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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

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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

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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

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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

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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

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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)

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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.

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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

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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

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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

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Exemptions Do Not ApplyExemptions Do Not Apply

• Commerce (BIS) Licenses

• State Department Licenses

• License Shipments from Other Government Agencies

• OFAC Prohibited Countries

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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

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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

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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

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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

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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

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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

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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

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Delegation of Authority – Enforcement

Criminal Penalty

Civil Penalty

Voluntary Self Disclosure

Penalty ProvisionsPenalty Provisions

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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

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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

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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

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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: ASKAES@census.gov

FTDREGS @census.gov

• www.census.gov/trade