Foreign Trade Regulations: Mandatory Automated Export System Filing for All Shipments Requiring Shipper's Export Declaration Information, 8200-8227 [05-2926]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of the Census
• Census Bureau

[Federal Register Volume 70, Number 32 (Thursday, February 17, 2005)]
[Proposed Rules]
[Pages 8200-8227]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-2926]



[[Page 8199]]

-----------------------------------------------------------------------

Part III





Department of Commerce





-----------------------------------------------------------------------



Bureau of the Census



-----------------------------------------------------------------------



15 CFR Part 30



Foreign Trade Regulations: Mandatory Automated Export System Filing for 
All Shipments Requiring Shipper's Export Declaration Information; 
Proposed Rule

Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / 
Proposed Rules

[[Page 8200]]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket Number 031009254-4355-02]
RIN 0607-AA38


Foreign Trade Regulations: Mandatory Automated Export System 
Filing for All Shipments Requiring Shipper's Export Declaration 
Information

AGENCY: Bureau of the Census, Commerce Department.

ACTION: Notice of proposed rulemaking and request for comments.

-----------------------------------------------------------------------

SUMMARY: The U.S. Census Bureau (Census Bureau) proposes to amend the 
Foreign Trade Statistics Regulations (FTSR) to implement provisions in 
the Foreign Relations Authorization Act. Specifically, the Census 
Bureau proposes to require mandatory filing of export information 
through the Automated Export System (AES) or through the AESDirect for 
all shipments where a Shipper's Export Declaration (SED) is currently 
required. In addition to requiring mandatory AES filing, the proposed 
rule makes other changes to the FTSR. These additional changes are 
discussed in detail in the SUPPLEMENTARY INFORMATION section.

DATES: Submit written comments on or before April 18, 2005.

ADDRESSES: Please direct all written comments on this proposed rule to 
the Director, U.S. Census Bureau, Room 2049, Federal Building 3, 
Washington, DC 20233. You may also submit comments, identified by RIN 
number 0607-AA38, to the Federal e-Rulemaking Portal: https://
www.regulations.gov. Please follow the instructions at that site for 
submitting comments.

FOR FURTHER INFORMATION CONTACT: C. Harvey Monk, Jr., Chief, Foreign 
Trade Division, U.S. Census Bureau, Room 2104, Federal Building 3, 
Washington, DC 20233-6700, by phone (301) 763-2255, by fax (301) 457-
2645, or by e-mail: c.harvey.monk.jr@census.gov.

SUPPLEMENTARY INFORMATION: 

Background

Reporting Requirements

    The Census Bureau is responsible for collecting, compiling, and 
publishing export trade statistics for the United States under the 
provisions of Title 13, United States Code (U.S.C.), Chapter 9, Section 
301. The paper SED and the AES are the primary media used for 
collecting export trade data, and the information contained therein is 
used by the Census Bureau for statistical purposes only. Information 
reported in the AES is referred to as Electronic Export Information 
(EEI). The SED and the EEI also are used for export control purposes 
under Title 50, U.S.C., Export Administration Act, to detect and 
prevent the export of certain items by unauthorized parties or to 
unauthorized destinations or end users. Information collected through 
the SED or AES is exempt from public disclosure unless the Secretary of 
Commerce determines that such exemption would be contrary to the 
national interest under the provisions of Title 13, U.S.C., Chapter 9, 
Section 301(g).
    Under current regulations, export information is compiled from both 
paper and electronic transactions filed by the exporting community with 
the Bureau of Customs and Border Protection (CBP, formerly the U.S. 
Customs Service) and the Census Bureau. The AES is an electronic method 
for filing the paper SED information directly with CBP and the Census 
Bureau. The AESDirect is the Census Bureau's free Internet-based system 
for filing SED information with the AES. Future references to the AES 
also shall apply to the AESDirect unless otherwise specified.
    A paper SED or the equivalent EEI is currently required, with 
certain exceptions, for exports of goods from the United States, 
including Foreign Trade Zones (FTZs) located therein, Puerto Rico, and 
the U.S. Virgin Islands to foreign countries; for exports between the 
United States and Puerto Rico; and for exports to the U.S. Virgin 
Islands from the United States or Puerto Rico. The SED or the EEI also 
is required for all exports requiring a license from the Bureau of 
Industry and Security (BIS), a license or license exception from the 
Department of State, or other government agency, regardless of value, 
unless exempted from the requirement for a SED or EEI by the licensing 
government agency.

