For any business importing goods into the U.S. by sea, a late Importer Security Filing (ISF) is a quick way to lose $5,000. U.S. Customs and Border Protection (CBP) enforces a strict “24-Hour Rule” that requires all cargo data to be submitted *before* your goods are loaded onto the vessel at the foreign port, not before the ship arrives in the States.
This article breaks down the ISF (10+2) filing requirements to help you avoid these costly penalties. We will cover the specific data points needed, explain the filing timeline, and clarify who is ultimately responsible for submitting the information—even when using a customs broker.
What is ISF (10+2)?
ISF (10+2) is a U.S. Customs and Border Protection (CBP) rule requiring importers and ocean carriers to electronically submit advance cargo data before goods are loaded onto a vessel bound for the United States. It involves 10 data elements from the importer and 2 from the carrier to enhance security screening.
A Security Mandate for Ocean Imports
Importer Security Filing (ISF) is a regulation from U.S. Customs and Border Protection (CBP) under rule 19 CFR 149. It requires the electronic submission of supply chain data for all containerized ocean cargo arriving in the United States. The primary goal is to screen high-risk shipments to identify potential security threats before they arrive at U.S. ports. All data is filed electronically and must match the carrier’s Automated Manifest System (AMS) filing using the corresponding Bill of Lading number.
Breaking Down the “10+2” Data Structure
The “10+2” name comes from the way data responsibilities are divided. The “10” refers to the data elements the importer provides, including the Seller, Buyer, Importer of Record number, Consignee number, Manufacturer, Country of Origin, and the 6-digit Commodity HTS code. The “2” refers to the two data elements the ocean carrier must submit: the Vessel Stowage Plan and the Container Status Messages (CSMs) that track the container’s journey. This split responsibility ensures CBP receives a complete picture by combining commercial data from the importer with logistical data from the carrier.
The “24-Hour Rule”: Before the Ship Leaves China
The “24-Hour Rule” requires importers to electronically submit their Importer Security Filing (ISF) data to U.S. Customs at least 24 hours before cargo is loaded onto a vessel at the foreign port. This allows for pre-departure risk assessment and carries a $5,000 penalty for non-compliance.
| Requirement | Deadline | Penalty for Non-Compliance |
|---|---|---|
| ISF Data Submission | At least 24 hours before cargo loading at foreign port | $5,000 per violation |
| Provide Data to Filer (Best Practice) | At least 72 hours before vessel departure | Mitigates risk of $5,000 penalty |
The Core Requirement: Filing Before Cargo Loading
The “24-Hour Rule” mandates that all Importer Security Filing (ISF) data gets submitted to U.S. Customs and Border Protection (CBP) a minimum of 24 hours before cargo is loaded onto the vessel at its foreign departure port. This deadline is strict and based on the local time in the port of origin, like a city in China, not on the ship’s estimated arrival time in the United States. The rule specifically applies to the 10 core data elements required for the initial security review; the two remaining data elements provided by the carrier follow a different submission timeline.
Best Practices for Timely Filing
To ensure compliance and avoid issues, you should provide all necessary ISF information to your customs broker or filer at least 72 hours before the vessel is scheduled to depart. This three-day buffer helps account for weekends, holidays, or any last-minute data corrections that might be needed. A failure to file on time, even by just a few minutes, can result in a $5,000 penalty for each violation.
It is also critical to make sure the Bill of Lading (BOL) number is correct and submitted promptly. CBP uses this number to connect your ISF declaration with the carrier’s cargo manifest for verification, and mismatches can cause delays or penalties.
Data Points Required (Seller, Buyer, HS Code)
An ISF filing requires 12 total data points submitted to U.S. Customs 24 hours before vessel loading. The importer provides 10 elements like seller/buyer details and HTS codes, while the ocean carrier provides 2 elements detailing the vessel stow plan and container status.
The “10” Importer Data Elements
The Importer of Record, or their agent, must electronically file ten data elements with Customs and Border Protection (CBP). This information provides details about the parties involved in the transaction and the specifics of the goods being shipped.
- Seller name and address
- Buyer name and address
- Importer of Record Number (such as an IRS/EIN) or FTZ Identification Number
- Consignee Number
- Manufacturer or Supplier name and address
- Ship-to Party name and address
- Country of Origin
- Commodity HTSUS Code (Harmonized Tariff Schedule of the United States)
- Container Stuffing Location
- Consolidator (Stuffer) name and address
The “+2” Carrier Data Elements
To complete the security filing, the ocean carrier is responsible for transmitting two additional data sets related to the transport of the container.
