[Federal Register: June 2, 2008 (Volume 73, Number 106)]
[Rules and Regulations]
[Page 31547-31590]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02jn08-13]
[[Page 31547]]
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Part II
Department of Commerce
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Bureau of the Census
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15 CFR Part 30
Foreign Trade Regulations: Mandatory Automated Export System Filing for
All Shipments Requiring Shipper's Export Declaration Information; Final
Rule
[[Page 31548]]
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DEPARTMENT OF COMMERCE
Bureau of the Census
15 CFR Part 30
[Docket Number: 031009254-6014-03]
RIN 0607-AA38
Foreign Trade Regulations: Mandatory Automated Export System
Filing for All Shipments Requiring Shipper's Export Declaration
Information
AGENCY: Bureau of the Census, Commerce Department.
ACTION: Final rule.
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SUMMARY: The U.S. Census Bureau (Census Bureau) issues this final rule
to amend its regulations to implement provisions in the Foreign
Relations Authorization Act. Specifically, the Census Bureau is
requiring mandatory filing of export information through the Automated
Export System (AES) or through AESDirect for all shipments where a
Shipper's Export Declaration (SED) is required.
DATES: Effective Date: This rule is effective July 2, 2008.
Implementation Date: The Census Bureau will implement provisions of
this rule on September 30, 2008. This will allow all affected entities
sufficient time to come into compliance with this rule.
FOR FURTHER INFORMATION CONTACT: C. Harvey Monk, Jr., Assistant
Director for Economic Programs, U.S. Census Bureau, Room 8K108,
Washington, DC 20233-6010, by phone (301) 763-2932, by fax (301) 457-
3767, or by e-mail c.harvey.monk.jr@census.gov.
SUPPLEMENTARY INFORMATION:
Background
The Census Bureau is responsible for collecting, compiling, and
publishing export trade statistics for the United States under the
provisions of Title 13, United States Code (U.S.C.), Chapter 9, Section
301. The paper SED and the AES are the primary media used for
collecting export trade data, and such data is used by the Census
Bureau for statistical purposes only. The export trade data reported
pursuant to this Part is referred to as Electronic Export Information
(EEI). The SED and the EEI also are used for export control purposes
under Title 50, U.S.C., Export Administration Act, to detect and
prevent the export of certain items by unauthorized parties or to
unauthorized destinations or end users. This information is exempt from
public disclosure unless the Secretary of Commerce determines under the
provisions of Title 13, U.S.C., Chapter 9, Section 301(g), that such
exemption would be contrary to the national interest.
This rule provides that all export information for which an SED is
required be filed through the AES. The AES is an electronic method for
filing the paper SED information directly with the U.S. Customs and
Border Protection (CBP) and the Census Bureau. The AESDirect is the
Census Bureau's free Internet-based system for filing SED information
through the AES. Future references to the AES also shall apply to
AESDirect unless otherwise specified. In addition, with regards to
postdeparture filing, the Census Bureau and CBP have agreed that the
moratorium placed on Option 4 (postdeparture filing) in August 2003,
will remain in effect pending further review of the postdeparture
filing program.
Electronic filing strengthens the U.S. government's ability to
prevent the export of certain items by unauthorized parties to
unauthorized destinations and end users, because the AES aids in
targeting and identifying suspicious shipments prior to export and
affords the government the ability to significantly improve the
quality, timeliness, and coverage of export statistics. Since July
1995, the AES has served as an information gateway for the Census
Bureau and CBP to improve the reporting of export trade information,
customer service, compliance with and enforcement of export laws, and
to provide paperless reports of export information.
On November 29, 1999, the President signed into law the
Proliferation Prevention Enhancement Act of 1999, which authorized the
Secretary of Commerce to require the mandatory filing of items on the
Commerce Control List (CCL) and the U.S. Munitions List (USML).
Regulations implementing this requirement were effective October 2003
(see 68 FR 42533-42543). On September 30, 2002, the President signed
into law the Foreign Relations Authorization Act, Public Law 107-228.
This law authorized the Secretary of Commerce, with the concurrence of
the Secretary of State and the Secretary of Homeland Security, to
publish regulations in the Federal Register mandating that all persons
who are required to file export information via the SED under Chapter 9
of Title 13, U.S.C., file such information through the AES.
The Foreign Relations Authorization Act further authorized the
Secretary of Commerce to issue regulations regarding imposition of
penalties, both civil and criminal, for the delayed filing, failure to
file, false filing of export information, and/or using the AES to
further any illegal activity. The Act provided for administrative
proceedings for imposition of a civil penalty for violation(s) of
Public Law 107-228. Finally, the Act authorized the Secretary of
Commerce to designate employees of the Office of Export Enforcement of
the Department of Commerce (DOC) to conduct investigations and perform
the enforcement functions in Title 13, U.S.C., Chapter 9, and the
Commissioner of Customs to designate employees of the Customs Service
to enforce and conduct investigations under the same provisions. The
latter authority is now exercised by the U.S. Immigration and Customs
Enforcement (ICE) and CBP officials in the U.S. Department of Homeland
Security (DHS). In addition, by Memorandum of Understanding dated
September 25, 2005, the Secretary delegated the authority to enforce
sections 304 and 305 of Title 13, U.S.C., and 15 CFR, part 30 to the
Secretary of Homeland Security. Nothing in this rule is intended to
restrict the authority of DHS under Section 343 of the Trade Act of
2002.
In the February 17, 2005, Federal Register (70 FR 8200), the Census
Bureau published a Notice of Proposed Rulemaking (NPR) and request for
comments on the regulations implementing the mandatory requirement to
file export information through the AES or AESDirect for all shipments
where SED information is required. Public comments were requested
through April 18, 2005. A summary of comments received from the export
trade community and the Census Bureau's response to those comments are
presented in this rule.
Response to Comments
The Census Bureau received 45 letters and/or e-mails commenting on
the NPR published in the Federal Register on February 17, 2005, (70 FR
8200). All the letters and/or e-mails contained comments on two or more
issues. A summary of the comments and the Census Bureau's responses are
provided below.
The major concerns were as follows:
1. Clarify the filing requirement for Electronic Export Information
(EEI). Several commentors questioned whether the filing requirements
had changed under the mandatory AES versus filing the paper SED. In
addition, the commentors wanted clarification regarding the filing of
EEI for Puerto Rico and U.S. territories. The requirements for filing
EEI have not changed. All persons currently required
[[Page 31549]]
to file the SED will be required to file the same information through
the AES. The requirements to file EEI for goods shipped to the United
States from Puerto Rico, goods shipped to Puerto Rico from the United
States, and goods shipped to the U.S. Virgin Islands from the United
States or Puerto Rico, remain unchanged.
2. Status of the use of the External Transaction Number (XTN) and
the Internal Transaction Number (ITN). Commentors wanted clarification
on when the XTN and the ITN could be used under the new regulations.
Under the Final Rule, only the ITN is acceptable as the proof of filing
citation. The ITN confirms that the shipment information has been
accepted in the AES. The XTN will no longer be accepted as a proof of
filing.
3. Clarify the time frame for filing EEI. Commentors indicated they
were unclear about the time frames for filing in the AES. The time
frame varies according to method of transportation for predeparture
filing. For State Department USML shipments, refer to the International
Traffic in Arms Regulations (ITAR) (22 CFR 120-130), Sec. 123.22, for
the specific requirements concerning filing time frames. For non-USML
shipments, file the EEI as follows: (1) For vessel cargo, the U.S.
Principal Party in Interest (USPPI) or authorized agent shall file the
EEI as required by Sec. 30.6 and provide the filing citation or
exemption legend to the exporting carrier 24 hours prior to loading
cargo on the vessel at the U.S. port where the cargo is laden; (2) for
air cargo, the USPPI or authorized agent shall file the EEI as required
by Sec. 30.6 and provide the filing citation or exemption legend to
the exporting carrier, including air express couriers, no later than
two hours prior to the scheduled departure time of the aircraft; (3)
for truck cargo, the USPPI or authorized agent shall file the EEI as
required by Sec. 30.6 and provide the filing citation or exemption
legend to the exporting carrier no later than one hour prior to the
arrival of the truck at the U.S. border to go foreign; (4) for rail
cargo, the USPPI or authorized agent shall file the EEI as required by
Sec. 30.6 and provide the filing citation or exemption legend to the
exporting carrier no later then two hours prior to the time the cargo
arrives at the U.S. border to go foreign; (5) for mail and cargo
shipped by other methods, except pipeline exports, the USPPI or
authorized agent shall file the EEI as required by Sec. 30.6 and
provide the filing citation or exemption legend to the exporting
carrier no later than two hours prior to exportation; (6) for pipeline
exports, the USPPI or authorized agent shall file the EEI as required
by Sec. 30.6 and provide the filing citation or exemption legend to
the operator of the pipeline within four days following the end of each
calendar month; and, (7) for postdeparture filing, by approved USPPIs,
in accordance with Sec. 30.5(c), the USPPI or authorized agent shall
file the EEI as required by Sec. 30.6 and provide the filing citation
or exemption legend to the exporting carrier no later than ten calendar
days from the date of export.
4. Clarify Option 4 (Postdeparture) filing requirements. Commentors
wanted clarification regarding parties that would be approved for
postdeparture filing. In agreement with the Census Bureau and CBP, the
moratorium placed on Option 4 (postdeparture filing) on August 15, 2003
(see notice at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.census.gov/aes) will remain in effect pending
further review of the postdeparture filing program.
5. Amend the regulations to reduce or eliminate the $2,500
exemption level. Several commentors proposed that the Census Bureau
remove or reduce the current $2,500 exemption level. The Census Bureau
believes that removing the $2,500 exemption level for reporting would
substantially increase the reporting burden on the exporting community,
especially on small businesses. This change would increase the number
of shipments reported each month by approximately 4,000,000. In
addition, the Census Bureau and CBP do not have the resources to
process the additional workload.
6. Amend the downtime requirements. Commentors were concerned that
export shipments would be delayed if the AES became unavailable. The
Census Bureau has found that during its 12 years in operation, the AES
has demonstrated a high level of reliability in performance. The system
has been available to users 99 percent of the time. For this reason,
the Census Bureau has determined that mandatory filing through the AES
would not cause a substantial delay in export shipments. In the
unlikely event that the AES is unavailable, the filer of a USML
shipment shall not be allowed to export until the AES is operational
and the filer is able to acquire an ITN. See Sec. 30.4(b)(1) for more
information. For non-USML shipments, the regulation provides for a
downtime filing citation to allow goods to be exported. See Sec.
30.4(b)(2) for more information.
7. Clarify the requirements for power of attorney or written
authorization. Commentors were concerned that the language regarding
the requirement for power of attorney or written authorization was
drafted incorrectly. The Census Bureau reviewed the NPR regarding the
requirement and found an instance where it stated ``power of attorney
and written authorization,'' and it should read ``power of attorney or
written authorization.'' This language has been changed in the Final
Rule. In addition, a commentor questioned whether the language had been
changed regarding the power of attorney or written authorization
requirement. The Census Bureau did not change the language or the
requirement for power of attorney or the need for written authorization
that currently exists in the regulations.
8. Clarify manner in which fines and penalties will be enforced and
how a filer submits a voluntary self-disclosure. Several commentors
were concerned about which agency would enforce the penalty provisions
of the Foreign Trade Regulations (FTR). Pursuant to the authority in
Public Law 107-228, the Secretary of Commerce has delegated authority
for enforcement to the Bureau of Industry and Security's (BIS) Office
of Export Enforcement (OEE) and the DHS. The Census Bureau has worked
with CBP and the BIS to develop regulations implementing the process
and requirements for submitting a notification disclosing a violation
or suspected violation of the FTR. These regulations are found in
Subpart H, Sec. 30.74 Voluntary Self-Disclosure.
9. Amend a number of definitions in the definition section of the
proposed rule. Several commentors proposed changes to definitions
contained in the NPR. The Census Bureau revised the following
definitions in Sec. 30.1:
Booking. The Census Bureau revised this definition to add ``truck
and train'' as methods of transportation. The Census Bureau made this
revision as a result of public comments.
Carrier. The Census Bureau deleted ``non-vessel operating common
carriers'' because a commentor felt that the term could cause confusion
and the Census Bureau agreed.
