Details on Census' Proposed Rule to Implement Mandatory AES Filing for All Exports that Require SED Information (Part II)

(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.)

This is Part II of a multi-part series of summaries and focuses on Census' proposed definitions and regulations in proposed 15 CFR 30.1 and 30.2. See future issues of ITT for additional parts.

Highlights of the Census' Proposed Regulations in 15 CFR Part 30

Proposed rule would add 115 definitions.Census' proposed 15 CFR 30.1(Purpose and definitions) would, among other things, incorporate 115 proposed Electronic Export Information (EEI) -related definitions into 15 CFR 30.1(c).

Proposed filing requirements. Proposed 15 CFR 30.2(a)(1) (Filing Requirements) would explain that AES is the electronic system for collecting SED (or any successor document) information from persons exporting goods from the U.S., Puerto Rico, Foreign Trade Zones (FTZs) located in the U.S. or Puerto Rico, the U.S. Virgin Islands, between Puerto Rico and the U.S., and to the U.S. Virgin Islands from the U.S. or Puerto Rico. References to the AES also would apply to AESDirect unless otherwise specified.

This proposed paragraph would further state that for purposes of the regulations in 15 CFR Part 30, SED information would be referred to as EEI. EEI would be filed through the AES by the U.S. principal party in interest (USPPI), the USPPI's authorized agent, or the authorized U.S. agent of the foreign principal party in interest (FPPI) for exports of physical goods, including shipments moving pursuant to orders received over the Internet.

Exceptions, exclusions, and exemptions to this requirement would be provided for in proposed 15 CFR 30.2(a)(1)(iv) and (d) and in proposed subpart D of 15 CFR Part 30. Filing through the AES would be done in accordance with the definitions, specifications, and requirements of the regulations in proposed 15 CFR Part 30 for all export shipments, except as specifically excluded in 15 CFR 30.2(d) or exempted in proposed subpart D of 15 CFR Part 30. See proposed 15 CFR 30.2(a)(i) - (a)(iv)(G) for a list of export shipments to which these requirements would apply.

Four proposed methods for filing EEI. In proposed 15 CFR 30.2(a)(2), Census would state that the USPPI has four optional means for filing EEI: (1) use AESDirect, (2) develop AES software using the AES Trade Interface Requirements (AESTIR), (3) purchase software developed by certified vendors using the AESTIR; or (4) use an authorized agent.

EEI would be filed prior to exportation unless otherwise authorized. Proposed 15 CFR 30.2(b)(1) would state that EEI would have to be filed prior to exportation unless the USPPI has been authorized to submit export data on a post-departure basis (see proposed 15 CFR 30.5(c)). In addition, shipments requiring a license or license exemption could be filed post-departure only when the appropriate licensing agency has granted the USPPI authorization.

EEI would be required to be presented to CBP prior to export by vessel or aircraft to certain countries. Proposed 15 CFR 30.2(b)(5) would state that EEI is required to be presented to CBP prior to export for commodities being exported by vessel going directly to the countries identified in 19 CFR 4.75(c) and by aircraft going directly or indirectly to those countries (See 19 CFR 122.74(b)(2)).

Certification and filing requirements for using AES or AESDirect. Proposed 15 CFR 30.2(c) contains certain application, certification, and filing requirements that filers of EEI would have to meet before being approved to submit export data through AES or AESDirect.

Exclusions from filing EEI. Proposed 15 CFR 30.2(d) would state that the following types of transactions would be outside the scope of proposed 15 CFR Part 30 and shall be excluded from EEI filing:

1. Goods shipped under CBP bond through the United States, Puerto Rico, or the U.S. Virgin Islands from one foreign country or area to another where such goods do not enter the consumption channels of the United States. Shipments under CBP bond leaving the United States by vessel may require the filing of Form 7513, Shipper's Export Declaration for In-transit Goods.

(In the preamble of this proposed rule, Census proposes to remove requirements for filing the intransit SED, Form 7513, from 15 CFR Part 30. Census notes that responsibility for Form 7513 was transferred to the U.S. Department of the Army, Army Corps of Engineers.)

1. Goods shipped from the U.S. possessions of Guam Island, American Samoa, Wake Island, Midway Island, Northern Mariana Islands, and Canton and Enderbury Islands to foreign countries or areas, and goods shipped between the United States and these possessions when an export license or license exemption is not required. As per this section, EEI is required for shipments between the United States and Puerto Rico, or from the United States or Puerto Rico to the U.S. Virgin Islands. (See subpart B of proposed 15 CFR Part 30 for filing requirements for export control purposes.)
2. Electronic transmissions and intangible transfers. (See subpart B of proposed 15 CFR Part 30 for export control requirements for these types of transactions.)
3. Goods shipped to Guantanamo Bay Naval Base in Cuba from the United States, Puerto Rico, or the U.S. Virgin Islands and from Guantanamo Bay Naval Base to the United States, Puerto Rico, or the U.S. Virgin Islands. (See 15 CFR 30.39 for filing requirements for shipments exported by the U.S. armed services.)

Penalties for failure to comply with proposed 15 CFR Part 30. Failure of the USPPI, the authorized agent of either the USPPI or the FPPI, the exporting carrier, or any other person subject thereto to comply with any of the requirements of the proposed regulations in 15 CFR Part 30 would render such persons subject to the penalties provided for in proposed subpart H of 15 CFR Part 30.

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. See ITT's Online Archives or 02/18/05 news, 05021810, for Part I of BP's summary of this proposed rule.)

- 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