This is a must read for anyone importing to the United States via an ocean vessel.
If you are importing to the U.S. by an ocean vessel, you are required to file a mandatory ISF
filing (importer security filing). This is required for all shipments inbound to the U.S. regardless of
commodity. Inaccurate filing or late filings can result in customs delays and penalties.
Understanding key requirements is crucial in being compliant with rules and regulations of
importing to the U.S. Our Team is here to help make this process less stressful for customers.
What is ISF?
ISF Filing, also known as the Importer Security Filing (or 10+2), is a mandatory regulations by
the U.S. Customs and Border Protection (CBP) for cargo entering the United States via
ocean. It requires the importers to submit required cargo details 24 hours prior to vessel loading.
ISF filing was introduced in January of 2009 and the goal of ISF filing was to help CBP assess
the risk of imports entering the U.S. and ensure safety within the U.S. borders. The data acts as
a heads up to custom on what will be entering the U.S.
What are the key requirements of ISF Filing?
The below are the key elements required when submitting ISF. This information can be filled out
by the importer or by a knowledgeable freight forwarder.
- Manufacturer information (name and address)
- Seller (name and address)
- Buyer (name and address)
- Importer of Record number
- Ultimate Consignee Number
- Ship to Party
- Consolidator details
- Container stuffing location
- Country of origin
- Harmonized Tariff Schedule (HTS)
Other details on the ISF includes:
- Vessel Stow Plan
- Container status
The details filed on the ISF must be up to date. If any information changes, it is required that ISF
is amended accordingly to provide accurate information before the arrival of the cargo in the
U.S.
Here is a Step-by-Step ISF Filing Process:
- Gather all the required documents : The importer must gather this information from
the supplier and freight forwarder. - File for custom bond : A bond is required to ensure that the financial liabilities to
customs are covered. Your forwarder can help guide you on which bond would be better
suited for your needs. Importers can apply for a continuous bond or file as a single entry
bond. - File ISF : ISF must be filed by the importer or the freight forwarder 24 hours before the
cargo is loaded onto the vessel at the foreign port. It is crucial that once the ISF is filed
that the ISF status shows as accepted and shows BL on file status.
Reminder: Late ISF Filing can incur significant financial penalties (up to $5,000 per shipment),
lead to cargo holds, and require costly CBP inspections. These issues will delay your delivery
and increase your overall expenses.
- Post ISF filing tracking : Track any changes of the shipment details and vessel delays and update your ISF accordingly.
ISF Regulation
Importer Security Filing (ISF) is a legal obligation under the U.S. Law. This regulation gives CBP
the authority to demand ISF submission and enforce any penalties for non compliance.
What is the purpose of regulation?
The regulations are in place to aim:
- Improve transparency
- Support border security
- Reduce the risk of terrorism and smuggling
- Allows CBP to identify high-risk shipments before they arrive
Requirements for Recordkeeping
It is important under the CBP regulations that importers must retain the ISF records for at least 5
years. These documents must be available upon request in an event of audit or compliance
checks.
ISF Penalities
Failing to file ISF accurately and on time (at least 24 hours before loading) can result in the
below penalties :
- Fines up to $5000 per violation
- Cargo holds and examinations
- Possible liquidated damages
ISF Filing Fees and Cost
The cost of ISF filing is minimal vs the cost of penalties for being non compliant and not filing
your ISF properly. Having the right team to make sure your shipments are filed correctly and on
time is very important.
- ISF Filing fee : usually around $30 to $50 depending on the agent
- Amendment cost : usually around $25 to $40 per amendment may be billed by your
forwarder if changes are needed
Final thoughts
ISF is a mandatory compliance requirement for any goods entering the U.S. by an ocean
vessel. The details of ISF filing and the rules and regulations will help to ensure the ISF is filed
on time and accurately. It is also important to make sure that any amendments are also updated
prior to vessel arrival. This practice will help avoid costly fines, cargo holds, and custom delays.
Our team is here to answer any questions you may have regarding shipping and custom
requirements.
Importer Security Filing (ISF) FAQs
- Who is responsible for ISF filing?
The importer is responsible for accurately and timely filing of ISF. Many importers work
with their brokers or forwarders to file on their behalf. The liability of any penalties still
remains with the importer. - Does ISF filing apply for LCL shipments?
Yes, LCL shipments must also file ISF. The same requirements and regulations apply for
LCL and it is best to work with an experienced forwarder or broker as timings can be a
challenge when multiple importers goods are involved. For LCL (Less than Container
Load) shipments, each importer is responsible for filing their own ISF. - Do I need to file an ISF for air shipment?
No, ISF filing only applies for ocean shipments. Air freight has it’s own set of
requirements that must be followed. - How can Freight Forwarder help with ISF filing?
Freight forwarders can help businesses ensure that all information is accurate and filed
in a timely manner. Freight forwarders also help with managing all the shipments details
and assist in making sure any amendments are done if needed. - What if ISF is filed late?
If ISF is filed late after the 24 hour deadline, the CBP may impose fines up to $5000 per
violation. Late filing or inaccurate information can lead to custom holds, examination,
shipment delays, and higher cost.