July Update of CBP 10+2 FAQs (Part II–New ISF Types)

This is Part II of a multi-part series of summaries detailing the changes in CBP’s updated FAQ document, and highlights information on the new Importer Security Filing (ISF)-10 coded transaction type for informal entries, and the four new ISF submission types.

ISF-10 Coded Transaction Type “11” for Informal Entries

CBP has added a FAQ on the new ISF-10 Coded Transaction Type 11, for “informal entry” types:

Q & A. The importing public has requested that CBP develop a specific coded transaction type for “informal entry” types and to provide some relief to the bonding requirements for these shipments. CBP has agreed to this, but with very specific stipulations.

ISF-10 Coded Transaction Type 11 is reserved primarily for low-value shipments where formal entry is not required. No bond is required for eligible shipments.¹

Importers using this new coded transaction type will need to provide a valid sub-code, as well as an estimated value (U.S. dollars), estimated quantity (smallest external packaging units) and estimated weight (kg or lbs) of their shipment.

Valid Sub Code(s):

Note for Sub-type 01: Waste, garbage and textile shipments are not generally eligible for usage of the “Section 321” clearance and therefore are not eligible for this sub-code on the ISF.

Note for Sub-type 02: Quota entries valued at $250 or more are generally not eligible for informal entry status and therefore are not eligible for this sub-code on the ISF.

Note for Sub-type 03: The General Note 3(e) exemptions include:

• Undeliverable articles returned within 45 days and which have remained in the custody of the carrier or foreign customs service;
• Aircraft parts or equipment removed from U.S. registered aircraft in international traffic because of accident, breakdown or emergency and returned within 45 days of removal;
• Corpses and accompanying coffins and flowers.

Four New ISF Submission Types

The updated FAQ states that there are four new ISF submission types, as follows:

3 = ISF-5 submission type is being changed to an ISF-10

4 = ISF-10 submission type is being changed to an ISF-5

5 = Late ISF-10 without a bond

6 = Late ISF-5 without a bond

ISF Submission Type “3” for Changing from ISF 5 to ISF 10

CBP has added a new FAQ on how to change from an ISF-5 submission type to an ISF-10 submission type:

Q: In some instances, it becomes necessary to change (amend) the ISF type from an ISF-5 to an ISF-10. For example, a shipment that was going to be immediately exported (I.E.) to Canada upon arrival into the U.S. is actually sold to a U.S. party instead. The new party would like to enter the goods into the U.S. and follow the proper ISF procedures mentioned in 19 CFR 18.5(g).

How is CBP tracking the changes from an ISF-5 to an ISF-10? Wouldn’t it be useful if a coded transaction were created to make this process a little easier for the importers as well as CBP?

A: CBP has created a process whereby a new ISF-10 may be filed to replace an existing ISF-5. In these instances, a new ISF-10 must be created and ISF Submission Type “3” must be selected to denote that an ISF-10 will be replacing the existing ISF-5. Note that an active ISF-5 filing must already exist for this shipment against the same bill of lading number (i.e., lowest AMS bill of lading number) in order for this new filing to be valid.

This ISF submission type change is in accordance with 19 CFR 18.5(g). Permission to change the in-bond entry into a consumption entry must be obtained from the Port Director of the port of origin. Such permission would only be granted upon receipt by CBP of a complete Importer Security Filing as required by 19 CFR 149.

In terms of the business process, CBP expects the new ISF-10 to be completed electronically prior to seeking the written permission from the local CBP port director. Accordingly, the ISF-10 transaction number needs to be referenced in the written letter to the local port director as part of the request for the change from a shipment type requiring an ISF-5 to shipment type requiring an ISF-10. At some point in the near future, entry release for these types of importations will be restricted until written permission is granted by the local Port Director at the port of entry.

Note: The new ISF-10 may be submitted by the original ISF Importer (or their agent) or by another party who would then be liable for the ISF-10. This ISF submission type change allows a new ISF to be filed after the goods have departed a foreign port and prior to entry release of the goods in the U.S.

ISF Submission Type “4” for Changing from ISF 10 to ISF 5

CBP has added a new FAQ on changing an ISF from ISF-10 submission type to an ISF-5 submission type:

Q: Can I replace (amend) an ISF-10 type shipment with an ISF-5 type shipment? Do I need to obtain Port Director approval first?

A: Yes, an ISF-10 filing can be replaced by an ISF-5 filing; use an ISF Submission Type “4” to show that an ISF-10 is being changed to an ISF-5. As a matter of policy there is no requirement to obtain Port Director approval for these types of changes.

ISF Submission Type “5” or “6” for ISF Late Files

CBP has added a new FAQ on ISF submission types “5” and “6” for late files. These submission types are scheduled to expire on June 30, 2011.

Q: I’ve never imported before and was unaware of the ISF requirements. I want to submit my ISF, but my shipment already departed the last foreign port and now I cannot obtain a single transaction bond to cover the ISF since I’ve obviously run afoul of the requirements.

A: Importers who are unable to secure a bond after the deadline required to file an ISF may elect to use the ISF Submission Type 5 “Late ISF-10 - No Bond” or ISF Submission Type 6 “Late ISF-5 -- No Bond” (these new submission types are replacing the concept of the coded transaction ISF-10 Type 13).

The usage of these new ISF submission types is an explicit acknowledgement that the ISF requirements were not properly met and that the ISF is late. CBP reserves the right to take any and all appropriate action (e.g., cargo holds and examinations) to enforce the ISF requirements in these cases. In addition, ISF Submission Types 5 and 6 are expected to be in effect for a limited amount of time. Unless otherwise noted, ISF Submission Types 5 and 6 are scheduled to expire on June 30, 2011.

(Note that ISF importers who already have coverage under an existing Type 1, 2, 3 or 4 continuous bond are not to utilize these new submission types since they already have an eligible bond on file.

In addition, CBP will closely monitor the usage of these new ISF submission types and will pay particular attention to any entity that attempts to utilize these submissions on more than one occasion.)

(See ITT’s Online Archives or 07/16/10 news, 10071633, for Part I on ISF Reports, Data Warehouse, and the ACE Portal. See ITT’s Online Archives or 07/19/10 news, 10071904, for BP summary of CBP notice on new disposition codes for the ISF.)

¹Bond requirements have also been waived for Type 3 “Household Goods/Personal Effects, Type 4 “Government and Military”, Type 5 “Diplomatic”, Type 6 “Carnets”, and Type 9 “International Mail”.

ISF CATAIR chapter (expected to be amended soon) available 10071633, for Part I on ISF Reports, Data Warehouse, and the ACE Portal. See ITT’s Online Archives or 07/19/10 news, 10071904, for BP summary of CBP notice on new disposition codes for the ISF.) 1Bond requirements have also been waived for Type 3 “Household Goods/Personal Effects, Type 4 “Government and Military”, Type 5 “Diplomatic”, Type 6 “Carnets”, and Type 9 “International Mail”. ISF CATAIR chapter (expected to be amended soon) available here. http://www.cbp.gov/linkhandler/cgov/trade/automated/automated_systems/abi/catair/chapters/isf_50.ctt/isf_50.doc http://www.cbp.gov/linkhandler/cgov/trade/cargo_security/carriers/security_filing/10_2faq.ctt/10_2faq.doc ">here.