The Census Bureau has issued a final rule that, effective Sept. 15, will make the following changes to the Foreign Trade Regulations regarding in-transit shipments from foreign countries through the U.S. that are subsequently exported to a foreign destination.
USPPIs. This rule expands who may be considered the U.S. principal party in interest when goods are entered into the U.S. for consumption or warehousing and then stored in a warehouse or storage facility, admitted into a foreign-trade zone, or entered into a bonded warehouse before being exported. When these movements occur prior to exportation, the USPPI may be a customs broker or an operator of the warehouse, storage facility, FTZ, or bonded warehouse.
In addition, if a broker or foreign person is listed as the importer of record when entering goods into the U.S., the broker will be listed as the USPPI in the electronic export information if the goods are being exported without change or enhancement within 30 calendar days of import. After that time the broker may still choose to be listed as the USPPI; otherwise, it will be the warehouse or storage facility in possession, and with knowledge and control, of the goods when they begin their journey to the port of export.
When the broker is the USPPI and supports the preparation or filing of the EEI with information from the import entry, the broker must have consent from the importer of record to disclose confidential information to third parties. When a warehouse, storage facility, FTZ, or bonded warehouse operator is the USPPI, it is responsible for the EEI based on information it has or has received from other parties to the export transaction.
Data elements. This rule requires the entry number when foreign-origin goods are entered into a bonded warehouse or admitted into an FTZ before being exported.
The rule also inserts a new appendix to specify the data elements the USPPI and the authorized agent are responsible for in a routed export transaction (i.e., where the foreign PPI selects a U.S. forwarding or other agent to facilitate the export of goods from the U.S., regardless of the terms of sale).
EEI filing. This rule (1) requires the EEI filer (the USPPI or authorized agent) to maintain a physical office or residence in the U.S., be physically located in the U.S. at the time of preparing and filing the EEI, and have an EIN or DUNS and be certified to report in the Automated Export System, (2) amends the Drug Enforcement Agency’s authorization to require EEI filing in AES for all licenses and permits under 21 CFR 1300 through 1399, (3) clarifies that EEI filing is excluded when goods are moving in-transit through the U.S., Puerto Rico, or the U.S. Virgin Islands from one country or area to another when the goods do not enter the U.S. for consumption or warehousing, and (4) clarifies that the EEI may not be used for tax purposes, export marketing, or promotion unless otherwise noted.
Definitions. The rule amends 19 definitions, including the terms “buyer,” “country of ultimate destination,” “end user,” “filer,” “foreign goods,” “foreign port of unlading,” “foreign PPI,” “forwarding agent,” “intermediate consignee,” “order party,” “seller,” “shipment”, “ultimate consignee,” “USPPI,” and “voluntary self-disclosure.” It also adds a definition for “conveyance” and removes the definition for “consignee.”
Other. Other changes clarify (1) that the intermediate consignee must physically take possession of the goods, (2) that the foreign port of unlading is where the goods are removed from the exporting conveyance, (3) the import reporting requirements for repairs, and (4) that foreign persons may not submit a voluntary self-disclosure.
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