CBP Updates its 10+2 FAQ (Coded Transactions, Bulk/Break Bulk, Carnets, Antiques)
U.S. Customs and Border Protection has updated and expanded its frequently asked question document on its interim final rule that amended 19 CFR effective January 26, 2009, to require Security Filing (SF) information from importers and additional information from carriers (10+2) for vessel (maritime) cargo before it is brought into the U.S.
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This is Part III of a multi-part series of summaries detailing CBP's updated FAQ document and highlights new information for ISFs regarding coded transactions, bulk and break bulk cargo, carnets, and antique shipments. See future issues of ITT for additional summaries of the FAQ.
Coded Transactions
CBP has rewritten the coded transaction section of its FAQ, stating that its system is programmed to accept nine different ISF-10 Transaction types:
| 01 Standard | This transaction type covers the vast majority of commercial shipments. |
| 02 Ship To | Should be used for shipments that have not yet been sold to a buyer in the U.S. Typically used for commodities shipments (e.g., coffee beans, cocoa, etc.). |
| 03 HHG/PE | Should be used for all household goods & personal effects shipments. This includes shipments for returning military members, other U.S. governmental personnel and their families. No bond is required. |
| 04 Gov't. & Military | Only to be used for actual government or military shipments and not the personal effects or household goods of individual government personnel. No bond is required. |
| 05 Diplomatic | Only to be used by foreign entities entitled to diplomatic immunity. Returning U.S. diplomatic personnel are not entitled to use this transaction type. No bond is required. |
| 06 Carnet | Covers shipments arriving under a carnet. No bond is required |
| 07 U.S. Goods | Reserved for shipments containing U.S. Goods Returned. |
| 08 FTZ Shipments | Reserved for shipments going into a Foreign Trade Zone |
| 09 International Mail | Reserved for USPS mail shipments. No bond is required. |
CBP then explains the details of six of these nine codes in a series of questions and answers. See FAQ for details.
Bulk and Break Bulk
CBP has added clarifying details on the bulk and break bulk cargo section of the FAQ (unchanged information is italicized).
Bulk cargo is exempt from the ISF filing requirements.
Break-bulk cargo, including roll-on roll-off (RORO) cargo requires the filing of an ISF. However, break bulk cargo that is exempt from the timing requirements of the 24 Hour Rule are automatically exempt from the timing requirements of the ISF filing. ISFs for break bulk cargo that are exempt from the timing requirements of the 24 Hour Rule must be filed no later than 24 hours prior to arrival.
Only carriers may apply for and receive an exemption to the 24 Hour Manifest Rule for break bulk cargo. Please review the latest information on the 24 Hour Manifest Rule, including definitions of bulk and break-bulk cargo at the following link: http://www.cbp.gov/linkhandler/cgov/trade/trade_outreach/advance_info/vessel_faq.ctt/vessel_faq.doc.
Carnets
The updated FAQ reflects the addition of a new question and answer on carnets:
Coded transactions needed, no need for bonds. One questioner asked what will the coded transaction for carnets look like? Will carnets need to be bonded?
CBP answered that bonds will not be required for these types of transactions. CBP stated that carnets can be handled using a "Type 06" ISF filing. In most cases, CBP expects that a U.S. based agent will act as the ISF Importer on behalf of the actual ISF Importer. (See FAQ for example titled "ISF Type "06" Carnet Filing Guidelines.")
Antique Shipments
The updated FAQ has a new section on antique shipments, with two questions and answers, as follows:
Overseas antique dealers as "'suppliers." A questioner who imports states that they have an invoice for each purchase but the people they buy from are not the actual manufacturer. Most are antiques dealers and the questioner has about 20 or 30 dealers per shipment. Are the dealers considered to be the "suppliers"? And if so, do they have to list every single dealer? CBP answered that the questioner needs to provide the names and addresses of all the "suppliers" of the finished goods (i.e., the invoicing parties).
Both buyer and seller if travel and buy at flea markets. A questioner imports vintage furniture and accents that they themselves buy overseas at small flea markets and street fairs. They gather their merchandise and stuff the shipping container themselves, and then send that container to their location in the U.S. where they operate as domestic sellers. CBP states that since they are purchasing and taking possession of the goods while overseas, it would be acceptable to list themselves as both the Buyer (Owner) and Seller (Owner).
FAQ Non-Binding, Ruling Requests May be Submitted
CBP notes that its responses to the FAQs are for informational purposes only and are non-binding. Questions relating to specific facts and circumstances of a prospective transaction can be the subject of a ruling request under 19 CFR Part 177. Additional questions that are not included in this document can be sent to Security_Filing_General@cbp.dhs.gov. CBP notes that it will be continually updating and clarifying its FAQ document as necessary.
(See ITT's Online Archives or 10/06/09 news, 09100610, for Part II, which covered the structured review period, progress reports, and ISF amendments.
See ITT's Online Archives or 10/05/09 news, 09100505, for Part I, which covered bill of lading numbers and bonds.
See ITT's Online Archives or 08/20/09 news, 09082005, for BP summary of CBP officials discussion of ISF bonds, etc. See ITT's Online Archives or 03/10/09 news, 09031015, for BP summary of CBP's previous 10+2 FAQ, with links to previous parts. See ITT's Online Archives or 12/23/08 news, 08122310, for the final part of BP's summary on the details of CBP's 10+2 interim final rule, with links to previous parts.)
CBP's 10+2 FAQs (updated 09/30/09) available at http://www.cbp.gov/linkhandler/cgov/trade/cargo_security/carriers/security_filing/10_2faq.ctt/10_2faq.doc