ISF, POA and IOR basics

Three terms come up early when you import into the U.S.: ISF, POA, and IOR. The Importer of Record (IOR) is you — the party legally responsible for the import. A Power of Attorney (POA) is the form that authorizes a customs broker to file on your behalf. The Importer Security Filing (ISF) is a data filing U.S. Customs requires for ocean imports before the cargo is loaded. Here's how they fit together.

The Importer of Record is the party legally responsible for a shipment: for declaring the goods accurately, for the correctness of the information given to customs, and for paying duties, taxes, and fees.

• For most shipments you are the IOR, identified by your importer number — an IRS/EIN number for a company, or a Social Security Number for an individual importing in their own name.

• If you're a foreign importer without a U.S. presence, a U.S. party may need to act as the IOR or ultimate consignee — see Who to name as the consignee.

Warning: Being the IOR means the legal responsibility is yours, even when a broker or forwarder files for you. You're expected to take "reasonable care" to give customs accurate information. Errors — a wrong classification, an undervalued invoice — come back to the IOR.

A Power of Attorney is the document you sign to authorize a licensed customs broker to file entries and act with customs on your behalf. You stay the IOR; the POA just lets the broker do the filing work for you.

You'll typically sign a POA once when you start working with a broker, and it covers your ongoing shipments. It's a normal, routine part of setting up to import — not a transfer of your responsibility.

The Importer Security Filing, often called "10+2," is a filing U.S. Customs requires for ocean imports. It's the "10" data elements the importer provides plus the "2" the carrier provides, submitted to customs before the cargo is loaded onto the vessel at origin. It gives customs advance visibility to assess risk before goods head to the U.S.

Key points:

• Ocean only. ISF applies to ocean freight. Air imports don't require an ISF.

• Timing is strict. The filing is due before loading at origin — which means your broker needs the required details in good time, not at the last minute.

• Late or inaccurate filings can be penalized, so getting the data to your broker early matters.

For where ISF sits in the overall flow, see The customs clearance process.

You'll also hear about a customs bond in the same breath. A bond is a guarantee to customs that your duties and fees will be paid. It's generally required for commercial imports above a value threshold, and it can be a single-entry bond (one shipment) or a continuous bond (covers a year of shipments). If you import regularly, a continuous bond usually works out simpler and cheaper.

1. You are the IOR — legally responsible for the import.

2. You sign a POA so a customs broker can file for you.

3. A customs bond guarantees your duties and fees.

4. For ocean shipments, the broker files the ISF before the cargo loads.

5. The broker then files your entry and clears the goods — see The customs clearance process.

We help you get set up as an importer: arranging the POA with a licensed customs broker, putting the right customs bond in place, and filing your ISF on time for ocean shipments. To do that on schedule we need your shipment details early — the ISF deadline is before loading at origin, so last-minute information risks a late filing. Ask us before your first shipment and we'll walk you through what to sign and when.

• The customs clearance process

• Customs duties and HTS codes

• Customs exams and holds: what to expect

• Who to name as the consignee on your Bill of Lading

• Freight & shipping glossary