Archive for the ‘AES’ Category

AES Changes Impacted by Export Control Reform Implementation Rules

Thursday, March 30th, 2017 by Danielle McClellan

(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

Tips on How to Resolve AES Fatal Errors

Thursday, March 2nd, 2017 by Danielle McClellan

(Source: census@subscriptions.census.gov, 18 Jan 2017.)

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: 336

  • Narrative: Ultimate Consignee State Cannot be Reported
  • Reason: The Country of Destination reported does not allow a State Code.
  • Resolution: Report a State Code only if the Country of Destination is the United States or Mexico. Verify the Ultimate Consignee Country Code and State Code, correct the shipment and resubmit.

 

Fatal Error Response Code: 503

  • Narrative: The Port of Unlading Code is missing. All vessel shipments, and any air shipments between the United States and Puerto Rico must provide a Port of Unlading Code.
  • Reason: The Port of Unlading Code is missing. All vessel shipments, and any air shipments between the United States and Puerto Rico must provide a Port of Unlading Code.
  • Resolution: The Port of Unlading Code is the foreign port where the exported merchandise is unloaded from the exporting carrier. Report a valid Port of Unlading Code for all vessel shipments, and any air shipments between the United States and Puerto Rico. Verify the Port of Unlading Code, 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 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.

Understanding Routed Export Transactions

Tuesday, January 31st, 2017 by Danielle McClellan

(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 Setting up an Account in the Automated Commercial Environment

Tuesday, December 20th, 2016 by Danielle McClellan

(Source: Global Reach Blog)

This blog provides a few tips to address some common questions and issues for those who set-up exporter accounts in ACE on behalf of a client, authorized agents and freight forwarder roles, as well as with existing ACE importer accounts. Exporter accounts and the AESDirect filing system now reside in the Automated Commercial Environment (ACE).

Exporter Roles

“Exporter” is an account type within the ACE account structure used for all export related roles including:

  • Authorized agent
  • Freight forwarder
  • Exporting company (U.S. Principal Party in Interest)

When you register in the ACE, you will also be registering for an ACE Exporter Account, regardless of your role in the export transaction.

 

Filing on Behalf of a Client

When filing on behalf of another company, the U.S. Principal Party in Interest (USPPI) section in ACE should be completed the same way it was for the legacy AESDirect system. An additional USPPI Employee Identification Number (EIN) should only be added to a top account for company subsidiaries. Authorized agents and freight forwarders should not add an USPPI EIN to their account.

 

Account Structure for Authorized Agents and Freight Forwarders

A USPPI will not be able to register in ACE if a forwarder or agent added the USPPI’s EIN to their ACE Top Account. The USPPI will not be able to get access to AESDirect or their ACE Export Reports.  If you notice this issue, the forwarder or agent must call the ACE Account Service Desk at 1-866-530-4172, option 1, then option 2 to submit a service ticket to solve this issue.

 

Existing ACE Importer Accounts

Any company with an existing ACE Importer Account needs to add the exporter role to their account to get instant access to their export reports. No vetting would be required in this case.

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

  • Telephone: (800) 549-0595; select option 1 for AES.
  • Email: askaes@census.gov
  • International Trade Management Division Website

Tips on How to Resolve AES Fatal Errors

Tuesday, November 15th, 2016 by Danielle McClellan

(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.

“Who is the USPPI? It could be YOU!”

Wednesday, October 12th, 2016 by Danielle McClellan

(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

(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.

Say Good Bye to License Type C32…and Get to Know C33

Tuesday, July 12th, 2016 by Danielle McClellan

By: Danielle McClellan

Effective October 1, 2016, the Bureau of Industry and Security (BIS) will remove license type C32, No License Required (NLR), from the list of License Types found in the Automated Export System (AES). Beginning October 1, 2016, C33 will be the only License Type in AES designating a NLR shipment. Changes to License Type C32 designated Electronic Export Information (EEI) will be accepted in AES for 6 months after the October 1, 2016 effective date.

United States Principal Parties in Interest (USPPIs) and their authorized filing agents (AES filers) must adhere to the Export Controls Classification Number (ECCN) reporting requirements for NLR designated shipments under C33 as per the EAR 758.1(g) (3).

