IMPORTER SECURITY FILING - DO IT YOURSELF OR BROKER IT OUT? - THE FACTS

There are still skeptics (like Importers, Freight Forwarders, NVOCC’s)  out there that claim “in order to file an ISF for a shipment, you must utilize a customs broker (obtain a custom house broker) because of their bond”.  This entry is meant to show that this statement is false, an importer or their agent can file using their bond.  Below are some excerpts taken from Customs FAQs on ISFs and bonds which anyone can access on the internet to myth-bust this claim.

Q: How will a bond for an ISF be filed in cases where an importer, or its agent, does not have a continuous bond? How will this actually work? Will there be paperless single transaction bonds for ISF purposes?

A: The Importer Security Filing (ISF)  Importer, or its agent, will need to obtain a bond which may be a continuous bond (type 1, 2, 3 or 4) or an Appendix D stand-alone ISF bond (single-transaction or continuous).

Q: If an agent allows his bond to be obligated, is he considered the ISF Importer with all of the liabilities associated with the ISF filing?

A: If an agent is submitting an Importer Security Filing (ISF) on behalf of another party and the agent posts its own bond, the agent agrees to have its own bond charged if there are breaches of obligations regarding the filing.  However, the IMPORTER remains ultimately liable for the complete, accurate, and timely ISF filing.

Q:  Does the “filing agent” for the importer have to be a Licensed Customs Broker?  Can it be the foreign freight forwarder?  Can the Importer File their own Importer Security Filings?

A: filing agent does not have to be a customs broker except for the case of a “unified filing.”  A foreign freight forwarder can also be a filing agent. An Importer can also set up and file their own Importer Security Filings. 

Q: Does an importer have to have the Importer Security Filing (ISF) stand-alone bond to be an ISF Importer?

A: No. An importer does not have to have the Importer Security Filing (ISF) stand-alone bond to be an ISF Importer.

AND LASTLY

Q: Will US Customs and Border Protection (CBP) accept one bond for the Importer Security Filing (ISF) filing and a second bond for entry? Is this true for a continuous bond as well as Single Transaction Bonds?

A: Yes. US Customs and Border Protection (CBP) will accept one bond for the Importer Security Filing (ISF) and a separate bond for entry. However, if the Importer Security Filing (ISF) Importer and the Importer of Record are the same party and the Importer Security Filing (ISF) and entry are submitted to US Customs and Border Protection (CBP) via the same electronic transmission (“unified filing option”), that party must submit one bond that secures both the Importer Security Filing (ISF) and the entry.

I think the last question and answer reflects when a broker is needed and that is only when (it specifies) a unified entry is made and both are submitted through the same electronic system, therefore one bond secures both the Importer Security Filing (ISF) and the entry.  However US Customs and Border Protection (CBP) will accept one bond for the Importer Security Filing (ISF) and a separate bond for the entry as noted above.  All importers are required to have a valid Customs bond in place and this bond can be used to fulfill your ISF bond requirements, thereby allowing you, or your agent to file ISF, providing potential cost savings.

The bond requirements are waived for the following ISF coded transactions:

            Type 3  Household Goods / Personal Effects

            Type 4  Government and Military

            Type 5  Diplomatic

            Type 6  Carnets

            Type 9  International Mail

            Type 11  Informal Shipments

We hope this clarifies the issue for some of you out there who are still unsure.  Please contact ARTEMUS Transportation Solutions if you should have any additional questions or need our services for your own Importer Security Filings (ISF), Automated Manifest Filings (AMS), or Canadian Automated Commercial Interface (ACI) filings.

Until next time, ARTEMUS OUT!