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Dale C. Kelly Assistant Division Chief Data Collection Foreign Trade Division U.S. Census Bureau U.S. Department of Commerce (301)

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Presentation on theme: "Dale C. Kelly Assistant Division Chief Data Collection Foreign Trade Division U.S. Census Bureau U.S. Department of Commerce (301)"— Presentation transcript:

1 Dale C. Kelly Assistant Division Chief Data Collection Foreign Trade Division U.S. Census Bureau U.S. Department of Commerce (301)

2 Foreign Trade Regulations Dale C. Kelly Bureau of Industry and Security Export Management Compliance Program Boston, MA May 21, 2009 Foreign Trade Regulations Dale C. Kelly Bureau of Industry and Security Export Management Compliance Program Boston, MA May 21, 2009

3 Today’s Topics Foreign Trade Regulations (FTR) Electronic Export Information (EEI) Impact to the Trade Community Filing Requirements Filing Time Frames AES Downtime Policy Confidentiality Penalty Provisions Mitigation Guidelines Best Practices Outreach Efforts

4 Impact to Trade Community Required Filing Citations to Carriers ITN Proof of Filing Citation Exemption Citation Post Departure Citation New Compliance Requirements Lead to Shift in Business Practices Meet Filing Time Frames – Know Who Files, What is Filed, and When to File

5 Current AES Statistics 99.96% eligible exports filed in AES 87.10% predeparture shipments 12.90% postdeparture shipments 35,657 AES filers 9,808 unresolved fatal errors 29 SEDs keyed in March 2009

6 When is an EEI Record Required? (FTR 30.2) An EEI record must be filed for exports of physical goods when shipped as follows: U.S.  foreign countries U.S.  U.S. Virgin Islands Puerto Rico  foreign countries Puerto Rico  U.S. Virgin Islands U.S.  Puerto Rico Licensable commodities Over $2,500 per Schedule B Number

7 U.S. Principal Party In Interest Section (30.3) USPPI is the primary benefactor (monetary or otherwise) Can Be The: U.S. Seller (Wholesaler or Distributor) U.S. Manufacturer U.S. Order Party Foreign Entity Customs Broker

8 Two Types of Transactions (FTR 30.3) 1)Export Transaction (Standard): USPPI files the EEI record or authorizes a U.S. forwarder or other agent to file the EEI. 2)Routed Export Transaction: Foreign principal party in interest (FPPI) authorizes a U.S. forwarder, other agent, or USPPI to file the EEI.

9 Export Transaction (FTR 30.3 (c)) USPPI Responsibilities: Files or authorizes U.S. Forwarder or other agent to file the EEI Provide POA/Written Authorization and commodity data to Forwarder Responsible for license determination Forwarder Responsibilities: Provide transportation data File export information via the AES and citation to carrier Present USPPI with copy of data, upon request

10 Routed Export Transaction (FTR 30.3 (e)) USPPI Responsibilites: Provide forwarder with commodity data & licensing information May obtain copy of the EEI filed by the forwarder If filing, USPPI must obtain POA from FPPI and present forwarder/carrier with citation Forwarder Responsibilities: Obtain a POA/Written Authorization from the FPPI File EEI record Present carrier with citation Present USPPI with copy of data, upon request

11 Required Predeparture Filings Section (30.4 (b)) U.S. Munitions List/Commerce Control List shipments Drug Enforcement Agency (DEA) Permit Used self-propelled vehicles as defined in 19 CFR “Sensitive” by Executive Order Routed Exports Rough Diamonds Shipments to countries listed in 19 CFR 4.75(c)

12 ITAR Filing Time Frames (FTR 30.4 (b)(1)) 8 hours prior to scheduled departure time 8 hours prior to truck arriving at U.S. border 24 hours prior to train arriving at U.S. border 24 hours prior to loading USML Shipments

13 FTR Filing Time Frames (FTR 30.4 (b)(2)) 24 hours prior to loading 1 hour prior to truck arriving at U.S. border 2 hours prior to scheduled departure time 2 hours prior to train arriving at U.S. border 2 hours prior to export Non-USML Shipments