Items that have a reason for control other than or in addition to Anti-Terrorism (AT), should report NLR (C33) as the license type in the EEI filing.

A complete list of AES License Type Codes is available at: https://www.cbp.gov/sites/default/files/assets/documents/2016-Jun/Appendix_F.pdf

For questions regarding these AES changes, please contact the Bureau of Industry and Security by email at ECR_AES@bis.doc.gov or at (202) 482-4933.

For general questions regarding AES, please contact the International Trade Management Division at the Bureau of the Census at 1-800-549-0595, option 1.

For classification questions about ECCNs, please contact the Bureau of Industry and Security at one of the numbers below:

  • 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

AESDirect Accounts with Prefixes “60-79 and “80-99” Are Now Deactivated

Thursday, May 5th, 2016 by Danielle McClellan

(Source: census@subscriptions.census.gov, 21 Apr 2016)

This message is not intended for filers using AESWebLink and AESDirect EDI Upload. It is strictly for the attention of filers using the legacy AESDirect portal at aesdirect.census.gov and the AESPcLink application.

On Monday April 11th at 12:01 AM ET Legacy AESDirect Accounts with prefixes “60-79” were deactivated.

On Monday April 25th at 12:01 AM ET Legacy AESDirect Accounts with prefixes “80-99” were deactivated.

The Refactored AESDirect system in the Automated Commercial Environment was launched on November 30, 2015. Since that time, filers have submitted over 950,000 accepted shipments using the new system.

As part of the transition of AESDirect to the ACE Portal, the ability to file Electronic Export Information via legacy AESDirect at aesdirect.census.gov and the AESPcLink application will be terminated in stages over the next month. All legacy AESDirect filers have been notified of their mandatory transition date to the Refactored AESDirect system upon login and have been provided a specific date their account will be closed off based upon their Filer ID.

As a reminder, your filing in the Refactored AESDirect system does not require vetting or Reports Authorization. Vetting is only required for those companies looking to obtain export reports access outside of the AESDirect Shipment Manager. For more information regarding the transition, please see our AESDirect Transition to ACE – Refactored AESDirect page.

Please make sure you have secured ACE Exporter access and have taken the necessary steps to begin filing in the Refactored AESDirect system in ACE prior to your mandatory transition date. For questions regarding your ACE Account access, please contact the CBP Accounts Service Desk at 1-866-530-4172 option 1, then option 2 or ACE.Support@cbp.dhs.gov.
Please expect 15 to 30 minute waiting times during this transition period.
Complete Transition Schedule:

  • Prefixes 00-19 on 02/29/2016
  • Prefixes 20-39 on 03/14/2016
  • Prefixes 40-59 on 03/28/2016
  • Prefixes 60-79 on 04/11/2016
  • Prefixes 80-99 on 04/25/2016

Once your account is deactivated, there will be no further access to legacy AESDirect to file or amend Electronic Export Information. You will only have access to the Shipment Manager application to view previously submitted shipments. The access to the Shipment Manager Application (for viewing submitted shipments) will be available for all users until May 20, 2016.

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

Legacy AESDirect Accounts with prefixes “20-39” Now Deactivated!

Wednesday, April 6th, 2016 by Danielle McClellan

By: Danielle McClellan

On March 14, 2016, Legacy AESDirect Accounts with prefixes “20-39” will be deactivated. AESPcLink applications will be terminated in stages over the next two months. All legacy AESDirect filers have received notices about the mandatory transition date to the Refactored AESDirect system upon login and have provided a specific date their account will be closed off based upon their Filer ID.

Complete Transition Schedule:

  • Prefixes 00-19 on 02/29/2016
  • Prefixes 20-39 on 03/14/2016
  • Prefixes 40-59 on 03/28/2016
  • Prefixes 60-79 on 04/11/2016
  • Prefixes 80-99 on 04/25/2016

Once your account is deactivated, there will be no further access to legacy AESDirect to file or amend Electronic Export Information. You will only have access to the Shipment Manager application to view previously submitted shipments.

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

  • Telephone: (800) 549-0595, select option 1 for Data Collection Branch
  • Email: askaes@census.gov
  • Online: www.census.gov/trade.
  • Blog: globalreach.blogs.census.gov