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
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 192.1
“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))
USML Shipments
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

13. FTR Filing Time Frames (FTR 30.4 (b)(2))
Non-USML Shipments
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
For Non-USML shipments, the filing time frames are based on the Trade Act. Section 30.4 (b)(2) of the FTR outlines the time frames.
The filing times are as follows:
Vessel: 24 hours prior to departure
Truck: 1 hour prior to truck arriving at U.S. border
Air: 2 hours prior to scheduled departure time
Rail: 2 hours prior to train arriving at U.S. border
Mail: 2 hours prior to export
By filing your export information in advance this reduces the need for CBP to delay export cargo of any screenings or examinations that may be necessary. This will also enable CPB to perform their job more effectively.
How many of you receive some kind of notification when your ITN or a proof of filing citation is due in order to meet the carrier’s time frame for loading your commodity onto one of the modes of transportation?

14. AES Downtime Policy 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
If the Filer’s system is down, you will need to either file through AESDirect, select an authorized agent to report on your behalf, or select another way to report your export information.
If AES is down we will send a broadcast message to our filers. If you are using AESDirect/AESPcLink we will post a newsflash, as well. Use XTN (Filer ID – Shipment number) as a part of the Proof of Filing citation to move cargo. State Department cargo may not be exported during this time.
If you need more details on the AES Downtime Policy, you can access it from the CBP website,

15. Shipments Exempt from Filing Sections (30.36-30.40)
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)
- USPPI
- USPPI’s Agent
- BIS, CBP, ICE, BEA, BLS
- IRS
- Foreign Government
- Private Attorneys
Only Summary Statistics are published

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

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

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

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