The 10+2 rule
Importer Security Filing requires the importer (or its agent) to transmit ten data elements to CBP for ocean-borne cargo no later than twenty-four hours before the cargo is laden aboard the vessel at the foreign port; the carrier transmits two more, hence "10+2." The program is administered under 19 CFR Part 149. Its purpose is security targeting, and CBP enforces it through liquidated damages assessed against the ISF bond.
Which bond covers ISF
Three instruments can secure the ISF obligation. A continuous Activity Code 1 importer bond incorporates ISF coverage for the importer of record and is how most importers comply. A continuous Activity Code 16 bond is a standalone ISF bond used by parties that are not the importer of record on a continuous bond: freight forwarders, NVOCCs and agents filing ISF in their own name. A single transaction ISF bond covers one shipment and is used by occasional importers entering under an STB, which does not itself cover ISF.
Liquidated damages
CBP assesses liquidated damages of $5,000 per violation for ISF that is late, inaccurate, incomplete or not filed, and additional amounts for failure to withdraw or update. Multiple violations on one filing can be assessed separately. CBP's mitigation guidelines allow reduction for first violations and demonstrated compliance programs, but the surety is liable up to the penal sum for whatever remains. ISF is the single most common source of customs bond claims, and the fix is almost always in the filing process rather than the bond.
Practical points
- Confirm who is filing ISF on each shipment and under whose bond. Duplicate or orphaned filings both draw penalties.
- The ISF importer for merchandise admitted to a foreign trade zone is the zone operator, bonded under Activity Code 4.
- If you enter under single transaction bonds, budget a separate ISF STB for each ocean shipment.
- Keep the ISF transaction number with the entry file; it is the first thing CBP asks for in a liquidated damages case.
Frequently asked questions
Do I need a separate ISF bond?
Not if you are the importer of record on a continuous Activity Code 1 bond. Otherwise, yes: a continuous Activity Code 16 bond or a single transaction ISF bond.
What is the penalty for a late ISF?
Liquidated damages of $5,000 per violation, secured by the bond.
Does ISF apply to air cargo?
No. ISF applies to ocean-borne cargo only.