Electronic Filing

    Electronic filing strengthens the U.S. Government's ability to 
prevent the export of certain items by unauthorized parties to 
unauthorized destinations and end users, because AES aids in targeting 
and identifying suspicious shipments prior to export and affords the 
government the ability to significantly improve the quality, 
timeliness, and coverage of export statistics. Since July 1995, the AES 
has served as an information gateway for the Census Bureau and CBP to 
improve the reporting of export trade information, customer service, 
compliance with and enforcement of export laws, and provide paperless 
reports of export information.
    On November 29, 1999, the President signed into law the 
Proliferation Prevention Enhancement Act of 1999, which authorized the 
Secretary of Commerce to require the mandatory filing of items on the 
Commerce Control List (CCL) and the U.S. Munitions List (USML). 
Regulations implementing this requirement were effective October 2003 
(see 68 FR 42533-42543). On September 30, 2002, the President signed 
into law the Foreign Relations Authorization Act, Public Law 107-228. 
This law authorizes the Secretary of Commerce, with the concurrence of 
the Secretary of State and the Secretary of Homeland Security, to 
publish regulations in the Federal Register mandating that all persons 
who are required to file export information via the SED under Chapter 9 
of Title 13, U.S.C. file such information through the AES.
    The Foreign Relations Authorization Act further authorizes the 
Secretary of Commerce to issue regulations regarding imposition of 
penalties, both civil and criminal, for the delayed filing, failure to 
file, and false filing of export information and/or using the AES to 
further any illegal activity. The Act provides for administrative 
proceedings for imposition of a civil penalty for violation(s) of 
Public Law 107-228. Finally, the Act authorizes the Secretary of 
Commerce to designate employees of the Office of Export Enforcement of 
the Department of Commerce to perform the enforcement functions in 
Title 13, U.S.C., Chapter 9, and delegate to customs officials in the 
U.S. Department of Homeland Security authority to enforce these same 
provisions.
    On October 22, 2003, the Census Bureau published an advanced notice 
of proposed rulemaking (ANPR) in the Federal Register (68 FR 60301) 
announcing the Census Bureau's intent to propose a rule mandating 
electronic filing through the AES of all information on export 
shipments where a SED is required and allowing the public to comment on 
this subject. The Census Bureau received and responded to two (2) non-
substantive comments to the ANPR. One commenter expressed continued 
support for postdeparture filing with mandatory AES filing. The second 
commenter was concerned about the ability to file complete export 
information prior to exportation under the mandatory filing system. 
Specifically, the commenter was concerned that accurate quantity data 
would not be available in the time frames required by the revised 
regulations. The Census Bureau did not

[[Page 8201]]

change the proposed rule in response to these comments since post-
departure filing remains an option under the proposed rule to allow 
approved exporters the option to file export information within ten 
working days from the date of exportation.

