Trade Security Importer Security Filing We’ll Make It Work For You Mary Jo Muoio Senior Vice President Barthco Trade Services, division OHL President National Customs Brokers and Forwarders Association of America, Inc.

Where Did ISF Come From? SAFE Port Act of 2006 enacted by U.S. Congress in October of 2006 SAFE Port Act Mandated CBP To: Collect additional data elements Require data to be received before loading Improve the targeting process Implement Via Importer Security Filing and Additional Carrier Requirements Strawman November 2006 NPRM January 2, Proposes 19 CFR 149, amends several other sections Final Regulations??

Goal: To Ensure Cargo Safety and Security To Prevent Smuggling To Provide “ATS Enhanced Security Screening”

What is the ISF Data Elements Transmitted to CBP ISF 10 Entry-Level Data Elements* ISF 5 Entry Elements for FROB, IE, T&E CSF 2 Carrier-Oriented Data Elements * Plus bill of lading

Who Is Required To File Importer – the ISF 10 New Definition of “Importer” under 19 CFR 149 -“the party causing goods to arrive within the limits of a port in the United States ” The 10 Data Elements Importer / Filer of Data – the ISF 5 For IE, T&E, and FTZ -“the party filing the FROB, IE, T&E, or FTZ Documentation” For FROB -the international carrier of the vessel arriving in the US Carrier – the CSF 2 “Carrier” is Defined by 19 CFR The 2 Data Elements

The 10 Required Elements Technical Specifications - ISF 10 Manufacturer (or supplier) name and address Seller name and address Buyer name and address Ship to name and address Container stuffing location Consolidator (stuffer) name and address Importer of record number Consignee number (IRS) Country of origin Commodity HTSUS number

The 5 Required Elements Technical Specifications ISF 5 Booking party name and address Foreign port of unlading Place of delivery Ship to name and address Harmonized Tariff Schedule at minimum 6-digit level Current thought is that the carrier will file these data elements in most situations

The 2 Required Elements Vessel Stow Plan vessel name and operator; voyage number; container operator; equipment number, size and type; stow position; hazmat code; and load/discharge ports Container Status Messages terminal container movements, change in container status, focused on container status messaging set: equipment number; event description, date, time and location; and vessel.

Baker’s Dozen The “importer’s” 10 data elements The carrier’s 2 data elements PLUS The bill of lading no(s) X = Security Filing

The Good News This could have been known as the 5, !

How and When Will the ISF Be Filed? How In the entry message by a customs broker In the manifest by a carrier As a separate filing by a security filer, broker, or carrier When 24 hours prior to cargo being laden on a vessel destined for the United States

Concerns for Importers Who Will File? Importer Bears the Liability for Filing Regardless of who transmits the data on behalf of the importer Can appoint an agent -Access to ABI or AMS -Bond Caution is urged in selecting a transmitter of the data Confidentiality of Data is Paramount

Concerns for Importers Information Flow Large changes in the data flow may be required Obtaining additional data elements seen as the most challenging item Additional parties may be included, such as overseas freight forwarders Automation changes may be required between supplier – importer – ISF Filer Planning now is a must

Sources of Information DATA ELEMENTSIMPORTERSUPPLIER / SHIPPEROVERSEAS FORWARDER MANF.YES ? SELLERYES NO / ? BUYERYESNO /? SHIP TOYES STUFF LOC.YES / ?YES STUFFERYES / ?YES IORYESNO CONS. IRSYESNO C/OYESYES / ?? / NO HTSYESNO

Questions to Consider as an Importer Where will information come from? Who will provide information to my filer? How will the information be given to my filer? What do I do if I don’t know some of the required information? Will the information be confidential? When will the information be needed? What happens if the cargo ships without my knowledge? How will I know when the ISF has been filed?

Questions to Consider for an Importer What if there are changes that need to be made to the ISF? What happens if the ISF incorrect? What is the penalty exposure? Is the ISF subject to recordkeeping regulations? Who will file the information for me? Can I use multiple filers? Can my Customs Broker do my filing for me? Should I file ISF with the entry, or not?

Questions to Consider as an Importer Can I avoid all of this shipping by air, land, bulk, sleigh and reindeer? Does being C-TPAT give me ‘Lite’?

The Logical Filing Party The Licensed U.S.- based Customs Broker Confidentiality of importer’s information is required by law Accountability to client Proficient in ever changing U.S. Customs laws and requirements Only party in the supply chain licensed by CBP Familiarity with importer’s product and requirement A part of the importer’s team

When Does This Take Effect? The regulatory changes must be published as a Final Rule before implementation. The Final Rule is expected to be published any day now. The regulations will take effect +/- 60 days after the publication of the final rule. CBP has indicated that there will be an extended period of “informed compliance” to address changes to the current supply chain.

Mary Jo Muoio Barthco Trade Services, division OHL Thank You!

Thank You!