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

(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 III of a multi-part series of summaries and focuses on Census' proposed regulations in proposed 15 CFR 30.3. See future issues of ITT for additional parts.

Highlights of Census' Proposed Regulations in 15 CFR Part 30

Proposed general requirements for EEI filers. Proposed 15 CFR 30.3(a) would state that the filer of Electronic Export Information (EEI) for export transactions is either the U.S. Principal Party in Interest (USPPI), its authorized agent, or the authorized U.S. agent of the Foreign Principal Party in Interest (FPPI). Export data provided to the AES should be complete, correct, and based on personal knowledge of the facts stated or on information furnished by the parties to the export transaction. The filer would have to be physically located in the U.S. at the time of filing, have an Employer Identification Number (EIN) or social security number (SSN), and be certified to report in the AES.

The proposed rule would further state that the filer is responsible for the truth, accuracy, and completeness of the EEI, except insofar as that party can demonstrate that he or she reasonably relied on information furnished by other responsible persons participating in the transaction. All parties involved in export transactions, including U.S. authorized agents, should be aware that invoices and other commercial documents may not necessarily contain all the information needed to prepare the EEI. The parties would ensure that all information needed for reporting to the AES, including correct export licensing information, is provided to the authorized agent for the purpose of correctly preparing the EEI.

Proposed descriptions of parties to the export transaction. Proposed 15 CFR 30.3(b) would provide descriptions of the parties to an export transaction. Proposed 15 CFR 30.3(b)(1) would concern principal parties in interest; proposed 15 CFR 30.3(b)(2) would concern the USPPI; and 15 CFR 30.3(b)(3) would concern the authorized agent.

Proposed general responsibilities of parties in export transactions. Proposed 15 CFR 30.3(c) would provide description of the general responsibilities of parties in export transactions. Proposed 15 CFR 30.3(c)(1) would detail USPPI responsibilities and proposed 15 CFR 30.3(c)(2) would detail authorized agent responsibilities.

Proposed filer responsibilities. Proposed 15 CFR 30.3(d), entitled Filer Responsibilities, would state that the responsibilities of USPPIs and authorized agents filing EEI are as follows:

(1) Transmitting complete and accurate information (see proposed 15 CFR 30.4 for a delineation of proposed filing responsibilities of USPPIs and authorized agents).

(2) Transmitting information in a timely manner in accordance with the provisions and requirements contained in proposed 15 CFR Part 30.

(3) Responding to fatal errors, warning, verify and reminder messages, and compliance alerts generated by the AES in accordance with provisions and requirements contained in proposed 15 CFR Part 30.

(4) Providing the exporting carrier with the required proof of filing citations or exemption legends in accordance with provisions contained in proposed 15 CFR Part 30.

(5) Promptly transmitting corrections or cancellations to EEI in accordance with provisions contained in proposed 15 CFR Part 30.9.

(6) Maintaining all necessary and proper documentation related to EEI transactions in accordance with provisions contained in proposed 15 CFR Part 30 (see proposed 15 CFR Part 30.10 for specific requirements for maintaining and producing documentation for export shipments).

Proposed responsibilities of parties in a routed export transaction. Proposed 15 CFR 30.3(e) would state that the Census Bureau recognizes "routed export transactions'' as a subset of export transactions. The proposed rule would state that a routed export transaction is one in which the foreign principal party in interest (FPPI) authorizes a U.S. agent to facilitate the export of items from the U.S. and to prepare and file EEI.

USPPI responsibilities in routed export transactions. Proposed 15 CFR 30.3(e)(1) would provide that in a routed export transaction, the FPPI could authorize or agree to allow the USPPI to prepare and file the EEI or authorize an agent to file the EEI on its behalf. If the USPPI prepares and files the EEI, it would have to maintain documentation to support the EEI filed. If the FPPI authorizes an agent to prepare and file the EEI, the USPPI shall maintain documentation to support the information provided to the agent for preparing the EEI as specified in proposed 15 CFR 30.10 and provide the agent with the certain information to assist in preparing the EEI, which is set forth in proposed 15 CFR 30.3(e)(1)(i) - (xi).

Authorized agent responsibilities. Proposed 15 CFR 30.3(e)(2) would provide that the authorized agent is responsible for obtaining a power of attorney or written authorization from the FPPI to prepare and file the EEI on its behalf; preparing and filing the EEI based on information obtained from the USPPI or other parties involved in the transaction; maintaining documentation to support the EEI reported to AES; and upon request by the USPPI, verifying that the information provided by the USPPI was accurately reported to the AES. The authorized agent would also provide certain export information set forth in proposed 15 CFR 30.3(e)(2)(i) - (xiv).

Proposed guidelines for authorizing an agent. Proposed 15 CFR 30.3(f) would state that in a power of attorney or other written authorization, authority would be conferred upon an agent to perform certain specified acts or kinds of acts on behalf of a principal (see 15 CFR 758.1(h)). In cases where an authorized agent is filing EEI to the AES, the agent would obtain a power of attorney or written authorization from a principal party in interest to file the information on its behalf.

The proposed rule states that a power of attorney or written authorization should specify the responsibilities of the parties with particularity and should state that the agent has authority to act on behalf of a principal party in interest as its true and lawful agent for purposes of creating and filing EEI in accordance with the laws and regulations of the U.S.

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 and 02/24/05 news, 05021810 and 05022430, for Parts I and II of BP's series of summaries on 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