1. QUESTION: How will ocean carriers and NVOs be notified to not load a shipment? ANSWER: CBP has stated that they will not issue Do Not Load messages during the 1-year implementation period for missing, late, or incomplete ISF filings. Subsequently though, Do Not Load messages will be sent to the AMS filer of the associated bill of lading, which is generally the carrier or NVO. This practice will be consistent with current methods of notifying 24 Hour rule filers. 2. QUESTION: Now that the ISF rules have become final, will CBP conduct any training or seminars on the subject matter? ANSWER: Yes. The Customs Chief Program Manager for ISF, John Jurgutis, was present at several seminars conducted by trade organizations and law firms immediately after publication of the final rules. He is currently travelling the country and giving presentations to trade group. The priority is the larger ports of entry, but the intention is to expand the coverage nationwide. More information about CBP s outreach can be found on their Web Site www.cbp.gov 3. QUESTION: How will we know if an ISF has been submitted prior to the filing of our customs entry? ANSWER: The ISF and Entry are two totally different filings. The timing for filing either one is not impacted by the filing of the other. 4. QUESTION: Do we need to purchase software to be able to file this information? ANSWER: Not at all, the ISF processing both for the importer and shipper will be done in the VNET system that customers are already familiar with today. No additional software or technology will be required. 5. QUESTION: How will our supplier get this information to us? ANSWER: The supplier will initiate a shipment within the VNET ISF system. After submitting just a few pieces of information and submitting the filing, both the importer and their V. Alexander representative will be immediately notified and will have full visibility to the filing.
6. QUESTION: Are AMS & ABI the only methods through which ISF s can be filed? ANSWER: Yes. 7. QUESTION: The tariff numbers that our vendor puts on the documents are different than what we file with Customs for the entry. Won t that cause a problem with Customs? ANSWER: Not necessarily. If you and your suppliers are using the V. Alexander VNET ISF system, the same V. Alexander team members that handle your customs entries will be handling your ISF. They will assign tariff numbers to your ISF filing derived from the parts database we have built from working with your company over the years. 8. QUESTION: May we get a copy of the presentation? ANSWER: We will post a link where you can view this presentation. 9. QUESTION: If the manufacturer, supplier and seller are the same, then do we need to enter the same name for the manufacturer and seller? ANSWER: Yes. 10. QUESTION: Can an importer get all the required information from the supplier and file before the container is shipped? ANSWER: Sure, the sooner the better. 11. QUESTION: Will this affect export shipments as well? ANSWER: No. The NPRM only covers ocean import cargo, other than bulk cargo. 12. QUESTION: So the Importer is the company placing the PO for the goods? ANSWER: The rules define the importer as the party causing goods to arrive within the limits of a port in the United States. Although, many times, that will be the party who issued a PO, there are numerous circumstances (when there is no sale, for example), where no PO is present. 13. QUESTION: Can the importer refuse or abandon the cargo to eliminate the penalty exposure if the vendor shipped the cargo without the importer s knowledge? ANSWER: If the importer caused the goods to enter the port limits of the U.S., by issuing a purchase order or by other means, then that importer would be liable for filing the ISF. The importer could choose to abandon the
cargo, but would still be liable for the non-filing of the ISF and be subject to liquidated damages. 14. QUESTION: What will be the supplier s incentive to provide pre-shipment information if the importer is the party who will be assessed liquidated damages? ANSWER: This question goes beyond the contents of the rules to the commercial environment. The importer and all parties in the supply chain will have to agree on the who, what, and when of providing information for the ISF filing. 15. QUESTION: Will this require an Importer to be C-TPAT certified? ANSWER: No, there is no requirement that an Importer by C-TPAT certified in order to be eligible to file an ISF. Also, C-TPAT members are not exempt from filing the ISF. 16. QUESTION: For LCL cargo, is the NVO warehouse the stuffing location, or is the factory always the make ready to ship or stuffing location? ANSWER: The Container Stuffing Location for LCL cargo is defined as the name and address of the physical location where the goods were stuffed into the container, which would usually be the NVO warehouse. 17. QUESTION: Do we need to go through all entries attached to our invoices to determine the HTSUS numbers for all the items we import from our current group of suppliers or do you have any databases of that information? ANSWER: V. Alexander & Co., Inc. does keep a database of classifications for previously imported products. We recommend that you contact us to insure that the database is complete and accurate. 18. QUESTION: So. Parts of Printers description for multiple items will not be accepted on shipments with multiple items for printers? Each part would potentially have an individual HTSUS number? ANSWER: Correct. General descriptions are not sufficient. Each invoice line item must contain a sufficient description for proper HTSUS classification. 19. QUESTION: Can the importer access a filing started by the supplier and verify or add information?
ANSWER: Absolutely. The importer will have full access to the ISF filing and can make any necessary changes. 20. QUESTION: What if the 6 digit HTSUS number on the ISF doesn t match the actual entry. ANSWER: CBP initially indicated that they would not use the ISF filing for compliance verification of the entry. However, they have subsequently indicated that they may validate the entry against the ISF filing, including a check for proper tariff classification and country of origin. 21. QUESTION: What about shipments that are imported by a company other than the IOR? Who is the responsible party? Example: a foreign company ships to a warehouse contracted by the foreign company. All freight is prepaid, but we are the importer of record. ANSWER: The ISF importer is considered to be the party who caused the goods to enter the limits of a port in the United States. If you issued a PO or any other document instructing the foreign company to ship those goods to the U.S., then CBP could consider you the ISF importer and thus the responsible party. 22. QUESTION: How can an importer file the ISF themselves? ANSWER: An importer is legally authorized to self-file. They would need to acquire the capability to transmit directly to CBP via either ABI or AMS. 23. QUESTION: Are you going to demo the ISF portal for your customers? ANSWER: Yes. We expect to have a demo of the complete ISF portal ready in the next week and we will schedule follow up webinars that will focus on its use and capabilities. 24. QUESTION: What are the particular documents that have to be filed? ANSWER: The ISF must be filed with CBP electronically via either ABI or AMS, so there is no ISF document. When the seller initiates an ISF filing, the current required documents (invoice, packing list, and other commercial documents) should be attached and sent to V. Alexander for the ISF filing and subsequent customs entry filing. 25. QUESTION: Does the ISF requirement apply to shipments entering a U.S. port for ultimate destination in Mexico? It would move in bond to Laredo and then cross into Mexico.
