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Deadline Alert : USA Importer Security Filing & Additional Carrier Requirements Interim Final Rule (ISF 10+2) to require Advance Cargo Info

By Andis Kaulins

Michael Laden writes at gtnews.com about the impending deadline for implementation of the Importer Security Filing Rule of US Customs & Border Protection (CBP):

"We are nearing the half way mark of a one-year non-enforced phase-in of this rule and, unless otherwise delayed, on 26 January 2010 the CBP will begin full enforcement of this new requirement. If a company is not ready on this date, it might be a very painful and expensive experience. The most important take-away from this article is the heightened sense of urgency and anxiety about this looming deadline, especially if a company hasn?t filed its first ISF yet."

We recently registered at gtnews and just read the important May 19, 2009 article by Michael Laden of TRG Direct who writes in Importer Security Filing - Is Your Company Ready? that "[c]ompanies importing into the US must take stock of the new Importer Security Filing rule, which will incur steep penalties for non-compliance." (Bobsguide writes, by the way, about gtnews.com [free registration required] that "gtnews is the word's largest network of corporate treasury professionals. It is an unrivalled resource for treasury practitioners and those who do business with them.")

The impending rule discussed by Michael Laden is the Importer Security Filing and Additional Carrier Requirements Interim Final Rule, also known as the ISF 10+2 Rule because it requires 10 data elements from the importer and 2 from the carrier.

"To help prevent terrorist weapons from being transported to the United States, vessel carriers bringing cargo to the United States are required to transmit certain information to Customs and Border Protection (CBP) about the cargo they are transporting prior to lading that cargo at foreign ports of entry. This interim final rule requires both importers and carriers to submit additional information pertaining to cargo to CBP before the cargo is brought into the United States by vessel. This information must be submitted to CBP by way of a CBP-approved electronic data interchange system. The required information is reasonably necessary to improve CBP?s ability to identify highrisk shipments so as to prevent smuggling and ensure cargo safety and security. These regulations specifically fulfill the requirements of section 203 of the Security and Accountability for Every (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. DATES: Effective Date: This rule is effective on January 26, 2009." [links added by LawPundit]

The 10 plus 2 "data elements" are found in the April 1, 2009 Testimony of Acting Commissioner Jayson P. Ahern, U.S. Customs and Border Protection, before the House Appropriations Committee, Subcommittee on Homeland Security, on Cargo and Container Security:

"The CBP Importer Security Filing covers the following key areas:

1. Ten unique data elements from importers not currently provided to CBP 24 hours prior to foreign loading of cargo,
   • Manufacturer (or supplier) name and address
   • Seller (or owner) name and address
   • Buyer (or owner) name and address
   • Ship to name and address
   • Container stuffing location
   • Consolidator (stuffer) name and address
   • Importer of record number/foreign trade zone applicant identification number
   • Consignee number(s)
   • Country of origin
   • Commodity Harmonized Tariff Schedule of the United States number

2. Two additional data elements provided by the carriers, including the Vessel Stow Plan, which is currently utilized by the vessel industry to load and discharge containers, and Container Status Messaging, which is currently utilized by the vessel industry to track the location of containers and provide status notifications to shippers, consignees and other related parties."
   

The time allotted for industry comment on the rule expired on June 1, 2009, and the one-year delay on enforcement of compliance ends on January 26, 2010, only about six months away, so time is getting short for importers to fully implement this act.

Ahern testified in detail about the rule as follows:

"Advance Information

CBP has recognized Congress? mandate that we collect more and improved advanced information for cargo shipments. CBP, in fact, requires advanced electronic cargo information as mandated in the Trade Act of 2002 (including the 24-Hour Rule for maritime cargo). Advanced cargo information on all inbound shipments for all modes of transportation is evaluated through the Automated Targeting System (ATS) before arrival in the United States.

The function of ATS is to provide information to support the decisions of CBP officers working in Advance Targeting Units (ATUs) at our ports of entry and CSI ports. The system provides a uniform review of cargo shipments, identifies the highest threat shipments, and presents data in a comprehensive, flexible format to address specific intelligence threats and trends. ATS uses a rules-based program to highlight potential risk, patterns, and targets. Through rules, ATS alerts the user to data that meets or exceeds certain predefined criteria. ATS uses national targeting rule sets to provide threshold targeting for national security risks for all modes: sea, truck, rail, and air. CBP is continually striving to improve the ATS system by convening regular ?rules conferences?. The conferences are attended by our intelligence officers and representatives from various seaports and land border ports who update risk indicators and ensure that the most current intelligence and trends are factored into ATS.

CBP has been working with importers for several years to put in place a rule that would ensure that we had timely access to the information necessary to perform a proper analysis of the risk posed by particular shipments. After that effort began, Congress endorsed it-- the SAFE Port Act mandated that CBP obtain additional advanced cargo information to enhance our ability to perform risk-based targeting prior to cargo being laden on a vessel overseas.

As many of you know, CBP announced an Interim Final Rule (IRF) in January 2009 that requires importers and carriers to electronically submit additional information on cargo before it is brought into the United States by vessel. Since then, CBP has received tens of thousands of Importer Security Filing (ISF) filings, hundreds of vessel stow plans and millions of container status messages that have already yielded some promising results.

The additional data elements that DHS is receiving under the importer security filing rule are critical to ensuring that we have the best information available about where a container originated, who filled it with goods, where this may have occurred, and what types of goods are being shipped.

The trade?s input during the consultative process as well as its participation in the Advance Trade Data Initiative was instrumental in the successful crafting of the rule. CBP made several significant changes to the proposed rule based on feedback received during its consultation with industry partners, the Departmental Advisory Committee on Commercial Operations (COAC), and other federal entities. These changes include a year-long delayed compliance period, considerable flexibilities associated with six of the data requirements, and a commitment to accept additional comments from industry until June 1, 2009 and then initiate a structured review to reexamine the rule?s impact on industry. Based upon this review, DHS will determine whether to eliminate, modify, or maintain these requirements."

Full post as published by LawPundit on June 11, 2009 (boomark / email).