Commerce Control List (CCL). The Census Bureau revised the
definition to provide the location of CCL items in the Export
Administration Regulations (EAR).
Commodity. The Census Bureau deleted this term and the
corresponding definition because commentors indicated that it was too
general.
Domicile. The Census Bureau deleted this term because it is no
longer used in the FTR.
Exceptions. This term was changed to ``license exception'' and
moved accordingly.
[[Page 31550]]
Exclusions. The Census Bureau added this definition as a result of
comments that requested clarification of this term.
Export Control Classification Number (ECCN). This definition was
revised to clarify the description and purpose of this number.
Filers. The Census Bureau added this definition as a result of
comments that requested clarification of this term.
Filing Electronic Export Information. The Census Bureau added this
definition as a result of comments that requested clarification of this
term.
Foreign Entity. The Census Bureau added this definition as a result
of comments that requested clarification of this term.
Foreign Principal Party in Interest (FPPI). The Census Bureau
revised this definition because it was inconsistent with the
regulations defining the responsibilities of the parties to an export
transaction. Therefore the Census Bureau revised this definition to
ensure clarity.
Merchandise. The Census Bureau revised this term and corresponding
definition in accordance with industry standards as commentors
indicated that it was too general.
Service Center. The Census Bureau added this definition as a result
of comments that requested clarification of this term.
Transmitting Electronic Export Information. The Census Bureau added
this definition as a result of comments that requested clarification of
this term.
Ultimate Consignee. The Census Bureau revised this definition to
expand the definition of ultimate consignee to also include a party or
designee that is located abroad and actually receives the export
shipment. The definition was also revised to provide examples of the
ultimate consignee. The Census Bureau revised the definition as a
result of comments that indicated that the definition was inaccurate.
Violation of the FTR. The Census Bureau added this definition to
clarify what constitutes a violation.
10. Amend the proposed rule to make it a requirement that the agent
of FPPI provides the USPPI with a copy of the power of attorney or
written authorization from the FPPI. Commentors were concerned about
the requirement to provide information to an agent of the FPPI in a
routed export transaction. The Census Bureau has revised Sec.
30.3(e)(2) of the FTR to require the agent of the FPPI, upon request,
to provide the USPPI with a copy of power of attorney or the written
authorization giving the agent the authority to file the EEI on behalf
of the FPPI before the USPPI provides the required information
necessary to complete the EEI filings.
11. Clarify whether an export license or license exemption is
required for exports from U.S. territories. Also clarify whether paper
SEDs are required by CBP for items that are controlled by the
Department of State or the BIS. The commentor's request for
clarification on whether an export license or license exemption or
items that are controlled by the Department of State or the BIS is
required for export from U.S. territories is outside the scope of the
Foreign Trade Regulations. The commentor's question should be addressed
to the Department of State and the BIS. Neither the Census Bureau nor
CBP requires EEI or a paper SED for goods shipped from U.S. territories
including, Guam Island, American Samoa, Wake Island, Midway Island, and
the Northern Mariana Islands to foreign countries or areas and goods
shipped between the United States and these territories.
12. Amend the proposed rule to address the treatment of split
shipments by air. Several commentors were concerned about having to
identify the piece count details of shipments that are split among
multiple flights. The commentors indicated that the regulations
regarding the treatment of split shipments by air would have a
substantial impact on air carriers. Commentors provided no further
information. The Census Bureau reviewed this section of the NPR and
found that the requirement was not changed from the previous
regulations and remains appropriate. This requirement has existed for
more than 20 years.
13. Amend the proposed rule to relax the security requirements
regarding reporting computer viruses and the requirement that the AES
Administrator change administrator codes or passwords for security
purposes when employees leave the company. Several commentors were
concerned that these requirements would be a burden to the AES filers.
The requirement to notify the Census Bureau Foreign Trade Division's
Security Officer when a virus infection occurs only applies to systems
connected to the AESDirect. This procedure is a security requirement
for the purpose of maintaining the federal government's system
certification for AESDirect. The requirement to change the password
when an employee leaves the company only applies to employees leaving
the company who had direct access to the AES Sec. 30.5(d)(2). This is
not a new requirement and remains appropriate.
14. Amend the regulations by dropping Subpart F--Import
Requirements. One commentor believes that having import regulations in
15 CFR 30, and also in 19 CFR is confusing to the trade. More than one
federal agency has jurisdiction over imports, therefore, it is
appropriate for regulations to exist in more than one place. While CBP
regulations (19 CFR) cover most of the requirements for filing import
information, there are additional statistical requirements specific to
the Census Bureau that are found in the FTR (15 CFR) and that are not
the subject of CBP regulations.
15. Amend the proposed rule Sec. 30.52--Foreign Trade Zones (FTZ).
Commentors are concerned that language in Sec. 30.52 did not describe
some of the activities of FTZs. The Census Bureau reviewed the proposed
language changes and replaced the word ``enter'' with ``are admitted
into'' in the introductory paragraph and the word ``mode'' with
``method'' in Sec. 30.52(h) to more accurately reflect the activities
of the zones.
16. Create a registration number to be used in place of the
Employer Identification Number (EIN) or Social Security Number (SSN). A
commentor was concerned about providing the EIN or SSN to a FPPI's
agent or placing the EIN or SSN on the proof of filing citation. The
Census Bureau agrees that a registration number should be created so
that filers', USPPI's, or agents' EIN or SSN can be kept confidential.
The Census Bureau is currently working with CBP to develop a system
that allows the reporting of registration numbers, and will address
this issue in a future rulemaking.
17. Clarify the filing of foreign waterborne in-transit shipments
by the U.S. Army Corps of Engineers. A commentor believes that the U.S.
Army Corps of Engineers should not be responsible for reporting EEI on
export of in-transit shipments. Previously, the Census Bureau, the U.S.
Army Corps of Engineers, and the Maritime Administration jointly
collected in-transit information for vessel shipments. This joint
collection activity dates back to 1948, with the Census Bureau
designated as the primary collection agency. In 1996, under joint
agreement among the Census Bureau, U.S. Army Corps of Engineers, the
Maritime Administration, and the Office of Management and Budget (OMB),
the U.S. Army Corps of Engineers was designated the primary data
collection agency for vessel in-transit data. Thus, it is the
responsibility of the U.S. Army Corps of Engineers to collect data
regarding vessel in-transit shipments leaving the United States. This
does not, however, affect or alter the
[[Page 31551]]
responsibility of USPPIs and others to comply with other agency in-
transit requirements such as those required by CBP. (See e.g., 19 CFR
18)
18. Redesign the Vessel Transportation Module (VTM) of the AES to
allow paperless submissions of proof of filing citations and exemption
legends and revise the FTR to require the paperless submission of the
proof of filing citation and exemption legends. Several commentors from
the vessel shipping lines wanted to submit electronic manifests and
wanted to receive the proof of filing citation and exemption legends
from the filers electronically. The Census Bureau determined that this
proposal would require a significant redesign of the AES, VTM, and the
AES Commodity Module, and would likely need to be developed as a part
of CBP's Automated Commercial Environment development. At this time,
neither CBP nor the Census Bureau has the resources available to
implement this proposal. Until the implementation of a system that has
the capability described by the commentor, the AES will continue to
require the filer to provide the vessel carriers with the proof of
filing citations or the exemption legends.
19. Clarify the retention of export information and the authority
to require proof of documentation of EEI. Several commentors indicated
that the requirements of Sec. 30.10 were unclear. The Census Bureau
agreed, and the section was completely revised to clarify the
requirements for retaining export information and to eliminate the
requirement to retain paper certification notices. In the course of
clarifying this section, the Census Bureau determined that it was not
necessary for filers to retain paper copies of certain documents. In
order to reduce the recordkeeping burdens on filers, the Census Bureau
eliminated the requirement that AES filers retain a paper copy of the
Letter of Intent to participate in the AES and the requirement that
AESDirect and/or AESPcLink filers print and maintain a copy of their
electronic certification notice. In addition, the Census Bureau
modified this section to add a note describing its responsibilities
with respect to the retention and maintenance of EEI.
20. Amend the rule to provide exemption from filing EEI for
temporary exports including carnets. Several commentors believe that
the regulation should state that temporary exports are exempt from
filing. The Census Bureau's regulations have always exempted temporary
exports, such as carnets, from filing requirements. However, the Census
Bureau agrees that carnets should be expressly stated in regulations
and thus it has been added to that exemption in Sec. 30.37. However,
temporary exports that require an export license, temporary exports
destined for a country listed in Country Group E:1 as set forth in
Supplement 1 to 15 CFR 740, or an ITAR licensing exemption are not
exempt.
21. Amend the filing citation and exemption legend requirements.
Several commentors requested changes in language with respect to the
filing citations and exemption legends requirement because it was
inconsistent with industry practice. The Census Bureau made several
changes to the language to reflect industry practice with respect to
who must provide exemption legends (see Sec. 30.7).
22. Clarify the procedures for responding to fatal error messages
when filing postdeparture. A commentor stated that Sec. 30.9(b) did
not take postdeparture filing into account. The Census Bureau has
reviewed the section and has revised the Final Rule to address
postdeparture filings. If a filer encounters a fatal error when filing
a postdeparture shipment, the filer must resubmit the EEI no later than
ten calendar days after export.
23. Clarify that estimated date of departure can be used if the
actual date of departure is not known. A commentor was concerned that
sometimes the filer may not know the actual date of departure. The
Census Bureau acknowledges that there are times when the filer may not
know the actual date of departure. In these instances, the filer may
provide an estimated departure date. However, it is the USPPI's or the
authorized filing agent's responsibility to transmit accurate export
information as known at the time of filing in the AES and transmit any
changes to that information as soon as they are known.
24. Clarify whether export shipments to Mexico and Canada must be
filed in AES. A commentor questioned whether SEDs are required to be
filed for shipments destined to Canada and Mexico. All export shipments
to Mexico valued over $2,500 or shipments that require an export
license, a license exemption, or a Kimberley Process Certificate for
rough diamonds classified under the 6-digit Harmonized Schedule
subheadings 7102.10, 7102.21, and 7102.31, are required to be reported
in the AES. Export shipments to Canada are not required to be filed
through the AES, unless they require an export license, a license
exemption, or a Kimberley Process Certificate for rough diamonds
classified under the 6-digit Harmonized Schedule subheadings 7102.10,
7102.21, and 7102.31. See Sec. Sec. 30.2(a) and 30.36.
25. Amend the proposed rule regarding the annotation of proof of
filing citations, 15 CFR Sec. 30.7. A commentor requested that the
Census Bureau limit the length of the AES downtime filing citation to
no more than 32 characters. The Census Bureau acknowledges that the
filing citation may be lengthy, and thus may result in mistakes.
Therefore, the Census Bureau has removed the ``shipment reference
number'' from the downtime citation to make the AES downtime filing
citation less than 32 characters.
26. Amend Sec. 30.7 Annotating Proof of Filing Citation. The
commentor requested that the Census Bureau amend the regulations to
define the difference between an authorized agent and an exporting
carrier when both roles are fulfilled by the same, affiliated, or
controlled subsidiary legal entity. The Census Bureau reviewed the
request and Sec. 30.7 was revised to define the different roles of
authorized agents and carriers.
27. Clarify that intangible exports of software and technology are
exempt from the EEI requirements. A commentor requested that the Census
Bureau confirm that EEI is not required for intangible exports of
software and technology. The Census Bureau's FTR does not require the
reporting of intangible exports of software and technology. However,
the Department of State, and/or the DOC may require separate filings
for intangible exports of software and technology and technical data
that require a license. The Census Bureau recommends that the
Department of State and DOC be contacted regarding their specific
licensing requirements.
28. Amend the proposed rule by removing the carrier name and
Standard Carrier Alpha Code (SCAC) as data elements. One commentor
requested that carrier name and SCAC be removed as data elements. The
Census Bureau is unable to discontinue collection of these data
elements because each remains a statistical and enforcement
requirement.
29. Amend the proposed rule regarding responsibilities in a routed
export transaction. A commentor requested language be added to Sec.
