On January 2, 2008, U.S. Customs and Border Protection published a Notice of Proposed Rulemaking, which outlines a new set of rules for Importer Security Filing and Additional Carrier Requirements. The publication sets forth the a rule known as “10+2,” and will apply to all cargo coming to the U.S. by vessel.

Since 2002, CBP has enforced the “24 Hour Rule” in order to gather and utilize certain vessel and cargo data to carry out risk-screening activities. Section 203(b) of the Security and Accountability for Every Port Act of 2006 (the SAFE Port Act) mandates the Department of Homeland Security (via CBP) to “require the electronic transmission to the Department of additional data elements for improved high-risk targeting, including appropriate elements of entry data . . . to be provided as advanced information with respect to cargo destined for importation into the United States prior to loading of such cargo on vessels at foreign ports.”

The proposed 10+2 rule would require the electronic submission of additional security filing data elements for all cargo destined for the United States. The 10 + 2 rule states that importers (or their authorized agents) are responsible for transmitting Importer Security Filings, which consist of as many as 10 importer data elements (the “10” part of the 10+2 rule). The proposed rule states that carriers must submit Additional Carrier Requirements, which consist of vessel stow plans and container status messages (the “2” part of the 10+2 rule).

CBP anticipates that the additional security filing data elements set forth in the 10+2 rule will help identify parties involved in the supply chain of imported merchandise, identify their locations, as well as provide more thorough descriptions of merchandise being shipped to the United States.

The current proposal requires that 24 hours prior to loading a U.S.-bound vessel at a foreign port, the data is transmitted electronically via the Automated Broker Interface (ABI) or Automated Manifest System (AMS). Importers who use a customs broker can have the broker submit the data via the ABI system. Importers not using brokers will need to apply for access to ABI, or they can designate an agent to do the filing. But, whichever party submits the 10+2 data must be bonded with CBP.

The following summarizes the “10+2” requirements:

  • To be submitted by importer or its designated agent, such as a Customs Broker:

1. Manufacturer name and address – name and address of the entity that last manufactures, produces or grows the imported commodity.

2. Seller name and address – last named overseas seller/address on the transaction invoice/purchase order.

3. Container stuffing location – physical foreign location (street, city, country) where the goods were stuffed into the container prior to its closing.

4. Consolidator name and address – foreign party that physically stuffs the container prior to its receipt by the carrier for shipment to the U.S. The consolidator’s address identifies the physical location of the cargo, which may differ from the usual manufacturer or shipper premises.

5. Buyer name and address – last named buyer and address 24 hours prior to foreign lading.

6. Ship to name and address – named party and the address on the transaction that will physically receive the merchandise, which may be different from the consignee.

7. Importer of record number – unique identifying number of the entity primarily responsible for the payment of any duties on the merchandise or an authorized agent acting on his behalf. The unique identifying number can be the IRS, EIN, SSN or CBP-assigned number.

8. Consignee number – unique identifying number of the entity to which the goods are to be consigned. Typically, the consignee is the “deliver to” party at the end of the supply chain who has a fiduciary interest in the cargo. The unique identifying number can be the IRS, EIN, SSN or CBP-assigned number.

9. Country of origin – country in which the good is wholly obtained or produced, as defined in 19 C.F.R. § 102.11.

10. HTSUS number (six-digit level) – the initial classification required of a shipment prior to entry being filed.

  • To be submitted by the ocean carrier, or its designated agent:

1. Vessel stow plan – includes data such as vessel name and operator; voyage number; container operator; equipment number, size and type; stow position; hazmat code; and load/discharge ports. It must be submitted no later than 48 hours after the departure of the vessel from the last foreign port, or prior to arrival at the first U.S. port for voyages less than 48 hours in duration.

2. Container status messages – These messages facilitate the handling of containers by streamlining the information exchange between trading partners involved in the administration, commerce and transport of containerized shipments. The CBP proposal focuses on the following data elements: equipment number; event description, date, time and location; and vessel.

CBP is soliciting written comments regarding its proposed rule, which are due March 3, 2008.