Census' Proposed Rule to Modify AES (Part VIII - EEI Exemptions, Limited Reporting)

Census is also proposing to require mandatory filing of export information through the Automated Export System or through AESDirect for temporary exports, all shipments of used self-propelled vehicles, 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 VIII of a multipart series of summaries of the Census proposed rule, and highlights the changes Census is proposing to 15 CFR 30.26 and 15 CFR 30.37-40 on exemptions from Electronic Export Information (EEI) filing requirements.

Certain Temporary Exports Would No Longer be Exempt from EEI Filing

The proposed rule would remove paragraphs (q) and (r) from 15 CFR 30.37 (Miscellaneous Exemptions). The removal of these paragraphs would eliminate the EEI filing exemption for (q) temporary exports that do not require licensing, and (r) goods previously imported under a Temporary Import Bond for return in the same condition as when imported.¹

Census states that temporary shipments of goods valued over $2,500 per Schedule B or that require a license must be filed in the AES and that when reporting temporary exports the appropriate export information code for temporary goods, such as "TE and TP," must be reported.

Exemptions for In-Transit Shipments Would be Removed, Etc.

The proposed rule would remove the current text in paragraph (e) of 15 CFR 30.37 (Miscellaneous Exemptions), to remove the EEI filing exemption for in-transit shipments, which are "shipments transported inbond through the United States and exported from another U.S. port or transshipped and exported directly from the port of arrival."

(The proposed rule would also move the text of 15 CFR 30.26(a) on EEI filing exemptions for vessels, pallets, or similar containers shipping as "tools of international trade," to 15 CFR 30.37(e). In addition, the proposed rule would redesignate 15 CFR 30.26(b) as 15 CFR 30.26, which states that all shipping containers when "moving as goods," pursuant to sale or other transfer, from ownership in the U.S. to ownership abroad must file EEI in the AES.)

Domestic/Foreign Items with Same Classification Would be Reported Separately

The proposed rule would revise 15 CFR 30.37(a) to indicate that items of domestic and foreign origin under the same commodity classification number must be reported separately and is required when valued over $2,500. An explanatory note would also be added stating that EEI reporting exemptions do not apply to the export of vehicles or household goods, which must be filed in AES regardless of value or country of destination.

Exemptions for Books, Etc. Shipping to Gov'ts Would be Modified

According to Census, the proposed rule would remove paragraph (d) from 15 CFR 30.40, (Special Exemptions for Certain Shipments to U.S. Government Agencies and Employees) and incorporate its exemptions for shipments to foreign libraries, government establishments, and other similar institutions in 15 CFR 30.37(g) (Miscellaneous Exemptions), which would be revised to state (proposed deletions are struck, proposed additions are underlined):

"Shipments of books, maps, charts, pamphlets, and similar articles shipped by U.S. government offices to U.S. or to foreign libraries, government establishments, or similar institutions.

ITAR Technical Data, Defense Services Exemption Would be Clarified

Census states that the proposed rule would add paragraph (s) to 15 CFR 30.37 (Miscellaneous Exemptions) to clarify that exports of technical data and defense service exemptions defined in 22 CFR 123.22(b)(3)(iii) of the International Traffic in Arms Regulations (ITAR) are exempt from the EEI filing requirements.

Household Goods & PP Would Require Limited Reporting, Full Reporting for Used Self-Propelled Vehicles

The proposed rule would rewrite 15 CFR 30.38 to state that, "regardless of value, household goods of usual and reasonable kinds and quantities of personal property, such as wearing apparel, articles of personal adornment, toilet articles, medicinal supplies, food, souvenirs, games, and their containers require limited reporting of EEI. These goods should be for use by the USPPI or the USPPI’s immediate family, not intended for sale, and shipped under a bill of lading or an air waybill."

Census states that this revision would also remove the exemption for limited reporting of vehicles because full reporting is required for used self-propelled vehicles.

(Note that the proposed rule would define household goods in 15 CFR 30.1 as: "usual and reasonable kinds and quantities of furniture, clothing and personal adornments necessary and appropriate for use by the USPPI or the USPPI's immediate family.")

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.

¹The removal of EEI filing exemptions would apply to (q) temporary exports, that do not require licensing, whether shipped or hand carried, (e.g., carnet) that are exported from and returned to the U.S. in less than one year (12 months) from the date of export; and (r) goods previously imported under a Temporary Import Bond for return in the same condition as when imported including: goods for testing, experimentation, or demonstration; goods imported for exhibition; samples and models imported for review or for taking orders; goods imported for participation in races or contests, and animals imported for breeding or exhibition and goods imported for use by representatives of foreign governments or international organizations or by members of the armed forces of a foreign country. Goods that were imported under bond for processing and reexportation were not covered by this exemption.

(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, 02/02/11, and 02/03/11 news, 11012130, 11012433, 10012524, 11012636, 11012717, 11020209, and 11020339, 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, Part V (Postdeparture List, Filing Procedures), Part VI (EEI Data Elements), and Part VII (Splits, Rejects, Penalties, Etc).

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)