Census Finalizes New USML Data Element in AES, FTR Revisions
The Census Bureau is moving forward with a new data element in the Automated Export System that shippers must report when exporting items classified under U.S. Munitions List Category XXI. The agency didn’t list any public comments objecting to the change that it proposed in May (see 2305020007), which Census said will help it collect more data on Category XXI exports and defense services that are “not otherwise enumerated” under other USML categories.
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Beginning Nov. 8, Census will add the conditional data element, Directorate of Defense Trade Controls (DDTC) Category XXI Determination Number, when “21” is selected in the DDTC USML Category Code field in the AES’ Electronic Export Information, the agency said. The State Department, which oversees DDTC and the USML, issued guidance earlier this year to help exporters determine whether their items are controlled under Category XXI (see 2305050024).
The final rule also will make certain “remedial changes” to Census’ Foreign Trade Regulations to update International Traffic in Arms Regulations references in two existing data elements: DDTC Significant Military Equipment Indicator and DDTC Eligible Party Certification Indicator. The rule also makes other changes to the FTR to revise or clarify export reporting requirements that were proposed in a 2021 rule and in the agency’s rule from May.
One change revises the FTR to clarify that when the Dun & Bradstreet Number (DUNS) is reported as the U.S. Principal Party in Interest Identification Number in AES, the Employer Identification Number (EIN) of the USPPI also is required to be reported in AES. One commenter recommended Census “eliminate” DUNS for reporting the USPPI ID “because reporting the DUNS requires the company to also report their Employer Identification Number (EIN) and adds to reporting burden and filing mistakes thus increasing risks of incurring a fine and/or penalty,” Census said. The commenter also said the agency should “review and publish the percentage of shipments where the DUNS is used as the filer ID.”
Census said it “disagrees” with removing DUNS as an option for reporting the USPPI ID. “USPPIs who have postdeparture filing privileges support the use of the DUNS as the USPPI ID because USPPIs prefer to have the less sensitive DUNS rather than the EIN shown on the front page of bills of lading/air waybills and other commercial documents as part of the postdeparture filing citation,” the agency said. “However, as a result of this comment, FTR Appendix B to Part 30 -- AES Filing Citation, Exemption and Exclusion Legends (II and III) will be changed from USPPI EIN to USPPI Identification Number to allow either the EIN or DUNS.”
Another commenter said use of the DUNS and EIN as the USPPI ID “has been a mystery to most EEI filers and many EEI transmission software systems are not programmed to accommodate this requirement,” Census said. “Therefore, the commenter stated that the practice is that many, if not most, filers do not report both the DUNS and EIN.” The commenter added that it’s “unlikely, even with this clarification, that EEI filers will begin to transmit both DUNS and EIN or that software providers will change their systems,” and asked Census to “provide further information on the reason and value of receiving the DUNS number.”
In response, Census said it has historically given USPPIs the option of providing the DUNS or EIN as the USPPI ID, adding that reporting the “less sensitive DUNS” instead of the EIN became “more favorable to USPPIs who were approved for the postdeparture filing program because the postdeparture filing exemption contains the USPPI ID which is visible on the front of commercial documents.” But the agency noted that when DUNS is reported as the USPPI ID in the AES, Census also requires an EIN. “The Census Bureau must have the EIN to link to the Business Register to collect information for the Profile of U.S. Exporting Companies statistical release.”