House Export Control Bill Would Allow for AES Agent Registration, Require AES Improvements

The bill is intended to make improvements in the electronic filing of export data and strengthen enforcement authorities with respect to the Export Administration Regulations, among other things.

H.R. 3515 was referred to the House Committee on Foreign Affairs.

The following is a summary of Title I of H.R. 3515 entitled, "Securing Exports through Coordination and Technology Act." (See future issues of ITT for BP summary(s) of Title II entitled, "Export Enforcement Act of 2009.")

AES Registration Program

Commerce Could Establish AES Registration Program for Agents

The Secretary of Commerce could establish a registration program for agents to file information in the Automated Export System on behalf of the U.S. principal party in interest (USPPI) or the foreign principal party in interest (FPPI).

Individuals Must be U.S. Citizen, Permanent Alien, Etc. to Register

Registration would be limited to U.S. citizens, aliens lawfully admitted for permanent residence to the U.S. or a national of the U.S. (in the case of a resident of a territory or possession of the U.S.).

Exams, continuing education could be required. In assessing the qualification of an individual applicant for registration, the Secretary of Commerce may establish qualification requirements for an individual seeking to register under the program including: (i) an examination to determine the applicant's knowledge of the AES and laws, regulations, and procedures related to the export of goods from the U.S.; (ii) participation in a continuing education program on a periodic basis; (iii) etc.

Businesses, Etc. Meeting Criteria Could Also Participate

The registration program could also include corporations, associations, or partnerships as long as at least one designated official who is authorized to act on behalf of the organization meets certain criteria. Such an official would have to: (i) hold a valid AES registration; (ii) be a U.S. citizen, permanent resident, etc. (as noted above), and (iii) be responsible for the supervision and control of filing Shipper's Export Declaration information in the AES.

OTI License Might Satisfy Initial Registration Requirements

An ocean transportation intermediary license issued by the Federal Maritime Commission could be used to satisfy the initial qualification requirements of the registration program, if the FMC maintains sufficient requirements with respect to such license, as determined by the Secretary of Commerce.

Registrations Could be Renewed, or Denied or Revoked

Registrations would be granted for a period of not less than 3 years, and could be renewed in such manner and under such conditions as established by the Secretary.

The Secretary of Commerce could also revoke or suspend a registration or deny an application for registration, with immediate effect, if the Secretary has reason to believe that the registrant or applicant has violated or will violate any regulations regarding AES registration or any law or regulation of the U.S. controlling exports.

AES Improvements

AES Would be Required to Identify Likely Export Violations

The Secretary of Commerce (with the concurrence of relevant departments and agencies) would be required to ensure that AES identify the filing of data in connection with an export from the U.S. if the country of destination of intended export or the export control information, or lack thereof, would result in a violation of any prohibition or restriction on exports under the laws and regulations of the U.S.

AES Would Also Alert Filers on Export License Requirements, Issue Warnings

In addition, the Secretary (with the concurrence of relevant department and agency heads and in consultation with affected industry) would be required to ensure that the AES contains at least the following operational features:

alert the filer to export license requirements under the laws and regulations of the U.S. when processing data filed in connection with an export; and

issue notices, compliance alerts, and other warnings, accompanied by references to the applicable authorities, if the filed data associated with an export does not satisfy requirements under the export control laws and regulations of the U.S.

Changes to U.S. Law Would be Reflected in AES, Lists of Restricted Persons/Entities Improved

Not later than 1 year after H.R. 3515's enactment, the Secretary of Commerce (with the concurrence of the relevant department and agency heads and in consultation with affected industries) would also be required to:

ensure on an ongoing basis that changes in laws and regulations controlling exports from the U.S. are reflected in the AES upon implementation of those changes;

enable on an ongoing basis the classification of products to be exported in a manner sufficient to carry out the purposes of H.R. 3515's requirements on the notification of relevant export requirements; and

ensure on an ongoing basis that all lists maintained by the U.S. and comprised of persons or entities to whom exports are restricted are available in a standardized format and contain sufficient descriptive information to enable their effective use by exporters (through AES or otherwise) to screen transactions and prevent diversions of exported items for unauthorized destinations, parties, or uses.

Fees, Charges, Education

Secretary Could Charge Fees to Carry Out Chapter 9 Requirements, Including AES Changes

The Secretary of Commerce could issue regulations prescribing reasonable fees and charges, with particular sensitivity to small businesses, to defray the costs of the Secretary in carrying out Chapter 9 of USC Title 13 (Collection and Publication of Foreign Commerce and Trade Statistics), which would include the above new requirements.

Agencies Involved with Exports Would Provide Training, Especially on AES

H.R. 3515 would also require the Secretary of Commerce and other departments and agencies involved in the regulation or enforcement of exports to participate in events to educate exporters about U.S. export laws and regulations, especially about the AES, through seminars, educational or training meetings, exhibitions, symposiums, and other similar meetings, and would be allowed to charge fees for such events.

H.R. 3515 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h3515ih.txt.pdf