1 Foreign Trade Foreign Trade Statistics Regulations Statistics Regulations U.S. Census Bureau U.S. Census Bureau Foreign Trade Division Foreign Trade Division Regulations, Outreach and Education Branch Regulations, Outreach and Education Branch
Jan 15, 2016
1
Foreign Trade Foreign Trade Statistics RegulationsStatistics Regulations
U.S. Census Bureau U.S. Census Bureau Foreign Trade DivisionForeign Trade Division
Regulations, Outreach and Education BranchRegulations, Outreach and Education Branch
2
Today’s TopicsToday’s Topics
• Legal Requirements• Filing Requirements• U.S. Principal Party In Interest (USPPI)• Types of Transactions• Exemptions• Automated Export System (AES)• Compliance• Penalties
3
Legal RequirementsLegal Requirements
Census BureauForeign Trade Statistics Regulations (FTSR)
• 15 CFR, Part 30 Section 30.1-30.99
Bureau of Industry and Security (BIS)Export Administration Regulations (EAR)• 15 CFR, Parts 700-799
4
What is an SED Shipment?What is an SED Shipment?
An SED shipment is:
• Merchandise shipped from One USPPI to One
Consignee
• On the Same Flight/Vessel
• To the Same Country
• On the Same Day
• Valued Over $2,500 per Schedule B Number or
License Required
5
When is the SED Required?When is the SED Required?
For virtually all shipments: .
• To Foreign Countries
• Between the U.S. and Puerto Rico
• From Puerto Rico to Foreign Countries
• From Puerto Rico to U.S. Virgin Islands
• From the U.S. to the U.S. Virgin Islands
6
U.S. Principal Party in InterestU.S. Principal Party in Interest
The U.S. Principal Party in Interest is the:• U.S. Person or Entity
• Primary Benefactor (Monetary, or Otherwise)
Generally that Person can be the:• U.S. Seller: (Wholesaler or Distributor)
• U.S. Manufacturer
• U.S. Order Party
• Foreign Entity (If in U.S. at time goods purchased or obtained)
7
Two Types of TransactionsTwo Types of Transactions
Export Transaction (Standard): USPPI files the AES record or appoints an authorized
U.S. agent to file the export information.
Routed Export Transaction: Foreign Principal Party in Interest (FPPI) appoints
an authorized U.S. agent to file the export information.
8
Export TransactionExport Transaction
USPPI Responsibilities:• Files the export information or appoints authorized
U.S. agent
• Provides POA to the authorized U.S. agent
• Responsible for license determination
Authorized U.S. Agent Responsibilities:• Obtains a POA from the USPPI
• Provides transportation data
• Files accurate and complete export information
9
Routed Export TransactionRouted Export Transaction
USPPI Responsibilities:• Must provide the FPPI’s agent with commodity data &
licensing information
• Upon request be provided with their portion of the SED upon completion by authorized U.S. agent
Authorized U.S. Agent Responsibilities:• Obtain a POA from the FPPI
• Provide transportation data
• Files accurate and complete export information
10
Shipments Exempt from FilingShipments Exempt from Filing
• $2,500 or less per Schedule B Number
• Intangible exports of software & technology
• Tools of Trade: hand carried, personal or company use, not for sale, returned within 1 year
• Country of ultimate destination is Canada
11
Exemptions Do Not ApplyExemptions Do Not Apply
• Commerce (BIS) Licenses
• State Department Licenses
• License Shipments from Other Government Agencies
• OFAC Prohibited Countries
12
Record RetentionRecord Retention
For the Census Bureau:
• Retain documents verifying the shipment
for 5 years from the date of export
Other Government Agencies:
• Retention periods may differ
13
Automated Export SystemAutomated Export System
The Automated Export System is the electronic filing of:
• Shipper’s Export Declaration
AES Filers can be:
• U.S. Principal Parties in Interest
• U.S. Authorized Agents
14
AES Filing MethodsAES Filing Methods
• Direct connection to the CBP mainframe
• Self-developed Software
• Certified Vendor Software
• Certified Service Center
• AESDirect• Interactive Filing
• AESPcLink
• Batch Filing (EDI Upload)
• AESWebLink
15
AESAESDirectDirect
• Census Bureau’s FREE Internet based system for filing SEDs with AES
• www.aesdirect.gov
• On-line help facility
• Help Desk / Tech Support
7am-7pm EST, 7days a week
• Data Security through encryption, user authentication and password maintenance
16
Staying Compliant with AESStaying Compliant with AES
• Filings are monitored for quality, timeliness and coverage
• Census will take the appropriate action to correct non-compliance
• AES filers can be penalized for:• Failure to File• Late Filing• Providing false or misleading information
17
Compliance Review Program Compliance Review Program GoalsGoals
• Identify and Develop Best Practices
• Offer Assistance and Guidance with AES Filings
• Help you Avoid Costly Encounters with Government Enforcement Agencies
18
Compliance Review ProcessCompliance Review Process• Notification letter sent prior to meeting
• Compliance Team will visit companies
• Attendees, Managers, Compliance Officers, Forwarders, and/or staff with AES responsibilities
• 90 days to achieve compliance
• Referrals to OEE and/or CBP
19
Delegation of Authority – Enforcement
Criminal Penalty
Civil Penalty
Voluntary Self Disclosure
Penalty ProvisionsPenalty Provisions
20
USPPI or Authorized Agent who knowingly: Fails to file
• Files false and misleading information• Continues to participate in illegal activities
Fines:• Up to $10,000 per violation• Imprisonment for not more than five years• Both
Criminal PenaltiesCriminal Penalties
21
USPPI or Authorized Agent or Carrier:
Late Filings
Up to $1,100 per each day delinquency or up to a maximum of $10,000 per violation
Other Violations
Up to $10,000 per violation
Penalties may be Mitigated
Civil PenaltiesCivil Penalties
22
Reflects due diligence in preventing, detecting, and correcting violations.
Letter should include the following information:
Nature of the problem
Mitigating Factors (I.e. training)
Number and value of shipments affected
Corrective Actions Taken
Exhibits/Attachments (I.e. ITNs, AES Records
Contact information
A VSD should not be used to report a correction to a
record
Voluntary Self DisclosureVoluntary Self Disclosure
23
For More InformationFor More Information• FTD Call Center: 1-800-549-0595
• Choose 1 – AES Assistance
• Choose 2 – Commodity Classification Assistance
• Choose 3 – Regulations Assistance
• Fax: 301-763-6638 or
301-763-4670
• Secure Fax: 301-763-8835
• Email: [email protected]
FTDREGS @census.gov
• www.census.gov/trade