When it comes to importing goods into the United States, compliance with U.S. Customs and Border Protection (CBP) regulations is critical. One essential requirement is the Importer Security Filing, or ISF, often referred to as the “10+2” rule. If you’re asking, “how do I create an ISF file?,” this guide will walk you through the necessary steps to ensure a smooth and compliant filing process.
Understanding the ISF Requirement
The ISF must be submitted by the importer (or their authorized agent) for all ocean cargo imports entering the United States. It requires specific data elements to be electronically transmitted to CBP at least 24 hours before the goods are loaded onto the vessel destined for the U.S. Failure to comply may result in penalties, cargo holds, or delays.
The “10+2” rule gets its name from the ten data elements importers must provide, plus two additional data elements submitted by the carrier.
Gather Required Information
Before you can create and submit your ISF, you’ll need to collect accurate information, including:
- Seller name and address
- Buyer name and address
- Importer of record number
- Consignee number
- Manufacturer (or supplier) name and address
- Ship-to name and address
- Country of origin
- HTSUS number (six-digit Harmonized Tariff Schedule code)
- Container stuffing location
- Consolidator name and address
Make sure all details are accurate and consistent with your shipping documents, as discrepancies can lead to delays or fines.
Choose Your Filing Method
Independent importers typically have two options for submitting an ISF:
- File Through a Customs Broker:
Most independent importers opt to work with a licensed customs broker. Brokers are experienced in ISF filing and can ensure compliance with all CBP requirements. This route reduces the risk of errors but includes broker service fees. - Self-Filing via a CBP-Approved Software or Portal:
If you prefer to manage your filings directly, you can register with CBP to obtain access to their Automated Commercial Environment (ACE) system. Using approved ISF software, you can create and transmit the filing yourself. This option requires more effort upfront but may save money in the long run.
Submit the ISF on Time
Timing is critical. The ISF must be submitted at least 24 hours before the cargo is loaded onto the vessel at the foreign port. Late filings can result in penalties of up to $5,000 per shipment. It’s advisable to submit early to allow for corrections or additional documentation if needed.
Monitor and Maintain Records
After submission, track the status of your ISF through your broker or filing system. Ensure all corrections are made promptly if CBP flags any issues. Keep records of your filing and supporting documents for a minimum of five years, as required by CBP regulations.
Penalties and Compliance Tips
To avoid costly penalties, always double-check your information before submitting. Inaccurate or incomplete filings can lead to fines, cargo delays, and increased scrutiny from CBP. Set reminders for ISF deadlines, maintain clear communication with your suppliers, and consider annual reviews of your filing process to ensure ongoing compliance.
Conclusion
Creating an ISF file may seem daunting at first, but with careful preparation and the right support, independent importers can successfully manage the process. Whether you choose to self-file or work with a broker, staying informed and organized is key to importing efficiently and compliantly.
