CBP, BIS Officials Discuss AES, Reasons for Export Detentions/Seizures

At the April 2008 National Customs Brokers & Forwarders Association of America's Annual Conference, U.S. government officials discussed the Automated Export System (AES) and other export related issues.

Highlights of their remarks include the following:

CBP Uses AES Data to Look for Suspect Shipment Characteristics

A U.S. Customs and Border Protection official noted that CBP uses AES to conduct its export enforcement - CBP's Automated Targeting System (ATS) filters the AES data to look for suspect shipment characteristics.

CBP also looks at additional information for export enforcement, such as: cargo manifests, company history or the lack thereof, routing, etc.

Official Wants CBP to Seize Fewer Exports for Technical Reasons

This CBP official is trying to, among other things, manage risk for outbound goods and provide uniformity, training, sharing, and outreach to the trade and CBP officers.

He is working with the ports to lower the "technical seizures" (due to incomplete paperwork, etc.) that occur. He also wants more outreach to teach the exporters how to correct such mistakes.

Common Reasons for CBP Detention/Seizure of Exports

The official listed the following as common reasons for export detention/seizure by CBP:

if the commodity has been declared as under $2500, and invoicing or other documents show that it is clearly over $2500

late filing on AES commodity data

claiming an International Traffic in Arms Regulations (ITAR) exemption rather than getting a State Department license

failure to file AES on U.S. Munitions List (USML) goods

U.S. freight forwarder failing to obtain DSP-61 licenses for USML in-transit movements through the U.S.

paperwork for a licensed commodity is not transmitted within the correct time frame and the commodity is at the dock

indicating a license on the Shipper's Export Declaration (SED) that has nothing to do with the shipment

for licensable cargo, using a forwarder that is not an approved freight forwarder

exporters using the ITAR exemptions in situations where they do not apply

using the Canadian exemption on Commerce Control List (CCL)/USML exports

failing to submit AES filing on DSP-61/73 exports

failing to submit the Export Control Classification Number (ECCN) on AES submissions

submitting the wrong mode of transportation

BIS' List of Most Common EAR Compliance Issues in AES

A Bureau of Industry and Security official provided the following list of most common Export Administration Regulations (EAR) compliance issues in AES:

no ECCNs reported with License Exceptions

License Exception not applicable to the ECCN

country not authorized for License Exception

invalid ECCNs

ECCN/country do not match an approved license

value on license exceeded on AES record

incorrect EAR99 use with License Exceptions

NLR used in reporting of sensitive exports

(See ITT's Online Archives or 04/21/08 news, 08042135, for BP summary of ECCNs for certain License Exception codes being required to be reported in AES effective April 28, 2008. See ITT's Online Archives or 05/20/08 news, 08052010, for BP summaryof an OFAC official at the NCBFAA conference announcing that OFAC is focusing more on export trade compliance.)