What are the common mistakes and pitfalls to avoid when filing an ISF for your ocean shipments?

1 Missing the deadline

The ISF must be filed at least 24 hours before the cargo is loaded on the vessel at the foreign port of origin. This means you need to have all the required information from your suppliers, freight forwarders, and other parties involved in the transaction well in advance. If you miss the deadline, you may face a penalty of $5,000 per violation, or up to $10,000 per shipment. To avoid missing the deadline, you should establish a clear communication channel with your supply chain partners and use a reliable ISF filing service.

2 Providing inaccurate or incomplete data

The ISF requires 10 data elements, such as the seller, buyer, manufacturer, ship to party, container stuffing location, consolidator, importer of record number, consignee number, country of origin, and commodity HTSUS number. These data elements must be accurate and complete, as they are used by the CBP to assess the risk and security of your shipment. If you provide inaccurate or incomplete data, you may face a penalty of $5,000 per violation, or up to $10,000 per shipment. Additionally, you may also face delays or inspections at the port of entry. To avoid providing inaccurate or incomplete data, you should verify the information with your suppliers, freight forwarders, and other parties involved in the transaction, and use a reliable ISF filing service that can validate and correct your data.

3 Forgetting to update or amend the ISF

The ISF is not a static document. It may need to be updated or amended if there are any changes in the shipment information after the initial filing. For example, if the cargo is diverted to a different port, or if the importer of record or consignee number changes, you need to update or amend the ISF accordingly. If you fail to update or amend the ISF, you may face a penalty of $5,000 per violation, or up to $10,000 per shipment. To avoid forgetting to update or amend the ISF, you should monitor the status of your shipment and notify your ISF filing service of any changes as soon as possible.

4 Not obtaining a customs bond

A customs bond is a type of insurance that guarantees that you will comply with the customs regulations and pay any duties, taxes, or penalties that may arise from your importation. A customs bond is required for all ISF filings, regardless of the value or frequency of your shipments. If you do not obtain a customs bond, you may face a penalty of $5,000 per violation, or up to $10,000 per shipment. Additionally, you may also face delays or denial of entry at the port of entry. To avoid not obtaining a customs bond, you should contact a licensed customs broker or a surety company that can issue you a customs bond that covers your ISF filing.

5 Not keeping records of the ISF

The ISF is not a one-time filing. It is part of your import compliance record that you need to keep for at least five years from the date of entry. The CBP may audit your ISF filings and request supporting documents to verify the accuracy and completeness of your data. If you do not keep records of your ISF filings and supporting documents, you may face a penalty of $5,000 per violation, or up to $10,000 per shipment. Additionally, you may also face delays or inspections at the port of entry. To avoid not keeping records of the ISF, you should maintain a well-organized filing system that can store and retrieve your ISF filings and supporting documents easily.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?