Highlights:
- The information must be filed 24 hours before goods are loaded…
- Failure to comply can trigger a $5,000 fine or more…
- Experienced professionals master the sophisticated global shipping world…
STEPPED-UP ENFORCEMENT MAKES COMPLIANCE CRITICAL
Just like bad weather, a delinquent document can create havoc for shippers. Consider, for example, new concerns regarding an old rule affecting container shipping. Around the horn, we are hearing that U.S. Customs and Border Protection (CBP) is tightening enforcement of the Importer Security Filing (ISF) – the so-called 10+2.
In a nutshell, the rule requires a batch of information to be filed with the agency at least 24 hours before goods are loaded onto a container ship headed to the United States. The disclosure document – which can be filed electronically – is intended to enhance security by identifying low-risk and high-risk shipments.
The rule – with a history reaching back two decades – has been unevenly and intermittently enforced. Lately, however, customs officials have been getting tougher.
The team at ICAT Logistics DTW learned of a domestic company recently penalized for failing to appropriately file an ISF to clear the way for a shipment recently on the West Coast. A review showed a 10+2 had been sent to the wrong place.
Failure to comply can trigger a $5,000 fine or more. Fines can be levied for filings that are late, or incomplete, among other failings.
But fines are only part of the pain. Marty Bloch, vice-president, and co-owner of Dell Will Customs Brokerage in suburban Detroit. said costly delays are likely when a 10+2 is bungled. Often, cargo is locked down for 72 hours – or longer – to assess and review the content in question.
The cost escalates, he said, if it is necessary to “unstuff” cargo from containers for a look-see. That process – and repacking the container – creates an unstable environment for precious fragile goods.
“The more it gets handled, the greater the risk of something being lost or damaged, especially if you are dealing with heat, cold, and weather exposure,” Bloch said.
Plus, repacking often means paying for additional shipping materials and labor.
“You have 800 items in the original container as stuffed,” he said. “But you might be able to get only 790, or so, in the container when you restuff it. That adds expense.”
THE 10+2 DESIGNATION INCLUDES THE 10ELEMENTS SUBMITTED BY IMPORTERS AND TWO PROVIDED BY THE CARRIER. AMONG THE 10 ARE:
- Manufacturer (or supplier) name and address;
- Seller (owner) name and address;
- Buyer (owner) name and address;
- Consignee (ship-to, recipient) name and address;
- Consignee number (IRS, Social Security, or other relevant numbers;
- Container stuffing location (where the container was packed);
- Stuffer (who packed the container) name and address;
- Commodity Tariff Schedule Number (according to a designated classification);
- Country of origin;
- Importer of record, foreign trade zone applicant identification number. The carrier is required to submit a vessel stow plan and container status messages.
The carrier is required to submit a vessel stow plan and container status messages.
Like many rules of trade and commerce, there are exemptions and deviations to 10+2. For example, bulk cargo – such as oil, grain, and coal – is exempt. Cargo arriving by vessel into Canada and Mexico – then delivered overland to the United States – also is exempt.
Finally, somewhat different rules apply to containerized cargo arriving in the United States but intended for immediate transportation elsewhere.
“Experienced logistics professionals recognize and master the increasingly sophisticated world of global shipping,” said Chris Cser, Director of International at ICAT Logistics. “It’s never as simple as picking and sticking, packing and stacking.“
Our team members and our vast contacts in the global shipping industry provide customers the knowledge and wherewithal to handle the material, the transportation, and the data essential to successful delivery.
“Our goal – with every customer – is to navigate our customers to a quality outcome.”
With more than 20 years of global shipping experience, ICAT Logistics DTW is your custom shipping resource.