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Census to Propose Two New AES Data Elements for Specific Shipments

Thursday, August 20, 2015
Sandler, Travis & Rosenberg Trade Report

The Census Bureau is accepting comments through Oct. 19 on proposed changes to the information collected through the Automated Export System.

With certain exceptions, an electronic AES record is required for (a) all export shipments valued more than $2,500 per Schedule B number from the U.S., including foreign-trade zones, Puerto Rico and the U.S. Virgin Islands, to foreign countries; (2) exports between the U.S. and Puerto Rico; and (c) exports to the U.S. Virgin Islands from the U.S. or Puerto Rico. Additionally, an AES record is required for the export of rough diamonds, used self-propelled vehicles and all exports requiring an export license from any other government agency or license exemption from the Department of State, regardless of value. The AES record is also required for exports with certain license exceptions from the Bureau of Industry and Security.

In most instances, a U.S. principal party in interest or authorized agent must file electronic export information via AES and annotate the commercial loading documents with the proof of filing citation prior to the export of a shipment. In instances where AES filing is not required, the proper exemption legend must be noted on the commercial loading documents.

Census is currently drafting a proposed rule to amend the Foreign Trade Regulations with new export reporting requirements, including the addition of the following two new data elements in AES that will not be mandatory and will only be required if a shipment meets a specific reporting requirement.

The original internal transaction number field may be utilized if the filer has to create an additional AES record for a shipment that was previously filed. Adding this field will assist the export trade community and enforcement agencies in identifying that a filer completed the mandatory filing requirements for the original shipment and may thus decrease the issuance of unnecessary penalties for these types of shipments.

The new or used electronics indicator field will be used to improve information on trade flows and the disposal of used electronics. This field is being added to ensure compliance with Executive Order 13693, which aims to employ environmentally sound practices with respect to federal agency disposal of all excess or surplus electronic products to reduce the likelihood of negative impacts to the health and environment in developing countries.

The draft proposed rule also includes language to clarify the reporting requirements for items such as Office of Foreign Assets Control specific or general licenses and split shipments. Unlike other export licenses, general and specific licenses issued by OFAC do not require a specific value or quantity to be reported. The definition of export license in the FTR does not currently account for licenses that do not have a specific value or quantity and Census is thus adding clarifying language to its regulations. Census is also revising requirements for split shipments to incorporate new timeframes that were initially announced in FTR Letter #6, Notice of Regulatory Change for Split Shipments, and that the export trade community already adheres to in practice. These clarifications do not impose new reporting requirements.

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