US CBP Expands ISF Importer Definition

/ Global Compliance Solutions Group LLC/

On April 12, 2018, the U.S. Customs and Border Protection (CBP) published a final rule that expands the definition of an Importer Security Filing (ISF) Importer.  The final rule adopts the proposed rule published in the Federal Register on July 6, 2016 (1).

"The changes are necessary to ensure that the definition of ISF Importer includes parties that have a commercial interest in the cargo and the best access to the required information." (2)  

Background

The ISF Importer is required to submit an ISF to CBP before the cargo is loaded on a vessel that is destined to the United States.  Except for foreign cargo remaining on board (FROB), the ISF must be filed no later than 24 hours before any cargo is laden aboard a vessel.  For FROB cargo the ISF is required any time prior to lading.   

ISF Importers (or their agents) are required to submit to CBP (3):

  • 10 data elements for goods intended to be entered into the U.S. or to be delivered to a foreign trade zone (FTZ)
  • 5 data elements for shipments that consist solely of FROB, immediate exportation (IE), and Transportation and Exportation (T&E) in-bond shipments  

What is Changing?

The existing definition of an ISF Importer is generally defined (4):

  • As the party causing goods to arrive within the limits of a port in the United States by vessel and is generally the goods owner, purchaser, consignee, or agent
    • However, the definition is limited to just certain named parties for FROB, IE and T&E in-bond shipments, and for merchandise being entered into an FTZ
  • To designate the Carrier as the ISF Importer for FROB cargo
  • To designate the party filing the IE, T&E, or FTZ documentation as the ISF Importer for IE and T&E in-bond shipments, and for goods to be delivered to an FTZ

Based on feedback from the trade community, CBP determined that the definition did not always reflect commercial realities.  The updated definition of an ISF Importer now generally (2):

  • Expands the definition for FROB cargo, IE and T&E shipments and for goods to be delivered to an FTZ by:
    • Broadening the definition to include non-vessel operating common carriers (NVOCCs) for FROB shipments
    • Including the goods owner, purchaser, consignee, or agent as a responsible party for IE and T&E in-bond shipments and for goods to be delivered to an FTZ

The vessel operating carrier is the ISF Importer for FROB shipments under the current definition.  In many cases, the carrier does not have access to all the data elements.  As a result, often the NVOCC files the information with CBP (even though legal responsibility remains with the carrier).  In addition, under the current definition, the ISF Importer is the filer of the IE or T&E documentation, but this documentation is often not created until the cargo arrives in the US. 

The expansion of the definition shifts the responsibility to file the ISF, in the instances noted above, to the party that actually has the data.  In many instances this was already occurring so the change is not expected to have a significant impact on the trade community.

What do we need to do?

If your imports into the U.S. require an ISF to be filed:

  • Evaluate if you are currently relying on any carrier's to file your ISF
  • Recognize that in the event you were relying on the carrier to file the ISF, the responsibility to file may now have shifted to your own operation       

The rule becomes effective on May 14, 2018.

Contact the experts at GCSG for more information, assistance with evaluating how the ISF definition change may affect your business, and/or assistance with facilitating the change within your supply chain.    

E  info@globalcompliancesg.com   

References and Definitions:

  • (1) 83 FR 43961-43965 - "Definition of Importer Security Filing Importer"
  • (2) 83 FR 15736-15740 - "CBP Decision No. 18-04; Definition of Importer Security Filing Importer"
  • (3) 19 CFR 149.3 - "Data Elements"
  • (4) 19 CFR 149.1 - "Definitions"
  • ISF Importer (Current) - "means the party causing the goods to arrive within the limits of a port in the United States by vessel.  For shipments other than foreign cargo remaining on board (FROB), immediate exportation (IE) and transportation and exportation (T&E) in-bond shipments, and goods to be delivered to a foreign trade zone (FTZ), the ISF Importer will be the goods' owner, purchaser, consignee, or agent such as a licenses customs broker.  For FROB cargo, the ISF importer will be the carrier.  For IE and T&E in-bond shipments, and goods to be delivered to an FTZ, the ISF Importer will be the party filing the IE, T&E, or FTZ documentation." (4)
  • ISF Importer (New) - "means the party causing goods to arrive within the limits of a port in the United States by vessel. For shipments other than foreign cargo remaining on board (FROB), the ISF Importer will be the goods' owner, purchaser, consignee, or agent such as a licensed customs broker. For immediate exportation (IE) and transportation and exportation (T&E) in-bond shipments, and goods to be delivered to a Foreign Trade Zone (FTZ), the ISF Importer may also be the party filing the IE, T&E, or FTZ documentation. For FROB cargo, the ISF Importer will be the carrier or the non-vessel operating common carrier." (2)
  • U.S. Customs and Border Protection