Australia: Final US 10 + 2 Rule Reports For Duty

Last Updated: 27 November 2008
Article by Andrew Hudson

During the course of this year, I have provided commentary on the "10 + 2 Rule" proposed by US Customs and Border Protection ("CBP") for additional advanced cargo reporting. Based on US legislation, the intention is to include additional data elements in the reports which must be made to the CBP at least 24 hours before cargo leaves a port of export. On 24 November 2008, CBP issued a "Final Interim Rule" ("Rule") which will come into effect on 26 January 2009. This Rule will have an impact on maritime cargo carriers, US importers and those selling goods to the US.

A Rule Renamed

Readers should be aware that the Rule has now been renamed as the "Importer Security Filing" Rules ("ISF"). An importer will now be known as an "ISF Importer". This terminology will now be used in the US in relation to the Rule.

Who is impacted?

Generally, the Rule affects two parties being maritime carriers of goods to the US and "importers" into the US. For these purposes, the CBP has stated that:

"The ISF Importer or his agent will be responsible for filing the complete, accurate and timely Importer Security Filing. For the purposes of the Interim Final Rule, ISF Importer means the party causing goods to arrive within the limits of a port in the United States. For foreign cargo remaining on board, the ISF Importer is construed as the carrier. For Immediate Exportation ("IE") and Transportation and Exportation ("T&E") in-bound shipments and goods to be delivered to a foreign trade zone ("FTZ"), the ISF Importer is construed as the party filing the IE, T&E or FTZ documentation with CBP".

Accordingly, in our context the Rule is likely to affect the following parties.

  • Australian maritime cargo carriers to the US.
  • Australian exporters selling on a DDP basis being responsible for all customs clearance and duty payments into the US. They will need to either report this information themselves or appoint an agent to do so on their behalf in the US. A person appointed as an agent to undertake reporting to the US will require the grant of a Power of Attorney to undertake such registration and the lodging of a bond.
  • US purchasers of Australian goods. However, this will still have an impact on their Australian exporter and contracting parties who will now be obliged to provide the required data elements to their US clients (the ISF Importers) at an earlier stage.

However, anybody arranging for or carrying sea freight to be sent from anywhere in the world to the United States needs to observe the Rule.

Readers should be aware that the data submissions required under the Rule must be delivered to CBP by way of a CBP approved electronic data interchange system.

History of the Rule

As many would recollect, US CBP issued a Notice of Proposed Rule making in January of this year. Subsequently, CBP collected and evaluated approximately 200 public comments and made significant "enhancements" which are now contained in the Rule.

What are the current requirements?

At this stage, carriers are currently required to submit advanced cargo information to vessels no later than 24 hours before the cargo is laden aboard a vessel at a foreign port. This is commonly referred to as the "24 hour rule". Further, under existing arrangements, importers of record must file entry information with CBP within 15 calendar days of the date of arrival of a shipment at a United States port of entry. In addition, within 10 working days of the entry of the merchandise, entry summary information must be permitted. Importers currently have no advanced cargo reporting obligations.

What are the new requirements?

The reporting requirements will affect different parties in different ways.

Carrier Requirements

In addition to the existing arrangements under the 24 hour rule, the Rule requires carriers to submit the following additional information:

  • Vessel stow plan; and
  • Container status message.


Importers will face the majority of the new reporting in relation to shipments of goods to be entered into the United States and goods or to be delivered to an FTZ. Those data elements include.

  • Seller.
  • Buyer.
  • Importer of record number/FTZ applicant identification number.
  • Consignee number.
  • Manufacturer (or supplier).
  • "Ship to" party. " Country of origin; and
  • Commodity harmonised tariff schedule of the United States ("HTSUF").

According to the CBP, the Rule provides some flexibility in relation to four of these elements, being the manufacturer (or supplier), the "ship to" party, country of origin and HTSUF number. In those cases, the ISF must be updated as soon as more accurate reporting becomes available and no later than 24 hours prior to the ship's arrival at a US port.

The Rule will also need to include two additional data elements no later than 24 hours prior to the ship's arrival at a US port. Those data elements are the:

  • Container stuffing location; and
  • Consolidator.

"Cargo passing through"

Further, in relation to shipments consisting of entirely "Foreign Cargo Remaining on Board" and those for IE or T&E, importers must provide five elements no later than 24 hours before the cargo is laden aboard a vessel destined for the United States. That requires reporting of the following five data elements:

  • Booking party.
  • Foreign port of unloading.
  • Place of delivery.
  • "Ship to" party.
  • Commodity HTSUF number.

Introduction of the Rule – Time to act!

As discussed above, the Rule will come into effect from 23 January 2009. Failure to comply could permit the CBP to issue a "no load" directive stopping the shipment of goods. However, for a period of 12 months, the CBP will "show restraint" in enforcing the Rule taking into account the possible difficulty of parties in observing the Rule. At the same time, the CBP will conduct a review to determine any particular compliance difficulties. This could lead to adjustments to the Rule. However, the Rule remains in place and will need to be observed for those sending goods to the United States whether they be carriers or those treated as "Importers".

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.