1. FTR & ACE Transition Update Theresa Gordon International Trade Management Division U.S. Census Bureau

2. 2  FTR Changes  Transition of AESDirect into ACE Today’s Topics

3. 3 FTR Rewrite Notice of Proposed Rulemaking (NPRM) Published in the Federal Register on March 9, 2016 https://federalregister.gov/a/2016-05047 Two new data elements Addresses transition to the Automated Commercial Environment (ACE) Accommodates electronic manifest New and improved definitions

4. Original ITN [FTR 30.6(c)(3)]  The ITN associated with a previously filed shipment that is replaced or divided and for which additional shipment(s) must be filed.  Use in scenarios such as, but not limited to: Shipments divided while in transit Sold en route shipments Shipments split by the carrier where succeeding parts are not exported in the timeframes in §30.28 4

5. 5 A shipment booked for export that is divided by the carrier in two or more shipments by the same mode of transportation from the same port within the timeframes listed below. 24 hours:  Vessel cargo 7 days:  Air cargo  Truck cargo  Rail cargo Split Shipments [FTR 30.28]

6. Used Electronics Indicator [FTR 30.6(b)(18)]  Definition Various electronic equipment, products and associated accessories including consumer electronics and information technology equipment that are no longer in new packaging and have been given away or sold to be recycled, resold, reused, refurbished, repaired or disposed.  AESTIR Appendix X List of 143 HTS/Schedule B classification codes provided on www.census.gov/trade 6

7. AES Certification Revisions [FTR 30.2(c)] Clarifying ACE transition: Explanation of ACE Exporter Account application Explanation of Letter of Intent for some types of filers No longer required to take a certification quiz to register for AESDirect (in ACE) 7

8. New Definitions [FTR 30.1(c)]  Proposed to be added:  Automated Commercial Environment (ACE)  Domestic goods  Foreign goods  Used electronics 8

9. What’s Next? After the 60 day comment period the Trade Regulations Branch will:  Review all comments  Discuss comments with appropriate federal agencies  Obtain concurrence from the Department of Homeland Security (DHS) and Department of State  Respond to all comments  Issue and implement the Final Rule 9

10. Transition of AESDirect into ACE  Export Accounts & Export Reports deployed in ACE June 27, 2015  Existing Importer Accounts  Add Exporter Role  New Exporter Accounts  Register to access AESDirect in ACE  Require vetting for export reports authorization  Export Reports  201 – Filer Report  202 – USPPI Report  203 – Routed Report 10

11. Transition of AESDirect into ACE  November 30, 2015: AESDirect deployed in ACE (at-will transition period)  February 29 – April 25, 2016: Legacy AESDirect Portal/AESPcLink transition  April 30, 2016: Weblink/Bulk Upload transition period ends  May 20, 2016: EDI/VPN/SFTP transition period ends 11

12. Transition of AESDirect into ACE  AESDirect Statistics  User Feedback  Customer Service Roles  CBP – ACE Service Desk  Census – ITMD Call Center  AESDirect Downtime Policy 12

13. BIS Compliance Update Gerry Horner Director, Office of Technology Evaluation Bureau of Industry and Security NCBFAA Annual Conference Export Compliance to Maintain Business

14. Today’s Topics Compliance Outreach Visits Lessons Learned

15. Compliance Outreach Visits Purpose of Visits For FY 16 - 20 Completed, 30 Pending Factors for selecting companies

16. Annual 2015 EEI Findings Type of TransactionTOTAL CountPercentage NLR EEIs39,236,59898.5% NLR not compliant29,004.07% License Exceptions486,0151.2% EAR99 Use Incorrect4,4070.9% LVS Exceeded4920.1% Licensed124,7750.3% ECCN Mismatch1,7081.4% Country Mismatch1,2441.0% Ship. Tol. Overage1,7801.4%

17. What to Expect from a Visit Arrange Meeting Time and Date Review Export Procedures and Program Discuss list of ITNs sent prior to visit

18. Findings from Visits Lack of Training Classification was outdated, incorrect, or no documentation EAR99 items in transactions subject to a license requirement No written procedures Inaccurate EEIs

19. Recommendations Exporters should audit EEIs Exporters should compare instructions (SLIs) with AES EEIs filed by forwarding agents for inconsistencies Develop flow charts or written procedures Increase awareness of export compliance Classify items correct and document

20. Compliance Letters 2015 – Sent 110 compliance letters – Issues include ECCN mismatches between license and AES filing – Country mismatch between license and AES filing – Tolerance exceeded – NLR potential misuse – Wrong agency code used 2016 – Anticipate similar number of letters being sent later this summer

21. STA Compliance Non-600 series and 9X515 Items FY 2015 Reviewed 50 Companies 88% Compliance FY 2012 – Current Reviewed 200+ Companies 86% Compliance 20 Company Visits

22. EAR 764.5(f) Authorization Requests FY 2015 # Completed72 Average Time18.7 Days FY 2016 # Completed39 Average Time13.1

23. Gerry Horner Gerard.horner@bis.doc.gov 202 482 2078 Contact Information