Program Requirements

    To comply with the requirements of Public Law 107-228, the Census 
Bureau proposes amending in its entirety the FTSR to specify the 
requirements for the mandatory reporting of all export information 
through the AES when a SED is required. All future references to the 
SED shall be referred to as AES.
    The Census Bureau proposes amending the FTSR to include the 
following changes:
     Rename the FTSR to ``Part 30--Foreign Trade Regulations'' 
(FTR) to more accurately reflect the scope of the revised regulations 
implementing full mandatory AES filing, such as the inclusion of 
Department of State requirements and the advanced filing requirement 
implemented by CBP.
     Remove requirements for filing a paper SED (Option 1), 
Form 7525-V, from Title 15, Code of Federal Regulations (CFR), part 30, 
so that AES will be the only mode for filing information currently 
required by the SED.
     Remove requirements for filing the intransit SED, Form 
7513, from 15 CFR part 30. Responsibility for Form 7513 was transferred 
to the U.S. Department of the Army, U.S. Army Corps of Engineers.
     In Sec.  30.2, list types of export transactions outside 
the scope of 15 CFR part 30 and thus the FTR. The list of out-of-scope 
transactions included in Sec.  30.2 is not all-inclusive, but includes 
those types of shipments about which the Census Bureau receives 
frequent inquiries on how to report export information. These types of 
shipments are to be excluded from EEI filing.
     In Sec.  30.2(a)(2), include language specifying the four 
optional means for filing EEI of which two methods require the 
development of AES software using the Automated Export System Trade 
Interface Requirements (AESTIR).
     In Sec.  30.3, include language specifying that in 
``routed'' transactions, the U.S. principal party in interest (USPPI) 
will compile and transmit export information on behalf of the foreign 
principal party in interest (FPPI) when authorized by the FPPI. This 
language is consistent with the language of Sec.  758.3 of the Export 
Administration Regulations and permits the USPPI to act as an agent of 
the FPPI upon the written authorization by the FPPI.
     In Sec.  30.5, revise the postdeparture (formerly Option 
4) approval procedures. Certification and approval requirements for 
postdeparture filing of EEI were strengthened to address U.S. national 
security concerns and interests. Applications submitted by USPPIs for 
postdeparture filing will be subjected to closer scrutiny by the Census 
Bureau and other federal government partnership agencies participating 
in the AES postdeparture filing review process. Under the proposed 
revised postdeparture filing requirements: (1) authorized agents may no 
longer apply for postdeparture filing status on behalf of individual 
USPPIs. Only USPPIs may apply; (2) USPPIs must demonstrate the ability 
to meet AES predeparture filing requirements by filing EEI to the AES 
before applying for approval for postdeparture filing; (3) USPPIs must 
meet a minimum number of shipments requirement before being authorized 
to file postdeparture; and (4) partnership agencies of the U.S. 
Government shall determine whether or not a USPPI poses a significant 
threat to U.S. national security before granting the applicant 
postdeparture filing status.
     In Sec.  30.4, specify the time and place-of-filing 
requirements for presenting proof of filing citations, postdeparture 
filing citations, and/or exemption legends. Specific time and place-of-
filing requirements are included in the FTR in accordance with 
provisions of Section 341(a) of Public Law 107-210, the Trade Act of 
2002. With the exception of State Department USML shipments under the 
control of the International Traffic in Arms Regulations and shipments 
approved for postdeparture filing, EEI with the appropriate proof of 
filing citations and/or exemption legends is required to be transmitted 
to the exporting carrier within specified time frames depending on the 
mode of transportation used. For example, transmissions for vessel 
cargo shall be provided to the exporting carrier no later than 24 hours 
prior to departure of the vessel from the U.S. port where cargo is 
laden. Time and place-of-filing requirements for other modes of 
transportation also are presented in Sec.  30.4 of the proposed FTR. 
Currently, export information, with appropriate proof of filing 
citations and/or exemption legends, is only required to be presented to 
the exporting carrier prior to exportation.
     In Sec.  30.4(b)(1) and Sec.  30.4(b)(3) specify how to 
file EEI and acquire an ITN when AES, AESDirect or the participant's 
AES is unavailable for filing.
     In Sec.  30.6, add language specifying the specific 
procedure for reporting the value of goods to the AES when inland 
freight and insurance charges are not known at the time of exportation. 
When goods are sold at a point other than the port of export, freight, 
insurance, and other charges required to move the goods from their U.S. 
point of origin to the carrier at the port of export must be added to 
the selling price (or cost, if not sold) of the goods. Where the actual 
amount of freight, insurance, and other domestic charges are not 
available, an estimate of the domestic cost must be made and added to 
the cost or selling price of the goods to obtain the value to be 
reported to the AES.
     In Sec.  30.6, add requirements for transmitting a Routed 
Transaction Indicator and a Vehicle Identification Qualifier to the 
list of data elements required to be reported to the AES. Both the 
Routed Transaction Indicator and the Vehicle Identification Qualifier 
indicate the conditions of other data elements reported to the AES. The 
Routed Transaction Indicator gives an indication of whether or not the 
EEI reported represents a routed export transaction. The Vehicle 
Identification Qualifier, when reported, identifies the type of used 
vehicle exported.
     Remove requirements for the Date of Arrival and the Waiver 
of Prior Notice Indicator from the list of data elements required to be 
reported to the AES. These data elements were previously required to 
overcome disparities in reporting requirements for certain export 
shipments sent between the United States and Puerto Rico. With 
mandatory AES reporting, the Date of Arrival and Waiver of Prior Notice 
Indicator are no longer required, since shipments sent between the 
United States and Puerto Rico will no longer be reported differently 
than other export shipments.
     Reference in subpart B export control and export licensing 
issues relevant to 15 CFR part 30. This subpart proposes to add 
references to export control and licensing requirements of the 
Department of State and other Federal agencies in addition to expanding 
those of the Department of Commerce's BIS. General guidelines for 
obtaining export control and licensing information also are presented 
for use by preparers and filers of EEI. The purpose of this subpart is 
to consolidate references to export control issues. No new requirements 
are introduced.
     In Sec.  30.29, revise the language that describes the 
proper manner for reporting cost of repairs and/or alterations to 
goods, and the reporting of the value of replacement parts exported. 
The previous version of the FTSR did not specifically describe the 
manner in

[[Page 8202]]

which these export transactions would be reported. Goods previously 
imported for repair and alteration only, and reexported, shall only 
include the value for parts and labor. Goods exported as replacement 
parts shall only include the value of the replacement part. No new 
requirements are specified in Sec.  30.29.
     Reference in subpart E carrier and manifest issues 
pertaining to provisions relevant to 15 CFR part 30. Carrier and 
manifest issues are consolidated in subpart E. Requirements for SEDs 
being attached to the manifest are replaced with requirements for proof 
of filing citations and/or exemption legends to be shown on the bill of 
lading, air waybill, or other commercial loading documents attached to 
the manifest. Specific requirements for annotating the bill of lading, 
air waybill, or other commercial loading documents are included in 
Sec.  30.7, subpart A of part 30.
     Reference in subpart F reporting requirements for import 
shipments relevant to 15 CFR part 30, including requirements for the 
electronic filing of statistical data for shipments imported into FTZs. 
Currently, requirements for electronically reporting FTZ admissions are 
included in the Census Bureau's ``Automated Foreign Trade Zone 
Reporting Program'' manual. Added to subpart F are instructions to 
import filers on where to obtain information on reporting import data. 
Requirements for information on imports of goods into Guam are excluded 
from the FTR since Guam collects its own information on goods entering 
and leaving the area.
     Create a new subpart H to cover FTR penalty provisions 
formerly addressed in Sec.  30.95 of the FTSR. New penalty provisions 
referenced in subpart H of this part describe the increase in penalties 
imposed for violations from $100 to $1,000 per each day of delinquency, 
to a maximum from $1,000 to $10,000 per violation. In addition, the 
penalty provisions provide for situations when the filer knowingly 
fails to file, files false and/or misleading information and other 
violations of the FTR where a civil penalty shall not exceed $10,000 
per violation and a criminal penalty shall not exceed $10,000 or 
imprisonment for not more than five (5) years, or both, per violation. 
Finally, subpart H provides for the enforcement of these penalty 
provisions by the Bureau of Industry and Security's Office of Export 
Enforcement (OEE) and the Department of Homeland Security's CBP, 
Immigration and Customs Enforcement (ICE).
     Make other non-substantive revisions including revisions 
to language incorporated from the current FTSR, to clarify the intent 
of the regulations.
    The Departments of State and Homeland Security concur with the 
provisions contained in this notice of proposed rulemaking.

