Customs and Border Protection (CBP)

September 24, 2008

The Customs and Border Protection (CBP) will make their decision on the final ruling of 10 + 2.  Since this change will be happening, the opportunities and challenges the industry will be faced with need to be addressed immediately. The Customs House Broker will play a leadership role and help to define how to position and implement 10 + 2.


The ruling will require importers to ensure the filing of 10 additional data elements electronically at least 24 hours before the lading of ocean containers at the port of exit.  The 10 data elements are known as the 10 + 2 Rule, or more commonly, the Import Security Filing (ISF).  The information may be sent via ABI or AMS, and the Customs Broker will gather the information and transmit it on behalf of the Importer via ABI.  The 10 required data elements are:


· Manufacturer name and address

· Seller name and address

· Buyer name and address

· Ship to name and address

· Container stuffing location

· Consolidator name and address

· Importer of record number

· Consignee number

· Country of origin of good

· Commodity Harmonized Tariff Schedule (HTS) number


CBP will be requiring the manufacturer name, address and country of origin be linked to each of the commodity HTSUS numbers.  This change will most likely impact how suppliers format their commercial invoices.


The Customs Broker will play a large role in getting the security filings completed.  Customs Brokers often have close working relationships with freight forwarders and this will aid in accessing the necessary data.  It is the Broker’s duty to keep current with changes and help with CBP’s rulings and requirements.


A major concern with this new ruling is the penalty that will be issues by improper filings.  The current ruling calls for setting the penalty at the value of the goods.  The penalty size has Importers concerned and is hoping CBP will provide some sort of relief.  CBP is serious about the penalty and is reiterating how important the ISF will be to this country.