30.3(e), ``Parties are free to structure transactions as they wish and
to delegate functions and tasks as they deem necessary, as long as the
transactions comply with the FTR.'' The Census Bureau considered the
proposal and decided that the addition of the proposed language would
create confusion rather than clarity. In a routed
[[Page 31552]]
export transaction the authorized agent of the FPPI shall be
responsible for filing the EEI accurately and timely in accordance with
the FTR.
30. Amend the rule by adding a note to Sec. 30.3. A commentor
requested that the Census Bureau revise the FTR to be consistent with
the EAR. The Census Bureau added a note to Sec. 30.3 to alert filers
that the definition used for exporter in the EAR is different from the
definition used for the USPPI in the FTR because of each agency's
distinct obligations and requirements. Therefore, due to the different
mission of each agency, conformity of documentation is not required in
the FTR.
31. Amend the proposed rule, Sec. 30.37(a)--Miscellaneous
Exemptions. A commentor requested that the Census Bureau confirm if the
miscellaneous exemption for goods valued $2,500 or less can be used if
the domestic value and the foreign value are each under $2,500, even if
their total value exceeds $2,500. The Census Bureau's FTR requires that
items of domestic or foreign origin under the same commodity
classification number should always be reported separately and listed
only if either is valued over $2,500.
Changes to the Proposed Rule Made by This Final Rule
After consideration of the comments received, the Census Bureau
revised certain provisions and added several provisions in the Final
Rule to address the concerns of the commentors and to clarify the
requirements of the rule. The changes made in this Final Rule are as
follows:
1. Section 30.2(a)(ii) is amended to clarify that goods previously
admitted to customs warehouses or FTZs moving under CBP bond between
Puerto Rico and United States and to the U.S. Virgin Islands from the
United States or Puerto Rico shall require filing EEI. This change is
in response to concerns addressed in item 15 in the ``Response to
Comments'' section.
2. Section 30.2(a)(iv) is amended to clarify exemptions in Subpart
D by deleting (A), specific references to Office of Foreign Assets
Control regulations, renumbering existing (B) through (E) to (A)
through (D), and adding a new (E) to clarify a BIS requirement. This
change was made to provide clarity and consistency.
3. Section 30.2(d)(2) is amended by deleting ``* * * when an export
license or license exemption is not required,'' because currently no
export license is required for the following U.S. territories: Guam
Island, American Samoa, Wake Island, Midway Island, and the Northern
Mariana Islands. This change was in response to concerns addressed in
item 11 in the ``Response to Comments'' section.
4. In response to item 20 in the ``Response to Comments'' section,
Sec. 30.3(b)(2)(iv) is deleted because it relates to an exemption for
reexports that is addressed in Sec. 30.37. Section 30.3(b)(2)(v) is
renumbered Sec. 30.3(b)(2)(iv). A new Sec. 30.3(b)(2)(v) has been
added to provide clarification on who shall be the USPPI when goods are
imported for consumption and reexported without being changed or
enhanced. This change was made during internal agency review.
5. Section 30.3(e)(1) is amended to clarify the language describing
the treatment of a routed export transaction if the FPPI agrees to
allow the USPPI to file EEI. This change is in response to concerns
addressed in item 10 in the ``Response to Comments'' section. Also,
Sec. 30.3(e)(1) is amended by adding a note to paragraph (e)(1) that
was inadvertently dropped in the proposed rule.
6. Section 30.3(e)(2) is amended to clarify the authorized agents
responsibilities in a routed export transaction. This change is in
response to concerns addressed in item 10 in the ``Response to
Comments'' section.
7. Section 30.3(e)(2)(xiii) and (xiv) is amended by adding a
clarifying note to this paragraph that was inadvertently dropped in the
proposed rule. This change was made to provide clarity and consistency.
8. Section 30.3(e)(1) is amended by adding a clarifying note to
this section that was inadvertently dropped in the proposed rule. This
change is in response to concerns addressed in item 29 in the
``Response to Comments'' section.
9. Section 30.3(f) is amended to clarify that in a routed export
transaction the USPPI is not required to provide the agent of the FPPI
with a power of attorney or written authorization. This change is in
response to concerns addressed in item 10 in the ``Response to
Comments'' section.
10. Section 30.6(a)(18) is amended by deleting shipments under
carnet from the list of export codes. This listing of carnets in the
export codes was in error. This change is made to ensure consistency
with the response to concerns addressed in item 20 in the ``Response to
Comments'' section.
11. Section 30.6(b)(13) is amended to specify that an entry number
is required for goods withdrawn from a FTZ and exported. This change is
in response to concerns addressed in item 15 in the ``Response to
Comments'' section.
12. Section 30.10 is amended to clarify the requirements for the
retention of EEI and the authority to require production of
documentation of EEI. This change is in response to concerns addressed
in item 19 in the ``Response to Comments'' section.
13. Section 30.37 is amended by adding exemptions (q), (r), (s),
and (t) that were not included in the proposed rule. This change was
made to provide clarity and consistency.
14. Section 30.4(b)(2)(i) is amended to read: ``(i) For vessel
cargo, the USPPI or authorized agent shall file the EEI required by
Sec. 30.6 and provide the filing citation or exemption legend to the
exporting carrier 24 hours prior to the cargo being loaded on the
vessel at the U.S. port where the cargo is laden.'' This change is in
response to concerns addressed in item 21 in the ``Response to
Comments'' section.
15. Section 30.4(b)(2)(iv) is amended to read: ``(iv) For rail
cargo, the USPPI or the authorized agent shall file the EEI, required
by Sec. 30.6, and provide the filing citation or exemption legend to
the exporting carrier no later than two hours prior to the time train
arrives at the U.S. border to go foreign.'' This change is in response
to concerns addressed in item 21 in the ``Response to Comments''
section.
16. Section 30.45(a) is amended by deleting ``* * * U.S.
possessions'' and replacing it with ``the U.S. Virgin Islands.'' The
reference to U.S. territories was too broad. Also language was added to
clarify that CBP may require a variety of documents, depending upon the
method of transportation, to contain the proof of filing citation or
exemption legend. This change is in response to concerns addressed in
item 21 in the ``Response to Comments'' section.
17. Section 30.45(f) is amended to clarify by method of
transportation when the carrier must obtain the filing citations or
exemption legends. This change is in response to concerns addressed in
item 21 in the ``Response to Comments'' section.
18. Section 30.37 is amended to include carnets as temporary
exports that should have been included in the proposed rule. This
change is in response to concerns addressed in item 20 in the
``Response to Comments'' section.
19. Section 30.71(b)(1) is amended by adding a note to paragraph
(b)(1), which notes an inflation adjustment to penalty provision of
Subpart H. This change was made as a result of the Adjustment for
Inflation Final Rule effective December
[[Page 31553]]
14, 2004, and provided for by the Debt Collection Improvement Act of
1996, Public Law 104-134.
20. Subpart H is amended by adding Sec. 30.74, Voluntary Self-
Disclosure, to specify how to disclose violations or suspected
violations of the FTR. This change is in response to concerns addressed
in item 8 in the ``Response to Comments'' section.
21. Sections 30.2(c)(1), 30.5(a), and 30.5(c) are amended to
clarify that the letter of intent to participate in AES must be filed
electronically at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.aesdirect.gov. This change was made to eliminate
the requirement to submit the paper letter of intent and to be
consistent with a pure electronic environment because filing the
information electronically reduces the burden on both trade and the
government.
22. Section 30.1 is amended to clarify a number of definitions.
These changes are in response to concerns addressed in item 9 in the
``Response to Comments'' section.
23. Section 30.5(d)(1) is amended to clarify that the requirement
to change password only applies to employees leaving the company that
had direct access to the AES. This change is in response to concerns
addressed in item 13 in the ``Response to Comments'' section.
24. Section 30.9(b) is amended to clarify that fatal errors for EEI
filed postdeparture must be corrected as soon as possible, but no later
than ten days after departure if filed postdeparture. This change is in
response to concerns addressed in item 22 in the ``Response to
Comments'' section.
25. Section 30.7 is amended by deleting the filing citation from
the section and adding an Appendix D to Part 30 AES Filing Citation,
Exemption and Exclusion Legends. In addition, the Census Bureau limited
the length of the AES downtime filing citation to no more than 32
characters. These changes were in response to concerns addressed in
item 25 of the ``Response to Comments'' section and to provide clarity
and consistency.
26. Appendix A to Part 30--Format for Letter of Intent has been
removed. The Appendix B sample of Power of Attorney and written
authorization has been renamed A.
27. Appendix B to Part 30--AES Filing Codes have been added to
provide one reference for all the filing codes.
28. Appendix C to Part 30--Summary of Exemptions and Exclusions
from EEI filing is being added to provide a summary of all FTR
exemptions and exclusions.
29. Appendix D to Part 30--AES Filing Citation, Exemption and
Exclusion Legends are being added to provide a summary of all citations
and legends.
30. Appendix E to Part 30--FTSR to FTR Concordances are being added
to provide a crosswalk between the FTSR and FTR.
31. Appendix F to Part 30--FTR to FTSR Concordances are being added
to provide a crosswalk between the FTR and FTSR.
Program Requirements
To comply with the requirements of Public Law 107-228, the Census
Bureau is amending in its entirety the FTSR to specify the requirements
for the mandatory reporting of all export information through the AES
when a SED was required. All future references to the SED shall be
referred to as AES EEI.
The Census Bureau is making the following changes to Title 15, Code
of Federal Regulations (CFR), part 30:
Rename the FTSR to ``Part 30--Foreign Trade Regulations''
to more accurately reflect the scope of the revised regulations
implementing full mandatory AES filing, such as the inclusion of
Department of State requirements and the advanced filing requirement
implemented by CBP.
Remove requirements for filing a paper SED (Option 1),
Commerce Form 7525-V, from Title 15 CFR 30, so that the AES will be the
only mode for filing information previously required by the SED.
Remove requirements for filing the in-transit SED, ENG
Form 7513, from 15 CFR 30. Responsibility for ENG Form 7513 was
transferred to the U.S. Department of the Army, U.S. Army Corps of
Engineers.
In Sec. 30.2(a)(2), language was included to specify the
four optional means for filing EEI. Two of those methods require the
development of AES software using the Automated Export System Trade
Interface Requirements (AESTIR).
Section 30.2(d), lists types of export transactions
outside the scope of the FTR. The list of out-of-scope transactions
included in Sec. 30.2(d) is not all-inclusive, but includes those
types of shipments about which the Census Bureau receives frequent
inquiries. These types of shipments are to be excluded from EEI filing.
In Sec. 30.3, language was included to specify that in a
``routed'' transaction, the USPPI can compile and transmit export
information on behalf of the FPPI when agreed upon by the FPPI. This
language is consistent with the language of Sec. 758.3 of the EAR and
permits the USPPI to act as an agent of the FPPI upon the written
authorization by the FPPI.
In Sec. 30.4, the time and place-of-filing requirements
for presenting proof of filing citations, postdeparture filing
citations, and/or exemption legends are specified. Specific time and
place-of-filing requirements are included in the FTR in accordance with
provisions of Sec. 341(a) of Public Law 107-210, the Trade Act of
2002. With the exception of the State Department, USML shipments under
the control of the ITAR and shipments approved for postdeparture
filing, the appropriate proof of filing citations and/or exemption
legends are required to be provided to the exporting carrier within
specified time frames depending on the mode of transportation used. For
example, proof of filing citations for vessel cargo shall be provided
to the exporting carrier no later than 24 hours prior to departure of
the vessel from the U.S. port where the cargo is laden. Time and place-
of-filing requirements for other modes of transportation also are
presented in Sec. 30.4 of the FTR.
In Sec. 30.4(b)(1) and Sec. 30.4(b)(3) specify how to
file EEI and acquire an ITN when AES, AESDirect or the participant's
AES is unavailable for filing.
In Sec. 30.5(c), the postdeparture (formerly Option 4)
approval procedures were removed. Certification and approval
requirements for postdeparture filing of EEI were strengthened to
address U.S. national security concerns and interests. Applications
submitted by USPPIs for postdeparture filing will be subjected to
closer scrutiny by the Census Bureau and other federal government
partnership agencies participating in the AES postdeparture filing
review process. Under the revised postdeparture filing requirements:
(1) Authorized agents may no longer apply for postdeparture filing
status on behalf of individual USPPIs. Only USPPIs may apply; (2)
USPPIs must demonstrate the ability to meet the AES predeparture filing
requirements by filing EEI through the AES before being approved for
the postdeparture filing privilege; (3) USPPIs must meet a minimum
number of shipments requirement before being authorized to file
postdeparture; and (4) partnership agencies of the U.S. government
shall determine whether or not a USPPI poses a significant threat to
U.S. national security before granting the applicant postdeparture
filing status.