14 When the AES filer’s system is down –Transmit through AESDirect –Select an Authorized U.S. Agent to report on your behalf When the AES is down –You will be notified by a nationwide broadcast –Use Downtime Proof of Filing Citation to move cargo Shipments subject to DDTC, whether licensed or ITAR exempt cannot be moved under AES Downtime AES Downtime Policy

15 Shipments Exempt from Filing Sections ( ) Country of ultimate destination is Canada (30.36) $2,500 or less per Schedule B number (30.37(a)) Tools of Trade: hand carried, personal or company use, not for sale, not shipped as cargo, returned within 1 year (30.37(b)) Intangible exports of software & technology (30.37(g)) Temporary Exports (e.g., Carnets) (30.37(r))

16 Exemptions Do Not Apply Commerce (BIS) licenses State Department licenses License shipments from other government agencies Shipments on Office of Foreign Assets Control Sanctions Program List Diamonds classified under 6-HS subheading , ,

17 Confidentiality of the Data (FTR 30.60) Only Summary Statistics are published - USPPI - USPPI’s Agent - BIS, CBP, ICE, BEA, BLS - IRS - Foreign Government - Private Attorneys

18 Record Retention Section (30.10) Census: Retain documents verifying the shipment for 5 years from the date of export Other Government Agencies: Adhere to requirements of other agencies with export control requirements

19 USPPI or Authorized Agent who knowingly: Fails to file Files false and misleading information Continues to participate in illegal activities Criminal Penalties (FTR 30.71(a)) FINES up to $10,000 per violation and/or IMPRISONMENT for no more than five years

20 USPPI Or Authorized Agent Or Carrier Penalties may be mitigated Civil Penalties (FTR 30.71(b)) Up to $10,000 per violation Other Violations Late Filings Up to $1,100 per each day delinquency or up to a maximum of $10,000 per violation PartiesViolationsPenalties

21 Common Errors/Violations  Citing old FTSR Exemptions  Submitting AES Postdeparture citation w/o date  Citing Sec for exports not destined to Canada  Incorrect format of ITNs/Reusing an ITN  Not providing ITN on export documentation

22 Mitigation Guidelines CBP Published Guidelines on January 2, 2009 Effective Date February 1, 2009 Highlights: Penalties for failure to file Penalties for late filing Penalties for other violations Carrier Penalties

23 Implement Best Practices  Perform Cross Training  Implement Mentoring Program  Know your US authorized or forwarding agent  Develop Training Manual  Attend Seminars & Workshops

24 Develop Training Manual  Export Related Regulation  Classifying Commodities  Include FAQs, Websites, and Contacts  Create Export Checklist  How to File Export Information Using AES  Resolve Fatal Error  Review Warning, Compliance and Verify messages

25 Maintaining Compliance  Education Management, sales staff, users of the application, customers/clients  Automation Develop and implement upgrades to in-house systems to enhance edits Download latest upgrades to AESDirect  Operational Provide accurate information Appropriately formatted citations on the loading document

26 Internal Reviews Request AES Data: Who can receive data? Requirements to receive data:  Company letterhead  EIN and Company name  Time frame  Purpose for request

27 Voluntary Self Disclosure Systematic Problems Submit letter on company letterhead and include the following information: Description of information unreported or reported incorrectly Number and value of shipments affected Steps taken to resolve problem Point of contact Retain documentation regarding all shipments involved in disclosure File missing or correct data in AES

28 Foreign Trade Division Outreach AES Compliance Seminars AES Compliance Review Program Webinars Company Training Spanish Seminars

29 Automated Export System Branch (Option 1) Commodity Analysis Branch (Option 2) Regulations, Outreach and Education Branch (Option 3) Secure Fax: Website: Foreign Trade Division

30 Dale C. Kelly Assistant Division Chief, Data Collection Phone #: Fax #:


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