March AES Newsletter Covers Cargo Sold After Export in AES, USPPI for FTZ Exports, etc.

Cargo Sold After Exportation From the United States

During the export process, business transactions occasionally occur after the goods are exported but before they reach their reported destination. Based on the Foreign Trade Regulations (FTR), Section 30.9(a), corrections to the EEI must be made in the AES once they become known and as soon as possible. An article in the newsletter specifically addresses correcting the EEI for a shipment that was exported and, while the cargo was in transit to its original destination, a portion was sold to another consignee in a different location.

Sale to different consignee while in transit requires reporting of two shipments. When a portion of an exported shipment is sold while in transit to its original destination to another consignee in a different location, AES requires separate reporting of two shipments. The first shipment must be corrected using the original Internal Transaction Number (ITN) and a new record must be created to obtain a second ITN.

Entire record must be submitted/resubmitted. Although only the fields above need to be changed, the entire record must be submitted/resubmitted, including the data items that remain the same. Transmit the original EEI as a REPLACE or CHANGE, and then submit the new EEI (with a different Shipment Reference Number) as an ADD.

New EEI will generate a compliance alert. Information must be corrected as soon as soon as possible. However, the new EEI will trigger a compliance alert because the AES database cannot translate your original EEI into two or more shipments; this must be completed by the filer.

Must notify CBP of redirected shipment. Further, U.S. Customs and Border Protection (CBP) staff must be contacted at the port of exportation to inform them that part of the shipment was redirected. Specifically, contact the Outbound Enforcement Team or the CBP officer responsible for the export clearance process. Make them aware of the redirected shipment and that you are amending the records as a result of changes to the shipment in accordance with 15 CFR 30.9(a). A CBP webpage with contact information for port(s) is available here.

Guidance on Identification of USPPI When Goods are Withdrawn from FTZs for Export

When goods are withdrawn from an Foreign Trade Zone (FTZ) for export to a foreign country, the export must be reported in accordance with the general requirements for filing EEI in the AES. Census’ March newsletter includes guidance on who is considered the U.S. Principal Party in Interest (USPPI) in such cases. Specifically, Census said:

Party that sold the goods withdrawn from the FTZ is the USPPI. Section 30.3(b) (2) of the FTR defines the USPPI as the person or legal entity in the United States that receives the primary benefit, monetary or otherwise, from the transaction. It also said generally that person or entity is the U.S. seller, manufacturer, or order party, or foreign entity physically in the United States, purchasing or obtaining goods for export. Therefore, the party that sold the goods being withdrawn from the FTZ for export is the USPPI.

If selling party is a foreign entity, then U.S. Customs Broker is USPPI. If that party is a foreign entity, then the designated U.S. Customs Broker who filed the import entry (general import) must be shown as the USPPI for the AES transaction.

Reporting the Correct HTS/Schedule B Number for Boats

Census states that the Harmonized Tariff Schedule (HTS)/Schedule B commodity classification number for boats is often classified incorrectly as 8901.10.0000—Cruise Ships, Excursion Boats, or Similar Vessels. This Schedule B number should be used ONLY to report “self-propelled” waterborne transportation, leaving the U.S. on its own power, from a Customs’ Vessel Border District Port. If the boats will be placed on a carrier for export, do not use this Schedule B number.

Census has included a table in the newsletter to illustrate the correct HTS/Schedule B number for several boat descriptions, as follows:

(See ITT's Online Archives 12032222 for summary of March 2012 newsletter's article on Census' incorporation of unresolved fatal errors into AES compliances rates beginning with the April 2012 report, and 12032918 for summary of the March 2012 newsletter's guidance on Routed Transactions.