In Sec. 30.6, language was added delineating the specific
procedure for reporting the value of goods to the AES when inland
freight and insurance
[[Page 31554]]
charges are not known at the time of exportation. When goods are sold
at a point other than the port of export, freight, insurance, and other
charges required to move the goods from their U.S. point of origin to
the carrier at the port of export must be added to the selling price
(or cost, if not sold) of the goods. Where the actual amount of
freight, insurance, and other domestic charges are not available, an
estimate of the domestic cost must be made and added to the cost or
selling price of the goods to obtain the value to be reported to the
AES.
In Sec. 30.6, a Routed Export Transaction Indicator and a
Vehicle Identification Qualifier were added to the list of data
elements to be reported through the AES. Both the Routed Export
Transaction Indicator and the Vehicle Identification Qualifier indicate
the conditions of other data elements reported to the AES. The Routed
Export Transaction Indicator gives an indication of whether or not the
EEI reported represents a routed export transaction. The Vehicle
Identification Qualifier, when reported, identifies the type of vehicle
number reported.
In Sec. 30.6, the Date of Arrival and the Waiver of Prior
Notice Indicator were removed from the list of data elements that
should be reported through the AES. These data elements were previously
required to overcome disparities in reporting requirements for certain
export shipments sent between the United States and Puerto Rico. With
mandatory AES reporting, the Date of Arrival and Waiver of Prior Notice
Indicator are no longer required, since shipments sent between the
United States and Puerto Rico will no longer be reported differently
from other export shipments.
Subpart B sets forth export control and export licensing
issues relevant to 15 CFR 30. This subpart adds references to export
control and licensing requirements of the Department of State and other
federal agencies. General guidelines for obtaining export control and
licensing information also are presented for use by preparers and
filers of EEI. The purpose of this subpart is to consolidate references
to export control issues. No new requirements are introduced.
In Sec. 30.29, the language that describes the proper
manner for reporting cost of repairs and/or alterations to goods, and
the reporting of the value of replacement parts exported was revised.
The FTSR did not specifically describe the manner in which these export
transactions should be reported. Goods previously imported for repair
and alteration only, and reexported, shall only include the value for
parts and labor. Goods exported as replacement parts shall only include
the value of the replacement part. No new requirements are specified in
Sec. 30.29.
Subpart E sets forth carrier and manifest issues
pertaining to provisions relevant to 15 CFR 30. Carrier and manifest
issues are consolidated in Subpart E. Requirements for SEDs being
attached to the manifest are replaced with requirements for proof of
filing citations and/or exemption legends to be shown on the bill of
lading, air waybill, or other commercial loading documents attached to
the manifest. Specific requirements for annotating the bill of lading,
air waybill, or other commercial loading documents are included in
Sec. 30.7, Subpart A of Part 30.
Subpart F sets forth requirements for import shipments
relevant to 15 CFR 30, including requirements for the electronic filing
of statistical data for shipments imported into FTZs. Currently,
requirements for electronically reporting FTZ admissions are included
in the Census Bureau's ``Automated Foreign Trade Zone Reporting
Program'' manual. Instructions to import filers on where to obtain
information on reporting import data are added to Subpart F.
Requirements for information on imports of goods into Guam are excluded
from the FTR since Guam collects its own information on goods entering
and leaving the area.
A new Subpart H was created to cover the FTR penalty
provisions formerly addressed in Sec. 30.95 of the FTSR. New penalty
provisions addressed in Subpart H of this part describe the increase in
penalties imposed for violations from $100 to $1,000 for each day of
delinquency, to a maximum from $1,100 to $10,000 per violation. In
addition, the penalty provisions provide for situations when the filer
knowingly fails to file, files false and/or misleading information and
other violations of the FTR where a civil penalty shall not exceed
$10,000 per violation and a criminal penalty shall not exceed $10,000
or imprisonment for no more than five years, or both, per violation.
Finally, Subpart H provides for the enforcement of these penalty
provisions by the BIS' Office of Export Enforcement (OEE) and the DHS's
CBP, and ICE.
Other nonsubstantive revisions were made to include
language incorporated from the FTSR to clarify the intent of the
provisions in the FTR.
The Department of State and DHS concur with the provisions
contained in this Final Rule.
Rulemaking Requirements
Regulatory Flexibility Act
The Chief Counsel for Regulation of the DOC certified to the Chief
Counsel for Advocacy of the Small Business Administration (SBA) that
this rule will not have a significant impact on a substantial number of
small entities. The factual basis for this certification was published
in the proposed rule and is not repeated here. No comments were
received regarding the economic impact of this rule. As a result, a
final regulatory flexibility analysis is not required and none was
prepared.
Executive Orders
This rule has been determined to be not significant for purposes of
Executive Order 12866. It has been determined that this rule does not
contain policies with Federalism implications as that term is defined
under Executive Order 13132.
Paperwork Reduction Act
Notwithstanding any other provision of law, no person is required
to respond to, nor shall a person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of the Paperwork Reduction Act (PRA), unless that collection of
information displays a current, valid OMB control number. This rule
contains a collection-of-information subject to the requirements of the
PRA (44 U.S.C. 3501 et seq.) and that has been approved under OMB
control number 0607-0152. The estimated burden hours for filing the SED
information through the AES and related documents (e.g., the AES
Participant Application (APA) and AESDirect) are 752,000. In addition,
this rule contains a collection of information that has been approved
under OMB control numbers: OMB No. 1651-0022 (Entry Summary--CBP-7501),
OMB No. 1651-0027 (Record of Vessel, Foreign Repair, or Equipment--CBP-
226), and OMB No. 1651-0029 (Application for Foreign Trade Zone
Admission and Status Designation--CBP-214). The public's reporting
burden for the collection-of-information requirements includes the time
for reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing the
collection-of-information requirements.
List of Subjects in 15 CFR Part 30
Economic statistics, Exports, Foreign trade, Reporting and
recordkeeping requirements.
[[Page 31555]]
0
For the reason stated in the preamble, the Census Bureau revises 15 CFR
part 30 to read as follows:
PART 30--FOREIGN TRADE REGULATIONS
Subpart A--General Requirements
Sec.
30.1 Purpose and definitions.
30.2 General requirements for filing Electronic Export Information
(EEI).
30.3 Electronic Export Information filer requirements, parties to
export transactions, and responsibilities of parties to export
transactions.
30.4 Electronic Export Information filing procedures, deadlines, and
certification statements.
30.5 Electronic Export Information filing application and
certification processes and standards.
30.6 Electronic Export Information data elements.
30.7 Annotating the bill of lading, air waybill, or other commercial
loading documents with the proof of filing citations, and exemption
legends.
30.8 Time and place for presenting proof of filing citations, and
exemption and exclusions legends.
30.9 Transmitting and correcting Electronic Export Information.
30.10 Retention of export information and authority to require
production of documents.
30.11-30.14 [Reserved]
Subpart B--Export Control and Licensing Requirements
30.15 Introduction.
30.16 Export Administration Regulations.
30.17 Customs and Border Protection regulations.
30.18 Department of State regulations.
30.19 Other federal agency regulations.
30.20-30.24 [Reserved]
Subpart C--Special Provisions and Specific-Type Transactions
30.25 Values for certain types of transactions.
30.26 Reporting of vessels, aircraft, cargo vans, and other carriers
and containers.
30.27 Return of exported cargo to the United States prior to
reaching its final destination.
30.28 ``Split shipments'' by air.
30.29 Reporting of repairs and replacements.
30.30-30.34 [Reserved]
Subpart D--Exemptions From the Requirements for the Filing of
Electronic Export Information
30.35 Procedure for shipments exempt from filing requirements.
30.36 Exemption for shipments destined to Canada.
30.37 Miscellaneous exemptions.
30.38 Exemption from the requirements for reporting complete
commodity information.
30.39 Special exemptions for shipments to the U.S. Armed Services.
30.40 Special exemptions for certain shipments to U.S. government
agencies and employees.
30.41-30.44 [Reserved]
Subpart E--General Carrier and Manifest Requirements
30.45 General statement of requirement for the filing of carrier
manifests with proof of filing citations for the electronic
submission of export information or exemption legends when
Electronic Export Information filing is not required.
30.46 Requirements for the filing of export information by pipeline
carriers.
30.47 Clearance or departure of carriers under bond on incomplete
manifests.
30.48-30.49 [Reserved]
Subpart F--Import Requirements
30.50 General requirements for filing import entries.
30.51 Statistical information required for import entries.
30.52 Foreign Trade Zones.
30.53 Import of goods returned for repair.
30.54 Special provisions for imports from Canada.
30.55 Confidential information, import entries, and withdrawals.
30.56-30.59 [Reserved]
Subpart G--General Administrative Provisions
30.60 Confidentiality of Electronic Export Information.
30.61 Statistical classification schedules.
30.62 Emergency exceptions.
30.63 Office of Management and Budget control numbers assigned
pursuant to the Paperwork Reduction Act.
30.64-30.69 [Reserved]
Subpart H--Penalties
30.70 Violation of the Clean Diamond Trade Act.
30.71 False or fraudulent reporting on or misuse of the Automated
Export System.
30.72 Civil penalty procedures.
30.73 Enforcement.
30.74 Voluntary self-disclosure.
30.75-30.99 [Reserved]
Appendix A To Part 30--Sample for Power of Attorney and Written
Authorization
Appendix B To Part 30--ES Filing Codes
Appendix C To Part 30--Summary of Exemptions and Exclusions from EEI
filing
Appendix D To Part 30--AES Filing Citation, Exemption and Exclusion
Legends
Appendix E To Part 30--FTSR to FTR Concordance
Appendix F To Part 30--FTR to FTSR Concordance
Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization plan
No. 5 of 1990 (3 CFR 1949-1953 Comp., p.1004); Department of
Commerce Organization Order No. 35-2A, July 22, 1987, as amended and
No. 35-2B, December 20, 1996, as amended; Public Law 107-228, 116
Stat. 1350.
Subpart A--General Requirements
Sec. 30.1 Purpose and definitions.
(a) This part sets forth the Foreign Trade Regulations (FTR) as
required under the provisions of Title 13, United States Code (U.S.C.),
Chapter 9, section 301. These regulations are revised pursuant to
provisions of the Foreign Relations Authorization Act, Public Law 107-
228 (the Act). This Act authorizes the Secretary of Commerce, with the
concurrence of the Secretary of State and the Secretary of Homeland
Security, to publish regulations mandating that all persons who are
required to file export information under Chapter 9 of 13 U.S.C., file
such information through the Automated Export System (AES) for all
shipments where a Shipper's Export Declaration (SED) was previously
required. The law further authorizes the Secretary of Commerce to issue
regulations regarding imposition of civil and criminal penalties for
violations of the provisions of the Act and these regulations.
(b) Electronic filing through the AES strengthens the U.S.
government's ability to prevent the export of certain items to
unauthorized destinations and/or end users because the AES aids in
targeting, identifying, and when necessary confiscating suspicious or
illegal shipments prior to exportation.
(c) Definitions used in the FTR. As used in this part, the
following definitions apply:
AES applicant. The USPPI or authorized agent who applies to the
Census Bureau for authorization to report export information
electronically to the AES, or through AESDirect or its related
applications.
AESDirect. A free Internet application supported by the Census
Bureau that allows USPPIs, their authorized agent, or the authorized
agent of the FPPI to transmit EEI through the AES via the Internet at
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.aesdirect.gov.
AES downtime filing citation. A statement used in place of a proof
of filing citation when the AES or AESDirect computer systems
experiences a major failure. The downtime filing citation must appear
on the bill of lading, air waybill, export shipping instructions, or
other commercial loading documents.
AES participant application (APA). An electronic submission of an
individual or a company's desire to participate in the AES. It sets
forth a commitment to develop, maintain, and adhere to CBP and Census
Bureau performance requirements and operational standards.