ANSWER: An ISF filing must be made for goods that are transiting the U.S. in bond, but not entering the commerce. There are two major differences between this type of filing and the standard import filing. (1) The carrier is responsible for the filing and (2) there are only 5 data elements that have to be filed, instead of 10. 26. QUESTION: How long will it take for CBP to accept or deny the ISF? ANSWER: Once the ISF is transmitted to CBP, we should receive a response within a couple of minutes. 27. QUESTION: Will the seller have limited access to the ISF portal in VNET? ANSWER: Yes, the seller will be limited to only the data elements for which they are knowledgeable. 28. QUESTION: Will the VNET ISF portal have instructions available in Chinese? ANSWER: We hope to make the instructions available in several different languages eventually. 29. QUESTION: How do these new requirements affect the ability to divert containers from one destination to another? ANSWER: A diversion to a new delivery location would require an amendment to 1 of the 10 ISF data elements; Ship To Name and Address. An amendment to that data element can be file up 24 hours prior to arrival at the first U.S. port of unlading. 30. QUESTION: What effect will this information have on EDI? ANSWER: The only effect to EDI will be in the timing of the EDI transmission from the source to V. Alexander. Where before the EDI transmission may have typically be sent after sailing, the transmission should now be effected 48-72 hours before lading, to allow time for processing and filing of the EDI. V. Alexander will still be able to use the EDI transmission for the customs entry and will conduct programming to allow EDI information to be uploaded into the ISF file. 31. QUESTION: If the Carrier does not enter their information on time, will they incur the penalty? ANSWER: The Carrier is responsible for the 2 data elements of 10+2. Their filing is separate from the filing of the Importer, although they will be matched by CBP by the bill of lading number. If the carrier is late with their filing, they will receive the penalty.
32. QUESTION: Do we need to tell our suppliers they need to submit the information to VNET 48-72 hours before loading, or is that part of the information they receive in VNET? ANSWER: Yes, the suppliers should be given detailed information and instructions regarding ISF and the time requirement for providing the information to V. Alexander. We will provide a sample of instructions that you can incorporate into your Purchase Order, L/C or other documents. 33. QUESTION: Does it matter when title transfer occurs during the transaction in regards to when ISF data may or may not be transmitted to CBP? ANSWER: The ISF data must be transmitted to CBP minimum 24 hours prior to lading. CBP does not mention in the rules anything about title transfer affecting the timing of the transmission. 34. QUESTION: Is the 48-72 hours business days or calendar days? ANSWER: The goal should be 48-72 hours in business days initially. 35. QUESTION: Will there be any hard copy documentation for the individual import files for historic references? i.e. will there be a document showing that a shipment has been ISF cleared? ANSWER: Yes. Once the ISF filing is complete, we will send to you a document with all of the ISF information relating to that particular filing, including the message received from CBP. 36. QUESTION: If cargo on a vessel is rolled, does the ISF have to be filed again? ANSWER: Probably not. As long as the bill of lading number remains the same, the ISF is still valid. 37. QUESTION: How does the importer know the loading/lading time in the foreign port? ANSWER: Importers will almost always not know the exact loading time. The most prudent method for insuring ISF compliance is to instruct suppliers to not ship the cargo, or for suppliers to instruct the forwarders not to make the cargo available for loading, until they have received, through VNET, a confirmation of ISF filing. The ISF filing information should be provided early enough so that the filing can be done well in advance of the loading time.
38. QUESTION: How will the importer establish the latest possible amendment timing? ANSWER: The deadline for filing an ISF amendment is 24 hours before arrival at the first U.S. port of unlading. Importers have, through their VNET, visibility to the Port of Import for their shipment and the estimated date of arrival (ETA POI). However, the port of import for their shipment may not be the first U.S. port of unlading for that vessel. If you think an amendment may need to be filed, please work with your V. Alexander team. Vessel schedules are published in print and online, although the schedules are subject to change. Carrier representatives may also be able to provide vessel arrival data. 39. QUESTION: Even if the importer isn t responsible for filing of the +2 data elements, won t supplier still be required to provide this information to V. Alexander via VNET? ANSWER: No. The supplier is only responsible for the 10 data elements. The carrier is responsible for the other 2. 40. QUESTION: I already have containers on the water. Some will land after 1/26/09. Do I need to file an ISF? ANSWER: No. ISF s need to be filed for cargo sailing on or after 1/26/09. 41. QUESTION: Once CBP begins sending violation fees, who will obtain this fee. ANSWER: Liquidated damages for ISF violations will be sent to the ISF Importer 42. QUESTION: How much will the ISF cost? ANSWER: V. Alexander will work with each client individually to establish an ISF filing fee. As a broker, we charge for two things: time and expertise. In order to establish an appropriate fee, we must look at how much time and expertise will be required to complete the particular ISF filings. Some factors that will determine the fee will be: Use of the VNET ISF portal, quality of the documentation, timing of receipt of information, type and quantity of products, and the number of invoices, line items and tariff lines.