Archive for the ‘FTS/Census’ Category

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

Tuesday, November 15th, 2016 by Danielle McClellan

(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

(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.

Port of Export Codes Deleted in AES

Tuesday, September 6th, 2016 by Danielle McClellan

(Source: census@subscriptions.census.gov, 1 Aug 2016)

 

Please note the following Port of Export codes have been DELETED in the Automated Export System (AES) effective immediately.

  • 2772: Gateway Freight Services, LAX, CA
  • 2773: Air Cargo Handling Services, LA, CA
  • 2774: Virgin Atlantic Cargo, LAX, CA
  • 2792: DHL-HUB Riverside, CA

 

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

EAR and ITAR Will Require the Same New Destination Control Statement on November 15, 2016

Tuesday, September 6th, 2016 by Danielle McClellan

By: John Black

In the August 17, 2016 Federal Register the Bureau of Industry and Security (BIS) and the Directorate of Defense Trade Controls (DDTC) announced that effective November 1, 2016, the same Destination Control Statements (DCS) will be required for exports under the Export Administration Regulations (EAR) and exports under the International Traffic in Arms Regulations (ITAR).  The good news is that exporters no longer will have to use one statement for EAR exports and a different statement for ITAR exports.

The bad news is neither the current EAR DCS nor the current ITAR DCS will be required under the new rules.  When it comes to reprogramming our software that prints documents, it might have been easier if the government had chosen one of the existing statements already in use.  On the other hand, several adjustments to the ITAR and EAR will make life easier for exporters in the long run.

 

Practical Considerations When Implementing the Change

As you prepare to comply with the requirement to comply with the new rules beginning on for the November 15, 2016, here are some important considerations.

 

The New DCS:

‘‘These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.’’

 

(Interestingly to me, the EAR Federal Register notice does not put a period after the last word “regulations” in the EAR DCS while the ITAR Federal Register notice does place a period after the last word “regulations” in the ITAR DCS.  I doubt anybody else noticed that.  I also doubt this is a deliberate conspiracy by DDTC and BIS to set up exporters who do not properly include or not include the period in their DCS.)

 

When the DCS Is Required:

  • ITAR:  For all defense articles exported in tangible form
  • EAR:  For all items exported in tangible form except a DCS is not required for EAR99 items and items eligible for license exceptions BAG or GFT.

 

ITAR and EAR DCS Required only for Tangible Shipments.  A DCS is not required for items being exported in intangible form such as electronic, oral or visual exports.

 

Where Do You Have to Put the DCS:   The new DCS must be put on the commercial invoice, and not on the airway bill, bill of lading, or other documents.

 

Other Information You Must Put on the Commercial Invoice:  The ITAR and EAR will require the following be put on the commercial invoice, in addition to the DCS:

 

  • ITAR:  1) The country of ultimate destination,

2) The end-user, and

3) The license or other approval number or exemption citation.

  • EAR:    The ECCN for any 9×515 or 600 series items

 

Information Required When Using ITAR Authorizations to Export EAR-Controlled Items:  The new rule clearly requires that when an ITAR license or authorization (exemption) is used to export EAR controlled items, the exporter must give the ECCN or EAR99 classification for each EAR-controlled item to the end-user and consignees.

Removal of Special Requirements for Certain EAR Exports to India:  The new EAR rule will remove the special DCS requirement for exports to India of items controlled for crime control column 1 or 3 reasons or regional stability column 2 reasons.

Other ITAR Changes

Exports of EAR Items under ITAR Exemptions:  The rule clarifies that EAR Items may be exported under ITAR exemptions only if they are being shipped with ITAR items.

Changes to Required Language in ITAR Agreements and Transmittal Letters:  The rule makes several changes to the required language and clauses in ITAR agreements and transmittal letters.

To see the new EAR and ITAR rules, go to http://www.bis.doc.gov/index.php/regulations/federal-register-notices#fr54721

ACE One-Pager Available Online

Friday, December 4th, 2015 by Danielle McClellan

(Source: Commerce/Census)

Our ACE One-Pager is now available online for your convenience. This is a great “go-to” resource for an overview of the transition into ACE. When printed front and back, one side highlights ACE Accounts and Export Reports and the other side highlights helpful information on the new AESDirect in ACE.

Be sure to prepare for the transition by obtaining ACE export access as directed in the PDF and visit our transition page for updates!

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

Friday, December 4th, 2015 by Danielle McClellan

(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.

ACE, AES and AESDirect…Confused Yet?