Air waybill. The shipping document used for the transportation of
air freight includes conditions, limitations of liability, shipping
instructions, description of commodity, and applicable transportation
charges. It is generally similar to a straight non-
[[Page 31556]]
negotiable bill of lading and is used for similar purposes.
Annotation. An explanatory note (e.g., proof of filing citation,
postdeparture filing citation, AES downtime filing citation, exemption,
or exclusion legend) placed on the bill of lading, air waybill, export
shipping instructions, or other loading document.
Authorized agent. An individual or legal entity physically located
in or otherwise under the jurisdiction of the United States that has
obtained power of attorney or written authorization from a USPPI or
FPPI to act on its behalf, and for purposes of this part, to complete
and file the EEI.
Automated Broker Interface (ABI). A CBP system through which an
importer or licensed customs broker can electronically file entry and
entry summary data on goods imported into the United States.
Automated Export System (AES). The system, including AESDirect, for
collecting EEI information (or any successor document) from persons
exporting goods from the United States, Puerto Rico, or the U.S. Virgin
Islands; between Puerto Rico and the United States; and to the U.S.
Virgin Islands from the United States or Puerto Rico.
Automated Export System Trade Interface Requirements (AESTIR). The
document that describes the operational requirements of the AES. The
AESTIR presents record formats and other reference information used in
the AES.
Automated Foreign Trade Zone Reporting Program (AFTZRP). The
electronic reporting program used to transmit statistical data on goods
admitted into a FTZ directly to the Census Bureau.
Bill of lading (BL). A document that establishes the terms of a
contract between a shipper and a transportation company under which
freight is to be moved between specified points for a specified charge.
Usually prepared by the authorized agent on forms issued by the
carrier, it serves as a document of title, a contract of carriage, and
a receipt for goods.
Bond. An instrument used by CBP as security to ensure the payment
of duties, taxes and fees and/or compliance with certain requirements
such as the submission of manifest information.
Bonded warehouse. An approved private warehouse used for the
storage of goods until duties or taxes are paid and the goods are
properly released by CBP. Bonds must be posted by the warehouse
proprietor and by the importer to indemnify the government if the goods
are released improperly.
Booking. A reservation made with a carrier for a shipment of goods
on a specific voyage, flight, truck or train.
Bureau of Industry and Security (BIS). This bureau within the U.S.
Department of Commerce is concerned with the advancement of U.S.
national security, foreign policy, and economic interests. The BIS is
responsible for regulating the export of sensitive goods and
technologies; enforcing export control, antiboycott, and public safety
laws; cooperating with and assisting other countries on export control
and strategic trade issues; and assisting U.S. industry to comply with
international arms control agreements.
Buyer. The principal in the export transaction that purchases the
commodities for delivery to the ultimate consignee. The buyer and
ultimate consignee may be the same.
Cargo. Goods being transported.
Carnet. An international customs document that allows the carnet
holder to import into the United States or export to foreign countries
certain goods on a temporary basis without the payment of duties.
Carrier. An individual or legal entity in the business of
transporting passengers or goods. Airlines, trucking companies,
railroad companies, shipping lines, pipeline companies, and slot
charterers are all examples of carriers.
Civil penalty. A monetary penalty imposed on a USPPI, authorized
agent, FPPI, carrier, or other party to the transaction for violating
the FTR, including failing to file export information, filing false or
misleading information, filing information late, and/or using the AES
to further any illegal activity, and/or violating any other regulations
of this part.
Commerce Control List (CCL). A list of items found in Supplement
No. 1 to Part 774 of the EAR. Supplement No. 2 to Part 774 of the EAR
contains the General Technology and Software Notes relevant to entries
contained in the CCL.
Compliance alert. An electronic response sent to the filer by the
AES when the shipment was not reported in accordance with this part
(e.g., late filing). The filer is required to review their filing
practices and take steps to conform with export reporting requirements.
Consignee. The person or entity named in a freight contract, a
contract of carriage that designates to whom goods have been consigned,
and that has the legal right to claim the goods at the destination.
Consignment. Delivery of goods from a USPPI (the consignor) to an
agent (consignee) under agreement that the agent sells the goods for
the account of the USPPI.
Container. A uniform, reusable metal ``box'' in which goods are
shipped by vessel, truck, or rail as defined in the International
Convention for Safe Containers, as amended (TIAS 9037; 29 U.S.T. 3709).
Controlling agency. The agency responsible for the license
determination on specified goods exported from the United States.
Cost of goods sold. Cost of goods is the sum of expenses incurred
in the USPPI acquisition or production of the goods.
Country of origin. The country where the goods were mined, grown,
or manufactured or where each foreign material used or incorporated in
a good underwent a change in tariff classification indicating a
substantial transformation under the applicable rule of origin for the
good. The country of origin for U.S. imports are reported in terms of
the International Standards Organization (ISO) codes designated in the
Schedule C, Classification of Country and Territory Designations.
Country of ultimate destination. The country where the goods are to
be consumed, further processed, stored, or manufactured, as known to
the USPPI at the time of export.
Criminal penalty. For the purpose of this part, a penalty imposed
for knowingly or willfully violating the FTR, including failing to file
export information, filing false or misleading information, filing
information late, and/or using the AES to further illegal activity. The
criminal penalty includes fines, imprisonment, and/or forfeiture.
Customs broker. An individual or entity licensed to enter and clear
imported goods through CBP for another individual or entity.
Destination. The foreign location to which a shipment is consigned.
Distributor. An agent who sells directly for a supplier and
maintains an inventory of the supplier's products.
Domestic exports. Goods that are grown, produced, or manufactured
in the United States, and commodities of foreign origin that have been
changed in the United States, including changes made in a U.S. FTZ,
from the form in which they were imported, or that have been enhanced
in value or improved in condition by further processing or
manufacturing in the United States.
Drayage. The charge made for hauling freight, carts, drays, or
trucks.
Dun & Bradstreet Number (DUNS). The DUNS Number is a unique 9-digit
identification sequence that provides identifiers to single business
entities
[[Page 31557]]
while linking corporate family structures together.
Dunnage. Materials placed around cargo to prevent shifting or
damage while in transit.
Duty. A charge imposed on the import of goods. Duties are generally
based on the value of the goods (ad valorem duties), some other factor,
such as weight or quantity (specific duties), or a combination of value
and other factors (compound duties).
Electronic export information (EEI). The electronic export data as
filed in the AES. This is the electronic equivalent of the export data
formerly collected as Shipper's Export Declaration (SED) information
and now mandated to be filed through the AES or AESDirect.
Employer identification number (EIN). The USPPI's Internal Revenue
Service (IRS) EIN is the 9-digit numerical code as reported on the
Employer's Quarterly Federal Tax Return, Treasury Form 941.
End user. The person abroad that receives and ultimately uses the
exported or reexported items. The end user is not an authorized agent
or intermediary, but may be the FPPI or ultimate consignee.
Enhancement. A change or modification to goods that increases their
value or improves their condition.
Entry number. Consists of a three-position entry filer code and a
seven-position transaction code, plus a check digit assigned by the
entry filer as a tracking number for goods entered into the United
States.
Equipment number. The identification number for shipping equipment,
such as container or igloo (Unit Load Device (ULD)) number, truck
license number, or rail car number.
Exclusions. Transactions outside of the scope of the FTR that are
excluded from the requirement of filing EEI.
Exemption. A specific reason as cited within this part that
eliminates the requirement for filing EEI.
Exemption legend. A notation placed on the bill of lading, air
waybill, export shipping instructions, or other commercial loading
document that describes the basis for not filing EEI for an export
transaction. The exemption legend shall reference the number of the
section or provision in the FTR where the particular exemption is
provided (See Appendix D to this part).
Export. To send or transport goods out of a country.
Export Administration Regulations (EAR). Regulations administered
by the BIS that, among other things, provide specific instructions on
the use and types of export licenses required for certain commodities,
software, and technology. These regulations are located in 15 CFR parts
730 through 774.
Export control. Governmental control of exports for statistical or
strategic and short supply or national security purposes, and/or for
foreign policy purposes.
Export Control Classification Number (ECCN). The number used to
identify items on the CCL, Supplement No. 1 to Part 774 of the EAR. The
ECCN consists of a set of digits and a letter. Items that are not
classified under an ECCN are designated ``EAR99.'' Section 738.2 of the
EAR describes the ECCN format.
Export license. A controlling agency's document authorizing export
of particular goods in specific quantities or values to a particular
destination. Issuing agencies include, but are not limited to, the U.S.
State Department; the BIS; the Bureau of Alcohol, Tobacco, and
Firearms; and the Drug Enforcement Administration permit to export.
Export statistics. The measure of quantity and value of goods
(except for shipments to U.S. military forces overseas) moving out of
the United States to foreign countries, whether such goods are exported
from within the Customs territory of the United States, a CBP bonded
warehouse, or a U.S. Foreign Trade Zone (FTZ).
Export value. The value of the goods at the U.S. port of export.
The value shall be the selling price (or the cost if the goods are not
sold), including inland or domestic freight, insurance, and other
charges to the U.S. seaport, airport, or land border port of export.
Cost of goods is the sum of expenses incurred in the USPPI's
acquisition or production of the goods. (See Sec. 30.6(a)(17)).
Fatal error message. An electronic response sent to the filer by
the AES when invalid or missing data has been encountered, the EEI has
been rejected, and the information is not on file in the AES. The filer
is required to immediately correct the problem, correct the data, and
retransmit the EEI.
Filers. Those USPPIs or authorized agents (of either the USPPI or
the FPPI) who have been approved to file EEI directly in the AES system
or AESDirect Internet application.
Filing electronic export information. The act of entering the EEI
in the AES.
Foreign entity. A person that temporarily enters into the United
States and purchases or obtains goods for export. This person does not
physically maintain an office or residence in the United States. This
is a special class of USPPI.
Foreign exports. Commodities of foreign origin that have entered
the United States for consumption, for entry into a CBP bonded
warehouse or U.S. FTZ, and which, at the time of exportation, are in
substantially the same condition as when imported.
Foreign principal party in interest (FPPI). The party shown on the
transportation document to whom final delivery or end-use of the goods
will be made. This party may be the ultimate consignee.
Foreign Trade Zone (FTZ). Specially licensed commercial and
industrial areas in or near ports of entry where foreign and domestic
goods, including raw materials, components, and finished goods, may be
brought in without being subject to payment of customs duties. Goods
brought into these zones may be stored, sold, exhibited, repacked,
assembled, sorted, graded, cleaned, or otherwise manipulated prior to
reexport or entry into the country's customs territory.
Forwarding agent. The person in the United States who is authorized
by the principal party in interest to facilitate the movement of the
cargo from the United States to the foreign destination and/or prepare
and file the required documentation.
Goods. Merchandise, supplies, raw materials, and products or any
other item identified by a Harmonized Tariff System (HTS) code.
Harmonized system. A method of classifying goods for international
trade developed by the Customs Cooperation Council (now the World
Customs Organization).
Harmonized Tariff Schedule of the United States (HTSUS). An
organized listing of goods and their duty rates, developed by the U.S.
International Trade Commission, which is used by CBP as the basis for
classifying imported products, including establishing the duty to be
charged and providing statistical information about imports and
exports.
Imports. All goods physically brought into the United States,
including:
(1) Goods of foreign origin, and
(2) Goods of domestic origin returned to the United States without
substantial transformation affecting a change in tariff classification
under an applicable rule of origin.
Inbond. A procedure administered by CBP under which goods are
transported or warehoused under CBP supervision until the goods are
either formally entered into the customs territory of the United States
and duties are paid, or until they are exported from the United States.
The procedure is so named because the cargo moves under a bond
(financial liability assured by the principal on the bond) from the
gateway seaport, airport, or land border port and remains ``inbond''
until CBP releases the
[[Page 31558]]
cargo at the inland Customs point or at the port of export.
Inland freight. The cost to ship goods between points inland and
the seaport, airport, or land border port of exportation, other than
baggage, express mail, or regular mail.
Intermediate consignee. The person or entity in the foreign country
who acts as an agent for the principal party in interest with the
purpose of effecting delivery of items to the ultimate consignee. The
intermediate consignee may be a bank, forwarding agent, or other person
who acts as an agent for a principal party in interest.
