For new importers, navigating U.S. Customs regulations can be overwhelming. One of the most important requirements is the Importer Security Filing, or ISF. Also known as “10+2,” it mandates that specific information about ocean shipments be filed electronically with U.S. Customs and Border Protection (CBP) before goods are loaded on a vessel bound for the United States. Even a minor error in the ISF submission process can lead to serious delays and costly penalties. Understanding the most common mistakes made by first-time importers can help prevent issues before they arise.
Missing the Filing Deadline
The most frequent and damaging error is submitting the ISF too late. The ISF must be filed at least 24 hours before the vessel departs from the foreign port. New importers often miscalculate the timeline or assume it’s based on arrival time in the U.S. rather than departure abroad. This confusion can result in fines of up to $5,000 per shipment and potential cargo holds or inspections.
Incomplete or Inaccurate Information
ISF requires 10 data elements from the importer and two from the carrier. Commonly, new importers omit critical details like the seller’s or buyer’s full legal name and address, or enter incorrect container stuffing locations. Errors often arise due to misunderstandings about who is responsible for which parts of the shipment. An accurate ISF demands close coordination with suppliers, freight forwarders, and carriers.
Using the Wrong Importer of Record
Sometimes, importers mistakenly list their supplier or foreign partner as the importer of record. This causes confusion for CBP and delays clearance. The importer of record must be a U.S.-based entity responsible for paying duties and ensuring compliance. First-time importers should ensure they or their designated customs broker are properly listed to avoid miscommunication and legal complications.
Failing to Update Changes
If anything about the shipment changes after the initial ISF is filed, such as the consolidator’s name, container stuffing location, or consignee details, the filing must be updated promptly. New importers sometimes assume they’re locked into the original data and fail to notify CBP of changes. This can result in non-compliance and penalties even if the original filing was on time.
Assuming the Carrier or Forwarder Handles Everything
Another mistake is assuming the shipping company or freight forwarder is responsible for the entire ISF process. While these partners often provide critical data, the legal responsibility rests with the importer. Without actively managing the ISF, first-timers can miss deadlines or approve inaccurate information.
Not Using a Licensed Customs Broker
Attempting to manage the ISF alone is risky for newcomers. Licensed customs brokers have experience ensuring filings meet CBP requirements. New importers who try a do-it-yourself approach often misinterpret CBP instructions or submit incomplete documentation. Partnering with a broker not only ensures compliance but can also streamline the broader importing process.
Conclusion
ISF submission errors can delay shipments, trigger inspections, and lead to steep fines. For first-time importers, investing time upfront to understand the process, or hiring a qualified broker, can pay off significantly. By avoiding common mistakes like missed deadlines, incorrect data, or misassigned responsibility, importers can ensure a smoother, more efficient entry into the world of international trade.
