Importer Security Filing and Additional Carrier RequirementsNotice of Proposed Rulemaking

What NCBFAA and NEI Members Need to KnowJanuary 31, 2008

Presenters: Mr. Richard DiNucci

Director, Secure Freight InitiativeCustoms and Border Protection202 344-2513

Ms. Mary Jo MuoioPresident, National Customs Brokers &Forwarders Association of America, Inc.202 466-0222

Notice of Proposed Rulemaking

Published in the FEDERAL REGISTER January 2, 2008 Volume 73, No. 1 Pages 90-113

CBP authority for proposed rule 24-hour rule Trade Act Regulations SAFE Port Act

Proposed Importer Requirements Definition of Importer for Purposes of

Rule The party causing the goods to arrive

within the limits of a port in the United States

For FROB the importer is construed as the carrier

For IE/TE and FTZ cargo the importer is construed as the party filing the in-bond or FTZ documentation

Proposed Importer Requirements Data

1. Manufacturer (or seller) name and addressName and address of the entity that last manufacturers, assembles, produces, or grows the commodity or name and address of the supplier of the finished goods in the country from which the goods are leaving.

Alternative—provide the name and address of party currently reported with a MID on the entry as the manufacturer

Data2. Seller name and address

Name and address of the last known entity by whom the goods are sold or agreed to be sold.

If non-purchase, report the name and address of the owner of the goods.

Data3. Buyer name and address

Name and address of the last known entity to whom the goods are sold or agreed to be sold.

If non-purchase, report the name and address of the owner of the goods.

Data4. Ship to name and address

Name and address of the first deliver-to party scheduled to physically receive the goods after they have been released from customs custody.

Data5. Container stuffing location

Name and address(es) of the physical location(s) where the goods were stuffed into the container.

For break bulk cargo, report the name and address the physical location where the goods were made ‘ship ready’

Data6. Consolidator (stuffer) name and address

Name and address of the party who stuffed the container or arranged for the stuffing

For break bulk cargo, report the name and address of the party who made the goods ‘ship ready’ or who arranged for the goods to be made ‘ship ready’

Data7. Importer of Record Number

FTZ applicant identification numberIRS, EIN, SSN or CBP assigned number of the entity liable for payment of all duties and responsible for meeting all statutory and regulatory requirements incurred as a result of importation

For goods intended to be delivered to a FTZ, report the IRS, EIN, SSN or CBP assigned number of the party filing the FTZ documentation

Data8. Consignee number(s) IRS, EIN, SSN or CBP assigned

number of the individual(s) or firm(s) in the US on whose account the merchandise is shipped

Data9. Country of Origin Country of manufacture, production,

or growth of the article based upon the import laws, rules and regulations of the US

Data10. Commodity HTSUS number tariff number under which the article

is classified in the HTSUS

required up to the 6-digit level

Compatibility of Definition with Entry Requirements1. Manufacturer—can use party used for MID purposes;

consistent with CBP Form 34612. Seller—consistent with invoice requirement3. Buyer—consistent with invoice requirement4. Ship to--unique5. Container stuffing location—unique6. Consolidator—unique7. Importer of record—consistent with CBP Form 34618. Consignee—consistent with CBP Form 34619. Country of origin—consistent with CBP Form 346110. Commodity HTSUS no—consistent with CBP Form 3461

The Link Manufacturer (or supplier) name and

address, country of origin, and commodity HTSUS number must be linked to one another at the line-item level

FROB, IE, TEData1. Booking party name and address2. Foreign port of unlading3. Place of delivery4. Ship to name and address5. Commodity HTSUS number

That Was the Ten, This is the Two Vessel Stow Plan no later than 48 hours after departure from

the last foreign port Prior to arrival for voyages under 48 hours

Standard vessel information1. Vessel name2. Vessel operator3. Voyage number

Per container or unit of break bulk cargo1. Container operator2. Equipment number3. Equipment size and type4. Stow position5. Hazmat UN code6. Port of lading7. port of discharge

That Was the Ten, This is the Two Container Status Message

Proposal for carrier to submit a CSM when any of the required events occurs if the carrier creates or collects a CSM in its equipment tracking system

Information to be included1. Event code being reported2. Container number3. Date and time of the event being reported4. Status of the container5. Location where the event took place6. Vessel identification associated with the

message

Electronic Data Interchange System The current approved electronic data

interchange systems for the ISF are ABI AMS

Proposal to permit any ISF filer to gain access to ABI for the purpose of transmitting the ISF, bond required

The Missing Link CBP is proposing that the Importer

Security Filing be submitted at the lowest bill level, down to the house bill

Bill be the one under which the cargo is brought to the United States

CBP is proposing that the bill of lading be reported

Timing is Everything ISF for FROB—transmitted anytime

prior to lading Break bulk—transmitted 24 hours

prior to arrival ISF for all other covered cargo--

transmitted no later than 24 hours prior to lading

Importer or Their Agent The importer is ultimately responsible

of the timely accurate and complete submission of the ISF

One party to aggregate and submit all required ISF elements

Importer may designate an agent to submit the filings

Authorized Agents Eligibility

participation in the approved data interchange system

Basic importation and entry bond Power of Attorney

Retain and make available to CBP upon request

Planes, Trains and Automobiles This rulemaking specifically applies to all

cargo arriving to the US by vessel Included—containerized and break bulk cargo Included—RoRo Excluded—bulk

CBP will continue to evaluate the effectiveness of this rule and will consider additional steps, including expanding the advance data requirements of other transportation modes.

Regulatory Compliance Additional exemptions to be determined via

ruling process Permission to change port of destination or

export for IE/TE must be requested Permission to change an in-bond to

consumption entry must be requested Updated—by party who submitted, after

filing and before the goods enter the limits of a port

Withdrawal—by party who submitted, include reason for withdrawal

Regulatory Compliance Verification of Information

Where the party electronically presenting to CBP the ISF receives any of this information from anther party, CBP will take into consideration how, in accordance wit ordinary commercial practices, the presenting party acquired such information, and whether and how the presenting party is able to verify this information.

Where the presenting party is not reasonably able to verify such information, CBP will permit the party to electronically present the information on the basis of what the party reasonably believes to be true.

Regulatory ComplianceBonds and Damages

CBP is proposing to amend the basic importation and entry bond Agreement to comply with ISF

Liquidated damages equal to the value of the goods CBP is proposing to amend the international carrier bond

If carrier files ISF, agreement to comply with ISF Liquidated damages equal to the value of the goods

Agreement to comply with vessel stow plan requirements Liquidated damages equal to $50,000 for each vessel arrival

Agreement to comply with CSM requirement Liquidated damages of $5,000 per violation, max $100,000

Points to Ponder Proposed data interchange systems Proposed access to ABI Bond requirement Liability and Liquidated damages Customs business Notification and query capabilities Confidentiality

Comment Period and ProcessSubstance of the Proposal Written comments must be submitted

to CBP on or before March 3, 2008 Possible extension

Via portal or mail

Comment Period and ProcessCollection of Information Within the time frame that comments

are due regarding the substance of the proposal

Addressed to OMB with copy to CBP

Comments to NCBFAA comm@ncbfaa.org Reference “ISF”