Internal Transaction Number (ITN). The AES generated number
assigned to a shipment confirming that an EEI transaction was accepted
and is on file in the AES.
International Standards Organization (ISO) Country Codes. The 2-
position alphabetic ISO code for countries used to identify countries
for which shipments are reportable.
International Traffic in Arms Regulations (ITAR). Regulations
administered by the Directorate of Defense Trade Controls within the
U.S. State Department that provide for the control of the export and
temporary import of defense articles and defense services. These
regulations are located in 22 CFR 120-130.
Interplant correspondence. Records or documents from a U.S. firm to
its subsidiary or affiliate, whether in the United States or overseas.
In-transit. Goods shipped through the United States, Puerto Rico,
or the U.S. Virgin Islands from one foreign country or area to another
foreign country or area without entering the consumption channels of
the United States.
License applicant. The person who applies for an export or reexport
license. (For example, obtaining a license for commodities, software,
or technology that are listed on the CCL.)
License exception. An authorization that allows a USPPI or other
appropriate party to export or reexport under stated conditions, items
subject to the EAR that would otherwise require a license under the
EAR. The BIS License Exceptions are currently contained in Part 740 of
the EAR (15 CFR part 740).
Loading document. A document that establishes the terms of a
contract between a shipper and a transportation company under which
freight is to be moved between points for a specific charge. It is
usually prepared by the shipper and actuated by the carrier and serves
as a document of title, a contract of carriage, and a receipt for
goods. Examples of loading documents include the air waybill, inland
bill of lading, ocean bill of lading, and through bill of lading.
Manifest. A collection of documents, including forms, such as the
cargo declaration and annotated bills of lading, that lists and
describes the cargo contents of a carrier, container, or warehouse.
Carriers required to file manifests with CBP Port Director must include
an AES filing citation, or exemption or exclusion legend for all cargo
being transported.
Merchandise. Goods, wares, and chattels of every description, and
includes merchandise the exportation of which is prohibited, and
monetary instruments as defined in 31 U.S.C. 5312.
Method of transportation. The method by which goods arrive in or
are exported from the United States by way of seaports, airports, or
land border crossing points. Methods of transportation include vessel,
air, truck, rail, or other.
North American Free Trade Agreement (NAFTA). The formal agreement,
or treaty, among Canada, Mexico, and the United States to promote trade
amongst the three countries. It includes measures for the elimination
of tariffs and nontariff barriers to trade, as well as numerous
specific provisions concerning the conduct of trade and investment.
Office of Foreign Assets Control (OFAC). An agency within the U.S.
Department of the Treasury that administers and enforces economic and
trade sanctions based on U.S. foreign policy and national security
goals against targeted foreign countries, terrorists, international
narcotics traffickers, and those engaged in activities related to the
proliferation of weapons of mass destruction. The OFAC acts under
Presidential wartime and national emergency powers, as well as
authority granted by specific legislation, to impose controls on
transactions and freeze foreign assets under U.S. jurisdiction.
Order party. The person in the United States that conducts the
direct negotiations or correspondence with the foreign purchaser or
ultimate consignee and who, as a result of these negotiations, receives
the order from the FPPI. If a U.S. order party directly arranges for
the sale and export of goods to the FPPI, the U.S. order party shall be
listed as the USPPI in the EEI.
Packing list. A list showing the number and kinds of items being
shipped, as well as other information needed for transportation
purposes.
Partnership agencies. U.S. government agencies that have
statistical and analytical reporting and/or monitoring and enforcement
responsibilities related to AES postdeparture filing privileges.
Party ID type. Identifies whether the Party ID is an EIN, SSN,
DUNS, or Foreign Entity reported to the AES, i.e., E=EIN, S=SSN,
D=DUNS, T=Foreign Entity.
Person. Any natural person, corporation partnership or other legal
entity of any kind, domestic or foreign.
Port of export. The seaport or airport where the goods are loaded
on the exporting carrier that is taking the goods out of the United
States, or the port where exports by overland transportation cross the
U.S. border into a foreign country. In the case of an export by mail,
use port code 8000.
Postdeparture filing. The privilege granted to approved USPPIs for
their EEI to be filed up to 10 calendar days after the date of export,
i.e., the date the goods are scheduled to cross the U.S. border.
Postdeparture filing citation. A notation placed on the bill of
lading, air waybill, export shipping instructions, or other commercial
loading documents that states that the EEI will be filed after
departure of the carrier. (See Appendix D of this part.)
Power of attorney. A legal authorization, in writing, from a USPPI
or FPPI stating that the agent has authority to act as the principal
party's true and lawful agent for purposes of preparing and filing the
EEI in accordance with the laws and regulations of the United States.
Primary benefit. Receiving the majority payment or exchange of item
of value or other legal consideration resulting from an export trade
transaction; usually monetary.
Principal parties in interest. Those persons in a transaction that
receive the primary benefit, monetary or otherwise, from the
transaction. Generally, the principals in a transaction are the seller
and the buyer. In most cases, the forwarding or other agent is not a
principal party in interest.
Proof of filing citation. A notation placed on the bill of lading,
air waybill, export shipping instructions, or other commercial loading
document, usually for carrier use, that provides evidence that the EEI
has been filed and accepted in the AES.
Reexport. For statistical purposes: These are exports of foreign-
origin goods that have previously entered the United States, Puerto
Rico, or the U.S. Virgin Islands for consumption, entry into a CBP
bonded warehouse, or a U.S. FTZ, and at the time of exportation, have
undergone no change in form or condition or enhancement in value by
[[Page 31559]]
further manufacturing in the United States, Puerto Rico, the U.S.
Virgin Islands, or U.S. FTZs. For the purpose of goods subject to
export controls (e.g., U.S. Munitions List (USML) articles) these are
shipments of U.S.-origin products from one foreign destination to
another.
Related party transaction. A transaction involving trade between a
USPPI and an ultimate consignee where either party owns directly or
indirectly 10 percent or more of the other party.
Remission. The cancellation or release from a penalty, including
fines, and/or forfeiture, under this part.
Retention. The necessary act of keeping all documentation
pertaining to an export transaction for a period of at least five years
for an EEI filing, or a time frame designated by the controlling agency
for licensed shipments, whichever is longer.
Routed export transaction. A transaction in which the FPPI
authorizes a U.S. agent to facilitate export of items from the United
States on its behalf and prepare and file the EEI.
Schedule B. The Statistical Classification of Domestic and Foreign
Commodities Exported from the United States. These 10-digit commodity
classification numbers are administered by the Census Bureau and cover
everything from live animals and food products to computers and
airplanes. It should also be noted that all import and export codes
used by the United States are based on the Harmonized Tariff System.
Schedule C. The Classification of Country and Territory
Designations. The Schedule C provides a list of country of origin
codes. The country of origin is reported in terms of the International
Standards Organization codes.
Schedule D. The Classification of CBP districts and ports. The
Schedule D provides a list of CBP districts and ports and the
corresponding numeric codes used in compiling U.S. foreign trade
statistics.
Schedule K. The Classification of Foreign Ports by Geographic Trade
Area and Country. The Schedule K lists the major seaports of the world
that directly handle waterborne shipments in the foreign trade of the
United States, and includes numeric codes to identify these ports. This
schedule is maintained by the U.S. Army Corps of Engineers.
Seller. A principal in the transaction, usually the manufacturer,
producer, wholesaler, or distributor of the goods, that receives the
monetary benefit or other consideration for the exported goods.
Service center. A company, entity, or organization which has been
certified and approved to only transmit complete EEI to the AES.
Shipment. Unless as otherwise provided, all goods being sent from
one USPPI to one consignee to a single country of destination on a
single conveyance and on the same day.
Shipment reference number. A unique identification number assigned
to the shipment by the filer for reference purposes. This number must
remain unique for a period of five years.
Shipper's Export Declaration. The DOC paper form used under the
FTSR to collect information from a person exporting from the United
States. This form was used for compiling the official U.S. export
statistics for the United States and for export control purposes.
Shipping weight. The total weight of a shipment in kilograms
including goods and packaging.
Split shipment. A shipment booked for export on one aircraft, but
split by the carrier and sent on two or more aircrafts of the same
carrier.
Subzone. A special purpose foreign trade zone established as part
of a foreign trade zone project with a limited purpose that cannot be
accommodated within an existing zone. Subzones are often established to
serve the needs of a specific company and may be located within an
existing facility of the company.
Tariff schedule. A comprehensive list or schedule of goods with
applicable duty rates to be paid or charged for each listed article as
it enters or leaves a country.
Transmitting electronic export information. The act of sending the
completed EEI to the AES.
Transportation reference number. A reservation number assigned by
the carrier to hold space on the carrier for cargo being shipped. It is
the booking number for vessel shipments and the master air waybill
number for air shipments, the bill of lading number for rail shipments,
and the freight or pro bill for truck shipments.
Ultimate consignee. The person, party, or designee that is located
abroad and actually receives the export shipment. This party may be the
end user or the FPPI.
United States Munitions List (USML). Articles and services
designated for defense purposes under the ITAR and specified in 22 CFR
121.
Unlading. The physical removal of cargo from an aircraft, truck,
rail, or vessel.
U.S. Customs and Border Protection (CBP). CBP is the unified border
agency within the DHS charged with the management, control, and
protection of our Nation's borders at and between the official ports of
entry to the United States. CBP is charged with keeping terrorist and
terrorist weapons from entering the country and enforcing customs,
immigration, agricultural and countless other laws of the United
States.
U.S. Immigration and Customs Enforcement (ICE). An agency within
the DHS that is responsible for enforcing customs, immigration and
related laws and investigating violations of laws to secure the
Nation's borders.
U.S. principal party in interest (USPPI). The person or legal
entity in the United States that receives the primary benefit, monetary
or otherwise, from the export transaction. Generally, that person or
entity is the U.S. seller, manufacturer, or order party, or the foreign
entity while in the United States when purchasing or obtaining the
goods for export.
Vehicle Identification Number (VIN). A number issued by the
manufacturer and used for the identification of a self-propelled
vehicle.
Verify message. An electronic response sent to the filer by the AES
when an unlikely condition is found.
Violation of the FTR. Failure of the USPPI, FPPI, authorized agent
of the USPPI, FPPI, carrier, or other party to the transaction to
comply with the requirements set forth in 15 CFR 30, for each export
shipment.
Warning message. An electronic response sent to the filer by the
AES when certain incomplete and conflicting data reporting conditions
are encountered.
Wholesaler/distributor. An agent who sells directly for a supplier
and maintains an inventory of the supplier's products.
Written authorization. A legal authorization, in writing, by the
USPPI or FPPI stating that the agent has authority to act as the
USPPI's or FPPI's true and lawful agent for purposes of preparing and
filing the EEI in accordance with the laws and regulations of the
United States.
Zone admission number. A unique and sequential number assigned by a
FTZ operator or user for shipments admitted to a zone.
Sec. 30.2 General requirements for filing Electronic Export
Information (EEI).
(a) Filing requirements--(1) The EEI shall be filed through the AES
by the United States Principal Party In Interest (USPPI), the USPPI's
authorized agent, or the authorized U.S. agent of the Foreign Principal
Party In Interest (FPPI) for all exports of physical goods,
[[Page 31560]]
including shipments moving pursuant to orders received over the
Internet. The Automated Export System (AES) is the electronic system
for collecting Shipper's Export Declaration (SED) (or any successor
document) information from persons exporting goods from the United
States, Puerto Rico, Foreign Trade Zones (FTZs) located in the United
States or Puerto Rico, the U.S. Virgin Islands, between Puerto Rico and
the United States, and to the U.S. Virgin Islands from the United
States or Puerto Rico. Exceptions, exclusions, and exemptions to this
requirement are provided for in paragraph (d) of this section and
Subpart D of this part. References to the AES also shall apply to
AESDirect unless otherwise specified. For purposes of the regulations
in this part, the SED information shall be referred to as EEI. Filing
through the AES shall be done in accordance with the definitions,
specifications, and requirements of the regulations in this part for
all export shipments, except as specifically excluded in Sec. 30.2(d)
or exempted in Subpart D of this part, when shipped as follows:
(i) To foreign countries or areas, including free (foreign trade)
zones located therein (see Sec. 30.36 for exemptions for shipments
from the United States to Canada) from any of the following:
(A) The United States, including the 50 states and the District of
Columbia.
