10 + 2 Filing Costs keep Spiraling

US importers continue to complain that the new Importer Security Filing (ISF) rule being implemented by Customs and Border Protection (CBP), better known as ‘10+2', will add significantly to their costs.

In its submission to the CBP, the customs and Border Coalition (CBC), a group launched in December by the National Association of Manufacturers, claimed that 10+2 will cost US industry over USD20 billion a year. Its findings are based on a survey conducted of member companies, which account for 60% of US ocean-born imports.

The CBC reckons that 10+2 will permanently increase company operating costs by USD3.5 billion a year. In addition, the effort is expected to add an average 2.8 days of permanent delay to the importing process, with a total estimated cost of USD17.2 billion a year.

Other industry organizations concur with the analysis. The American Association of Exporters and Importers (AAEI) have estimated that the ISF rule will add an additional two to three days to the supply chain.

However several forwarders have cast doubt on these claims, suggesting that any such delay will be confined to erroneous entries as filing can be expedited concurrently with other importing processes.

In January, 10+2 became effective, requiring importers to submit filings within 24 hours of cargo loading on US bound vessels. The ISF rule requires importers to provide 10 data elements and carriers two additional entries for each shipment. (hence the name ‘10+2').

Importers have until January 26, 2010 before CBP plans enforce the rule with penalties of USD5,000 per violation. Failure to comply will be deemed a threat to national security.