The Secure Freight Initiative is intended to reduce the risk of terrorism and it utilizes latest tracking and tracing technology, current data capture methods, and communicating and reporting capabilities. It also emphasizes cooperation among trade partnerships and governments and provides a detailed account of goods and materials entering the United States via maritime shipping containers. The detailed security filing:
- Allows the Customs and Border Protection (CBP) to identify potentially high-risk cargo through the identification of actual cargo movements.
- Expedites the processing of lawful international trade by identifying low-risk shipments early in the supply chain.
- Improve the accuracy and reporting of the cargo description.
- More efficiently allocate CBP resources to focus on true security threats.
The creation of Importer Security Filing (ISF), which is a CBP regulation pursuant to Section 203 of the SAFE Port Act of 2006 and section 343(a) of the Trade Act of 2002, as amended by the Maritime Transportation Security Act of 2002, for non-bulk ocean shipments arriving into the United States.
The ISF 10+2 mandates importers to electronically transmit to the CBP specific data elements 24 hours before loading any container into a ship bound for the United States.
The "10" data elements include:
1) Manufacturer (or supplier) name and address
2) Seller (or owner) name and address
3) Buyer (or owner) name and address
4) Ship-to name and address
5) Container stuffing location
6) Consolidation (container stuffer) name and address
7) Importer of record number/ foreign trade zone applicant ID number
8) Consignee number(s)
9) Country of origin
10) Harmonized Tariff Schedule number (HTSUS)
The "+2" are data files which the ocean carrier must transmit to the CBP within 48 hours of the vessel departure. These elements are:
1) Vessel Stow Plan to indicate the location of each container on the ocean vessel.
2) Container status messages (CSM), which detail information on the movement and status changes of a container as it travels through certain parts of the supply chain.
In addition to these, there are rules for reporting these data elements which must be followed by both the importer and carrier:
- The Master Bill of Lading must be reported in addition to the above 12 items.
- Data elements must be reported by the tariff number at the lowest bill of lading level.
- Manufacturer (or supplier) name and address, country of origin and commodity harmonized tariff number must be linked to one another at the line-item level.
All concerned parties are expected to comply with the 10+2 rule on and after 26th January 2010.
Source: Pranitis, R. 2009. Examining the 10+2 Rule. Inside Supply Management, September 2009.