(B) Puerto Rico.
(C) FTZs located in the United States or Puerto Rico.
(D) The U.S. Virgin Islands.
(ii) Between any of the following nonforeign areas including goods
previously admitted to customs warehouses or FTZs and moving under a
U.S. Customs and Border Protection (CBP) bond:
(A) To Puerto Rico from the United States.
(B) To the United States from Puerto Rico.
(C) To the U.S. Virgin Islands from the United States or Puerto
Rico.
(iii) The EEI shall be filed for goods moving as described in
paragraphs (a)(1)(i) and (ii) of this section by any mode of
transportation. (Instructions for filing EEI for vessels, aircraft,
railway cars, and other carriers when sold while outside the areas
described in paragraphs (a)(1)(i) and (ii) are covered in Sec. 30.26.)
(iv) Notwithstanding exemptions in Subpart D, EEI shall be filed
for the following types of export shipments, regardless of value:
(A) Requiring a Department of Commerce, Bureau of Industry and
Security (BIS) license (15 CFR 730-774).
(B) Requiring a Department of State, Directorate of Defense Trade
Controls (DDTC) license under the International Traffic in Arms
Regulations (ITAR) (22 CFR Parts 120 through 130).
(C) Subject to the ITAR, but exempt from license requirements.
(D) Requiring a Department of Justice, Drug Enforcement
Administration (DEA) export permit (21 CFR 1312).
(E) Destined for a country listed in Country Group E:1 as set forth
in Supplement 1 to 15 CFR 740.
(F) Requiring an export license issued by any other federal
government agency.
(G) Classified as rough diamonds under 6-digit HS subheadings
7102.10, 7102.21, and 7102.31.
(2) Filing methods. The USPPI has four means for filing EEI: use
AESDirect; develop AES software using the AESTIR (see http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.cbp.gov/xp/cgov/export/aes/); purchase software developed by
certified vendors using the AESTIR; or use an authorized agent. An FPPI
can only use an authorized agent in a routed export transaction.
(b) General requirements--(1) The EEI shall be filed prior to
exportation (see Sec. 30.4) unless the USPPI has been approved to
submit export data on a postdeparture basis (see Sec. 30.5(c)).
Shipments requiring a license or license exemption may be filed
postdeparture only when the appropriate licensing agency has granted
the USPPI authorization. See Subpart B of this part.
(2) Specific data elements required for EEI filing are contained in
Sec. 30.6.
(3) The AES downtime procedures provide uniform instructions for
processing export transactions when the AES or AESDirect or the
computer system of an AES participant is unavailable for transmission.
(See Sec. 30.4(b)(1) and Sec. 30.4(b)(3).)
(4) Instructions for particular types of transactions and
exemptions from these requirements are found in Subparts C and D of
this part.
(5) The EEI is required to be filed in the AES prior to export for
shipments by vessel going directly to the countries identified in U.S.
Customs and Border Protection regulations 19 CFR 4.75(c) and by
aircraft going directly or indirectly to those countries. (See U.S.
Customs and Border Protection regulations 19 CFR 122.74(b)(2).)
(c) Certification and filing requirements. Filers of EEI shall be
required to meet application, certification, and filing requirements
before being approved to submit EEI. Steps leading toward approval for
the AES or the AESDirect filing include the following processes: (See
Sec. 30.5 for specific application, certification, and filing
standards applicable to AES and AESDirect submissions.)
(1) Submission of an electronic AES Participant Application (APA)
for AES filing or submission of an online registration for filing
through http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.census.gov/aes.
(2) Successful completion of certification testing for AES or for
AESDirect filing.
(d) Exclusions from filing EEI. The following types of transactions
are outside the scope of this part and shall be excluded from EEI
filing:
(1) Goods shipped under CBP bond through the United States, Puerto
Rico, or the U.S. Virgin Islands from one foreign country or area to
another where such goods do not enter the consumption channels of the
United States.
(2) Goods shipped from the U.S. territories and goods shipped
between the United States and these territories do not require EEI
filing. However, goods transiting U.S. territories to foreign
destinations require EEI filing.
(3) Electronic transmissions and intangible transfers. (See Subpart
B of this part for export control requirements for these types of
transactions.)
(4) Goods shipped to Guantanamo Bay Naval Base in Cuba from the
United States, Puerto Rico, or the U.S. Virgin Islands and from
Guantanamo Bay Naval Base to the United States, Puerto Rico, or the
U.S. Virgin Islands. (See Sec. 30.39 for filing requirements for
shipments exported by the U.S. Armed Services.)
(e) Penalties. Failure of the USPPI, the authorized agent of either
the USPPI or the FPPI, the exporting carrier, or any other person
subject thereto to comply with any of the requirements of the
regulations in this part renders such persons subject to the penalties
provided for in Subpart H of this part.
Sec. 30.3 Electronic Export Information filer requirements, parties
to export transactions, and responsibilities of parties to export
transactions.
(a) General requirements. The filer of EEI for export transactions
is either the USPPI, the authorized agent, or the authorized U.S. agent
of the FPPI. All EEI submitted to the AES shall be complete, correct,
and based on personal knowledge of the facts stated or on information
furnished by the parties to the export transaction. The filer shall be
physically located in the United States at the time of filing, have an
EIN or SSN, or DUNS number and be certified to report in the AES. The
filer is responsible for the truth, accuracy, and completeness of the
EEI, except insofar as that party can demonstrate
[[Page 31561]]
that he or she reasonably relied on information furnished by other
responsible persons participating in the transaction. All parties
involved in export transactions, including U.S. authorized agents,
should be aware that invoices and other commercial documents may not
necessarily contain all the information needed to prepare the EEI. The
parties shall ensure that all information needed for reporting to the
AES, including correct export licensing information, is provided to the
authorized agent for the purpose of correctly preparing the EEI.
(b) Parties to the export transaction--(1) Principal parties in
interest. Those persons in a transaction that receive the primary
benefit, monetary or otherwise, are considered principal parties to the
transaction. Generally, the principal parties in interest in a
transaction are the seller and buyer. In most cases, the forwarding or
other agent is not a principal party in interest.
(2) USPPI. For purposes of filing EEI, the USPPI is the person or
legal entity in the United States that receives the primary benefit,
monetary or otherwise, from the transaction. Generally, that person or
entity is the U.S. seller, manufacturer, order party, or foreign entity
purchasing or obtaining goods for export. The foreign entity shall be
listed as the USPPI if it is in the United States when the items are
purchased or obtained for export. The foreign entity shall then follow
the provisions for filing the EEI specified in Sec. 30.3 and Sec.
30.6 pertaining to the USPPI.
(i) If a U.S. manufacturer sells goods directly to an entity in a
foreign area, the U.S. manufacturer shall be listed as the USPPI in the
EEI.
(ii) If a U.S. manufacturer sells goods, as a domestic sale, to a
U.S. buyer (wholesaler/distributor) and that U.S. buyer sells the goods
for export to a FPPI, the U.S. buyer (wholesaler/distributor) shall be
listed as the USPPI in the EEI.
(iii) If a U.S. order party directly arranges for the sale and
export of goods to a foreign entity, the U.S. order party shall be
listed as the USPPI in the EEI.
(iv) If a customs broker is listed as the importer of record when
entering goods into the United States for immediate consumption or
warehousing entry, the customs broker may be listed as the USPPI in the
EEI if the goods are subsequently exported without change or
enhancement.
(v) If a foreign person is listed as the importer of record when
entering goods into the United States for immediate consumption or
warehousing entry, the customs broker who entered the goods, may be
listed as the USPPI in the EEI if the goods are subsequently exported
without change or enhancement.
(3) Authorized agent. The agent shall be authorized by the USPPI
or, in the case of a routed export transaction, the agent shall be
authorized by the FPPI to prepare and file the EEI. In a routed export
transaction, the authorized agent can be the ``exporter'' for export
control purposes as defined in 15 CFR 772.1 of the U.S. Department of
Commerce EAR. However, the authorized agent shall not be shown as the
USPPI in the EEI unless the agent acts as a USPPI in the export
transaction as defined in paragraphs (b)(2)(iii), (iv), and (v) of this
section.
(c) General responsibilities of parties in export transactions--(1)
USPPI responsibilities.
(i) The USPPI can prepare and file the EEI itself, or it can
authorize an agent to prepare and file the EEI on its behalf. If the
USPPI prepares the EEI itself, the USPPI is responsible for the
accuracy and timely transmission of all the export information reported
to the AES.
(ii) When the USPPI authorizes an agent to file the EEI on its
behalf, the USPPI is responsible for:
(A) Providing the authorized agent with accurate and timely export
information necessary to file the EEI.
(B) Providing the authorized agent with a power of attorney or
written authorization to file the EEI (see paragraph (f) of this
section for written authorization requirements for agents).
(C) Retaining documentation to support the information provided to
the authorized agent for filing the EEI, as specified in Sec. 30.10.
(2) Authorized agent responsibilities. The agent, when authorized
by a USPPI to prepare and file the EEI for an export transaction, is
responsible for performing the following activities:
(i) Accurate preparation and timely filing of the EEI based on
information received from the USPPI and other parties involved in the
transaction.
(ii) Obtaining a power of attorney or written authorization to file
the EEI.
(iii) Retaining documentation to support the information reported
to the AES, as specified in Sec. 30.10.
(iv) Upon request, providing the USPPI with a copy of the export
information filed in a mutually agreed upon format.
(d) Filer responsibilities. Responsibilities of USPPIs and
authorized agents filing EEI are as follows:
(1) Filing complete and accurate information (see Sec. 30.4 for a
delineation of filing responsibilities of USPPIs and authorized
agents).
(2) Filing information in a timely manner in accordance with the
provisions and requirements contained in this part.
(3) Responding to fatal errors, warning, verify and reminder
messages, and compliance alerts generated by the AES in accordance with
provisions and requirements contained in this part.
(4) Providing the exporting carrier with the required proof of
filing citations or exemption legends in accordance with provisions
contained in this part.
(5) Promptly filing corrections or cancellations to EEI in
accordance with provisions contained in Sec. 30.9.
(6) Retaining all necessary and proper documentation related to EEI
transactions in accordance with provisions contained in this part (see
Sec. 30.10 for specific requirements for retaining and producing
documentation for export shipments).
(e) Responsibilities of parties in a routed export transaction. The
Census Bureau recognizes ``routed export transactions'' as a subset of
export transactions. A routed export transaction is a transaction in
which the FPPI authorizes a U.S. agent to facilitate the export of
items from the United States and to prepare and file EEI.
(1) USPPI responsibilities. In a routed export transaction, the
FPPI may authorize or agree to allow the USPPI to prepare and file the
EEI. If the FPPI agrees to allow the USPPI to file the EEI, the FPPI
must provide a written authorization to the USPPI assuming the
responsibility for filing. The USPPI may authorize an agent to file the
EEI on its behalf. If the USPPI or its agent prepares and files the
EEI, it shall retain documentation to support the EEI filed. If the
FPPI agrees to allow the USPPI to file EEI, the filing of the export
transaction shall be treated as a routed export transaction. If the
FPPI authorizes an agent to prepare and file the EEI, the USPPI shall
retain documentation to support the information provided to the agent
for preparing the EEI as specified in Sec. 30.10 and provide the agent
with the following information to assist in preparing the EEI:
(i) Name and address of the USPPI.
(ii) USPPI's EIN or SSN.
(iii) State of origin (State).
(iv) FTZ if applicable.
(v) Commercial description of commodities.
(vi) Origin of goods indicator: Domestic (D) or Foreign (F).
(vii) Schedule B or HTSUSA, Classification Commodity Code.
(viii) Quantities/units of measure.
(ix) Value.
(x) Export Control Classification Number (ECCN) or sufficient
technical information to determine the ECCN.
[[Page 31562]]
(xi) All licensing information necessary to file the EEI for
commodities where the Department of State, the Department of Commerce,
or other U.S. government agency issues a license for the commodities
being exported, or the merchandise is being exported under a license
exemption or license exception.
