CBP Issues Interim Final "10 + 2" Rule on Importer Security Filings

November 24, 2008

U.S. Customs and Border Protection (CBP) has issued an interim final rule outlining new importer security filing and additional carrier requirements. Also known as the “10 + 2 rule,” the interim final rule requires importers to transmit to CBP ten data elements twenty-four hours before loading any container aboard a ship bound for the United States, while requiring carriers to submit an additional two datasets.

Currently, only carriers are required to submit advance cargo information to CBP before the cargo is laden abroad a vessel at a foreign port by way of the “24 Hour Rule” (See 19 CFR 4.7 and 4.7a).  Importers, not currently required to submit advance cargo information, are generally required to file entry information within 15 days of arrival at a U.S. port.  By expanding the required pre-departure information, CBP believes it can better assess and identify high-risk shipments to prevent terrorist weapons and materials from entering the U.S.

Effective 60 days after publication in the Federal Register (on or about January 25, 2009), the 10 + 2 rule requires importers to submit 10 elements to CBP 24 hours prior to lading. The 10 elements are as follows: (1) Seller; (2) Buyer; (3) Importer of record number/ foreign trade zone applicant identification number; (4) Consignee number; (5) Manufacturer (or supplier); (6) Ship to party; (7) Country of origin; (8) Commodity HTSUS number; (9) Container stuffing location; and (10) Consolidator (stuffer). Importers, or their agents, must transmit this information through either the Automated Broker Interface (ABI) or the Automated Manifest System (AMS).

The “+   2” data elements, in addition to the existing requirements pursuant to the 24 Hour Rule, that the ocean carrier will be required to submit to CBP are a vessel stow plan and container status messages (CSMs). Carriers must submit the vessel stow plan via a CBP approved electronic data interchange system, which currently includes AMS, secure file transfer protocol (sFTP), or email. CSMs can only be submitted through sFTP.

The vessel stow plan must include standard information relating to the vessel and each container laden on the vessel. Carriers must submit CSMs to CBP daily for certain events relating to all containers laded with cargo destined to arrive at a U.S. port, such as gate inspections and heavy repair.

CBP states that, for twelve months, it “will show restraint in enforcing the rule…so long as importers are making satisfactory progress towards compliance and are making a good faith effort to comply with the rule…” Consequences for non-compliance range from “no load” restrictions to monetary liquidated penalties.