Census' Proposed Rule to Modify AES (Part IV - EEI Parties, Routed Transactions)

The Census Bureau has issued a proposed rule to amend the Foreign Trade Regulations (FTR, 15 CFR Part 30) to modify the post-departure filing program (also referred to as Option 4) by changing the filing time frame to five calendar days (from ten) and only allowing post-departure reporting for certain listed approved commodities.

Census is also proposing to require mandatory filing of export information through the Automated Export System or through AESDirect for all shipments of used self-propelled vehicles, temporary exports, and household goods.

Other significant changes are being proposed, including the addition/modification of conditional data elements in the AES. The proposed rule would also make remedial changes to the FTR to improve clarity and to correct errors.

Comments on Census’ proposed rule are due by March 22, 2011.

This is Part IV of a multipart series of summaries of the Census proposed rule, and highlights the changes Census is proposing to 15 CFR 30.3 regarding routed export transactions and other EEI filer requirements, parties to export transactions, and responsibilities of parties to export transactions.

Census proposes the following additions, revisions, and clarifications to15 CFR 30.3:

More Info Would be Required for Routed Export Transactions

The proposed rule would amend certain of the responsibilities of parties in routed export transactions under 15 CFR 30.3(e) by:

• adding “ultimate consignee type, if known” to the list of items that the USPPI must provide his/her authorized agent to assist in preparing the EEI;
• requiring authorized agents to provide the USPPI with the Internal Transaction Number and date of export when the agent files the EEI in a routed transaction;
• requiring the authorized agent to provide in AES the ultimate consignee type, if known.

(Routed export transactions are those in which the FPPI authorizes a U.S. agent to facilitate export of items from the U.S. on its behalf and prepare and file the EEI.)

Info That USPPIs Must Provide to Agents Preparing the EEI Would be Listed

Instead of simply stating in 15 CFR 30.3(c)(1)(ii)(A) (on USPPI responsibilities) that the USPPI should provide the authorized agent with accurate and timely export information necessary to file the EEI, the proposed rule would explicitly list the information the USPPI should provide the agent. Census notes that this language is consistent with the requirements for providing information in a routed export transaction which also lists the information to be submitted.

The listed information would include: (1) Name and address of the USPPI; (2) USPPI’s EIN; (3) State of origin (State); (4) FTZ if applicable; (5) Commercial description of commodities; (6) Origin of goods indicator: Domestic (D) or Foreign (F); (7) Schedule B number or HTSUSA, Classification Commodity Code; (8) Quantities/units of measure; (9) Value; (10) Export Control Classification Number (ECCN) or sufficient technical information to determine the ECCN if 15 CFR 758.1(g) requires that an ECCN be entered; (11) 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 exception; (12) Ultimate consignee type, if known.

Carriers Would be a Party to Export Transaction, Have Listed Responsibilities

The proposed rule would add two new paragraphs to 15 CFR 30.3 to include carriers as a party to export transactions and clarify carrier responsibilities as they pertain to the FTR. The first added paragraph (15 CFR 30.3(b)) would define carriers,¹ and the second (15 CFR 30.3(c)) would lay out their responsibilities as follows:

• The carrier must not load or move cargo unless the required documentation, from the USPPI or authorized agent, contains the required AES proof of filing, postdeparture, downtime, or exemption citations. This information must be cited on the first page of the bill of lading, air waybill, or other commercial loading documents.
• The carrier must annotate the required AES proof of filing, postdeparture, downtime, or exemption citations on the carrier’s outbound manifest when required.
• The carrier is responsible for presenting the required AES proof of filing, postdeparture, downtime, or exemption citations to the U.S. Customs and Border Protection (CBP) Port Director at the port of export as stated in 15 CFR Part 30 Subpart E. Such presentation must be without material change or amendment of the proof of filing citation, exemption legend or postdeparture filing citation.
• Except as provided in 15 CFR 30.28 (on split shipments), when a carrier identifies that a portion of the goods covered by a single EEI transaction has not been exported on the intended conveyance, the carrier shall notify the CBP Port Director at the Port of exit immediately and amend the manifest. The carrier shall notify the USPPI or the authorized agent of changes to the commodity data, and the USPPI or the authorized agent shall electronically transmit the corrections, cancellations, or amendments as soon as the corrections are known in accordance with 15 CFR 30.9.
• Retain documents pertaining to the export shipment as specified in 15 CFR 30.10.

Agent Must Obtain Power of Attorney from USPPI to File Its EEI

15 CFR 30.3(c)(2)(ii) (on authorized agent responsibilities) currently states that authorized agents, when authorized by the USPPI to prepare and file the EEI for an export transaction, must obtain a power of attorney or written authorization to file the EEI. The proposed rule would add the words “from the USPPI” to emphasize that this power of attorney must be obtained from the USPPI.

To Be USPPI, Foreign Entity Would Need to be in U.S. at Time Goods Purchased for Export

The proposed rule would modify the description of USPPIs under 15 CFR 30.3(b)(2), (which currently states that generally, the USPPI is the U.S. seller, manufacturer, order party, or foreign entity) to emphasize that in order for foreign entities to be listed as a USPPI, that entity would have to be in the U.S. at the time the goods are purchased or obtained for export.

Would Clarify that U.S. Order Party Arranges for Sale/Export for Foreign Party

The word “foreign entity” would be removed from 15 CFR 30.3(b)(2)(iii) and “FPPI” (Foreign Foreign Principal Party in Interest) added in its place to clarify that the U.S. order party directly arranges for the sale and export of goods for the foreign party located abroad.

See Future Issues of ITT for Additional Aspects of Proposed Rule

See future issues of ITT for summaries on additional aspects of Census’ proposed rule.

¹A carrier would be defined as 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.

(See ITT’s Online Archives or 01/20/11 news, 11012033, for BP summary announcing availability of Census’ proposed rule.

See ITT’s Online Archives or 01/21/11, 01/24/11, and 01/25/11 news, 11012130, 11012433, and 10012524, for previous parts of BP summary of the proposed rule, including: Part I (post-departure filing), Part II (definitions) and Part III (general EEI filing requirements.)

Census contact -- William Bostic (301) 763-8842

(FR Pub 01/21/11, D/N 100318153-0154-01)