Rulemaking Requirements

Regulatory Flexibility Act

    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration (SBA) that this rule will not have a significant impact 
on a substantial number of small entities. This action would require 
that USPPIs or authorized agents in the United States file export 
information through the AES for all shipments where a SED is required 
under the current FTSR.
    The SBA's table of size standards indicates that businesses that 
are the USPPI or authorized agent and file export information are 
considered small businesses if they employ less than 500 people. Based 
on year 2001 data, the Census Bureau estimates that there are 91,000 
USPPIs that are considered small entities under the Small Business Act. 
Over 90 percent of USPPIs use an authorized agent to file export 
documentation. An estimate of the number of authorized agents is not 
known.
    The Census Bureau anticipates that the new requirement would not 
significantly affect the small businesses that must now file through 
the AES. It is unlikely that the regulations requiring mandatory use of 
the AES to file export information would affect a substantial number of 
small entities because more than 90 percent of USPPIs that are 
considered small entities use an authorized agent to file export 
documentation. Also, while this regulation would likely affect a 
substantial number of agents that are small entities it is not likely 
that the effect will be significant. The majority of agents require use 
of a computer to perform required tasks. These agents are unlikely to 
be significantly affected by this new requirement, as they currently 
possess the technology and equipment to submit the information through 
the AES. The Census Bureau has provided a free Internet-based system, 
AESDirect, especially for small businesses to submit their export 
information electronically. It would not be necessary for small 
businesses to purchase software for this task. For these reasons, if 
this proposed rule is adopted, this rule would not have a significant 
economic impact on a substantial number of small entities.

Executive Orders

    This rule has been determined to be not significant for purposes of 
Executive Order 12866. It has been determined that this rule does not 
contain policies with federalism implications as that term is defined 
under Executive Order 13132.

Paperwork Reduction Act

    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall a person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the Paperwork Reduction Act (PRA), unless that collection of 
information displays a current, valid Office of Management and Budget 
(OMB) control number. This rule contains a collection-of-information 
subject to the requirements of the PRA (44 U.S.C. 3501 et seq.) and 
that has been approved under OMB control number 0607-0152. The 
estimated burden hours for filing the SED information through AES and 
related documents (e.g., the Letter of Intent (LOI) and AESDirect) are 
752,000. In addition, this rule contains a collection of information 
that has been approved under OMB control numbers: OMB No. 1651-0022 
(Entry Summary--CBP-7501), OMB No. 1651-0027 (Record of Vessel, Foreign 
Repair, or Equipment--CBP-226), and OMB No. 1651-0029 (Application for 
Foreign Trade Zone Admission and Status Designation--CBP-214). The 
public's reporting burden for the collection-of-information 
requirements includes the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection-of-information requirements.

List of Subjects in 15 CFR Part 30

    Economic statistics, Foreign trade, Exports, Reporting and 
recordkeeping requirements.

    For the reasons stated in the preamble, the Census Bureau proposes 
to revise 15 CFR part 30 to read as follows:

PART 30--FOREIGN TRADE STATISTICS

Subpart A--General Requirements
Sec.
30.1 Purpose and definitions.
30.2 General requirements for filing Electronic Export Information.
30.3 Electronic Export Information filer requirements, parties to 
export transactions, and responsibilities of parties to export 
transactions.

[[Page 8203]]

