Census' January 2010 AES Newsletter Covers "ONE Rule" for AES Filings, Fatal Error Resolution, Etc.

Census' "ONE Rule" for Determining When to File an AES Transaction

Census states that it continues to receive numerous questions on what is considered an export shipment for determining when to file an AES transaction. The Foreign Trade Regulations (FTR) define a shipment for statistical purposes as "all goods being sent from one U.S. Principal Party in Interest (USPPI) to one consignee to a single country of destination on a single conveyance and on the same day."

According to Census, an easy way to determine what a shipment is for statistical reporting is the "ONE Rule," which works as follows:

ONE U.S. company or individual selling its products overseas.

ONE foreign country, where the goods are being shipped.

ONE carrier moving the product out of the U.S.

ONE particular day that the product is being moved out of the country.

Census notes that the "ONE Rule" simplifies the process of figuring out how many shipments an exporter has and how many AES records need to be filed.

Resolving Fatal Errors That Occur When Correcting, Changing EEI After the ITN Has Been Received

Census states that it has identified an issue with fatal errors that is a problem for many AES filers. As an example, Census notes that a filer can receive a fatal error message when corrections or changes (e.g., to value/quantity data) are transmitted days or weeks after the electronic export information (EEI) is filed and the internal transaction number (ITN) received.

(Although the ITN is included with the fatal error message, Census states that its presence does not necessarily mean that the fatal error has been corrected.)

In one scenario, the fatal error can occur when a Customs and Border Protection (CBP) inspector has marked the shipment for examination, held it to investigate a possible violation, or taken another action that delays the export of the goods. While this CBP 'hold' is on the AES record, the filer cannot make any changes to the EEI. Census states that CBP will need to remove the hold from the file before the record can be updated in AES. After CBP has removed the 'hold,' and the filer updates its records, the filer should contact the AES Help Desk to suppress the fatal errors.

In another scenario, the fatal error can occur when the filer attempts to send a correction or replacement file but uses the "add" code instead. (If the shipment was previously reported successfully to AES and received an ITN, the filer will incur a fatal error when trying to "add" the same shipment reference number (SRN).) Census states that the AES Help Desk should be contacted to suppress the fatal errors and remove them from the filer's report. In order to correct or update the EEI, the filer will need to retransmit the changes in the "change" or "replace" mode, depending on the filer's reporting software.

Census Lists Top Fatal Errors for 2009

According to Census, U.S. exports are on the rise and so are AES fatal errors. Census notes that the most commonly generated fatal error responses for 2009 are:

1. CARRIER UNKNOWN and 122 CARRIER CODE IS OUTDATED
2. CARRIER CODE MUST BE 2-CHAR OR 3-LETTER
3. USPPI CONTACT PHONE FORMAT: NNNNNNNNNN
4. ULT CONS CONTACT LAST NM INELIGIBLE
5. USPPI POSTAL CODE NOT VALID FOR STATE

BIS' Key Elements for Export Management and Compliance Programs

The January 2010 AES Newsletter also includes an article which lists the nine key elements identified by the Bureau of Industry and Security for any effective export management and compliance program (EMCP) for an exporter of U.S.-origin dual-use goods and technologies:

1. Management commitment
2. Continuous risk assessment of the export program
3. Formal written EMCP
4. Ongoing compliance training and awareness
5. Cradle-to-grave export compliance security and screening
6. Adherence to record keeping regulatory requirements
7. Internal and external compliance monitoring and periodic audits/assessments
8. Internal program for handling compliance problems, including reporting and escalating export violations
9. Completing appropriate corrective actions in response to export violations

Exporting Reporting Requirements for Repairs and Replacements

Census provides guidance on the AES export reporting requirements for goods that are repaired and/or replaced, whether or not under warranty.

Repairs. According to Census, the value to be reported for goods that were previously imported for repair, regardless of whether there is a cost incurred by the Foreign Principal Party in Interest (FPPI), is the total cost of the parts and labor. The value should not include the price or cost of the original product.

Replacements. The value reported in the AES for a product that could not be repaired and is replaced, whether replaced under warranty or not, is the cost of the replacement product including the actual Schedule B number of the replacement product. If the value reported in the AES is different from the value on the bill of lading, invoice, etc., because there is no cost to the FPPI, include the statement "Product replaced under warranty, value for electronic export information purposes."

Census Sends Fatal Error Reports Twice Monthly

Census reminds AES filers that it sends fatal error reports twice monthly and filers are urged to ensure that their AES account e-mail and contact information are current. Census warns that if fatal errors are not addressed promptly, the filer is in violation of the FTR and its AES account is in jeopardy is in jeopardy of deactivation.

Other Issues in January Newsletter

Census also discusses several other areas of AES in its January 2010 newsletter, including:

Tips for Fixing AESDirect Error Messages

Correction Requirements for Export Kimberley Process Certificates

Availability of 2010 Schedule B and Harmonized Tariff Schedule Tables

New Export Training Videos Available Online (See ITT's Online Archives or 08/31/09 news, 09083125, for BP summary on the availability of these videos.)

Tentative Schedule of AES Export Compliance Seminars for February-June 2010

Census Foreign Trade Division Contact Information

Census January 2010 newsletter available at http://www.census.gov/foreign-trade/aes/aesnewsletter012010.pdf