Finally, CBP has agreed to issue an interim rule for the Import Security Filing commonly referred to as 10+2, as opposed to a final implementation.  The fact this was issued as an interim rule highlights the fact CBP has taken into consideration many of the trade’s concerns.  The following are the key areas that have been amended from the initial Notice of Proposed Rule Making (NPRM).

1)  CBP will “show restraint in enforcing the the rule for a period of 12 months after the effective date.  The effective date will be 60 days from the date of publication – January 26, 2009.

2)  Two of the twelve elements will subject to flexibility as to the timing of their submission to CBP.  This includes the Container stuffing location and the Consolidator (stuffer) name and address.   The importer must submit these elements as soon as possible and no later than 24 hours prior to arrival in a US port.

3)  Four elements will be subject to flexibility with respect to interpretation.  These elements include the Manufacturer (supplier), Ship-to party, Country of Origin, and HTS number.  CBP will allow a range of acceptable responses based on facts available to the importer at the time, but the elements must still be filed 24 hours prior to loading.  The importer will then be required to update their filing of these elements as soon as accurate information is available and no later than 24 hours prior to arrival at a U.S. port.

4)  The liquidated damage amount for violations has been changed from the value of the cargo to $5,000 per violation.

5)  The requirement for break bulk cargo to be included on vessel stow plans has been eliminated.

6)  Container Status Messages (CSM) are required for empty containers.

7)  The label for the party required to submit the ISF has been changed from “importer” to “ISF importer” meaning the owner, purchaser, consignee, or agent.

8)  Provisions were made to create an Importer Security Filing Bond (19CFR 113.63).

9)  Powers of Attorney must be in English and POA’s as well as letters of revocation must be kept for five years from revocation date.

Basically, CBP has made some changes in response to comments from the trade but many requirements remain unchanged.  The phased-in approach provides importers a chance to work through the challenges without immediate penalties as well as the opportunity to provide additional feedback to CBP.  The next 14 months will be challenging as importers try to ramp up to meet the requirements of another security initiative as they also strive to cut costs and increase efficiency while remaining competitive.

Should you have any questions/concerns related to your freight movement under this new initiative, please feel free to contact us directly.  UGS is working daily with our service providers to ensure we are ready to meet the challenges presented by the implementation of 10+2.