30.4 Electronic Export Information filing procedures, deadlines, and 
certification statements.
30.5 Electronic Export Information filing application and 
certification processes and standards.
30.6 Electronic Export Information data elements.
30.7 Annotating the bill of lading, air waybill, and other 
commercial loading documents with the proper proof of filing 
citations, approved postdeparture filing citations, downtime filing 
citation, and exemption legends.
30.8 Time and place for presenting proof of filing citations, 
postdeparture filing citations, downtime filing citation, and 
exemption legends.
30.9 Transmitting and correcting Automated Export System 
information.
30.10 Authority to require production of documents and retaining 
electronic data.
30.11-30.14 [Reserved]
Subpart B--Export Control and Licensing Requirements
30.15 Introduction.
30.16 Export Administration Regulations.
30.17 Customs and Border Protection Regulations.
30.18 Department of State regulations.
30.19 Other federal agency regulations.
30.20-30.24 [Reserved]
Subpart C--Special Provisions and Specific-Type Transactions
30.25 Values for certain types of transactions.
30.26 Reporting of vessels, aircraft, cargo vans, and other carriers 
and containers.
30.27 Return of exported cargo to the United States prior to 
reaching its final destination.
30.28 ``Split shipments'' by air.
30.29 Reporting of repairs and replacements.
30.30-30.34 [Reserved]
Subpart D--Exemptions from the Requirements for the Filing of 
Electronic Export Information
30.35 Procedure for shipments exempt from filing requirements.
30.36 Exemption for shipments destined to Canada.
30.37 Miscellaneous exemptions.
30.38 Exemption from the requirements for reporting complete 
commodity information.
30.39 Special exemptions for shipments to the U.S. armed services.
30.40 Special exemptions for certain shipments to U.S. Government 
agencies and employees.
30.41-30.44 [Reserved]
Subpart E--General Carrier and Manifest Requirements
30.45 General statement of requirement for the filing of carrier 
manifests with proof of filing citations for the electronic 
submission of export information or exemption legends when Automated 
Export System filing is not required.
30.46 Requirements for the filing of export information by pipeline 
carriers.
30.47 Clearance or departure of carriers under bond on incomplete 
manifests.
30.48-30.49 [Reserved]
Subpart F--Import Requirements
30.50 General requirements for filing import entries.
30.51 Statistical information required for import entries.
30.52 Foreign Trade Zones.
30.53 Import of goods returned for repair.
30.54 Special provisions for imports from Canada.
30.55 Confidential information, import entries, and withdrawals.
30.56-30.59 [Reserved]
Subpart G--General Administrative Provisions
30.60 Confidentiality of Electronic Export Information.
30.61 Statistical classification schedules.
30.62 Emergency exceptions.
30.63 Office of Management and Budget control numbers assigned 
pursuant to the Paperwork Reduction Act.
30.64-30.69 [Reserved]
Subpart H--Penalties
30.70 Violation of the Clean Diamond Trade Act.
30.71 False or fraudulent reporting on or misuse of the Automated 
Export System.
30.72 Civil penalty procedures.
30.73 Enforcement.
30.74-30.99 [Reserved]

Appendix A To Part 30--Format for the Letter of Intent, Automated 
Export System

Appendix B To Part 30--Sample for Power of Attorney and Written 
Authorization

    Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization plan 
No. 5 of 1990 (3 CFR 1949-1953 Comp., 1004); Department of Commerce 
Organization Order No. 35-2A, July 22, 1987, as amended; Pub. L. 
107-228, September 30, 2002.

Subpart A--General Requirements


Sec.  30.1  Purpose and definitions.

    (a) This part sets forth the Foreign Trade Regulations (FTR) as 
required under provisions of Title 13, United States Code (U.S.C.), 
Chapter 9, Section 301. These regulations are revised pursuant to 
provisions of the Foreign Relations Authorization Act, Public Law 107-
228. This Act authorizes the Secretary of Commerce, with the 
concurrence of the Secretary of State and the Secretary of Homeland 
Security, to publish regulations mandating that all persons who are 
required to file export information under Chapter 9 of Title 13, 
U.S.C., file such information through the Automated Export System (AES) 
for all shipments where a Shipper's Export Declaration (SED) was 
previously required. The law further authorizes the Secretary of 
Commerce to issue regulations regarding imposition of civil and 
criminal penalties for violations of the provisions of these 
regulations.
    (b) Electronic filing through the AES strengthens the U.S. 
Government's ability to prevent the export of certain items by 
unauthorized parties to unauthorized destinations and end users because 
AES aids in targeting, identifying, and when necessary confiscating 
suspicious or illegal shipments prior to exportation.
    (c) Definitions used with Electronic Export Information. As used in 
this part, the following definitions apply:
    AES Applicant. The USPPI or authorized agent who applies to the 
Census Bureau for authorization to report information electronically to 
the AES, or through AESDirect or its related applications.
    AESDirect. A free Internet application supported by the Census 
Bureau that allows USPPIs or their agents to transmit EEI to the AES 
via the Internet, at https://www.aesdirect.gov.
    AES Downtime Filing Citation. A statement used in place of a proof 
of filing citation when the AES or the AES participant's computer 
system experiences a major failure. The downtime filing citation must 
appear on the bill of lading, air waybill, or other commercial loading 
documentation.
    Air Waybill. The shipping document used for the transportation of 
air freight: Includes conditions, limitations of liability, shipping 
instructions, description of commodity, and applicable transportation 
charges. It is generally similar to a straight non-negotiable bill of 
lading and is used for similar purposes.
    Alongside. A phrase referring to the side of a ship. Goods to be 
delivered ``alongside'' are to be placed on the dock within reach of a 
transport ship's tackle so that they can be loaded aboard the ship.
    Annotation. An explanatory note (e.g., proof of filing citation, 
postdeparture filing citation, AES downtime filing citation, or 
exemption legend) placed on the bill of lading, air waybill, or other 
loading document.
    Authorized Agent. An individual or legal entity domiciled in or 
otherwise under the jurisdiction of the United States that has obtained 
power of attorney or written authorization from a USPPI or FPPI to act 
on its behalf, and for purposes of this part, to complete and file the 
EEI.
    Automated Broker Interface (ABI). A CBP system through which an 
importer or licensed customs broker can electronically file entry and 
entry

