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

(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 V of a multi-part series of summaries and focuses on Census' proposed regulations in proposed 15 CFR 30.5. See future issues of ITT for additional parts.

Proposed Processes & Standards for Filing EEI Application and Certification

Overview of proposed processes and standards for filing EEI application & AES certification. Proposed 15 CFR 30.5 would state that prior to filing Electronic Export Information (EEI), the U.S. Principal Party in Interest (USPPI) or the authorized agent would have to be certified to file on the AES. A service center would also have to be certified to transmit electronically to the AES. The USPPI, authorized agent, or service center could use a software package designed by a certified vendor to file EEI to the AES.

Once an authorized agent has successfully completed the certification process, any USPPI using that agent would not have to be certified. The certified authorized agent would have to have a properly executed power of attorney, a written authorization from the USPPI or Foreign Principal Party in Interest (FPPI), and be domiciled in the U.S. to file EEI to the AES. The USPPI or authorized agent that utilizes a certified software vender or service center would complete certification testing.

Service centers could only transmit export information; they could not prepare and file export information unless they have authorization from the USPPI in the form of a power of attorney or written authorization, thus making them authorized agents.

The USPPI seeking approval for postdeparture filing privileges would have to be approved before they or their authorized agent may file on a postdeparture basis.

AES application process & certification process. The details of the proposed AES application process (i.e., the AES letter of intent and AESDirect registration) are set forth in proposed 15 CFR 30.5(a). In addition, the details of the proposed certification processes for AES and AESDirect are set forth in proposed 15 CFR 30.5(b).

Postdeparture filing approval process. Proposed 15 CFR 30.5(c) would state that the USPPI may apply for postdeparture filing privileges by submitting a Letter of Intent to Census in accordance with the provisions contained in proposed 15 CFR 30.4 (see Appendix A of proposed 15 CFR Part 30 for the content and format of the Letter of Intent). An authorized agent could not apply on behalf of a USPPI. Census would distribute the Letter of Intent for postdeparture filing privileges to CBP and the other Federal Government partnership agencies participating in the AES postdeparture filing review process.

Failure to meet the standards of Census, CBP or any of the partnership agencies would reason for denial of the applicant for postdeparture filing privileges. Each partnership agency would develop its own internal postdeparture filing acceptance standards, and each agency would notify Census of the USPPI's success or failure to meet that agency's acceptance standards.

Any partnership agency could require additional information from USPPIs that are applying for postdeparture filing. Census would notify the USPPI of the decision to either deny or approve their application for postdeparture filing privileges within thirty (30) calendar days of receiving the Letter of Intent, or if a decision cannot be reached at that time, the USPPI would be notified of an extension for a final decision as soon as possible after the thirty (30) calendar days.

In the preamble to this proposed rule, Census explains that proposed certification and approval requirements for postdeparture filing of EEI were strengthened to address U.S. national security concerns and interests.

Census further explained that under the proposed revised postdeparture filing requirements: (1) authorized agents could no longer apply for postdeparture filing status on behalf of individual USPPIs. Only USPPIs could apply; (2) USPPIs would have to demonstrate the ability to meet AES predeparture filing requirements by filing EEI to the AES before applying for approval for postdeparture filing; (3) USPPIs would have to meet a minimum number of shipments requirement before being authorized to file postdeparture; and (4) partnership agencies of the U.S. Government would determine whether or not a USPPI poses a significant threat to U.S. national security before granting the applicant postdeparture filing status.

Denial and revocation of postdeparture filing status, etc. Also contained in proposed 15 CFR 30.5(c) are proposed grounds for denial of postdeparture filing status, notice of denial, revocation of postdeparture filing privileges by Census and other agencies, notice of revocation, and the proposed appeal procedure.

EEI filing standards. Proposed 15 CFR 30.5(d) would set forth the proposed EEI filing standards.

Monitoring the filing of EEI. Proposed 15 CFR 30.5(e) would state that the USPPI's or the authorized agent's AES filings would be monitored and reviewed for quality, timeliness, and coverage. Census would provide performance reports to USPPIs and authorized agents who file EEI. Census would take appropriate action to correct specific situations where the USPPI or authorized agent fails to maintain acceptable levels of data quality, timeliness, or coverage.

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, 02/24/05, 03/02/05, and 03/03/05 news, 05021810, 05022430, 05030215, and 05030325, for Parts I-IV 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