic filing of an
        Importer Security Filing (ISF) comprised of 5 data elements.
 Carrier Requirements:
         Vessel Stow Plans required for arriving vessels with containers.
         Container Status Messages required for containers arriving via vessel.
Importer Security Filing (ISF) Importer
 The party required to submit the Importer Security Filing (ISF) is
  the party causing the goods to enter the limits of a port in the
  United States. This party is known as the “ISF Importer”.
   Could be the owner, purchaser, consignee, or agent (e.g. customs
    broker).
   For foreign cargo remaining on board (FROB), this party is the
    carrier (vessel operating carrier).
   The party filing the immediate exportation (IE), transportation and
    exportation (T&E), or foreign trade zone (FTZ) documentation is the
    ISF Importer for those types of shipments.

 The ISF Importer is ultimately responsible for the timely,
  accurate and complete submission of the ISF filing.
                               ISF Agents
 The ISF Importer, as a business decision, may designate an
  authorized agent to file the Importer Security Filing on the ISF
  Importer’s behalf.
    If an agent is used for ISF purposes, a power of attorney (POA) is required.
 Agents must have access to one of CBP’s approved automated
  systems. For ISF requirements, the approved systems are the vessel
  Automated Manifest System (AMS) and the Automated Broker
  Interface (ABI).
 The filing of an ISF does not constitute “customs business”.
    Exception is the “Unified Entry” filing.

 The Vessel Operating Carrier (VOC) may hire a Non-Vessel
  Operating Common Carrier (NVOCC), or another party, to be its
  agent for ISF purposes.
             ISF-10s “By the Numbers”
                      January 1, 2011 – March 29, 2011


Total Submissions:                2,098,184

    Total Rejected:                 36,782                 2%
   Total Accepted:                2,061,402                98%

                                                         Note: Do NOT send
                                                         in a “REPLACE” to
                                                         simply force an ISF-
           Filers:                   2,000+              Bill match message!

Importers (IOR #s):               120,500+




                                                                           6
    Total Carrier-Related Filings
              January 1, 2011 – March 29, 2011




ISF-5s                                 238,279



Stow Plans                              4,966


    CSMs                             67,903,347


Participating                            150+
Carriers/Filers
                  ISF-10 Data Elements
            “U.S.-bound” Cargo (3461 Entries, IT, FTZ)

 1.   Importer of Record Number
 2.   Consignee Number
 3.   Seller (Owner) name/address
 4.   Buyer (Owner) name/address
 5.   Ship to Party
 6.   Manufacturer (Supplier) name/address
 7.   Country of Origin
 8.   Commodity HTS-6
 9. Container Stuffing Location
10. Consolidator (Stuffer) name/address

11. Bill of Lading Number (house or reg.)
12. ISF Importer
                                             CBP Form 3461

                                                             8
             ISF Filing Requirements
Before an ISF or the ISF process can be considered
“finished”, the ISF must be:


  Complete
  Accurate
  Timely



The ultimate responsibility rests with the ISF Importer!
                          “Complete” ISF
 The check for ISF completeness is largely done by system edits
 The ISF Filer receives an initial system notification message
         Accepted
         Accepted with Warning (an update may be required)
             Postal Code was not provided
             All “Flexible Filings” must be updated
         Rejected (need to start over)
             Bill of lading number missing or in incorrect format
             Some of the required ISF data was missing

 If the ISF is accepted, CBP sends a unique transaction number
   Electronic Receipt that an ISF was submitted and accepted (BUT NOT FINISHED!!!)
   Includes a date and time so it can be compared to the vessel departure message
                             “Accurate” ISF
 Includes properly matching the ISF to a bill of lading at the lowest
  level in AMS
 A match or no-match message is sent back to the ISF Filer
     S1 “Bill on File” Generated when the ISF is matched to an AMS bill of
      lading.
     S2 “No Bill Match (Not on File)”
         No great cause of concern. Many times, the ISF precedes the manifest filing
     S3 “No Bill Match (Not on File)” Still no match 5 days after ISF
     S4 “No Bill Match (Not on File)” Still no match 20 days after ISF
     S5 “No Bill Match (Not on File)” Still no match 30 days after ISF
     S6 “No Bill Match (Wrong Type)”
     S7 “Duplicate ISF by Another Filer”
    Accurate ISF: ABI Bill of Lading Query
 CBP updated the Automated Broker Interface (ABI) bill of lading
  query to help ISF Filers and ISF Importers obtain the correct bill
  of lading numbers and bill of lading types to use on their ISFs.
   If a bill of lading number is queried, CBP will return back the bill type (i.e.,
    Master, house, or Regular/Simple/Ocean)
   If a Master bill of lading number is queried, CBP will also return back all of the
    house bill of lading numbers.
   If a house bill of lading number is queried, CBP will also return back the correct
    Master bill of lading number.


