ISF is a term common with people importing products into the US. This document is formally known as Importer Security Filing and sometimes “10+2”. The ISF has to reach the Customs and Border Protection (CBP) at least 24 hours before the ship carrying your goods departs for the US.
The ISF contains essential information about the goods or products you intend to ship into the US. Furthermore, it helps the CBP stop illegal goods and curb terrorist activities in the US.
This post will discuss everything you need to know about ISF filing and why it is crucial for your business.
What is an ISF?
The ISF is electronic documentation about goods you want to ship into the United States (US). This document only applies to goods arriving in the US in a vessel. This document must reach the CBP at least 24 hours before the time when the goods will arrive. Moreover, the ISF can be presented to the CBP either by the importer or their agent.
What information is needed for ISF filing?
Essential information that must be enclosed in the ISF is as follows:
- Importer of Record number
- Seller Name
- Buyer name
- Manufacturer name
- Consignee number
- Country of origin
- Harmonized tariff schedule code
- Ship to party
- The consolidator
- The container stuffing location
While the ten details mentioned above have to be part of the ISF prior to the goods’ departure to the US, two other documents have to travel along with the goods in the vessel. They are:
- Vessel stow plan
- Container status message
So, you now know where the popular “10+2” associated with ISF filing comes from – the first ten elements of the ISF and the last 2. In addition, the person filing the ISF will need to present the bill of lading number(s).
These bills help to match the filing to the AMS (Advanced Manifest System) filing. They are the
- MBL Number & SCAC
- AMS HBL# & SCAC
Steps required for an ISF filing
Source for the required information
This is the first and most important step in the process and must be done in advance before lading. This step requires collecting all the necessary information to fill in the ISF form. This involves collecting the “10+2” pieces of information we mentioned earlier.
Filing the collected information online
Filing and submission of your ISF data are made via an online portal. You’ll have to visit the Automated Broker Interface (ABI) in the ACE Portal to upload your ISF data to CBP. We recommend hiring an authorized CBP affiliate service provider if you’re not conversant with the procedures and terms.
Moreover, you’ll need an identification code – a SCAC or an ABI filer code. If the SCAC code is unavailable, CBP will allocate an identifier code to the filer. Such identifier codes usually contain four characters.
Checking of ISF filing status
Lastly, you’ll have to check back on the portal to confirm if CBP has approved your ISF. To avoid penalties for inaccurate information, ensure that information contained in the ISF matches that on the AMS.
What are the possible issues with ISF filing?
The most common problems importers face while ISF filing are submitting wrong information and late ISF filing. The CBP frowns gravely at offenders and has implemented huge penalties for defaulters.
Penalties range between $5,000 and $10,000 for each shipment. To help you avoid such high penalties, we recommend Importdoor for accurate shipment data or any bill of lading information you may need.
Below are the faults and their corresponding penalties.
- Late submission – Submitting your ISF any less than 24 hours before shipment to the US incurs a $5,000 penalty for each shipment.
- Failure on inability to file ISF – If an importer or an agent fails to submit their ISF for any reason, they’ll also incur a $5,000 fine per shipment.
- Incomplete filing – Submitting an incomplete ISF filing attracts a $5,000 penalty from CBP.
- Failure to withdraw invalid ISF – Failure to withdraw an ISF that CBP found invalid incurs a $5,000 penalty.
- Failure to match ISF with the bill of lading – If the number contained in your ISF is incorrect, this warrants a $5,000 penalty for each transaction.
If you’re unlucky, CBP may hold your cargo until they’ve received the necessary information they demanded. Also, the reviewing process will keep you waiting for additional time.
However, if you’re violating the ISF rules for the first time, your penalty may be reduced to $1,000 to $2000. However, this depends on the circumstances and other situations that resulted in the violation.
Frequently asked questions
How much does it cost to get an ISF filing?
Typically, ISF filing goes for a fee between $30 to $50. However, you’ll have to pay your custom broker if you’re using the services of one. Such additional costs may make the total cost of securing your ISF filling fall between $80 and $120.
Whose duty is it to file an ISF?
The ISF importer is responsible for the ISF filing. Most times, the importer happens to be the buyer, consignee, or owner of the imported goods. Also, individuals who are citizens of the US are allowed to file an ISF, provided they have a legally recognized US address.
Also, you can hire a customs broker to help you do the ISF filing. We recommend them because they have a broader knowledge of the importation processes and procedures. As such, they can access accurate ISF filing and bill of lading information. You can also get such accurate shipping information from Importdoor.
Conclusion
In 2009, CBP implemented the need for an ISF for any goods entering the US. However, this documentation is only required for goods arriving on a vessel. Penalties for late or inaccurate ISF filing can be anything from heavy fines to the detainment of goods at port or inspection.
To be on the safe side, it’s best to have a customs broker help you with the filing process. Also, we recommend Importdoor for updated data on your or your competitors Bill of Lading and ISF filing. Making sure you submit your ISF and other documentation prior to your products leaving port is the best and smoothest way to make sure you don’t encounter any issues at the port of arrival.
