Security Filings on Cargo not Remaining in the U.S.

Everyone knows by now the importer's requirements for reporting the 10 elements on cargo discharging in the U.S., but what about cargo that just transits through the U.S.? I've seen cases where cargo discharges from a vessel coming from a foreign country and then transits inland by rail and / or truck to either Canada or Mexico where the goods will be cleared by CBP at the U.S. border and the security filings are not properly reported.

There seems to be some confusion between reporting FROB (foreign cargo remaining onboard), T&Es (transportation and exportation) and I.E.s (immediate exportation) entries when it comes to the security filings. They are all reported the same. That is they have 5 elements that are required instead of the usual 10.

The difference between FROB cargo and cargo moving on a T&E or I.E. is that the FROB cargo never discharges the vessel at a U.S. port and therefore is only reported with a foreign port of discharge when filing in AMS. When reporting cargo on a T&E or I.E. in AMS, you report it under a U.S. port of discharge because the goods physically come off the vessel. They just aren't cleared by a customs broker under a consumption entry because the goods will not be sold or consumed in the U.S.

In the case of the T&E, the goods are moved through the U.S. overland to cross the border either into Canada or Mexico where they will be sold or consumed there. Sometimes they discharge one vessel and move overland to another coast to load a different vessel and go via ocean to a foreign country. Therefore the T&E is the inbond entry that will be filed with customs at the port of entry to allow the goods to leave the port to move inland without a consumption entry being filed. The T&E will note the foreign destination of the goods and customs will clear out the T&E at the border crossing or the port of exit. In the case of the I.E., the goods never leave the port of entry but still discharge the vessel. Instead of moving away from the port, the goods are loaded onto another vessel and sent foreign again. The I.E. will note the foreign destination and customs will clear the I.E. at the port of entry where the goods came in.

When reporting the 5 elements to customs on this type cargo, you must report the foreign port of unlading. This includes the foreign port that the T&E and I.E. cargo is destined to, not the U.S. port of unlading that is reported in AMS. That seems to confuse alot of users that they must show the U.S. port of unlading for the security filings but they do not.

Example #1: A shipment loads a vessel in Antwerp, Belgium that is discharging in Norfolk, VA. The goods are being moved inbond on a T&E to Montreal, Canada. The T&E will be cleared at the border in Buffalo, NY by customs. For the security filing you will show Montreal, Canada as the foreign port of unlading, not Norfolk, VA. For AMS you will show port of unlading as Norfolk, VA.

Example #2: A shipment loads a vessel in Liverpool, U.K. and discharges in New York. A T&E is issued to move the goods inland to the west coast port of Seattle, WA. where the goods load another vessel for destination Kobe, Japan. For the security filing you will report Kobe, Japan as the foreign port of unlading, not New York.

Example #3: A shipment loads a vessel in Lisbon, Portugal and discharges in Charleston, SC. An I.E. is issued to load the goods on another ship to send them to their destination in Montevideo, Uruguay. The security filing will show Montevideo, Uruguay as the foreign port of unlading, not Charleston, SC.

These are different transmissions with different requirements. I hope this helps out with some of the confusion on this.

The 5 elements are:

1) Booking Party name and address
2) Foreign port of unlading (explained above)
3) Place of delivery (city of final destination)
4) Ship to name and address
5) Commodity HTSUS number


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Import Security Filing - US Customs Bonds

Myth becoming a legend.......so many clients, importers especially, come to me and say, I cannot get my broker to do the ISF filing for me because they tell me I have to get a bond. They say it is required. How come I did not have to have a bond to file an AMS or ABI filing? Well, because a broker and an AMS filier live by different requirements. First of all, to make any filing, AMS, ABI or ISF, a bond is required. At a minimum, the bond is required by the company who is filing the information on behalf of another. So, let's say an Importer used to use a broker to do all import filings for them, that was ok, before because the broker had a license and a bond to cover them in cases where they needed it. For an ISF filing, the broker is requiring the bond, not US Customs. US Customs requires the FILIER to have a bond. A broker has a bond but chooses not to use it. In the case of an AMS Filing, the filier has a bond and that bond is also good to use for ISF Filings. Since the ISF filing and the AMS filing are similar...in data sets and in the overall purpose of the filing (an informational filing only) than the bond the AMS filier uses, they also use to cover the ISF filing they make on behalf of their clients.

Bottom line is that there are SO MANY options to getting your Import Security Filing done, a broker is not the only option and in most cases, is not the cheapest and the most cost effective option for an importer or a forwarder. If you want more information and proof of the above, just let us know and we can help. 100+ plus customers in 17 countries will vouch for what is written above....

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Let's Get Started - Importing Cargo into the US

Are you an importer, forwarder or carrier? If so, requirements are different. Simply put, without someone "in the know" or with previous experience, this will be a search for WALDO. Today, let's first bring up National Security. For all import cargo coming into the US, even if it is staying on a carriers ship or air freight, all cargo details MUST be given to US Customs before it loads at its origin point overseas. Yep, all details..then, each shipment requires an Import Security Filing, and Automated Manifest Filing and a Customs Broker Entry. All of these can be done by the importer or by using a variety of other partners. Tune in tomorrow for more details on each.

By for now...

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