Archive for the ‘FTS/Census’ Category

DHS/CBP Updates Harmonized Tariff Schedule in the Automated Export System

Monday, October 16th, 2017 by Danielle McClellan

2017/10/16

(Source: census@subscriptions.census.gov)

Effective immediately, all recent additions to the Harmonized Tariff Schedule (“HTS”) are now available for use in the Automated Export System (“AES”). There were no additions to the Schedule B.

The ACE AESDirect program has been updated with these new HTS codes.

The full 2017 Schedule B and HTS tables are available for downloading here and the current list of HTS codes that are not valid for AES can be found here.

For further information or questions, contact the U.S. Census Bureau’s International Trade Indicator Micro Analysis Branch. Telephone: (800) 549-0595, select option 2 for International Trade Indicator Micro Analysis Branch.

AES Changes Impacted by Export Control Reform Implementation Rules

Thursday, March 30th, 2017 by Danielle McClellan

2017/03/30

(Source: census@subscriptions.census.gov, 22 February 2017.)

On July 28, 2016 and October 12, 2016, the Department of Commerce, Bureau of Industry and Security published final rules (available at here and here) that became effective December 31, 2016. As a result of these rules, the following changes were made to the Automated Export System (AES) in order for exporters and authorized agents to successfully report electronic export information in the AES.
(1) The Addition of “600 series” Export Control Classification Numbers (ECCN)

600-series ECCNs 1A607, 1B607, 1C607, 1D607, 1E607, 6B619, 6D619, 6E619, 7A611, 7B611, 7D611, and 7E611 were added to the AES ECCN reference table. See the following instructions to determine which “600 series” ECCNs are eligible for certain license types. By using any of the License Exceptions or “No License Required” (NLR), you are certifying that the terms, provisions, and conditions described in the EAR have been met.

  • C30 (BIS license), C40 (TMP), C41 (RPL), C42 (GOV), and C59 (STA) – All “600 series” ECCNs listed above are eligible to the extent permitted under part 740 of the EAR.
  • C33 (NLR) – All “600 series” ECCNs listed above are eligible only if exported to Canada. Some of these “600 series” items were previously authorized under an International Traffic in Arms Regulations (ITAR) Canadian exemption (SCA).
  • C35 (LVS) – The following “600 series” ECCNs are eligible: 1B607, 6B619, 7A611, and 7B611.
  • C44 (TSU) – The following “600 series” ECCNs are eligible: 1D607, 1E607, 6D619, 6E619,7D611, and 7E611.

 

If the “600 series” ECCNs are reported under any other license type, AES will generate a fatal error (FATAL ERR 666-ECCN MUST BE FROM APPROVED LIST) back to the filer. Please note that under 758.1 of the EAR, an AES filing is required for exports of items classified under “600 series” ECCNs, regardless of the value of the item or destination.
(2) Items subject to the EAR, including “600 series” ECCNs that are licensed by the State Department under the International Traffic in Arms Regulations (ITAR)

Under a delegation of authority, the State Department may license an item subject to the EAR on an ITAR license pursuant to new section 120.5(b) of the ITAR. If this occurs, the AES filer must report the ECCN (including “600 series” ECCNs) or the EAR99 designation in the ECCN field in AES, even if the license type is S05 (DSP-5). All other fields associated with license type S05 are required, such as registration number, significant military equipment indicator, DDTC eligible party certification indicator, USML category code, DDTC unit of measure and DDTC quantity.

A complete list of all of the AES License Type codes and reporting instructions for these types can be found at here.

For questions regarding these upcoming AES changes, please contact the Bureau of Industry and Security by email at ECR_AES@bis.doc.gov or at one of the phone numbers below.

