Importer Security Filing and Additional Carrier Requirements

1. Importer Security Filing and Additional Carrier Requirements “10+2” Compliance Update Fall 2010

2. Compliance Update Enforcement Strategy Top ISF Issues Q & A Session Today’s Presentation on “10+2” Los Angeles - Long Beach Seaport

3. ISF-10 Data Elements “U.S.-bound” Cargo (3461 Entries, IT, FTZ) 1. Importer of Record Number 2. Consignee Number 3. Seller (Owner) name/address 4. Buyer (Owner) name/address 5. Ship to Party 6. Manufacturer (Supplier) name/address 7. Country of Origin 8. Commodity HTS-6 • 9. Container Stuffing Location • 10. Consolidator (Stuffer) name/address • 11. Bill of Lading Number (house or reg.) • 12. ISF Importer CBP Form 3461

4. ISF Filing Requirements Before an ISF or the ISF process can be considered “finished”, the ISF must be: Complete Accurate Timely The ultimate responsibility rests with the ISF Importer!

5. “Complete” ISF The check for ISF completeness is largely done by system edits The ISF Filer receives an initial system notification message Accepted Accepted with Warning(an update may be required) Postal Code was not provided All “Flexible Filings” must be updated Rejected (need to start over) Bill of lading number missing or in incorrect format Some of the required ISF data was missing If the ISF is accepted, CBP sends a unique transaction number Electronic Receipt that an ISF was submitted and accepted (BUT NOT FINISHED!!!) Includes a date and time so it can be compared to the vessel departure message

6. “Accurate” ISF Includes properly matching the ISF to a bill of lading at the lowest level in AMS A match or no-match message is sent back to the ISF Filer S1“Bill on File” Generated when the ISF is matched to an AMS bill of lading. S2 “No Bill Match (Not on File)” No great cause of concern. Many times, the ISF precedes the manifest filing S3 “No Bill Match (Not on File)” Still no match 5 days after ISF S4 “No Bill Match (Not on File)” Still no match 20 days after ISF S5 “No Bill Match (Not on File)” Still no match 30 days after ISF S6 “No Bill Match (Wrong Type)” S7 “Duplicate ISF by Another Filer”

7. Accurate ISF: ABI Bill of Lading Query • CBP updated the Automated Broker Interface (ABI) bill of lading query to help ISF Filers and ISF Importers obtain the correct bill of lading numbers and bill of lading types to use on their ISFs. • If a bill of lading number is queried, CBP will return back the bill type (i.e., Master, house, or Regular/Simple/Ocean) • If a Master bill of lading number is queried, CBP will also return back all of the house bill of lading numbers. • If a house bill of lading number is queried, CBP will also return back the correct Master bill of lading number. • Note: the bill of lading numbers need to be on file for the query to work properly. In many instances, the ISF will be filed prior to the manifest being filed.

8. Accurate ISF: ABI Bill of Lading Query Cargo/Manifest Status Query (Amendment 52 – July 2010 CMQ-10) • See: Customs and Trade Automated Interface Requirements (CATAIR) • This chapter provides record formats that allow entry processing results, bills of lading and in-bonds to be queried. • http://www.cbp.gov/linkhandler/cgov/trade/automated/automated_systems/abi/catair/chapters/cmq-02-4.ctt/cmq-02-4.doc

9. “Timely” ISF • CBP regulations generally require that an ISF be submitted electronically no later than 24 hours prior to vessel lading (Anytime prior to lading for FROB) • CBP is using the vessel departure message minus 24 hours to establish “timeliness” since it is the closest available metric. • Flexible filings MUST be updated as soon as the new information is known, but under no circumstances later than 24 hours prior to arrival. • CBP maintains a record of all ISF filings including unmatched, rejected and deleted ones.

10. “10+2” Program Update

11. Total Submissions: 6,946,300 Total Rejected: 175,788 2.5% Total Accepted: 6,770,512 97.5% Adds: 81% Replaces: 18% Deletes: 1% Filers: 2,397 Importers (IOR #s): 205,000+ ISF-10s “By the Numbers” January 26, 2010 – October 12, 2010 Note: Do NOT send in a “REPLACE” to simply force an ISF-Bill match message!

12. Top Five Error Messages ISF-10 Errors fromJanuary 26, 2010 – October 12, 2010 Note: A single ISF may have multiple errors. Not all errors lead to an ISF rejection (most do). 21% 5% 4% 3% 3%

13. “10+2” Enforcement Strategy CBP’s Vessel Stow Plan Module Used to identify unmanifested containers

14. ISF Enforcement Strategy The full compliance (enforcement) date for the “10+2” requirements commenced on January 26, 2010, thus ending a 12-month delayed enforcement period in which CBP provided extensive outreach to educate the trade community on the new requirements.CBP is: Applying a measured, commonsense approach to enforcement Exercising the least amount of force necessary to obtain full compliance Evaluating non-compliance on a case-by-case basis Continuing to provide outreach and guidance to the trade X

15. Enforcement Measures Informed Compliance Efforts Public outreach (incl. webinars, meetings, ISF Progress Reports) Informal and formal notification (e.g., warning letters) Mid-level Compliance Measures Domestic NII examination manifest holds Domestic physical examinations Re-evaluation and possible reduction of C-TPAT status Strictest Enforcement Measures ISF Jail (i.e., lengthier manifest holds) Liquidated Damages Suspension or Revocation of C-TPAT Status Do Not Load or Do Not Discharge Orders

16. Top ISF Issues Identified When will CBP publish the newest implementation guides? The new IGs will be published very soon and will reflect the updates that are found in the 10+2 FAQs. The updates need to be posted before CBP can transition to using the new ISF Holds; the software developers need time to make these changes for the trade. Which bill of lading number do I use? Must use the lowest bill of lading transmitted in AMS (houseorregular) Contact your shipper New ABI query functionality helps CBP allows for the bill of lading number to be updated on the ISF

17. Top ISF Issues Identified I didn’t receive the ISF “Bill on File” match message. This is common; especially when the ISF filing precedes the filing of the customs manifest (i.e., bill info). Make sure you (or your agent) annotated the correct bill type on the ISF. Regular Bill – This bill type is also referred to as an “Ocean" or “Simple Bill” and is issued by a Carrier. There are no underlying house bills. House Bill – Typically issued by a NVOCC (sometimes referred to as an automated freight forwarder). A house bill of lading always falls under a carrier’s Master bill of lading. ISFs cannot be filed against Master Bills Do NOT Send in a “REPLACE” to force an ISF-Bill Match message Do I need to file 24 Hours prior to lading of the feeder or mother vessel? The ISF is due 24 hours prior to lading of the mother vessel

18. Go to: www.cbp.gov Copy of the Interim Final Rule ISF PowerPoint Presentation General Frequently Asked Questions (FAQs) Document Copy of the Regulatory Assessment Implementation Guides (Technical File Formats) Mitigation Guidelines News Releases Outreach Schedule Available Resources Security_Filing_General@cbp.dhs.gov

19. Questions? www.cbp.gov Security_Filing_General@cbp.dhs.gov “10+2” Contacts Richard Di Nucci, Director, Cargo Control Division John Jurgutis, Branch Chief, ISF & Vessel Manifest Stephen Silvestri, Branch Chief, Air & Rail Manifest Craig Clark, Program Manager, ISF Joseph Martella, Program Manager, New York Field Office