- Vessel Stow Plan (identifies the physical location of each container on the ship)
- Container Status Messages (provides updates on the container’s movement and status changes)
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The Penalty: $5,000 for Late Filing
A late Importer Security Filing (ISF) triggers a standard penalty of $5,000 per violation from U.S. Customs and Border Protection (CBP). While this is the baseline, first-time offenses can often be mitigated to $1,000-$2,000, but total penalties for a single shipment can reach a maximum of $10,000.
| Violation Scenario | Standard Penalty (Liquidated Damages) | Typical Mitigated Amount |
|---|---|---|
| Late ISF Filing (First Offense) | $5,000 | $1,000 – $2,000 |
| Late ISF Filing (Subsequent Offense) | $5,000 | Not less than $2,500 |
| Multiple Violations (Single Shipment) | Up to $10,000 | Varies based on violation count |
The Standard $5,000 Penalty for an Untimely ISF
Under federal regulation 19 CFR 149.2(b), U.S. Customs and Border Protection (CBP) can issue liquidated damages of $5,000 for an untimely Importer Security Filing. A filing is officially considered late if it is not submitted at least 24 hours before the cargo is loaded onto a vessel destined for the United States. This $5,000 penalty applies specifically to the late submission. Other compliance failures, such as providing incomplete data or failing to match the ISF with the bill of lading, can each trigger a separate $5,000 penalty on the same shipment.
Mitigation: How Penalties Can Be Reduced (or Increased)
While the standard penalty is $5,000, CBP provides a mitigation process that can lower the final cost. For a first-time violation, CBP often reduces the penalty to a range of $1,000 to $2,000 if no significant security threats were involved. Penalties for any subsequent late filings are typically not mitigated to an amount below $2,500. If a single shipment has multiple ISF violations, CBP can assess a total penalty up to a maximum of $10,000. Importers who are certified members of the Customs Trade Partnership Against Terrorism (C-TPAT) may receive an additional 50% reduction on the final mitigated penalty amount, further lowering their financial risk.
Who Files It? (Our Broker vs Yours)
The ISF Importer is always legally responsible for the filing’s accuracy and timeliness. You can authorize a customs broker—either ours or your own—to submit the data on your behalf, but any penalties for errors, such as the $5,000 fine, will fall on you, the importer.
The Importer’s Responsibility vs. The Broker’s Role
As the ISF Importer, you are legally responsible for ensuring the 10 required data elements are submitted accurately and on time. A customs broker can act as your agent to file the data electronically, but they must have a signed Power of Attorney (POA) from you to do so. It is critical to understand that the broker does not assume your legal liability. Any penalties for late, inaccurate, or incomplete filings—which can be $5,000 per violation—are tied directly to your importer bond, not the broker’s.
Your Filing Options: Our Broker, Your Broker, or Self-Filing
Use Our Broker: You can authorize our in-house customs broker to manage the filing by granting them a Power of Attorney (POA). This approach integrates the ISF submission with your shipment details, which helps reduce the risk of data mismatches and ensures a smoother process.
Use Your Own Broker: If you have an existing relationship with a customs broker, you can nominate them to file the ISF on your behalf. We will coordinate with your designated broker and provide them with the necessary shipment data to complete the filing accurately.
Self-File: You can also file the ISF directly with U.S. Customs and Border Protection (CBP). This option requires you to have an active Automated Commercial Environment (ACE) account and the appropriate software to interface with CBP’s systems. This path gives you full control but also demands technical readiness and knowledge of the filing requirements.
Final Thoughts
The 24-hour ISF filing requirement is a firm deadline with a significant consequence. Missing this window, even by a small margin, can trigger a $5,000 penalty from U.S. Customs. This financial risk falls directly on the importer, so treating it as a critical step in the shipping process is essential for avoiding costly mistakes.
To stay compliant, the best approach is to work ahead. Providing all ten required data points to your broker at least 72 hours before vessel departure creates a necessary buffer for any corrections or unexpected delays. This proactive coordination helps ensure your cargo data is submitted on time, letting you avoid fines, cargo holds, and unnecessary supply chain friction. A smooth import process begins long before the ship leaves the port.
Frequently Asked Questions
What happens if I file ISF late?
Filing ISF late results in liquidated damages of $5,000 per violation from CBP, increasing to $10,000 for repeat violations. Additional consequences include cargo holds, seizures, supply chain disruptions, and heightened CBP scrutiny.
Do I need ISF for air freight?
No, ISF filing is not required for air freight shipments. The ISF (10+2) rule applies exclusively to cargo arriving by ocean vessel. Air cargo, truck imports, and courier services are exempt.
Who is responsible for ISF filing?
The ISF Importer is responsible for the filing. This is typically the Importer of Record (IOR), owner, purchaser, or consignee. A licensed customs broker can also file on their behalf with a Power of Attorney (POA).
How much does an ISF filing cost?
The industry standard cost for an ISF filing ranges from $25 to $150. This fee is charged by the customs broker or service provider, as CBP does not charge a direct government fee for the submission.
Can I file ISF myself?
Yes, an importer can self-file ISF. This requires obtaining a customs bond and having electronic access to CBP systems, like the ACE Portal. The filing must still be submitted at least 24 hours before loading and include all required data.
What is the “10+2” rule?
The “10+2” rule is another name for the Importer Security Filing (ISF). It’s a CBP regulation that requires importers to submit 10 data elements and ocean carriers to submit 2 data elements for security screening before cargo is loaded onto a vessel bound for the U.S.
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Title: The $5,000 Mistake: Why ISF Filing Must Be Done 24hrs Before Departure
Description: A late ISF filing for U.S. ocean imports triggers a $5,000 penalty. This guide details the 24-hour rule and the 10+2 data points needed to stay compliant.
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