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Omari WoodenTrade Ombudsman

U.S. Census Bureau Foreign Trade Division

Automated Export System Overview

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Legal RequirementsCensus Bureau Foreign Trade Regulations (FTR) • 15 CFR, Part 30Bureau of Industry and Security (BIS) Export Administration Regulations (EAR) • 15 CFR, Parts 700 - 799

Customs and Border Protection (CBP) Customs Regulations • Title 19 CFR, Parts 1 – 199 State Department International Traffic in Arms Regulations (ITAR) • Title 22 CFR, Parts 120 – 130

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Arms and Ammunition Chapter 93 - Export Statistics

$3.9 billion exported in 2011Avg of $325 million per month in 2011

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Revolvers & Pistols, designed to fire live ammoSubheading 9302 - Export Statistics

$94.2 billion exported in 2011Avg of $7.8 million per month in 2011

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What is a Shipment?(FTR 30.1)

• ONE USPPI shipping their merchandise, to• ONE Foreign consignee, on• ONE Carrier moving the product out of the U.S., on• ONE day, with• Valued over $2,500 per Schedule B number or license is

required

1Tip: The ONE Rule

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U.S. Principal Party in Interest (FTR 30.3)

The U.S. Principal Party in Interest is the:• U.S. Person or Entity• Primary Benefactor (Monetary, or Otherwise)• Foreign Entity (if in the U.S. at time goods are purchased or

obtained for export)

Generally that Person can be the:• U.S. Seller: (Wholesaler or Distributor)• U.S. Manufacturer• U.S. Order Party

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Two Types of Transactions(FTR 30.3)

Export Transaction (Standard): • USPPI files the EEI or authorizes an agent to file the EEI

Routed Export Transaction: • Foreign Principal Party in Interest (FPPI) authorizes a U.S.

agent to facilitate the export of items from the United States and to prepare and file the EEI

Value of Repair Items (FTR 30.29(a))

Report the value of the repairs,

including parts and labor

Report Schedule B number

9801.10.0000 for the reexport of any

article that was imported for repairs

or alterations

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Value of Warranty Items (FTR 30.29(b))

Report the value of the replacement commodity

Report original Schedule B number

If the value on the EEI record is different from the value on the bill of lading, invoice, etc., include a statement notating: “Product replaced under warranty, value for EEI record purposes”

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Shipments Exempt from Filing (FTR 30.36-30.40)

• Country of ultimate destination is Canada (30.36)

• $2,500 or less per Schedule B number (30.37(a))

• Tools of Trade: hand carried, personal or company use, not for sale, not shipped as cargo, returned within 1 year (30.37(b))

• Intangible exports of software & technology (30.37(f))

• Temporary Exports (e.g., Carnets) (30.37(q))

• Shipments to U.S. Armed Forces (30.39), consigned to the U.S. Armed Forces

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Special exemptions for certain shipments to US Government agencies

(FTR 30.40)

Filing EEI is not required for the following:• Office furniture, office equipment and office supplies• Household goods and personal effects• Food, medicines, and related items• Books, maps, charts, pamphlets, and similar articles

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Exemptions Do Not Apply (FTR 30.2(a)(iv))

• Commerce (BIS) licenses

• Country Group E:1 (Supplement 1 to 15 CFR 740)

• State Department licenses and ITAR controlled items

• License shipments from other government agencies

• Shipments on Office of Foreign Assets Control Sanctions Program List

• Rough Diamonds

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CBP Penalty Guidelines

• CBP Published Guidelines became effective on February 1, 2009

• Highlights:• Penalties for failure to file, late filing, and other violations• Mitigating and Aggravating Factors• Guidance for CBP officers• Carrier Penalties

http://www.cbp.gov/linkhandler/cgov/trade/legal/bulletins_decisions/bulletins_2009/vol43_01022009_no2/43genno2.ctt/43genno2.pdf

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Mitigating Factors

Including, but not limited to:• First-time USPPI or authorized agent, FPPI, carrier, etc.

• Voluntary self-disclosure of the violation

• Clear documentary evidence of remedial measures undertaken to prevent future violation

• Exceptional cooperation with CBP, Census or BIS

• Demonstration by party of having a systematic export compliance effort.

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Aggravating Factors

Including, but not limited to:• Several violations in the same export transaction

• Circumstances suggest the intentional nature of the violation

• High number of violations in preceding 3 year period

• Evidence of criminal conviction for related violation, i.e. BIS violation

• The party exports as a regular part of its business, but lacks a systematic export compliance effort.

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Voluntary Self Disclosure (FTR 30.74)

Submit letter on company letterhead and include the following information:• Description of information unreported or reported incorrectly • Number and value of shipments affected• Steps taken to resolve problem• Point of contact• Letters should be submitted to: Mr. Nick Orsini

Chief, Foreign Trade Division U.S. Census Bureau 4600 Silver Hill Road, Room 6K032

Washington, DC 20233-6700 *File data in AES as soon as possible and retain documentation regarding all shipments involved in disclosure

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Automated Export System (AES) &

Electronic Export Information (EEI)

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Automated Export System Uses

• CBP uses AES to verify shipments directly at

the port.

• BIS uses AES to track export license

transactions and to validate end users.

• DDTC uses AES to track export license

transactions and to automatically decrement

values on some license types.

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AES Process Flow

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Gather/Review filing resources

Foreign Trade Regulations (FTR) Export Flipper

AESDirect Support Center

FTD Blog at blogs.census/gov/globalreach

Before Filing the EEI

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• Decide who is filing the EEI

– USPPI files

– Authorized U.S. Agent files on USPPI’s

behalf.

To avoid duplicate EEI filings, only one party files the EEI.

Before Filing the EEI

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Filing the EEI and Troubleshooting

Misreported Codes:• Port of Export: Four digit number

• Misclassification: • Ink cartridges vs. weapon cartridges• Rubber seals vs. live seals

• Country of Destination: Two alpha characters

• IE – Ireland IR – Iran IQ – Iraq

• Carrier SCAC/IATA• Four character code for Vessel, Truck, and Rail• Two or three character code for Air

• Schedule B: Ten digit number • Search engine available at:

http://www.census.gov/foreign-trade/schedules/b/

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AES Responses

Verify

Compliance

Warning

Informational

Fatal

Shipment Rejected

No ITN IssuedorUpdate Rejected

Invalid ITN

Shipment Accepted

ITN Issued

Implement Best Practices

hDocument!!! Document!!! Document!!!

hCorrect information as soon as possible

hMaintain compliancehEducation & cross traininghAutomation & Procedures

hAttend Seminars & Workshops

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Training Tools

• Export training videos• Webinars• Global Reach Blog http://

globalreach.blogs.census.gov

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FTD Training Tools

• AES Newsletters

• TradeSource

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For More Information

• FTD Call Center: 800-549-0595• Option 1 – AES Assistance• Option 2 – Commodity Classification Assistance• Option 3 – Regulations Assistance• Option 4 – Data Dissemination

• Fax: 301-763-8835• E-mail: ASKAES@census.gov• FTD Blog: blogs.census.gov/globalreach/

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Questions?