(xii) Any information that it knows will affect the determination
of license authorization (see Subpart B of this part for additional
information on licensing requirements).
Note to Paragraph (e)(1) of this section: For items in paragraph
(e) (1) (ix), (x),(xi) and (xii) of this section, where the FPPI has
assumed responsibility for determining and obtaining license
authority see requirements set forth in 15 CFR 758.3 of the EAR.
(2) Authorized agent responsibilities. In a routed export
transaction, if an authorized agent is preparing and filing the EEI on
behalf of the FPPI, the authorized agent must obtain a power of
attorney or written authorization from the FPPI and prepare and file
the EEI based on information obtained from the USPPI or other parties
involved in the transaction. The authorized agent shall be responsible
for filing the EEI accurately and timely in accordance with the FTR.
Upon request, the authorized agent will provide the USPPI with a copy
of the power of attorney or written authorization from the FPPI. The
authorized agent shall also retain documentation to support the EEI
reported through the AES. The agents shall upon request, provide the
USPPI with the data elements in paragraphs (e)(1)(i) through (xii) of
this section as submitted through the AES. The authorized agent shall
provide the following export information through the AES:
(i) Date of export.
(ii) Transportation Reference Number.
(iii) Ultimate consignee.
(iv) Intermediate consignee, if applicable.
(v) Authorized agent name and address.
(vi) EIN, SSN, or DUNS number of the authorized agent.
(vii) Country of ultimate destination.
(viii) Method of transportation.
(ix) Carrier identification and conveyance name.
(x) Port of export.
(xi) Foreign port of unloading.
(xii) Shipping weight.
(xiii) ECCN.
(xiv) License or license exemption information.
Note to Paragraph (e)(2) of this section: For items in
paragraphs (e)(2)(xiii) and (xiv) of this section, where the FPPI
has assumed responsibility for determining and obtaining license
authority, see requirements set forth in 15 CFR 758.3 of the EAR.
(f) Authorizing an agent. In a power of attorney or other written
authorization, authority is conferred upon an agent to perform certain
specified acts or kinds of acts on behalf of a principal (see 15 CFR
758.1(h) of the EAR). In cases where an authorized agent is filing EEI
to the AES, the agent shall obtain a power of attorney or written
authorization from a principal party in interest to file the
information on its behalf. A power of attorney or written authorization
should specify the responsibilities of the parties with particularity
and should state that the agent has authority to act on behalf of a
principal party in interest as its true and lawful agent for purposes
of creating and filing EEI in accordance with the laws and regulations
of the United States. In routed export transactions the USPPI is not
required to provide an agent of the FPPI with a power of attorney or
written authorization.
Note to Sec. 30.3: The EAR defines the ``exporter'' as the
person in the United States who has the authority of a principal
party in interest to determine and control the sending of items out
of the United States (see 15 CFR 772 of the EAR). For statistical
purposes ``exporter'' is not defined in the FTR. Instead, however,
the USPPI is defined in the FTR.
For purposes of licensing responsibility under the EAR, the U.S. agent
of the FPPI may be the ``exporter'' or applicant on the license in
certain routed export transactions (see 15 CFR 758.3 of the EAR).
Therefore, due to the differences in export reporting requirements
among Federal agencies, conformity of documentation is not required in
the FTR.
Sec. 30.4 Electronic Export Information filing procedures, deadlines,
and certification statements.
Two electronic filing options (predeparture and postdeparture) for
transmitting EEI are available to the USPPI or authorized agent. The
electronic postdeparture filing takes into account that complete
information concerning export shipments may not always be available
prior to exportation and accommodates these circumstances by providing,
when authorized, for filing of EEI after departure. For example, for
exports of seasonal and agricultural commodities, only estimated
quantities, values, and consignees may be known prior to exportation.
The procedures for obtaining certification as an AES filer and for
applying for authorization to file on a postdeparture basis are
described in Sec. 30.5.
(a) EEI transmitted predeparture. The EEI shall always be
transmitted prior to departure for the following types of shipments:
(1) Used self-propelled vehicles as defined in 19 CFR 192.1 of U.S.
Customs and Border Protection regulations.
(2) Essential and precursor chemicals requiring a permit from the
DEA;
(3) Shipments defined as ``sensitive'' by Executive Order;
(4) Shipments where a U.S. government agency requires predeparture
filing;
(5) Shipments defined as ``routed export transactions'' (see Sec.
30.3(e));
(6) Shipments to countries where complete outbound manifests are
required prior to clearing vessels or aircraft for export (see U.S.
Customs and Border Protection regulations 19 CFR 4.75(c) and
122.74(b)(2) for a listing of these countries);
(7) Items identified on the USML of the ITAR (22 CFR 121);
(8) Exports that require a license from the BIS, unless the BIS has
approved postdeparture filing privileges for the USPPI;
(9) Shipments of rough diamonds classified under HS subheadings
7102.10, 7102.21, and 7102.31 and exported (reexported) in accordance
with the Kimberley Process; and
(10) Shipments for which the USPPI has not been approved for
postdeparture filing.
(b) Filing deadlines for EEI transmitted predeparture. The USPPI or
the authorized agent shall file the required EEI and have received the
AES ITN no later than the time period specified as follows:
(1) For USML shipments, refer to the ITAR (22 CFR 120 through 130)
for specific requirements concerning predeparture filing time frames.
In addition, if a filer is unable to acquire an ITN because the AES is
not operating, the filer shall not export until the AES is operating
and an ITN is acquired.
(2) For non-USML shipments, file the EEI and provide the ITN as
follows:
(i) For vessel cargo, the USPPI or the authorized agent shall file
the EEI required by Sec. 30.6 and provide the filing citation or
exemption legend to the exporting carrier twenty-four hours prior to
loading cargo on the vessel at the U.S. port where the cargo is laden.
(ii) For air cargo, including cargo being transported by Air
Express Couriers, the USPPI or the authorized agent shall file the EEI
required by Sec. 30.6 and provide the filing citation or
[[Page 31563]]
exemption legend to the exporting carrier no later than two (2) hours
prior to the scheduled departure time of the aircraft.
(iii) For truck cargo, including cargo departing by Express
Consignment Couriers, the USPPI or the authorized agent shall file the
EEI required by Sec. 30.6 and provide the filing citation or exemption
legend to the exporting carrier no later than one (1) hour prior to the
arrival of the truck at the United States border to go foreign.
(iv) For rail cargo, the USPPI or the authorized agent shall file
the EEI required by Sec. 30.6 and provide the filing citation or
exemption legend to the exporting carrier no later than two (2) hours
prior to the time the train arrives at the U.S. border to go foreign.
(v) For mail and cargo shipped by other methods, except pipeline,
the USPPI or the authorized agent shall file the EEI required by Sec.
30.6 and provide the filing citation or exemption legend to the
exporting carrier no later than two (2) hours prior to exportation.
(See Sec. 30.46 for filing deadlines for shipments sent by pipeline.)
(vi) For all other modes, the USPPI or the authorized agent shall
file the required EEI no later than two (2) hours prior to exportation.
(3) For non-USML shipments when the AES is unavailable, use the
following instructions:
(i) If the participant's AES is unavailable, the filer must delay
the export of the goods or find an alternative filing method;
(ii) If AES or AESDirect is unavailable, the goods may be exported
and the filer must:
(A) Provide the appropriate downtime filing citation as described
in Sec. 30.7(b) and Appendix D; and
(B) Report the EEI at the first opportunity AES is available.
(c) EEI transmitted postdeparture. Postdeparture filing is only
available for approved USPPIs and provides for the electronic filing of
the data elements required by Sec. 30.6 no later than ten calendar
days from the date of exportation. For USPPIs approved for
postdeparture filing, all shipments (other than those for which
predeparture filing is specifically required), by all methods of
transportation, may be exported with the filing of EEI made
postdeparture. Certified AES authorized agents or service centers may
transmit information postdeparture on behalf of USPPIs approved for
postdeparture filing, or the approved USPPI may transmit the data
postdeparture itself. However, authorized agents or service centers
will not be approved for postdeparture filing.
(d) Proof of filing citation and exemption and exclusion legends.
The USPPI or the authorized agent shall provide the exporting carrier
with the proof of filing citation and exemption and exclusion legends
as described in Sec. 30.7.
Sec. 30.5 Electronic Export Information filing application and
certification processes and standards.
Prior to filing EEI, the USPPI or the authorized agent must be
certified to file through the AES. A service center shall be certified
to transmit electronically to the AES. The USPPI, authorized agent, or
service center may use a software package designed by a certified
vendor to file EEI through the AES. Once an authorized agent has
successfully completed the certification process, any USPPI using that
agent does not have to be certified. The certified authorized agent
shall have a properly executed power of attorney or written
authorization from the USPPI or FPPI, and be physically located in the
United States to file EEI through the AES. The USPPI or authorized
agent that utilizes a certified software vendor or service center shall
complete certification testing. Service centers may only transmit
export information; they may not prepare and file export information
unless they have authorization from the USPPI in the form of a power of
attorney or written authorization, thus making them authorized agents.
The USPPI seeking approval for postdeparture filing privileges shall be
approved before they or their authorized agent may file on a
postdeparture basis.
(a) AES application process--(1) AES Participation Application. The
USPPI or authorized agent who chooses to file through the AES and seek
approval for postdeparture filing privileges, must submit a complete
on-line LOI at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.census.gov/aes.
(2) AESDirect registration. The USPPI or authorized agent who
chooses to file through AESDirect shall also complete the online
AESDirect registration form at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.aesdirect.gov. After
submitting the registration, an AESDirect filing account is created for
the filing company. The person designated as the account administrator
is responsible for activating the account and completing the
certification process as discussed in paragraph (b)(2) of this section.
(b) Certification process--(1) AES certification process. The USPPI
or authorized agent shall perform an initial two-part communication
test to ascertain whether its system is capable of both transmitting
data to, and receiving data from, the AES. The USPPI or authorized
agent shall demonstrate specific system application capabilities. The
capability to correctly handle these system applications is the
prerequisite to certification for participation in the AES. The USPPI
or authorized agent shall successfully transmit the AES certification
test. CBP's and/or Census Bureau's client representatives provide
assistance during certification testing. These representatives make the
sole determination as to whether or not the USPPI or authorized agent
qualifies for certification. Upon successful completion of
certification testing, the USPPI's or authorized agent's status is
moved from testing mode to operational status. The AES filers may be
required to repeat the certification testing process at any time. The
Census Bureau will provide the AES filer with a certification notice
after the USPPI or authorized agent has been approved for operational
status. The certification notice will include:
(i) The date that filers may begin transmitting data;
(ii) Reporting instructions; and
(iii) Examples of the required AES proof of filing citations,
postdeparture filing citations, AES downtime filing citation, and
exemption legends.
(2) AESDirect certification process. To become certified for
AESDirect, filers shall demonstrate knowledge of this part and the
ability to successfully transmit EEI. Upon successful completion of the
certification testing, notification by e-mail will be sent to the
account administrator when an account is fully activated for filing via
AESDirect. Certified filers should print and retain the page
congratulating the filer on passing the test.
(c) Postdeparture filing approval process. The USPPI may apply for
postdeparture filing privileges by submitting a postdeparture filing
application at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.census.gov/aes. An authorized agent may not
apply on behalf of a USPPI. The Census Bureau will distribute the LOI
to CBP and the other federal government partnership agencies
participating in the AES postdeparture filing review process. Failure
to meet the standards of the Census Bureau, CBP or any of the
partnership agencies is reason for denial of the AES applicant for
postdeparture filing privileges. Each partnership agency will develop
its own internal postdeparture filing acceptance standards, and each
agency will notify the Census Bureau of the USPPI's success or failure
to meet that agency's
[[Page 31564]]
acceptance standards. Any partnership agency may require additional
information from USPPIs that are applying for postdeparture filing. The
Census Bureau will notify the USPPI of the decision to either deny or
approve their application for postdeparture filing privileges within
thirty (30) calendar days of receipt of the postdeparture filing
application by the Census Bureau, or if a decision cannot be reached at
that time, the USPPI will be notified of an extension for a final
decision as soon as possible after the thirty (30) calendar days.
(1) Grounds for denial of postdeparture filing status. The Census
Bureau may deny a USPPI's application for postdeparture filing
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