Census' Proposed Rule to Modify AES (Part II - Definitions)

Census is also proposing to require mandatory filing of export information through the Automated Export System or through AESDirect for all shipments of used self-propelled vehicles, temporary exports and household goods.

Other significant changes are being proposed, including the addition/modification of definitions and conditional data elements in AES, etc. The proposed rule would also make remedial changes to the FTR to improve clarity and to correct errors.

Comments on Census’ proposed rule are due by March 22, 2011.

This is Part II of a multipart series of summaries of the Census proposed rule, and highlights the changes Census is proposing to the definitions in the FTR. See future issues for additional summaries.

14 New Definitions Would be Added

Census states it is proposing to revise 15 CFR 30.1(c) to add fourteen new terms and definitions to clarify their use in the FTR, including:

Commercial loading document. A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between points for a specific charge.

It is usually prepared by the shipper or the shipper’s agent and actuated by the carrier and serves as a document of title, a contract of carriage, and a receipt for goods. Examples of commercial loading documents include the air waybill, inland bill of lading, ocean bill of lading, and through bill of lading.

(This proposed definition matches the current definition of “loading document,” with the additions noted above that are underlined. The current definition of loading document would be deleted.)

Filer ID. The Employer Identification Number or Dun & Bradstreet Number of the company or individual filing the export information in the Automated Export System.

Foreign port of unlading. The port in the foreign country where the goods are removed from the exporting carrier. The foreign port does not have to be located in the country of destination. The foreign port of unlading shall be reported in terms of Schedule K, ‘‘Classification of CBP Foreign Ports by Geographic Trade Area and Country.’’

Transshipment. The transfer of merchandise from the country or countries of origin through an intermediary country or countries to the country of ultimate destination.

Value. The selling price (or the cost if the goods are not sold) in US dollars, plus inland or domestic freight, insurance, and other charges to the U.S. seaport, airport, or land border port of export. Cost of goods is the sum of expenses incurred in the USPPI’s acquisition or production of the goods.

(This proposed definition is similar to the current definition of “export value” except that (1) additional words would be added (underlined above), (2) “plus” would replace the term “including” and (3) the sentence “The value of the goods at the U.S. port of export” would be removed. The current definition of export value would be deleted.)

Voluntary Self-Disclosure (VSD). A narrative account with supporting documentation that sufficiently describes suspected violations of the FTR. A VSD reflects due diligence in detecting, and correcting potential violation(s) when required information was not reported or when incorrect information was provided that violates the FTR.

(See proposed rule for the other propose definitions: Diplomatic pouch, Electronic CBP Form 214 Admissions (e214) -- which would replace Automated Foreign Trade Zone Reporting Program (AFTZRP) that was eliminated on March 1, 2009, Household goods, International waters, Issued banknote, Mass-market software, Non Vessel Operating Common Carrier (NVOCC), and Shipping documents.)

21 Definitions Would be Revised

Census is proposing to revise 15 CFR 30.1(c) to modify 21 existing terms and definitions, as follows (proposed deletions are struck, proposed additions are underlined):

AES downtime filing citation. The proposed revision would clarify that the downtime citation cannot be used when the filer’s system is down or experiences delays:

A statement used in place of a proof of filing citation when the AES or AESDirect computer systems experience a major failure. The downtime filing citation must appear on the bill of lading, air waybill, export shipping instructions, or other commercial loading documents. The downtime filing citation is not to be used when the filer’s system is down or experiencing delays.

Annotation. The proposed rule would clarify that the exclusion legend is no longer required:

An explanatory note (e.g., proof of filing citation, postdeparture filing citation, AES downtime filing citation, exclusion, or exemption legend) placed on the bill of lading, air waybill, export shipping instructions, or other commercial loading document.

(A similar edit would be made to the definition of manifest.)

End User. Census is proposing to clarify that the end user is the entity abroad, known at the time of export by the USPPI, who ultimately uses the exported or reexported items:

The personentity abroad known at the time of export by the USPPI, whichthat receives and ultimately uses the exported or reexported items. The end user is not an authorized agent or intermediary, but may be the FPPI or ultimate consignee.

