Census' Proposed Rule to Modify AES (Part VII - Splits, Rejects, Penalties, Etc.)

Census is also proposing to require mandatory filing of export information through the Automated Export System or through AESDirect for all shipments of used self-propelled vehicles, temporary exports, and household goods.

Other significant changes are being proposed, including the addition/modification of conditional data elements in the AES. The proposed rule would also make remedial changes to the FTR to improve clarity and to correct errors.

Comments on Census’ proposed rule are due by March 22, 2011.

This is Part VII of a multipart series of summaries of the Census proposed rule, and highlights the changes Census is proposing to various regualtions in 15 CFR 30.8 through 15 CFR 30.36 on split shipments, penalties, rejected entries, etc.

Same Day Split Shipments Would be for All Modes of Transport

The proposed rule would revise 15 CFR 30.28, on split shipments, by removing all references to the word "by air," and removing all references to the words "flight" and "aircraft," to be replaced with the word "conveyance." Census states that this revision would indicate that split shipments apply to all modes of transportation, not just by air, and must occur on the same day.

Imported Goods Rejected After Entry Would Need EEI to Export

The proposed rule would add paragraph (c) to 15 CFR 30.25 on values for certain types of transactions, to state that imported goods that are cleared by U.S. Customs and Border Protection (CBP) but subsequently rejected would require Electronic Export Information (EEI) to be filed to export the goods. The value to be reported in AES would be the declared import value of the goods.

Shipments of Used Self-Propelled Vehicles, Household Goods to Canada Would Not be Eligible for EEI Exemption

The proposed rule would add new paragraphs (7) and (8) to 15 CFR 30.36(b), to indicate that used self-propelled vehicles and household goods destined to Canada, respectively, are not eligible for the Canada EEI reporting exemption.

But Household Goods Sent to Canada Would Only Require Limited Reporting

The proposed rule would revise 15 CFR 30.36(b), on exemptions for shipments destined to Canada. Census states that this revision would clarify that shipments destined to Canada must be filed in the same manner as all other exports when they fall under 15 CFR 30.36(b)(1) through (7). (Note that (b)(1)(8) would be household goods.)

The proposed rule would revise 15 CFR 30.36(b) in part as follows (proposed additions are underlined):

"This exemption does not apply to the following types of export shipments (These shipments shall be reported in the same manner as for all other exports, except household goods which require limited reporting):"

Return of Goods Previously Imported for Repair Would be Reported in AES, Etc.

The proposed rule would revise 15 CFR 30.29(a) on reporting repairs and replacements, to indicate, among other things, that the return of goods previously imported only for repair and alteration to the foreign shipper are required to be reported in the AES.

The proposed revisions to 15 CFR 30.29(a) are as follows (proposed deletions are struck, proposed additions are underlined):

"The return of goods previously imported only for repair and alteration only and other returns to the foreign shipper of temporarily imported goods (declared as such on importation) shall have Schedule B or HTSUSA classification commodity number 9801.10.0000. The value reported in the EEI shall only include parts and labor.

If the value of the parts and labor is over $2,500 per Schedule B number, or a license or DDTC license exemption statement is required, then EEI must be filed. The value of the original product shall not be included."

Value of Replacement Parts Under Warranty Would Include Freight, Insurance, Etc.

The proposed rule would revise 15 CFR 30.29(b)(2) on reporting of goods that are covered under warranty. Census states the revision would clarify that the value reported would include inland or domestic freight, insurance, and other charges to the U.S. seaport, airport, or land border port of export.

The proposed rule would add the following sentence and revision to 15 CFR 30.29(b)(2) (proposed deletions are struck, proposed additions are underlined):

"Report the Schedule B number or HTSUSA classification commodity number of the replacement parts. Report the value of the replacement parts onlyin accordance with 30.6(a)(17)."

(15 CFR 30.6(a)(17) states that the value to be reported in the EEI shall be the selling price (or the cost, if the goods are not sold), plus inland or domestic freight, insurance, and other charges to the U.S. seaport, airport, or land border port of export.)

Failure to Address Fatal Error Messages Prior to Export Could Lead to Penalties

The proposed rule would revise a sentence in 15 CFR 30.9(b) on transmitting and correcting EEI, to indicate that failure to respond to fatal error messages, prior to export of the cargo, subjects the USPPI or authorized agent to penalties.

The sentence would be revised as follows (proposed deletions are struck, proposed additions are underlined):

"Failure to respond to fatal error messages prior to export of the cargo subjects the principal party or authorized agent toor otherwise transmit corrections to the AES constitutes a violation of the regulations in this part and renders such principal party or authorized agent subject to the penalties provided for in Subpart H of this part."

Information Regarding USML Items Destined to U.S. Would be Added

The proposed rule would add a sentence in 15 CFR 30.18(a) on Department of State regulations, to indicate that shipments licensed by the State Department that are ultimately destined to a location in the U.S. are not required to be filed in the AES.

15 CFR 30.18(a) would be revised as follows (proposed deletions are struck, proposed changes are underlined):

"The USPPI or the authorized agent shall file export information, aswhen required, for items on the USML of the International Traffic in Arms Regulations (ITAR) (See 22 CFR part 121). Information for items identified in the USML, including those exported under an export license or license exemption, shall be filed prior to export. Items identified on the USML, including those exported under an export license or license exemption, ultimately destined to a location in the United States are not required to be reported in the AES."

Reference to BIS Reporting for AES Exempt Shipments Would be Added

The proposed rule would add paragraph (c) to 15 CFR 30.16 on the Export Administration Regulations (EAR). The proposed new paragraph (c) would indicate that certain export information must be placed on export control documents for shipments that are exempt from filing in the AES. New paragraph (c) would also provide a reference to 15 CFR 758.1(d) on the notation on export documents for exports exempt from (i) the shipper's export declaration (SED) or (ii) AES record requirements pertaining to export clearance requirements under the EAR.

Reference to Exclusion Legends Would be Removed as No Longer Required

Census proposes to revise 15 CFR 30.8 on time and place for presenting proof of filing citations and exemption legends, to remove all references to exclusion legends. Census states that USPPIs and authorized agents are no longer required to place an exclusion legend on the bill of lading, air waybill, export shipping instructions, or other commercial loading documents. (See Part II of Census proposed rule for the definition of "annotation," which would also reflect this update.)

See Future Issues of ITT for Additional Aspects of Proposed Rule

See future issues of ITT for summaries on additional aspects of Census’ proposed rule.

(See ITT’s Online Archives or 01/20/11 news, 11012033, for BP summary announcing availability of Census’ proposed rule.

See ITT’s Online Archives or 01/21/11, 01/24/11, 01/25/11, 01/26/11, 01/27/11, and 02/02/11 news, 11012130, 11012433, 10012524, 11012636, 11012717, and 11020209, for previous parts of BP’s summary of the proposed rule, including: Part I (post-departure filing), Part II (definitions), Part III (general EEI filing requirements), Part IV (EEI parties, routed transactions, and Part V (Postdeparture List, Filing Procedures) and Part VI (EEI Data Elements).

See ITT's Online Archives or 01/24/11 news, 11012423, for BP summary of the Census Bureau's proposed changes to AES Information collection.)

Census contact -- William Bostic (301) 763-8842

(FR Pub 01/21/11, D/N 100318153-0154-01)