ISF 10+2 Vs. ISF 5: What’s The Difference?

In the ever-evolving landscape of international trade, it is essential to stay updated on the latest customs regulations and requirements. Two terms that are frequently encountered in this realm are ISF 10+2 and ISF 5. These abbreviations refer to specific processes within the Importer Security Filing (ISF) program, which was introduced by U.S. Customs and Border Protection (CBP) to enhance cargo security. In this article, you will gain a comprehensive understanding of the key distinctions between ISF 10+2 and ISF 5, enabling you to make informed decisions and ensure smooth customs compliance for your import operations.

Overview of ISF 10+2

ISF 10+2 refers to the Importer Security Filing requirement, also known as the 10+2 rule. This rule was implemented by the US Customs and Border Protection (CBP) in order to enhance the security of imported goods. Under this rule, importers are required to provide specific information about their cargo to the CBP before the goods are loaded onto a vessel destined for the United States. The ISF 10+2 rule aims to improve risk assessment and prevent potential security threats.

Overview of ISF 5

On the other hand, ISF 5 represents the Importer Security Filing requirement for shipments arriving in the United States by air or truck. While ISF 10+2 applies to shipments arriving by ocean, ISF 5 applies to those arriving by means other than vessel. The purpose of ISF 5 is to ensure that the CBP receives the necessary information to assess and, if necessary, mitigate any potential security risks associated with goods entering the country by air or truck.

Filing Requirements

Under the ISF 10+2 rule, importers are required to file ten data elements, while carriers must provide two additional data elements. The ten data elements required from importers include the seller name and address, buyer name and address, importer of record number, consignee name and address, manufacturer or supplier identity, country of origin, and commodity Harmonized System (HS) code. The two additional data elements that carriers must provide are the stow plan and container status messages.

For ISF 5, importers are required to provide seven data elements, which include the same buyer and seller information as ISF 10+2, as well as the buyer’s address abroad. Carriers, on the other hand, are required to provide two data elements, which are the house airway bill or bill of lading number and the master airway bill or bill of lading number.

Timing of Filing

When it comes to the filing timing, there is a difference between ISF 10+2 and ISF 5. For ISF 10+2, importers are required to submit the filing no later than 24 hours before the vessel departs from the foreign port. On the other hand, for ISF 5, importers are required to submit the filing no later than 2 hours prior to the arrival of the goods in the United States.

Importer Responsibilities

Under both ISF 10+2 and ISF 5, importers have crucial responsibilities to fulfill. Firstly, importers must ensure that the information provided during the filing process is accurate and complete. They are also responsible for ensuring that any updates or changes to the submitted information are promptly communicated to the CBP. Additionally, importers must make sure that they have a bond in place to cover any potential penalties or fees associated with non-compliance.

Carrier Responsibilities

While importers have their own set of responsibilities, carriers also play a significant role in the ISF process. Under ISF 10+2, carriers are responsible for providing the stow plan, which includes information on the location of each container on board the vessel. They are also required to provide container status messages, which inform the CBP of any changes or updates to the status of the container. Similarly, under ISF 5, carriers must provide the necessary airway bill or bill of lading numbers to ensure the CBP receives the required information.

Data Elements Required

As mentioned earlier, the specific data elements required for ISF 10+2 and ISF 5 differ slightly. While both filing options require similar information about the buyer, seller, and importers, ISF 10+2 includes additional details such as the manufacturer or supplier identity and the commodity HS code. The inclusion of these additional data elements in ISF 10+2 aims to provide the CBP with more comprehensive information about the cargo being imported.

Fees and Penalties

It is important for importers and carriers to understand the fees and penalties associated with non-compliance to the ISF filing requirements. Failing to comply with the ISF 10+2 or ISF 5 rules can result in significant consequences, including monetary penalties. Importers may face penalties of up to $5,000 per violation, while carriers could be subject to penalties of up to $5,000 per violation in the case of ISF 10+2, and up to $10,000 per violation for ISF 5.

Benefits of ISF 10+2

Implementing the ISF 10+2 rule has brought several benefits to the trade industry. By requiring importers to provide detailed information about their cargo before loading, it allows the CBP to assess and identify any potential security threats. This helps in ensuring the safety and security of the supply chain and promotes a more efficient flow of goods across borders. The ISF 10+2 rule also aids in targeting high-risk shipments, reducing the risk of illegal or dangerous goods entering the country.

Choosing the Right Filing Option

When it comes to choosing between ISF 10+2 and ISF 5, it is crucial for importers and carriers to consider the mode of transportation being used for their shipments. If the cargo is being transported by ocean, then ISF 10+2 is the appropriate filing option. On the other hand, if the cargo is arriving by air or truck, ISF 5 should be used for the filing. It is important to carefully assess and determine the correct filing option to ensure compliance with the CBP regulations and avoid any potential penalties or consequences.

In conclusion, understanding the differences between ISF 10+2 and ISF 5 is essential for importers and carriers involved in the international trade industry. By complying with the filing requirements and fulfilling their respective responsibilities, importers and carriers contribute to the overall security and efficiency of the supply chain. Properly choosing the right filing option based on the mode of transportation ensures compliance and minimizes the risk of non-compliance. By staying informed and up to date with the regulations, importers and carriers can navigate the complexities of the ISF filing process successfully.