The public comment period for this proposed rule has ended on March 18^th, 2008. 

U.S. Customs and Border Protection are reviewing the comments received.  Customs

is expected to finalize and publish the rule by the summer of 2008.  The planned implementation will be 6 to 12 months after the final rule is published in the Federal Register. 

The following information is intended to assist our Ocean Import clients in preparing

for the Importer Security Filing requirements.  The proposed rule covers FCL shipments.  Currently, break bulk shipments are excluded from this rule.  This may change once

the Final Rule is published.

How to prepare for the 10+2 Security Filing:

The best course of action for importers at this time would be to identify who in their organization would collect and consolidate the data.  Also, look at what data elements

are currently available and start thinking about how to collect the remaining data elements.  Communicate with your vendors and service providers and ask what are they doing to prepare for the “10+2” Security Filing.

Identify and implement a procedure for advance determination of your commodity’s HTSUS classification.   Implement or improve upon procedures for complete and accurate Country of Origin and Manufacturer determination.

Analyze your current procedures to ensure you are prepared to handle the additional filing requirements. 

The Importer is solely responsible for filing the ISF.  Most Importers will authorize a third party to file the ISF on their behalf.  The third party must be authorized by a Power

of Attorney.       

How this proposed rule could affect your business:

Filing fees - Service providers will likely charge a fee for the ISF transmitted on your behalf.

Increased potential for penalties - U.S. Customs is proposing Liquidated Damages equal to the value of a shipment for failure to file the ISF.  Importers may also face potential charges for inaccurate or missing data.

Customs Bond premium increase - Bond premiums may increase since the Sureties liability is greater due to the increased potential for penalties.

Delay in your supply chain – Collecting and transmitting the ISF data may increase the lead times at origin by two to three days.  We can also anticipate an increase in airfreight volume due to delays of containerized cargo.  Consider if any changes to your current supply chain practices may be needed such as new sourcing strategies or maintaining higher inventory levels.

Stay current with the “10+2” Security Initiative by visiting CBP’s website:

http://www.customs.ustreas.gov/xp/cgov/trade/cargo_security/carriers/security_filing/    

Additional information will be posted on our site once the Final Rule is published.

 On January 2, 2008, U.S. Customs and Border Protection (CBP) published a Notice

of Proposed Rulemaking in the Federal Register proposing to require importers and

carriers to submit additional information to CBP before cargo is brought to the

United States by vessel.

This “Importer Security Filing and Additional Carrier Requirements” is commonly

referred to as the “10 + 2” initiative.

This rule will require importers of ocean cargo, or their authorized agents, to supply

CBP with 10 additional data elements and ocean carriers to supply 2 additional data

elements.  The required information must be reported 24 hours prior to vessel loading

in the foreign port. 

There are currently two approved electronic data interchange systems for the ISF.

ABI (Automated Broker Interface) and AMS (Automated Manifest System).

Importer Security Filing 10 data elements (filed through ABI) 

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 or Foreign Trade Zone applicant identification number

Consignee number

Country of origin

Commodity HTSUS number (up to the 6^th position)

Vessel stow plan

Container status messages

This proposed rule is currently under a 60-day public comment period, which will

end March 3, 2008.  CBP will review the feedback and publish a final rule in the Federal Register.

The Federal Register Notice of proposed rulemaking can be accessed using this link:

http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/E7-25306.pdf

CBP will adapt a phase in period similar to when the 24-hour Rule was implemented.

The additional data elements reported would further improve the ability of CBP to identify high-risk shipments so as to prevent smuggling and ensure cargo safety and security.

NNR will post all future developments of this proposed rule.