[[Page 8204]]

summary data on goods imported into the United States.
    Automated Export System (AES). The electronic system, including 
AESDirect, for collecting Shipper's Export Declaration information (or 
any successor document) from persons exporting goods from the United 
States, Puerto Rico, or the U.S. Virgin Islands; between Puerto Rico 
and the United States; and to the U.S. Virgin Islands from the United 
States or Puerto Rico.
    Automated Export System Trade Interface Requirements (AESTIR). The 
document that describes the operational requirements of the AES. The 
AESTIR presents record formats and other reference materials used in 
the AES.
    Automated Foreign Trade Zone Reporting Program (AFTZRP). The 
electronic reporting program used to transmit statistical data on goods 
admitted into a FTZ directly to the Census Bureau.
    Bill of Lading (BL). A document that establishes the terms of a 
contract between a shipper and a transportation company under which 
freight is to be moved between specified points for a specified charge. 
Usually prepared by the authorized agent on forms issued by the 
carrier, it serves as a document of title, a contract of carriage, and 
a receipt for goods.
    Bond. An instrument used by CBP as a security to ensure the 
performance of specific acts, such as the payment of duties and taxes 
or the provision of manifest information.
    Bonded Warehouse. An approved private warehouse used for the 
storage of goods until duties or taxes are paid and the goods are 
properly released by CBP. Bonds must be posted by the warehouse 
proprietor and by the importer to indemnify the government if the goods 
are released improperly.
    Booking. A reservation made with a carrier for a shipment on a 
specific voyage or flight.
    Buyer. The entity who has entered into the export transaction to 
purchase the commodities for delivery to the ultimate consignee.
    Cargo. Goods being transported.
    Carnet. An international customs document permitting the holder to 
carry or send goods temporarily into certain foreign countries without 
paying duties or posting bonds.
    Carrier. An individual or legal entity in the business of 
transporting passengers or goods. Airlines, trucking companies, 
railroad companies, shipping lines, pipeline companies, non-vessel 
operating common carriers, and slot charterers are all examples of 
carriers.
    Civil Penalty. A monetary penalty imposed on a USPPI or authorized 
agent for failing to file export information, filing false or 
misleading information, filing information late, and/or using the AES 
to further any illegal activity.
    Commerce Control List (CCL). A list of all items--commodities, 
software, and technical data--that are subject to BIS export controls. 
It incorporates not only the national security controlled items agreed 
to by the Coordinating Committee on Multilateral Export Controls, but 
also items controlled for foreign policy and other reasons.
    Commodity. Articles exchanged in trade, and commonly used to refer 
to raw materials and bulk-produced agriculture products.
    Compliance Alert. A notice sent to the filer by the AES when the 
shipment was not reported in accordance with this part (e.g., late 
filing). The filer is required to review filing practices and take 
steps to conform with export reporting requirements.
    Consignee. The person or entity named in a freight contract to whom 
goods have been consigned and that has the legal right to claim the 
goods at the destination.
    Consignment. Delivery of goods from an exporter (the consignor) to 
an agent (consignee) under agreement that the agent sells the goods for 
the account of the exporter. The consignor retains title to the goods 
until sold. The consignee sells the goods for commission and remits the 
net proceeds to the consignor.
    Container. A uniform, sealed, reusable metal ``box'' in which goods 
are shipped by vessel, truck, or rail.
    Controlling Agency. The agency responsible for the license 
determination on specified goods exported from the United States.
    Country of Origin. The country where the goods were mined, grown, 
or manufactured or where each foreign material used or incorporated in 
a good underwent a change in tariff classification under the applicable 
rule of origin for the good. The country of origin for U.S. imports 
shall be reported in terms of the International Standards Organization 
(ISO) codes designated in the Schedule C, Classification of Country and 
Territory Designations.
    Country of Ultimate Destination. The country where the goods are to 
be consumed, further processed, or manufactured, as known to the 
shipper at the time of exportation.
    Criminal Penalty. For the purpose of this part, a penalty imposed 
for knowingly failing to file export information, filing false or 
misleading information, filing information late, and/or using the AES 
to further illegal activity. The criminal penalty includes fines, 
imprisonment, and/or forfeiture.
    Customs Broker. An individual or entity licensed to enter and clear 
imported goods through CBP for another individual or entity.
    Destination. The foreign place to which a shipment is consigned.
    Distributor. An agent who sells directly for a supplier and 
maintains an inventory of the supplier's products.
    Domestic Exports. Commodities that are grown, produced, or 
manufactured in the United States, and commodities of foreign origin 
that have been changed in the United States, including changes made in 
a U.S. FTZ, from the form in which they were imported, or that have 
been enhanced in value by further manufacture in the United States.
    Domicile. A place of permanent residence or business.
    Drayage. The charge made for hauling freight, carts, drays or 
trucks.
    Dun & Bradstreet Number (DUNS). The DUNS Number is a unique 9-digit 
identification sequence that provides identifiers to single business 
entities while linking corporate family structures together.
    Dunnage. Materials placed around cargo to prevent shifting or 
damage while in transit.
    Duty. A charge imposed on the import of goods. Duties are generally 
based on the value of the goods (ad valorem duties), some other factor 
such as weight or quantity (specific duties), or a combination of value 
and other factors (compound duties).
    Electronic Export Information (EEI). The electronic equivalent of 
the export data formerly collected on the Shipper's Export Declaration 
(SED) now mandated to be filed through the AES or AESDirect.
    Employer Identification Number (EIN). The USPPI's Internal Revenue 
Service Employer Identification Number is the 9-digit numerical code as 
reported on the Employer's Quarterly Federal Tax Return, Treasury Form 
941.
    End-User. The person abroad that receives and ultimately uses the 
exported or reexported items. The end-user is not an authorized agent 
or intermediary, but may be the purchaser or ultimate consignee.
    Enhancement. A change or modification to goods that increases their 
value.
    Entry Number. Consists of a three-position entry filer code and a 
seven-position transaction code, plus a check digit assigned by the 
entry filer as a tracking number for goods entered into the United 
States.
    Equipment Number. The identification number for shipping

