Mandatory AES Enforcement and AES Direct Changes Begin October 1, 2008
In June 2008, the U.S. Census Bureau issued its final rule to amend the Foreign Trade Statistics Regulations (15 CFR Part 30) to make mandatory the filing of export information through the Automated Export System or AESDirect, for all shipments where a Shipper's Export Declaration (SED) is currently required, etc.
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Although Census' final rule was effective July 2, 2008, Census is providing an additional 90 days, through September 30, 2008, to allow the trade community to come into compliance with the requirements. Prior to October 1, 2008, informed compliance is in effect. Starting October 1, 2008, enforced compliance takes effect and fines and penalties for violations of the FTR may be imposed.
(AES is the electronic method for filing SED information directly with U.S. Customs and Border Protection and Census. AESDirect is the Census' free Internet-based system for filing SED information with AES.)
Highlights of Final Rule
Census amended the FTSR to specify the requirements for the mandatory reporting of all export information through AES when a SED was required. Specifically, Census amended the FTSR to (partial list):
remove the requirements for filing a paper SED (Option 1), Form 7525-V, so that AES is the only mode for filing information required by the SED;
(Note that the final rule uses the term Electronic Export Information (EEI), which is the electronic equivalent of the export data formerly collected as SED information and now mandated to be filed through the AES.)
revise the postdeparture (formerly Option 4) approval procedures;
create a new Subpart H to cover penalty provisions, which include an increase in penalties for violations to a maximum from $1,100 to $10,000 per violation;
add language specifying the procedure for reporting the value of goods to AES when inland freight and insurance charges are not known at the time of exportation;
remove the requirements for filing the in-transit SED, ENG Form 7513, from 15 CFR Part 30. Responsibility for ENG Form 7513 was transferred to the U.S Department of the Army, U.S. Army Corps of Engineers;
list the types of export transactions outside the scope of 15 CFR part 30;
specify the four optional means for filing EEI of which two methods require the development of AES software using the AES Trade Interface Requirements (AESTIR);
specify that in "routed" transactions, the U.S. principal party in interest (USPPI) can compile and transmit export information on behalf of the foreign principal party in interest (FPPI) when authorized by the FPPI;
specify the time and place-of-filing requirements for presenting proof of filing citations, postdeparture filing citations, and/or exemption legends;
specify how to file EEI and acquire an Internal Transaction Number (ITN) when AES, AESDirect or the participant's AES is unavailable for filing;
add the Routed Transaction Indicator and a Vehicle Identification Qualifier to the list of data elements to be reported to AES;
remove Date of Arrival and the Waiver of Prior Notice Indicator from the list of data elements that should be reported to the AES;
revise the language that describes the proper manner for reporting cost of repairs and/or alterations to goods, and the reporting of the value of replacement parts exported;
Numerous AESDirect Security Changes Also Take Effect October 1, 2008
Census has previously announced that, effective October 1, 2008, AESDirect accounts will have heightened security measures and user authentication practices that will further increase the level of protection offered to its users.
(These changes take effect on the enforcement date of mandatory AES for shipments requiring electronic export information (i.e., October 1, 2008), fall under the Commerce Department's security guidelines, and address Census' IT Security Program Requirements.)
AESDirect Accounts Increased Security Measures
The changes to AESDirect accounts to be implemented on October 1, 2008 include:
Individual user account administration
Stronger password requirements
Shorter password expiration timeframes
Automatic inactive account deactivation
Session timeout/concurrent login limit
Account lockout after 3 unsuccessful logins
New account administrator functions
Census contact - C. Harvey Monk, Jr. (301) 763-2932
(See ITT's Online Archives or 07/07/08 news, 08070707, for BP summary stating that mandatory AES is in effect and the AESTIR has been updated.
See ITT's Online Archives or 06/02/08, 06/05/08, and 06/19/08 news, 08060200, 08060515, and 08061915 for Parts I - III of BP's summaries of this Census final rule.
See ITT's Online Archives or 06/18/08 news, 08061815, for BP summary on different reporting timeframes for Census vs. U.S. Customs and Border Protection AES regulations.
See ITT's Online Archives or 06/03/08 news, 08060305, for BP summary of Census' notice to trade on mandatory AES.
Census final rule (FR Pub 06/02/08, D/N 031009254-6014-03) available at http://edocket.access.gpo.gov/2008/pdf/E8-12133.pdf.
AESTIR Version 1.0 (dated 06/26/08), available at http://www.cbp.gov/linkhandler/cgov/trade/automated/aes/tech_docs/aestir/june04_intro/june04_summary_of_chngs.ctt/june04_summary_of_chngs.doc
Census web page on mandatory AES available at http://www.census.gov/foreign-trade/aes/mandatory/index.html
Census' mandatory AES FAQs available at http://www.census.gov/foreign-trade/regulations/faqs/index.html.
AES newsletter (dated June 2008) available at http://www.census.gov/foreign-trade/aes/documentlibrary/AESDirectAccountMaintenanceChanges.pdf