  • Office of Technology Evaluation (located in Washington, DC): (202) 482-4933
  • Outreach and Educational Services Division (located in Washington, DC): (202) 482-4811
  • Western Regional Office (located in Irvine, CA): (949) 660-0144
  • Northern California branch (located in San Jose, CA): (408) 998-8806

Understanding Routed Export Transactions

Tuesday, January 31st, 2017 by Danielle McClellan

2017/01/31

(Source: Global Reach Blog)

Routed export transactions are a much discussed topic.  Therefore, we are revisiting this blog topic to give some helpful tips on remaining compliant if you’re involved in a routed export transaction. We’ll also take a look at an example.  For those not familiar with routed export transactions, it is when the Foreign Principal Party in Interest (FPPI) directs the movement of the goods out of the U.S. and authorizes a U.S. agent to file the Electronic Export Information (EEI) on their behalf.

Below are some helpful tips to keep in mind: 

  • Communication is key!  Having conversations with all parties involved before the transaction occurs will make a difference in understanding roles and responsibilities to prevent filing errors in the Automated Export System (AES);
  • Refer to Sections 30.3(e), (e)(1) and (e)(2) of the Foreign Trade Regulations (FTR) for the definition and more information on the responsibilities of the parties involved in a routed transaction;
  • Utilize the Census Bureau resources; and
  • View sample templates for the power of attorney and written authorization on our website here or here.

Routed Export Transaction Example:

A U.S. Principal Party in Interest (USPPI) sells two paintings to a FPPI located in Italy.  Keep in mind, the USPPI is defined as the person or legal entity in the U.S. that receives the primary benefit, monetary or otherwise, from the transaction. The FPPI instructs the USPPI to send the paintings to an agent located in Florida.  The FPPI authorizes the agent to file the EEI in the AES on their behalf and ship the goods to Italy.  In this example, each party has important responsibilities that are outlined below.

FPPI

  • Provides the agent, who is authorized to file the EEI, with a power of attorney or written authorization, the authorization comes after the FPPI provides the POA or written authorization.

USPPI

  • Provides the agent with the data elements, such as Schedule B number, value, quantity, etc., specified in Section 30.3(e)(1) of the FTR.
  • Retains documentation to support the information provided to the authorized agent for five years from the date of export.
  • Requests a copy of the data elements that were filed in the AES and the power of attorney or written authorization.

Authorized Agent

  • Ensures that a power of attorney or written authorization is received from the FPPI.
  • Files the EEI in the AES.
  • Provides the Internal Transaction Number or exemption code if filing is not required to the carrier.
  • Retains documentation pertaining to the shipment for 5 years.
  • If requested, provides the USPPI with a copy of the USPPI data elements that were filed in the AES and the power of attorney or written authorization from the FPPI. For further questions, please contact the Trade Regulations Branch (TRB) at 1-800-549-0595, option 3 or email us at itmd.askregs@census.gov

Tips on How to Resolve AES Fatal Errors

Tuesday, November 15th, 2016 by Danielle McClellan

2016/11/15

(Source: census@subscriptions.census.gov, 24 Oct 2016)

When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected. If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation. However, if the shipment is rejected, a Fatal Error notification is received.

To help you resolve AES Fatal Errors, here are some tips on how to correct the most frequent errors that were generated in AES for this month.

Fatal Error Response Code: 110

  • Narrative: State of Origin Unknown
  • Reason: The U.S. State of Origin indicated is not valid in AES.
  • Resolution: The U.S. State of Origin Code must be a valid two-character U.S. state, territory, or possession code (i.e., any USPS code). Verify the State of Origin, correct the shipment and resubmit.

Fatal Error Response Code: 572

  • Narrative: DDTC Registrant Expired
  • Reason: The DDTC Registration Number reported is not valid in the AES at the time of export.
  • Resolution: When the License Code/License Exemption Code indicates a Department of State – Directorate of Defense Trade Controls (DDTC) license (SAG, SCA, S00, S05, S61, S73, S85 or S94), the DDTC Registration Number must be reported. The DDTC Registration Number must be valid in the AES and cannot be expired at the time of export. Verify the DDTC Registration Number and the Estimated Date of Export, correct the shipment and resubmit. For further assistance, contact the licensing agency. The Department of State – Directorate of Defense Trade Controls / DDTC Help Desk can be reached on 202-663-2838.