[[Page 8205]]

equipment, such as container or igloo number, truck license number or 
rail car number.
    Exception. A determination by BIS that releases the USPPI or the 
authorized agent from the necessity to apply for a license from the 
agency.
    Exemption. A specific reason as cited within this part that 
eliminates the requirement for filing EEI.
    Exemption Legend. A notation placed on the bill of lading, air 
waybill, or other commercial loading document that describes the basis 
for not filing EEI for an export transaction. The exemption legend 
shall reference the number of the section or provision in this part 
where the particular exemption is provided (for example, Sec.  30.38).
    Export. To send or transport goods out of a country for consumption 
in another country.
    Export Control. The establishment of procedures for the 
governmental control of exports for statistical or strategic purposes.
    Export Control Classification Number (ECCN). Formerly Export 
Commodity Classification Number within the CCL. Every product on the 
CCL has an ECCN consisting of a five-character number that identifies 
categories, product groups, strategic level of control, and country 
groups.
    Export License. A controlling agency document authorizing export of 
particular goods in specific quantities or values to a particular 
destination. Issuing agencies include but are not limited to: The U.S. 
State Department, Bureau of Industry and Security, and Bureau of 
Alcohol, Tobacco, and Firearms.
    Export Statistics. Export statistics measure the quantity or value 
of goods (except for shipments to U.S. military forces overseas) moving 
out of the United States to foreign countries, whether such goods are 
exported from within the Customs territory of the United States, a CBP 
bonded warehouse, or a U.S. FTZ.
    Export Value. The estimated worth of goods at the port of export; 
for example, the selling price or the cost (if the goods are not sold) 
including inland or domestic freight, insurance, and other charges to 
the U.S. port of export.
    Fatal Error Message. A notice sent to the filer by the AES when 
invalid data or a critical condition has been encountered and the EEI 
has been rejected. The filer is required to immediately address the 
problem, correct the data, and retransmit the EEI.
    Foreign Exports. Commodities of foreign origin that have entered 
the United States for consumption, for entry into a CBP bonded 
warehouse or U.S. FTZ, and which, at the time of exportation, are in 
substantially the same condition as when imported.
    Foreign Principal Party in Interest (FPPI). The party shown on the 
transportation document to whom final delivery or end-use of the goods 
will be made. If the FPPI is in the United States when the goods are 
purchased or obtained for export, it must be shown as the USPPI. If an 
individual representing the foreign entity does not possess an EIN or 
SSN, their passport number, border crossing card number, or other 
official document number must be shown in the USPPI field of the EEI.
    Foreign Trade Zone (FTZ). Special commercial and industrial areas 
in or near ports of entry where foreign and domestic goods, including 
raw materials, components, and finished goods, may be brought in 
without being subject to payment of customs duties. Goods brought into 
these zones may be stored, sold, exhibited, repacked, assembled, 
sorted, graded, cleaned, or otherwise manipulated prior to reexport or 
entry into the country's customs territory.
    Forwarding Agent. The person in the United States who is authorized 
by the principal party in interest to move the cargo from the United 
States to the foreign destination and/or prepare and file the required 
documentation.
    Goods. Merchandise, supplies, raw materials, and products.
    Harmonized System. A method of classifying goods in international 
trade developed by the Customs Cooperation Council (now the World 
Customs Organization).
    Harmonized Tariff Schedule (HTS). An organized listing of goods and 
their duty rates, developed by the U.S. International Trade Commission, 
that is used by CBP as the basis for classifying imported products, 
including establishing the duty to be charged and providing statistical 
information about imports and exports.
    Imports. All goods physically moving into the United States, 
including:
    (1) Commodities of foreign origin and
    (2) Goods of domestic origin returned to the United States with no 
change in condition, or after having been processed and/or assembled in 
other countries.
    Inbond. A procedure established by CBP under which goods are 
transported or warehoused under CBP supervision until the goods are 
either formally entered into the customs territory of the United States 
and duties paid, or until they are exported from the United States. The 
procedure is so named because the cargo moves under the carrier's bond 
(financial liability assured by the carrier) from the gateway seaport 
or airport and remains ``in bond'' until CBP releases the cargo at the 
inland Customs point or at the port of export.
    Inland Freight. The cost to ship commodities between domestic ports 
and points inland by rail, air, road, or water, other than baggage, 
express mail, or regular mail.
    Intermediate Consignee. The person or entity in the foreign country 
who acts as an agent for a principal party in interest with the purpose 
of effecting delivery of items to the ultimate consignee. The 
intermediate consignee may be a bank, forwarding agent, or other person 
who acts as an agent for a principal party in interest.
    Internal Transaction Number (ITN). The system generated number 
assigned to a shipment confirming that the AES transmission was 
accepted and is on file in AES.
    Interplant Correspondence. Records or documents from a U.S. firm to 
its subsidiary or affiliate, whether in the United States or overseas.
    Intransit. Goods shipped through the United States, Puerto Rico, or 
the U.S. Virgin Islands from one foreign country or area to another 
foreign country or area without entering the consumption channels of 
the United States.
    ISO Country Codes. The 2-position alphabetic International 
Standards Organization code for countries.
    Letter of Intent (LOI). A written statement of an individual or a 
company's desire to participate in the AES. It sets forth a commitment 
to develop, maintain, and adhere to CBP and Census Bureau performance 
requirements and operational standards.
    License Applicant. The person who applies for an export or reexport 
license for agency-controlled commodities. (For example, obtaining a 
license for goods that are listed on the CCL.)
    Loading Document. A document that establishes the terms of a 
contract between a shipper and a transportation company under which 
freight is to be moved between points for a specific charge. It is 
usually prepared by the shipper and actuated by the carrier and serves 
as a document of title, a contract of carriage, and a receipt for 
goods. For example, the air waybill, inland bill of lading, ocean bill 
of lading, and through bill of lading are all loading documents.
    Manifest. A document listing and describing the cargo contents of a 
carrier, container, or warehouse. Carriers required to file manifests 
with the CBP Port Director must include a proof of filing citation, AES 
downtime filing citation, postdeparture filing citation, or exemption 
legend for all cargo being transported.