 Note: the bill of lading numbers need to be on file for the query
  to work properly. In many instances, the ISF will be filed prior to
  the manifest being filed.
                        “Timely” ISF
 CBP regulations generally require that an ISF be submitted
  electronically no later than 24 hours prior to vessel lading
  (Anytime prior to lading for FROB)
 CBP is using the vessel departure message minus 24 hours to
  establish “timeliness” since it is the closest available metric.
 Flexible filings MUST be updated as soon as the new
  information is known, but under no circumstances later than 24
  hours prior to arrival.
 CBP maintains a record of all ISF filings including unmatched,
  rejected and deleted ones.
             C-TPAT Benefits of “10+2”
                  Customs - Trade Partnership Against Terrorism

 Earlier Decision Making
   C-TPAT entities are reliably identified prior to vessel lading
          Based on Importer of Record Number on the ISF
          No longer tied solely to entry data (24 hours or more prior to arrival)

 Better Decision Making
   Tangible C-TPAT benefits are applied much further upstream
          Receive targeting credit based upon their tier status
   Stabilization of Automated Hold Process
          Immediate Transportation (IT) in-bond risk assessments are more stable

 Validation of Supply Chain Security Reviews
   New Entities and Locations Identified and/or Verified
          Container Stuffing Location
          Consolidator (Stuffer) name/address
“10+2” Program Update




                        15
            Top Five Error Messages
                                        ISF-10 Errors              Top Five Error Messages (1/26/2010 to 8/5/2010)



60,000
                 52,108

                                         Note: A single ISF may have multiple errors. Not
50,000
                                         all errors lead to an ISF rejection (most do).

40,000



30,000



20,000                          13,275
                                                    10,431
                                                                       8,673             8,073

10,000



    0
         Duplicate ISF    Invalid BOL    Entitiy Identifier   ISF Transaction#   Invalid HTS #
                            Format         Not on File           Not on File


            21%               5%                4%                    3%               3%

                                                                                                                     16
“10+2” Enforcement Strategy




        CBP’s Vessel Stow Plan Module
    Used to identify unmanifested containers


                                               17
           ISF Enforcement Strategy
The full compliance (enforcement) date for the “10+2”
requirements commenced on January 26, 2010, thus ending a
12-month delayed enforcement period in which CBP provided
extensive outreach to educate the trade community on the new
requirements. CBP is:

  Applying a measured, commonsense approach to
   enforcement
  Exercising the least amount of force necessary to obtain full
   compliance
  Evaluating non-compliance on a case-by-case basis
  Continuing to provide outreach and guidance to the trade


                         X                                     18
                    Enforcement Measures
 Informed Compliance Efforts
         Public outreach (incl. webinars, meetings, ISF Progress Reports)
         Informal and formal notification (e.g., warning letters)

 Mid-level Compliance Measures
         Domestic NII examination manifest holds
         Domestic physical examinations
         Re-evaluation and possible reduction of C-TPAT status

 Strictest Enforcement Measures
         ISF Jail (i.e., lengthier manifest holds)
         Liquidated Damages
         Suspension or Revocation of C-TPAT Status
         Do Not Load or Do Not Discharge Orders




                                                                             19
               Top ISF Issues Identified


Do I need to file 24 Hours prior to lading of the feeder or
mother vessel?
    The ISF is due 24 hours prior to lading of the mother vessel




Which bill of lading number do I use?
    Must use the lowest bill of lading transmitted in AMS (house or regular)
    Contact your shipper
    New ABI query functionality helps
    CBP allows for the bill of lading number to be updated on the ISF



                                                                                20
               Top ISF Issues Identified


I didn’t receive the ISF “Bill on File” match message.
    This is common when the ISF filing precedes the filing of the customs
     manifest (i.e., bill info).
    Make sure you (or your agent) annotated the correct bill type on the ISF.
        Regular Bill – This bill type is also referred to as an “Ocean" or “Simple Bill”
         and is issued by a Carrier. There are no underlying house bills.
        House Bill – Typically issued by a NVOCC (sometimes referred to as an
         automated freight forwarder). A house bill of lading always falls under a
         carrier’s Master bill of lading.
    ISFs cannot be filed against Master Bills
    Do NOT Send in a “REPLACE” to force an ISF-Bill Match message




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               Available Resources
 Go to: www.CBP.gov
  Copy of the Interim Final Rule
  ISF PowerPoint Presentation
  General Frequently Asked Questions (FAQs) Document
  Copy of the Regulatory Assessment
  Implementation Guides (Technical File Formats)
  Mitigation Guidelines
  News Releases
  Outreach Schedule

   Security_Filing_General@cbp.dhs.gov

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                 Questions?
                   www.cbp.gov

Security_Filing_General@cbp.dhs.gov
      Joseph.Martella@dhs.gov
                   “10+2” Contacts
    Richard Di Nucci, Director, Cargo Control Division
    John Jurgutis, Branch Chief, ISF & Vessel Manifest
    Stephen Silvestri, Branch Chief, Air & Rail Manifest
           Craig Clark, Program Manager, ISF
 Joseph Martella, Program Manager, New York Field Office


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