Census Issues Revised FTR Letter to Clarify AES Requirements for Exports to International Waters
The Census Bureau has issued a revised version of Foreign Trade Regulations (FTR) Letter 3, which clarifies the requirements in the FTR for filing electronic export information (EEI) through AES for exports1 to International Waters.
Shipments to International Waters are "Exports"
According to Census' revised letter, shipments from the U.S. to vessels, buoys, offshore installations, etc. located in International Waters (i.e., waters that are outside U.S. territory or the territory of a foreign country) are considered to be exports.
Exports to International Waters that are known at the time of the export to be destined for a foreign country should be reported (and treated for licensing purposes) as exports to the foreign country.
Certain Exports to Int'l Waters Must be Reported in AES
Census states that exports to International Waters must be reported in AES (1) when the commodity is valued at over $2,500 per Schedule B number, or (2) if a shipment is licensed by the Bureau of Industry and Security, regardless of value.
Use of AES Export Information Code "IW"
Exports to International Waters must be identified in the AES using the new Export Information Code "IW."
Census continues to state that when reporting "IW" (for items that are being exported) under a BIS license, the AES filer is required to report either license code C30 (license authorized by BIS) or C31 (special comprehensive license), a valid BIS license number, the Export Control Classification Number (ECCN), and the country of destination and ultimate consignee indicated on the license. The AES filers may use any mode of transportation; however, vessel shipments must include one of the six "high seas" foreign ports listed in the Schedule K, Classification of Foreign Ports by the Geographic Trade Area and Country.
In its revised letter, Census clarifies that when reporting "IW" for items that are being exported pursuant to a BIS license exception or No License Required (NLR), the country of destination to be reported is the nationality of the person(s) or entity assuming control of the item(s) subject to the Export Administration Regulations that are being exported. All other AES reporting requirements (License Type Codes and ECCNs) related to use of a BIS license, license exception and NLR remain the same.
USPPI/Authorized Agent Must Comply With AES Reporting Requirement
Census states that the U.S. Principal Party in Interest (USPPI) or its authorized agent must comply with the above AES reporting requirement.
1In its original FTR Letter 3, Census used the term "shipments" here instead of "exports."
(See ITT's Online Archives or 12/11/08 news, 08121115, for BP summary of Census' original FTR Letter 3.)
Census contact - Regulations, Outreach, and Education Branch (800-549-0595, Option 3) or FTDRegs@census.gov.
Revised FTR Letter 3 (dated 01/14/09) available at http://www.census.gov/foreign-trade/regulations/ftrletters/ftrn03-shipments-to-iw-revised.pdf