What is an ISF?

 

The Importer Security Filing, commonly referred to as a 10+2, is a mandatory documentation package that individuals must furnish to the U.S. Customs and Border Protection (CBP) when importing goods via ocean vessels. This comprehensive filing encapsulates crucial details concerning both the importer or supplier of the goods destined for the U.S. and the carrier responsible for their delivery.

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The ISF serves as a key instrument for CBP to enhance visibility into the incoming goods, aiding in the identification of high-risk shipments. Given its significance, CBP imposes stringent deadlines for the submission of this information, and any inaccuracies are subject to a fine of $5,000 per violation. The ISF process is pivotal in ensuring a transparent and secure importation process, aligning with CBP's commitment to robust border security and regulatory compliance.

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What information is contained in the ISF Filing?

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The designation "10+2" for an ISF originates from the requisite data elements: 10 supplied by the importer/supplier and 2 by the carrier. As outlined by CBP, the importer is obliged to include the following 10 data elements:

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1. Importer of Record Name and Address: The individual or business entity responsible for importing goods into the US.

2. Buyer Name and Address: The individual or business entity who paid for the importation of goods into the US.

3. Sellers Name and Address: The overseas entitiy who sold the goods to the US party.

4. Consignee Name and Address: The individual or business entity who is responsible for the goods into the US.

5. Container Stuffing Location: Overseas warehouse and location of where the goods where loaded into the container.

6. Consolidater: The overseas logisitcs company or freight forwarder who booked the goods to be shipped into the US

7. Ship To Name and Address: The location of where goods will go to upon clearance and release from US Customs.

8. Country of Origin: The origin country of where the goods where manufactured.

9. HTS Tariff Code: Commodity tariff code as assigned under the Harmonized Tariff Schedule for the goods imported.

10. Manufacturer Name and Address: The overseas entity of where the goods are manufactured. 

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Who is responsible to file the ISF?

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The 'ISF Importer,' according to CBP, is the person entrusted with filing the ISF, often the owner, purchaser, or consignee of the goods. An individual, provided they are a U.S. citizen with a valid U.S. address, has the option to personally submit an ISF. Conversely, one can opt to engage a customs broker for the ISF filing process. These professionals possess comprehensive knowledge of the importation process, offering valuable assistance in accurately completing and submitting the ISF form. Whether choosing to file independently or seeking the expertise of a customs broker, ensuring the ISF is correctly submitted is fundamental to a smooth importation process.

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What are ISF and Customs Bonds?

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Customs Bonds are required by US Customs to safeguard the financial liabilities and interests of the United States in the event of any claims if issued to the importer due to non compliance, such as late ISF Filing. 

 

ISF Bonds is the bond of choice for single shipment filing and for importers with low import activity or who import only once.

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Customs Bond Types

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1. ISF Bond - Single use bond for U.S. Customs which covers singe ISF Filing. Guarantees $10,000 of ISF penalty limit for ISF non compliance. Used for Importers which do not possess Continuous Bond. 

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2. Single Entry Bond - SEB bond is used for customs clearance. Not to be confused with ISF Bond. 

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3. Continuous Bond - Continuous bonds are used for businesses with heavy import activity. The cost of C Bond is not recommended for low volume importers due to the higher upfront costs to purchase.

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Custom Bond Value Determination

Single Transaction – Bond is usually completed for either an amount equal to the value of the merchandise plus the duty, taxes and other fees or, for certain merchandise as determined by U.S. Customs, an amount equal to three (3) times the value of the merchandise.

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Continuous Bond – Bond amount is usually equal to 10% of the duty and other import taxes paid in the previous year, in multiples of $10,000 if the duties are less than $1,000,000 or multiples of $100,000 if the duties are over $1,000,000. Currently, the minimum bond amount required by U.S. Customs is $50,000. Further, care should be taken to insure that the bond is sufficient to cover the duty, not the value, on any single shipment of merchandise

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Is a POA required for an ISF Filing?

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A Power of Attorney (POA) becomes essential when a customs broker undertakes the ISF submission on behalf of an importer. If the importer has previously granted a broker POA, CBP does not necessitate a new or specialized POA specifically for the ISF submission.

Crucially, it's the importer's responsibility to ensure accurate and timely filing of their documentation. Any potential penalties incurred will be the responsibility of the importer, even if the ISF is filed by a third party.

Ensuring peace of mind, it is imperative to collaborate with an ISF Filing agent or CBP-licensed customs broker. This guarantees that your ISF and all other import documents are accurately and promptly submitted, aligning with your compliance and efficiency goals.