Census Issues Proposed Rule to Implement Mandatory AES Filing for All Exports that Require SED Information

(AES is the electronic method for filing the paper SED information directly with U.S. Customs and Border Protection (CBP) and Census. AESDirect is the Census' free Internet-based system for filing SED information with AES.)

Census sources have previously stated that after comments on the proposed rule have been reviewed and responded to, a final rule on mandatory AES filing for all exports that require SED information. will be published in the Federal Register. Census sources have previously stated that they expect that the final rule will have an effective date of 90 days after its publication in the Federal Register. Census has recently stated that it is planning for the implementation of mandatory AES filing in fall 2005.

This is Part I of a multi-part series of summaries on Census' proposed rule and highlights the FTSR changes being proposed by Census. See future issues of ITT for additional parts.

Highlights of Proposed Rule

In order to comply with P.L. 107-228, Census is proposing to amend, in its entirety, the FTSR to specify the requirements for the mandatory reporting of all export information through AES when a SED is required. Specifically, Census is proposing to amend the FTSR to include the following changes:

remove the requirements for filing a paper SED (Option 1), Form 7525-V, so that AES will be the only mode for filing information currently required by the SED;

revise the postdeparture (formerly Option 4) approval procedures;

create a new Subpart H to cover penalty provisions, which would include an increase in penalties for violations from $100 to $1,000 per each day of delinquency, to a maximum from $1,000 to $10,000 per violation;

add language specifying the specific procedure for reporting the value of goods to AES when inland freight and insurance charges are not known at the time of exportation;

remove the requirements for filing the intransit SED, Form 7513;

list the types of export transactions outside the scope of 15 CFR part 30;

specify the four optional means for filing Electronic Export Information (EEI) of which two methods require the development of AES software using the AES Trade Interface Requirements (AESTIR);

specify that in "routed" transactions, the U.S. principal party in interest (USPPI) would compile and transmit export information on behalf of the foreign principal party in interest (FPPI) when authorized by the FPPI;

specify the time and place-of-filing requirements for presenting proof of filing citations, postdeparture filing citations, and/or exemption legends;

specify how to file EEI and acquire an Internal Transaction Number (ITN) when AES, AESDirect or the participant's AES is unavailable for filing;

add requirements for transmitting a Routed Transaction Indicator and a Vehicle Identification Qualifier to the list of data elements required to be reported to AES;

remove requirements for Date of Arrival and the Waiver of Prior Notice Indicator from the list of data elements required to be reported to the AES;

reference in Subpart B export control and export licensing issues relevant to 15 CFR Part 30;

revise the language that describes the proper manner for reporting cost of repairs and/or alterations to goods, and the reporting of the value of replacement parts exported;

reference in Subpart E pertinent carrier and manifest issues pertaining to provisions relevant to 15 CFR Part 30;

reference in Subpart F reporting requirements for import shipments relevant to 15 CFR part 30, including requirements for the electronic filing of statistical data for shipments imported into foreign trade zones (FTZs);

make other non-substantive revisions including revisions to language incorporated from the current FTSR, to clarify the intent of the regulations.

¹ to implement provisions in the Foreign Relations Authorization Act, Public Law (P.L.) 107-228

(See ITT's Online Archives or 10/29/03 news, 03102910, for BP summary of Census' advance notice of proposed rulemaking on these issues.)

- written comments due by 04/18/05

Census contact - C. Harvey Monk, Jr. (301) 763-2255

Census proposed rule (FR Pub 02/17/05, D/N 031009254-4355-02) available at

http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-2926.pdf.

BP Note on CBP's Advance Cargo Information Requirements for Outbound

CBP has previously stated that its advance electronic information presentation requirements for outbound shipments in all modes of transportation, including the pre-departure time frames for reporting export cargo information for required shipments, and the requirement of the ITN, will be implemented concurrent with the completion of the AES Commodity Redesign and the effective date of Census' mandatory AES filing regulations.

Although AES Commodity Redesign was implemented on June 7, 2004, Census' mandatory AES filing regulations are only in the proposed rule stage, and as stated above, are expected to be implemented in Fall 2005.

CBP has also previously stated that the effective date of the advance cargo information requirements for outbound shipments will be announced in the Federal Register.