What is ISF in Shipping? A Complete Guide (ISF 10+2)

What is ISF in Shipping? A Complete Guide to Importer Security Filing (ISF)

Introduction

When importing goods into the United States, compliance with customs regulations is critical to avoid fines, delays, and penalties. One such essential requirement is the Importer Security Filing (ISF), commonly known as ISF 10+2. This filing helps the U.S. Customs and Border Protection (CBP) assess potential security threats posed by imported shipments.

In this article, we will explore what ISF is, why it is required, ISF costs, ISF penalties, and how to file ISF online to ensure smooth and legal shipping operations.

What Does ISF Stand For?

ISF stands for Importer Security Filing, a mandatory requirement for ocean cargo shipments entering the U.S. It is referred to as ISF 10+2 because importers must submit ten data elements, while carriers provide two additional elements to CBP at least 24 hours before loading the cargo onto the vessel.

Why is ISF Important?

The ISF requirement was introduced in 2009 by CBP to enhance cargo security and streamline customs clearance. Failure to comply with ISF regulations can lead to fines, shipment delays, and cargo holds at the port.

ISF 10+2 Data Elements

10 Data Elements Required from Importers:

1. Buyer name and address
2. Seller name and address
3. Ship-to name and address
4. Consolidator name and address
5. Manufacturer name and address
6. Importer of record name and address
7. Ultimate consignee EIN/IRS number
8. Country of origin
9. HTSUS number (Harmonized Tariff Schedule of the U.S.)
10. Container stuffing location

2 Additional Data Elements from the Carrier:

1. Vessel stow plan
2. Container status message

ISF Filing Costs

How much does ISF filing cost?

• ISF filing fee: $30 - $50 (varies by customs broker)
• ISF bond cost: $50 - $70 (if applicable)
• Total estimated cost: $80 - $120 (including broker fee and bond cost)

While this may seem like an extra expense, failing to file ISF on time can result in fines of up to $5,000 per violation.

Customs Bonds for ISF Filing

U.S. Customs requires a bond to cover financial liabilities and ensure compliance. There are three types of customs bonds:

1. ISF Bond
   • Covers a single ISF filing.
   • Required for one-time importers who do not have a continuous bond.
   • Ensures up to $10,000 penalty coverage for non-compliance.
2. Single Transaction Bond (STB)
   • Covers one shipment.
   • An ISF-D bond is required if importing by ocean.
   • Not required for air shipments.
3. Continuous Bond
   • Recommended for frequent importers (importing 2-3 times per year).
   • Covers multiple shipments over a year, reducing administrative burden.

How is the Custom Bond Value Determined?

• Single Transaction Bond: Equal to merchandise value + duties/taxes/fees.
• Continuous Bond: Equal to 10% of duties and taxes paid in the previous year (minimum $50,000).

Fines and Penalties for Late ISF Filing

Failing to file ISF on time (at least 24 hours before loading) results in severe penalties:

• $5,000 per violation (can reach $50,000 per shipment in extreme cases).
• Cargo may be held at the port for a customs examination.
• Importers bear all additional examination and storage costs.

To avoid fines, ensure ISF is filed promptly and accurately.

ISF Filing Process (ISF 10+2 Online Filing)

Importers can file ISF online through CBP-certified platforms. The process includes:

1. Gathering ISF-required data from suppliers and freight forwarders.
2. Finding a licensed customs broker or using self-filing software.
3. Submitting ISF to CBP at least 24 hours before loading.
4. Tracking the ISF status to ensure compliance.

ISF Form and Filing Requirements

The ISF form is required to submit cargo details electronically to CBP. This must be completed 72 hours before shipment loading onto an ocean vessel. Importers who fail to comply face penalties and shipment delays.

ISF 5 vs. ISF 10: Key Differences

Conclusion

Importer Security Filing (ISF 10+2) is a critical compliance requirement for shipping goods to the U.S. Filing ISF accurately and on time helps importers avoid costly fines, customs delays, and shipment holds.

For seamless customs clearance, importers should work with licensed customs brokers, understand ISF regulations, and submit filings through certified ISF software. By staying compliant, businesses can ensure efficient and hassle-free international shipping.