 

For a complete list of Fatal Error Response Codes, their reasons, and resolutions, see Appendix A – Commodity Filing Response Messages.

It is important that AES filers correct Fatal Errors as soon as they are received in order to comply with the Foreign Trade Regulations. These errors must be corrected prior to export for shipments filed predeparture and as soon as possible for shipments filed postdeparture, but not later than five calendar days after departure.

For further information or questions, contact the U.S. Census Bureau’s Data Collection Branch.

Annotating an Export Shipment: Filing Citations, Exemption and Exclusion Legends

Tuesday, November 15th, 2016 by Danielle McClellan

2016/11/15

(Source: Global Reach Blog)

The U.S. Census Bureau often receives questions on how to annotate commercial documents for export shipments to minimize potential delays at the port of export. In a previous blog on Filing Citations and Exemption Legends, we provided an overview of filing citations and exemption legends. In this blog, I would like to expand upon the information previously provided. We will discuss the use of exclusion legends and give a snap shot of the different types of citations and legends that must be clearly stated on the commercial loading documents.

Exclusion legends are used for shipments that fall outside the scope of the Foreign Trade Regulations (FTR). The types of shipments that are excluded from filing requirements are identified in Section 30.2(d) of the FTR.  It is important to remember that whether you are required to file the Electronic Export Information (EEI) or not, the correct annotation must be displayed on the commercial loading document or in a prominent location on the shipment package. Below is a snapshot describing the citations and legends that must be provided prior to exportation.

Citations / Legends Description Annotation
Proof of Filing Citation Parties to the transaction file the EEI and receive their Internal Transaction Number (ITN) before the exportation of the shipment. Automated Export System (AES) ITN. Example: AES X20160523777777
Postdeparture Citation Postdeparture approved U.S. Principal Party in Interest (USPPI) have the privilege of filing  EEI within five days after exportation rather than obtaining the ITN in advance. USPPI Filed: AESPOST followed by the USPPI ID and followed by the DATE OF EXPORT. Example: AESPOST   123456789 05/23/2016 Agent Filed:   AESPOST followed by the USPPI ID FILER ID and followed by the DATE OF EXPORT. Example:   AESPOST  123456789  – 987654321   05/23/2016
AES Downtime Filing Citation When the AES experiences a major failure, the AES Downtime Filing Citation is used in place of a proof of filing citation.  The downtime filing citation is not to be used when the filer’s system is down, experiencing delays or for shipments subject to the International Traffic in Arms Regulations. AESDOWN followed by the FILER ID and followed by DATE OF EXPORT. Example:   AESDOWN 123456789 05/23/2016
Exemption Legends These transactions are within the scope of the FTR, but certain details make them exempt from filing EEI in the AES. The exemptions are located in 30.36 – 30.40. Below are two of the most commonly used exemptions: Ø 30.36 Exemption for shipments destined to Canada. Ø 30.37(a) Exemption for shipments that are valued $2,500 or less per Schedule B. NO EEI followed by the corresponding   FTR Exemption. Example: NO EEI 30.37(a)
Exclusion Legends These transactions are outside the scope of the FTR and shall be excluded from filing EEI in the AES. Exclusions: Ø 30.2(d)(1) Good transiting the U.S. under U.S. Customs and Border Protection bond from one foreign country to another. NO EEI followed by the corresponding FTR Exclusion. Example: NO EEI 30.2(d)(1)
Ø 30.2(d)(2) – Except Puerto Rico and the U.S. Virgin Islands, goods shipped from the U.S. territories and goods shipped between the U.S. and these territories do not require EEI filing. Ø 30.2(d)(3) Electronic transmissions and intangible transfers. Ø 30.2(d)(4) – Goods shipped to Guantanamo Bay Naval Base from the U.S., Puerto Rico, or the U.S. Virgin Islands and from Guantanamo Bay Naval Base to the U.S., Puerto Rico, or the U.S. Virgin Islands. Ø 30.2(d)(5) – Goods licensed by a federal agency where the country of ultimate destination is the U.S. or goods destined to international waters where the entity assuming control of the goods is a U.S. entity.

