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

(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.)

In addition to requiring mandatory AES filing, the proposed rule would amend the FTSR with respect to certain import requirements.

This is Part XI of a multi-part series of summaries and highlights Census' proposed regulations in 15 CFR 30.50 through 30.59 (Subpart F - Import Requirements). See future issues of ITT for additional parts.

The current Subpart F to 15 CFR Part 30 (General Requirements - Importers) addresses only statistical information required on import entries. In addition to addressing this topic, proposed Subpart F would incorporate information and references concerning general requirements for filing import entries, Foreign Trade Zones (FTZs), import of goods returned for repair, special provisions for imports from Canada, as well as confidential information, import entries, and withdrawals.

(Currently, Subpart G to 15 CFR Part 30 contains provisions on imports from Canada and imports of merchandise into Guam. However, these would be removed from proposed Subpart G. The provisions concerning Canada would be moved to Subpart F, as noted above, and Census states that information on imports of goods into Guam would be excluded from the FTSR since Guam collects its own information. )

Subpart F - Import Requirements

General Requirements for filing import entries. Proposed 15 CFR 30.50 would explain that electronic entry filing Automated Broker Interface (ABI), paper import entry summaries (CBP-7501), or paper record of vessel foreign repair or equipment purchase (CBP-226) would be completed by the importer or its licensed import broker and filed directly with CBP in accordance with 19 CFR (the CBP regulations). Information on all mail and informal entries required for statistical and CBP purposes would be reported, including value not subject to duty.

Upon request, the importer or import broker would provide Census with information or documentation necessary to verify the accuracy of the reported information, or to resolve problems regarding the reported import transaction received by Census.

Filing import information for statistical purposes. Proposed 15 CFR 30.50(a) would state that import information for statistical purposes would be filed for goods shipped as follows: entering the U.S. from foreign countries; admitted to U.S. FTZs; from the U.S. Virgin Islands; and from other non-foreign areas (except Puerto Rico).

Sources for collecting import statistics. According to proposed 15 CFR 30.50(b), sources for collecting import statistics would include the following: CBP's ABI Program (see Subpart A of 19 CFR Part 143); CBP-7501 paper entry summaries required for individual transactions (see Subpart B of 19 CFR Part 142); CBP-226, Record of Vessel Foreign Repair or Equipment Purchase (see 19 CFR 4.7 and 4.14); CBP-214, Application for Foreign Trade Zone Admission and/or Status Designation (Statistical copy); Automated Foreign Trade Zone Reporting Program (AFTZRP).

Statistical information required for import entries. Proposed 15 CFR 30.51 would state that the information required for statistical purposes is, in most cases, also required by CBP regulations for other purposes. Census refers to the CBP Web site for "Instructions for Preparation of CBP-7501,'' for completing the paper entry summary documentation (CBP-7501) and to the Customs and Trade Automated Interface Requirements (CATAIR) for instructions on submitting an ABI electronic record, or instructions for completing the CBP-226 for declaring any equipment, repair parts, materials purchased, or expense for repairs incurred outside of the U.S.

Foreign Trade Zones. Proposed 15 CFR 30.52 would state that foreign goods entering FTZs would be reported as a general import. When goods are withdrawn from an FTZ for export to a foreign country, the export would be reported in accordance with 15 CFR 30.2. When goods are drawn for domestic consumption or entry into a bonded warehouse, the withdrawal shall be reported on CBP-7501 or through the ABI in accordance with CBP regulations. (See proposed 15 CFR 30.52 for additional details on FTZs.) Census notes that this section emphasizes the reporting requirements contained in CBP regulations 19 CFR Part 146, "Foreign Trade Zones.'')

When foreign goods enter an FTZ, the zone operator would be required to file CBP-214, "Application for Foreign Trade Zone Admission and/or Status Designation.'' (Census refers to the CBP Web site for instructions on completing the CBP-214.) Per 19 CFR 146.32(a), the applicant for admission would present the CBP-214 to the Port Director and would include the statistical (pink) copy, CBP-214(A), for transmittal to Census, unless the applicant makes arrangements for the electronic transmission of statistical information to Census through the AFTZRP. (See proposed 15 CFR 30.52 for complete details of filing the CBP-214, guidelines for reporting CBP-214 statistical information electronically on a monthly basis to Census, etc.)

Import of goods returned for repair. Proposed 15 CFR 30.53 would state that import entries covering U.S. goods imported temporarily for repair or alteration and reexport are required to show the following statement: "Imported for Repair and Reexport'' on the CBP-7501 or in the ABI entry. Whenever goods are returned to the U.S. after undergoing either repair, alteration, or assembly under HTS heading 9802, the country of origin shall be shown as the country in which the repair, alteration, or assembly is performed. When the goods are for reexport and if they meet all of the requirements for filing EEI, filing should be according to the instructions provided in 15 CFR 30.2, except for the following data items: value and HTS classification code (see proposed 15 CFR 30.53 for complete details of the reporting requirements for value and HTS classification).

Special provisions for imports from Canada.Softwood lumber. Under proposed 15 CFR 30.54(a), when certain softwood lumber products described under HTS 4407.1000, 4409.1010, 4409.1090, and 4409.1020 are imported from Canada, import entry records would be required to show a valid Canadian Province of Manufacture Code.

Census explains that the Canadian Province of Manufacture would be determined on a first mill basis (the point at which the item was first manufactured into a covered lumber product). For purposes of determination, Province of Manufacture is the first province where the subject goods underwent a change in tariff classification to the tariff classes cited in this paragraph. The Province of Manufacture Code should replace the Country of Origin code on the CBP-7501, Entry Summary form. For electronic ABI entry summaries, the Canadian Province Code should be transmitted in positions 6-7 of the A40 records. These requirements apply only for imports of certain soft lumber products for which the Country of Origin is Canada.

All other imports from Canada. All other imports from Canada, including certain softwood lumber products not covered in proposed 15 CFR 30.54(a), would require the two-letter designation of the Canadian Province of Origin to be reported on U.S. entry summary records. This information is required only for U.S. imports that under applicable CBP rules of origin are determined to originate in Canada. (See proposed 15 CFR 30.54(b) for guidelines on determining the Canadian Province of Origin for various goods from Canada).

Province of origin codes. For a listing of the new proposed Canadian Province of Origin codes, etc. see proposed 15 CFR 30.15(d).

Confidential information, import entries, and withdrawals. Proposed 15 CFR 30.55 would provide that the contents of the statistical copies of import entries and withdrawals on file with Census are treated as confidential and will not be released without authorization by CBP, in accordance with 19 CFR 103.5 relating to the copies on file in CBP offices. The importer or import broker would have to provide Census with information or documentation necessary to verify the accuracy or resolve problems regarding the reported import transaction.

The basic responsibility for obtaining and providing the information required by the general statistical headnotes of the HTS would rest with the person filing the import entry. This is provided for in section 484(a) of the Tariff Act, 19 CFR 141.61(e) of CBP regulations, and 15 CFR 30.50. Authority can also be found in CBP Regulations (19 CFR 141.61(a)) which require that the entry summary data clearly set forth all information required. (See proposed 15 CFR 30.55(b) for details on penalties for providing erroneous statistical information.)

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 the Census' advance notice of proposed rulemaking on these issues. See ITT's Online Archives or 02/18/05, 02/24/05, 03/02/05, 03/03/05, 03/04/05, 03/09/05, 03/10/05, 03/15/05, 03/18/05, and 03/21/05 news, 05021810, 05022430, 05030215, 05030325, 05030415, 05030915, 05031025, 05031535, 05031815, and 05032125, for Parts I - X of BP's series of summaries on the 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