10+2 Enforcement began January 26, 2010.

Although the interim rule officially took effect on January 26, 2009, U.S. Customs and Border Protection (CBP) took what they referred to as a “12 month delayed compliance” approach to the the Importer Security Filing rule (ISF), also known as 10+2. On January 26, 2010, however, the focus moved from education to enforcement, although CBP officials have said they will be moving gradually into the strict enforcement stage.

Under 10+2, importers and ocean carriers must submit additional cargo data elements prior to lading goods onto vessels headed to the U.S. The data requirements include manufacturer or supplier, ship to party, seller, buyer and consignee; the country of origin and tariff classification number to the sixth digit; container stuffing location and name of consolidator/stuffer; and the importer of record. There are five requirements for shipments consisting entirely of foreign cargo remaining on board (FROB), or intended to be transported in-bond as an immediate exportation (IE), or for transportation and exportation (T&E). This will affect Canadian importers who use a U.S. port of entry for their goods for transit into Canada, or whose goods are consolidated onto a ship that stops in the U.S. prior to arrival at a Canadian port. Finally, the ‘+2’ part of the equation applies to carriers, who are required to provide two additional data elements. CBP requires most of the data elements 24 hours prior to lading, although certain data elements have more flexibility in terms of timing.

During the delayed compliance period, CBP monitored ISF submissions to ensure that they were accurate and received on time. They then worked with importers who were non-compliant to help them meet the new requirements. Now that the education phase has ended, importers could face fines or delays in loading if the data is not received within the time limits specified. CBP has stated however, that the enforcement phase will start slowly, and that they are trying to avoid penalizing minor filing mistakes. CBP indicated that initially, it will not issue “do not load” (DNL) messages for ISF violations. Rather, it is expected that minor infractions will receive a warning letter and may be subject to inspections and document reviews. This will be applied on a case-by-case basis, however, and does not preclude the possibility of enforcement measures being taken. Towards the end of 2010, CBP plans to move to full ISF enforcement for repeat or serious violations.

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• Upcoming Committe Meetings & Events
• Ensuring Compliance- Highway eManifest & Customs Changes in 2010
• 5th Annual Food Forum
• 7th Annual Western Canada Conference
• The Customs Duty and International Trade Course
• Importing Into Canada

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Disclaimer - I.E.Now is designed to provide members with the most up-to-date trade information from a variety of sources. The information we feature does not necessarily reflect the association's opinion on a given international trade issue. While every effort has been made to ensure the accuracy of the information notedin the daily e-mail, government policies are constantly evolving. The Canadian Association of Importers and Exporters Inc. cannot assume any responsibility for actions taken solely or principally on the basis of the information provided.