“Who is the USPPI? It could be YOU!”

Wednesday, October 12th, 2016 by Danielle McClellan

2016/10/12

(Source: Global Reach Blog)

Questions about who the U.S. Principal Party in Interest (USPPI) is often come up when reporting exports. The USPPI is the person or legal entity in the United States that receives the primary benefit, monetary or otherwise, from an export transaction. The following parties can be the USPPI:

  • U.S. seller (wholesaler or distributor) of goods for export
  • U.S. manufacturer (if selling the goods for export)
  • U.S. order party (if directly negotiated between the U.S. seller and foreign buyer and received the order for the export of the goods)
  • U.S. customs broker (obtains clearance of goods through customs)
  • Foreign entity (if physically in the United States to purchase or obtain the goods)

Helpful tips to identify the USPPI 

  • The USPPI remains the same regardless of whether the transaction is standard or routed. For more information on the differences between standard and routed transactions, please see Clarification of Routed Transactions.
  • The exchange of funds does not need to occur for an entity to be the USPPI. For example, a U.S. company exporting goods at no cost (i.e., donations, replacement parts) to a subsidiary abroad would be the USPPI.

Identification scenarios ?

Scenario 1:

Company A in the United States manufactures lamps. Once assembled, the lamps are sold to Company B in the United States. Company C in Canada places an order with Company B and authorizes Company B to export the lamps to the ultimate consignee in France. Who is the USPPI and why?
Company B is the USPPI because it received the primary benefit from the foreign buyer. The transaction between Companies A and B is a domestic transaction.
Scenario 2:

A representative from Company A in Mexico is in the United States buying electronics from Company B. After making the purchase, Company A’s representative authorizes Company C in the United States to file Electronic Export Information in the Automated Export System and move the electronics on Company A’s behalf. Company A’s representative returns to Mexico. Who is the USPPI and why?

Company A’s representative is the USPPI because they were physically in the United States at the time the goods were purchased.

 

Scenario 3:

Company A in the United States stores bamboo stalks in a warehouse on behalf of a Foreign Principal Party in Interest. While in the warehouse, Company A converts the bamboo stalks into fishing rods. Who is the USPPI and why?

Company A is the USPPI because it was responsible for converting the bamboo stalks into fishing rods, changing the classification.

I hope this information provides more clarity on who the USPPI is in an export transaction. For assistance, please call 800-549-0595, Option 3 to contact the Trade Regulations Branch of the U.S. Census Bureau.

Tips on How To Resolve AES Fatal Errors

Wednesday, October 12th, 2016 by Danielle McClellan

2016/10/12

(Source: census@subscriptions.census.gov, 22 Sep 2016)

When a shipment is filed to the AES, a system response message is generated and indicates whether the shipment has been accepted or rejected. If the shipment is accepted, the AES filer receives an Internal Transaction Number (ITN) as confirmation. However, if the shipment is rejected, a Fatal Error notification is received.

To help you resolve AES Fatal Errors, here are some tips on how to correct the most frequent errors that were generated in AES for this month.

* Fatal Error Response Code: 331

  • Narrative: Ultimate Consignee Country Unknown
  • Reason: The Ultimate Consignee Country code reported is not valid in AES.
  • Resolution: The Ultimate Consignee Country code must be a valid ISO Country code found in Appendix C – ISO Country Codes. Verify the Ultimate Consignee Country code, correct the shipment, and resubmit.

* Fatal Error Response Code: 628

  • Narrative: 1st Unit of Measure Code/Schedule B/HTS Mismatch
  • Reason: The Unit of Measure (1) reported does not match the Unit of Measure (1) required for the Schedule B/HTS Number reported.
  • Resolution: The Unit of Measure (1) must match exactly the Unit of Measure (1) prescribed by the Schedule B/HTS Number reported. See Appendix K – Units of Measure Codes.  Verify the Unit of Measure (1) required for the reported Schedule B/HTS Number, correct the shipment, and resubmit.

