Correction to BP's Notices on Census' Mandatory AES Final Rule

Although Census' final rule was effective July 2, 2008, enforcement doesn't begin until October 1, 2008. Informed compliance is in effect prior to October 1, 2008.

(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.)

Responsibility for ENG Form 7513 Transferred to the Army Corps of Engineers

In three of its previous notices highlighting Census' final rule¹, BP stated that the requirements for filing the in-transit SED, ENG Form 7513, were removed from 15 CFR Part 30, but omitted the next sentence which stated that the responsibility for ENG Form 7513 was transferred to the U.S. Department of the Army, U.S. Army Corps of Engineers.

Corrected and Expanded Highlights of Final Rule

The following highlights of Census' final rule reflect the inclusion of the previously omitted information on ENG Form 7513's transfer, as well as additional useful details.

According to Census, the changes to 15 CFR Part 30 made by its final rule include (partial list):

removing of 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.

removing 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);

revising the postdeparture (formerly Option 4) approval procedures.

The moratorium placed on Census' acceptance of new letters of intent (LOI) to participate in postdeparture filing in August 2003 remains in effect pending further review of the program. As a result, postdeparture filing is limited to currently approved U.S. Principal Parties in Interest (USPPIs). Despite the moratorium, the FTR contains regulations on the postdeparture filing approval and certification requirements, some of which have been revised to address U.S. national security concerns and interests;

renaming the FTSR (15 CFR Part 30) to "Part 30 - Foreign Trade Regulations" to more accurately reflect the scope of the revised regulations implementing full mandatory AES filing, such as inclusion of State Department requirements and the advance filing requirement implemented by CBP.

creating a new Subpart H to cover penalty provisions formerly addressed in 15 CFR 30.95, which provides for an increase in penalties imposed for violations from $100 to $1,000 for each day of delinquency, to a maximum from $1,100 to $10,000 per violation.

In addition, the penalty provisions provide for situations when the filer knowingly fails to file, files false and/or misleading information and other violations of the FTR where a civil penalty shall not exceed $10,000 per violation and a criminal penalty shall not exceed $10,000 or imprisonment for no more than five years, or both, per violation;

adding 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;

listing the types of export transactions outside the scope of 15 CFR part 30. The list of out-of-scope transactions is not all-inclusive, but includes those types of shipments about which Census receives frequent inquiries. These types of shipments are to be excluded from EEI filing;

specifying the four optional means for filing EEI of which two methods require the development of AES software using the AES Trade Interface Requirements (AESTIR);

including language to specify that in a "routed" transaction, the USPPI can compile and transmit export information on behalf of the foreign principal party in interest (FPPI) when agreed upon by the FPPI. This language permits the USPPI to act as an agent of the FPPI upon written authorization by the FPPI;

specifying the time and place-of-filing requirements for presenting proof of filing citations, postdeparture filing citations, and/or exemption legends.

(Specific time and place-of-filing requirements are included in the FTR in accordance with the provisions of the Trade Act of 2002 (Public Law 107-210));

specifying how to file EEI and acquire an Internal Transaction Number (ITN) when AES, AESDirect or the participant's AES is unavailable for filing;

adding the Routed Export Transaction Indicator and a Vehicle Identification Qualifier to the list of data elements to be reported through AES;

removing Date of Arrival and the Waiver of Prior Notice Indicator from the list of data elements that should be reported through the AES. (With mandatory AES reporting, these indicators are no longer required, since shipments sent between the U.S. and Puerto Rico will no longer be reported differently from other export shipments); and

revising 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.

Census contact - C. Harvey Monk, Jr. (301) 763-2932

¹Please correct the email version of ITT's 06/02/08, 07/07/08, and 09/03/08 news, 08060200, 08070707, and 08090310, to indicate that responsibility for ENG Form 7513 was transferred to the Army Corps of Engineers. ITT's Online Archives have already been corrected.

(See ITT's Online Archives or 06/05/08 and 06/19/08 news, 08060515 and 08061915 for BP 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. CBP 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.

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