Thursday, November 5th, 2015 by Danielle McClellan

By: Danielle McClellan

The ACE, AES and AESDirect system is a bit of a convoluted puzzle of applications that are intertwined. If you understood them before, be prepared to change what you thought you knew. In early 2016 changes will be taking place to the systems. Before we look at the changes, let’s look at each one individually.

ACE (Automated Commercial Environment): this is the primary system that the trade community reports import and export shipments. ACE is a single window that will continue to change and adapt so that it can automate more processes and eliminate paper.

AES (Automated Export System): this is the central point where export shipment data is filed and sent to the US Customs and Border Protection. AES collects, processes and stores all Electronic Export Information (EEI). AES creates Internal Transaction Numbers (ITNs) and provides exporter’s with messages such as “Fatal Errors” and “Compliance Alerts.” AES is housed in ACE.

AESDirect is the online system for Electronic Export Information (EEI) maintained by the US Census Bureau. AES filers can register their accounts in AESDirect and file their export shipments to the AES for processing. Basically AESDirect is just another way to file your export shipment data…50% of exports are processed directly thru AES and the other half are processed thru AESDirect.

So, in early 2016, the current AESDirect (also known as Legacy AESDirect) will transition into ACE. This means that AESDirect filers need to sign up for an ACE account if they do not already have one. If you have an ACE Importer account you should contact your Trade Account Owner (TAO) to request the export functionality be added to your account.

Specific Details:

  • The current AESDirect application available at aesdirect.census.gov, referred to as Legacy AESDirect, will transition completely into ACE in:
    • early 2016 for web, EDI and AESPcLink filers
    • mid-2016 for Weblink filers (specifications are forthcoming in October)
  • The ACE AESDirect application is referred to as Refactored AESDirect.
  • The online portal filing capability for the Refactored AESDirect will be available in late October 2015.

You must transition to the Refactored AESDirect based on the time frames noted above!!!

AESDirect filers are strongly encouraged to sign up for ACE Exporter accounts if they are completely new to the ACE system (brief how-to video).

Filers who have ACE Importer accounts should contact their Trade Account Owner (TAO) designated by their company and request that export functionality is added to their account (brief how-to video).

ALL legacy AESDirect account holders (regardless of filing method) will need an ACE account to access the Refactored AESDirect application because the legacy application will be retired in 2016!!! Sign up in advance and be prepared!

The videos referenced are accessible on CBP’s website.

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

Commerce/Census: “Tips on How to Resolve AES Fatal Errors”: Fatal Error Response Codes 168 and 538

Monday, April 27th, 2015 by Brooke Driver

Source: www.census.gov/trade

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: 168

– Narrative: Transportation Reference Number Ineligible

– Reason: The Transportation Reference Number reported is ineligible.

– Resolution: The Transportation Reference Number cannot be reported as “UNKNOWN” or have any value not found on the standard keyboard. Verify the Transportation Reference Number, correct the shipment and resubmit.

Fatal Error Response Code: 538

– Narrative: Shipping Weight Must Be Greater Than Zero For MOT

– Reason: The Mode of Transportation Code reported was one that identifies a Vessel, Rail, Truck, or Air shipment and the Shipping Weight was not reported.

– Resolution:   When the Mode of Transportation is Vessel, Rail, Truck or Air, the Shipping Weight must be reported. Verify the Mode of Transportation and Shipping Weight, 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.

Telephone: (800) 549-0595, select option 1 for AES

Email: askaes@census.gov

Online: www.census.gov/trade

Blog: blogs.census.gov/globalreach

 

Tips on How to Resolve AES Fatal Errors

Wednesday, March 25th, 2015 by Brooke Driver

Source: census@uscensus.service.govdelivery.com, February 20, 2015

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: 250

– Narrative: USPPI Country Must Be US

– Reason: The USPPI Country Code is not reported as US.

– Resolution: The USPPI Country Code must be the United States, ISO Country Code US. Verify the USPPI Country Code, correct the shipment and resubmit.

Fatal Error Response Code: 546

– Narrative: BIS License No Longer Active

– Reason: The License Code/ License Exemption Code reported indicates a Bureau of Industry and Security (BIS) license number is required and the License Number reported is not active in AES at the time of export.

– Resolution: The License Number must be reported for a BIS licensable shipment and be one that is active in AES at the time of export. See Appendix F, License and License Exemption Type Codes and Reporting Guidelines for requirements that apply to the export shipment as determined by various government agencies. Verify the License Number and Date of Export, correct the shipment and resubmit.

For further assistance, contact the Department of Commerce/ Bureau of Industry and Security/ Office of Technology Evaluation at 202-482-4933.