For a complete list of Fatal Error Response Codes, their reasons, and resolutions, see Appendix A – Commodity Filing Response Messages.

It is important that AES filers correct Fatal Errors as soon as they are received in order to comply with the Foreign Trade Regulations. These errors must be corrected prior to export for shipments filed pre departure and as soon as possible for shipments filed post departure, but not later than five calendar days after departure.

For further information or questions, contact the U.S. Census Bureau’s Data Collection Branch.

Schedule B & HTS Codes Updated…Don’t’ Get a Fatal Error!

Tuesday, August 9th, 2016 by Danielle McClellan

2016/08/09

Effective immediately, the Schedule B & Harmonized Tariff Schedule (HTS) tables have been updated in the AES (Automated Export System). AES will only accept outdated codes for a 30 day grace period beyond the expiration date. Using an outdated code after the 30-day grace period will result in a fatal error.

The ACE AESDirect program has also been updated and will accept shipments with outdated codes during the grace period as well.

The Schedule B and HTS tables are available for download here:

The current list of HTS codes that are not valid for AES is available here:

Please note: Presidential Proclamation 9466 signed June 30 created new HTS numbers, effective July 1.  These changes are not included in this update.  A second broadcast will notify AES filers when the new HTS code tables are ready.

For more information or questions, contact the U.S. Census Bureau’s Micro Analysis Branch.

Telephone: (800) 549-0595, select option 2

 

Port of Export Code Updated in the Automated Export System

Friday, May 27th, 2016 by Danielle McClellan

2016/05/27

(Source: census@subscriptions.census.gov, 12 May 2016)

Port of Export Code Updated in the Automated Export System (AES)

Please note the following Port of Export code has been UPDATED in the AES effective immediately.

   Port Code Description   Allowed MOTs

3901         Chicago, IL   Vessel, Air

Rail is no longer an Allowed MOT for Port of Export 3901.

How Do I Find out More about the New ACE Export Features

Friday, December 4th, 2015 by Danielle McClellan

2015/12/04

(Source: Global Reach Blog)

As part of the International Trade Data System (ITDS), we are getting the word out that the Automated Commercial Environment (ACE) Secure Data Portal now features ACE Exporter Accounts and ACE Export Trade Reports, new features that the trade can register for and use. You can find more information about these new functionalities here. The ITDS is a collaborative effort with many agencies that will help streamline trade. As part of our role in the ITDS, the Census Bureau’s International Trade Management Division will continue to lead the efforts of keeping you educated will all of the resources available. In this blog we will discuss some new information that is available on the U.S. Customs and Border Protection’s (CBP) website.

If you follow the link provided above, it will take you to the ACE page for CBP and under the Exporter Account Type, you are able to apply for an ACE Exporter Account. Also under this section, there is a Frequently Asked Questions section for exporters that provides an introduction to the new ACE Exporter features and addresses some common questions for ACE Portal Account Users.

Another great resource is the Exporter Account Quick Reference User Guide that provides detailed instructions for the different scenarios that may apply to you when registering. The guide explains how to apply for an ACE Exporter Account and how to login for the first time for Non-ACE Account Users. It also provides details on how to create an Exporter Account for Current ACE Portal Users and how to request access to your filing history by using the Export Reports feature.

Finally, there are three videos that CBP has available explaining the new features. The first video demonstrates how to request a new Exporter Account though the portal. The second video goes into detail on how to request an ACE Portal Exporter Account for existing users. The last video indicates how to request access to EIN Data for ACE Portal Export Accounts.

These new ACE features provide access to all of your export information allowed per the Foreign Trade Regulations (FTR). If you have further questions regarding accessing these new features, please contact the CBP ACE Account Service Desk (1-866-530-4172 option 1, then option 2) for technical questions.