Foreign Principal Party in Interest. The proposed rule would revise the definition for ‘‘Foreign principal party in interest (FPPI)’’ to clarify that the FPPI is the party that purchases the goods for export:

The party shown on the transportation document to whom final delivery or end-use of the goods will be made. The party abroad who purchases the goods for export. This party may be the Ultimate Consignee.

Port of export. The proposed rule would replace the current definition with a new one to clarify the port for transshipments through Canada or Mexico, etc.:

The seaport or airport where the goods are loaded on the exporting carrier that is taking the goods out of the United States, or the port where exports by overland transportation

cross the U.S. border into a foreign country. In the case of an export by mail, use port code 8000.

The U.S. Customs and Border Protection seaport or airport where the goods are loaded on the carrier that is taking the goods out of the United States, or the CBP port where exports by overland transportation cross the U.S. border into Canada or Mexico. For goods loaded aboard a carrier (aircraft or vessel) where the conveyance stops at several ports before clearing to the foreign country, the port of export is the first port where the goods were loaded on the original conveyance. For goods offloaded from the original conveyance to another conveyance (even if the aircraft or vessel belongs to the same carrier) at any of the ports, the port where the goods were loaded on the last conveyance before going foreign is the port of export. The port of export shall be reported in terms of Schedule D, ‘‘Classification of CBP Districts and Ports.’’ Use port code 8000 for shipments by mail.

Postdeparture filing. Census states it would clarify that only approved commodities exported by approved USPPIs can be filed postdeparture. In addition, the Postdeparture filing time frame would be changed from ten (10) calendar days to five (5) calendar days for export control and enforcement purposes, etc.

The privilege granted to approved USPPIs for their EEI to be filed up to 10five calendar days afterfrom the date of export. , i.e., the date the goods are scheduled to cross the U.S. border. Postdeparture filing can only be used for an approved list of commodities. This list can be found at http://www.census.gov/aes .

Shipment. The proposed rule would clarify that except when EEI is required regardless of value (e.g. BIS or ITAR licenses, etc.), the EEI shall be filed when the value of the goods is over $2,500 per Schedule B number.

Unless as otherwise provided, All goods being sent from one USPPI to one consignee to alocated in a single country of destination on a single conveyance and on the same day. Except as noted in 15 CFR 30.2(a)(1)(iv), the EEI shall be filed when the value of the goods is over $2,500 per Schedule B number or HTSUSA commodity classification code.

Shipment reference number. Census would revise this definition to state that the reuse of the shipment reference number is prohibited.

A unique identification number assigned to the shipment by the filer for reference purposes. This number must remain unique for a period of five years. The reuse of the shipment reference number is prohibited.

Split Shipment. The proposed rule would revise this definition so that it is no longer limited to air shipments and to state that the goods must leave on the same day.

A shipment booked for export on one aircraft, but split by the carrier and sent on two or more aircrafts of the same carrier.

A shipment covered by a single EEI transmission booked for export on one conveyance, but divided by the exporting carrier and sent on two or more conveyances of the same carrier on the same day.

(See proposed rule for the proposed revisions to other definitions: Automated Export System Trade Interface Requirements (AESTIR), Country of Ultimate Destination, DUNs number, Filers, Harmonized Tariff Schedule of the United States (HTSUS), Manifest, Method of Training, Power of attorney, Shipper’s Export Declaration (SED), Ultimate Consignee, U.S. Customs and Border Protection, and Written Authorization.)

See Future Issues of ITT for Additional Aspects of Proposed Rule

See future issues of ITT for summaries on additional aspects of Census’ proposed rule.

(See ITT’s Online Archives or 01/20/11 news, 11012033, for BP summary announcing availability of Census’ proposed rule.

See ITT’s Online Archives or 01/21/11 news, 11012130, for Part I, BP’s summary of Census’ proposed changes to post-departure filing (Option 4).)

Census contact -- William Bostic (301) 763-8842

(Census proposed rule, FR Pub 01/21/11, D/N 100318153-0154-01)

Census proposed rule available here.