Mandatory AES Filing of All Export Information Covered by 13 USC Chapter 9 Expected to be Implemented in Spring 2006
The Bureau of Census' (Census') October 2005 AES Newsletter, contains an article that highlights the upcoming mandatory electronic filing (via the Automated Export System (AES)) of all export information covered by 13 USC Chapter 9.
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This is Part III, the final part of a three-part series of summaries on Census' October 2005 AES Newsletter and highlights the issue of mandatory AES filing. (See ITT's Online Archives or 12/12/05 and 12/13/05 news, 05121225 and 05121315, for Parts I and II.)
Mandatory AES Final Rule Expected to be Published in First Quarter 2006
According to Census' newsletter, plans are being developed for the publication of the final rule on mandatory AES filing for all export information covered by 13 USC Chapter 9 during the first quarter of 2006.
(On February 27, 2005, Census published a proposed rule to amend its regulations in order to implement full mandatory AES filing. See ITT's Online Archives or 03/28/05 news, 05032820, for Part XII, the final part of BP's multi-part series of summaries on Census' proposed rule, with links to other parts of the series of summaries.)
Census sources have noted that Census received 45 letters in response to its proposed rule and that Census has responded to each of those comments. Census sources further note that they have also met with the carrier community to address concerns expressed regarding proof of filing citation and exemption legends and that the final rule is expected to reflect changes resulting from those meetings.
Census Expects to Implement Mandatory AES in Spring 2006
According to Census' newsletter and Census sources, Census' final rule on mandatory AES will have an effective date of 90 days after its publication in the Federal Register (which is expected during the first quarter of 2006 (January - March 2006). As a result, the final rule is "expected" to be implemented in spring 2006.
Census sources state that they have worked with U.S. Customs and Border Protection (CBP) and the Bureau of Industry and Security (BIS) to develop penalty and mitigation guidelines for the enforcement of the final rule. Sources note that all three agencies have agreed on the guidelines and that they are considered completed.
(Census had previously stated that it expected to implement mandatory AES in winter 2005/2006. See ITT's Online Archives or 08/19/05 news, 05081910 for previous BP summary.)
Census' October 2005 newsletter provides highlights of mandatory AES which include (partial list):
The paper Shipper's Export Declaration (SED) Form 7525-V, will be eliminated and AES must be used for all exports that require filing. The new name will be Electronic Export Information (EEI).
New Option 4 (postdeparture filing) applications will be accepted. U.S. Principal Parties in Interest (USPPIs) already approved will not need to reapply.
The Internal Transaction Number (ITN) will be mandatory in the AES Proof of Filing Citation on bills of lading, air waybills, or other loading documents.
Penalties will increase from $100/day to $1,100/day with a maximum of $10,000 per violation. Penalties can be civil or criminal and can carry up to 5 years in jail. Penalties can be assessed against USPPIs, Forwarder/Agents and/or Carriers.
CBP's Advance Cargo Information Requirements for Outbound Not Expected to be Implemented Until Mandatory AES is in Effect
According to CBP's December 5, 2003 final rule and, more recently (August 2005), CBP sources, CBP's 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, are expected to 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 not expected to be implemented until spring 2006.
CBP has previously stated that the effective date of the advance cargo information requirements for outbound shipments will be announced in the Federal Register.
Census' AES Newsletter (dated October 2005) available at http://www.census.gov/foreign-trade/aes/aesnewsletter102005.pdf.