BIS Seeks Comments on Dollar Value Shipping Tolerances for All ECCNs, AES Calc System
The Bureau of Industry and Security is asking for comments on feasibility of automatic calculation of shipping tolerances for BIS licenses in the Automated Export System on the basis of a flat percentage applied to the dollar value of all controlled items, as opposed to the current shipping tolerances calculated on the basis of dollar value, number, or area, weight or measure. BIS said it is considering this action in order to harmonize the Export Administration Regulations with the State Department’s International Traffic in Arms Regulations, which applies a flat 10% shipping tolerance on dollar value to all defense articles and automatically calculates these shipping tolerances for DSP-5 licenses in AES.
Comments are due by Aug. 20.
BIS Seeks to Create Tolerance Calculation Feature in AES
BIS is looking into the feasibility of adding to the AES a feature that automatically calculates the shipping tolerance of the dollar value on an export license, communicates the dollar value remaining on the license back to the AES filer, and notifies the AES filer when the license has been fully utilized, it said. This feature is known as electronic decrementation of a license, BIS said, and is already in place on AES for State’s DSP05 licenses.
Seeks Comments on 10% Dollar Value Tolerance for all ECCNs, Etc.
Accordingly, BIS is looking for information that would help it determine:
- If the current EAR shipping tolerance rules should be maintained or if changes should be made that facilitate automatic calculation;
- If the shipping tolerance rules were changed, (i) should BIS continue to exclude certain ECCNs from having an allowable shipping tolerance, and (ii) should the dollar value-based shipping tolerance be set at 10% to match the ITAR;
- Whether an automatic calculation of the dollar value-based shipping tolerance in AES would assist exporters in maintaining compliance with the allowable shipping dollar value of the license.
Specifically, BIS said the following kinds of information would be useful:
- Detailed information on your company’s experiences with both the Department of State’s and BIS’s shipping tolerance regulations;
- Detailed information on how dollar value-based shipping tolerances are beneficial and practical, or detrimental and burdensome to your company or organization;
- Detailed information on your company’s experience with automatic calculation of a dollar value-based shipping tolerance against State Department licenses in AES;
- If you believe that BIS’s dollar value-based shipping tolerances should be changed, detailed information on how the tolerances should be changed;
- Detailed information on what benefits, if any, industry would receive through electronic decrementation of a dollar value-based shipping tolerance in AES.