[[Page 8206]]

    Merchandise. See commodity or goods.
    Mode of Transportation. The method by which goods arrive in or are 
exported from the United States by way of seaports, airports, or land 
border crossing points. Modes of transportation include vessel, air, 
truck, rail, or other. When goods are transshipped across land borders, 
the mode of transportation to be reported is that by which the goods 
enter or depart from the United States.
    North American Free Trade Agreement (NAFTA). A formal agreement, or 
treaty, between Canada, Mexico, and the United States to promote trade 
amongst the three countries. It includes measures for the elimination 
of tariffs and non-tariff barriers to trade, as well as numerous 
specific provisions concerning the conduct of trade and investment.
    Order Party. The person in the United States that conducts the 
direct negotiations or correspondence with the foreign purchaser or 
ultimate consignee and who, as a result of these negotiations, receives 
the order from the foreign purchaser or ultimate consignee. If a U.S. 
order party directly arranges for the sale and export of goods to a 
foreign entity, the U.S. order party shall be listed as the USPPI in 
the EEI.
    Packing List. A list showing the number and kinds of items being 
shipped as well as other information needed for transportation 
purposes.
    Partnership Agencies. U.S. Government agencies that have 
statistical and analytical reporting and/or monitoring and enforcement 
responsibilities related to AES postdeparture filing privileges.
    Party Type. Identifies whether the Party ID is an EIN, SSN, DUNS, 
or Foreign Entity reported to the AES, for example, E=EIN, S=SSN, 
D=DUNS, T=Foreign Entity.
    Person. In legal usage, any natural person, corporation or other 
entity, domestic or foreign.
    Port of Export. The seaport of CBP airport where the goods are 
loaded on the exporting carrier that is taking the goods out of the 
United States, or the port where exports by overland transportation 
cross the U.S. border into foreign territory. In the case of an export 
by mail, it includes the place of mailing.
    Postdeparture Filing. The privilege granted to approved USPPIs to 
file commodity data up to 10 calendar days after the date of export.
    Postdeparture Filing Citation. A notation placed on the bill of 
lading, air waybill, or other commercial loading document from an 
approved USPPI that states that the EEI will be filed after departure 
of the carrier.
    Power of Attorney. A legal authorization from a USPPI or FPPI 
stating that the agent has authority to act as its true and lawful 
agent for purposes of preparing and filing the EEI in accordance with 
the laws and regulations of the United States.
    Primary Benefit. Receiving the greatest satisfaction from an export 
trade negotiation; usually monetary.
    Principal Parties in Interest. Those persons in a transaction that 
receive the primary benefit, monetary or otherwise, from the 
transaction. Generally, the principals in a transaction are the seller 
and the buyer. In most cases, the forwarding or other agent is not a 
principal party in interest.
    Proof of Filing Citation. A notation placed on the bill of lading, 
air waybill, or other commercial loading document, usually for carrier 
use, that provides evidence that export information has been filed and 
accepted as transmitted through the AES.
    Reexport. For statistical purposes: exports of foreign-origin goods 
that have previously entered the United States or Puerto Rico for 
consumption, entry into a CBP bonded warehouse, or a U.S. FTZ, and at 
the time of exportation, have undergone no change in form or condition 
or enhancement in value by further manufacture in the United States, 
Puerto Rico, the U.S. Virgin Islands, or U.S. FTZs. For the purpose of 
goods subject to export controls (e.g., U.S. Munitions List (USML) 
articles): the shipment of U.S.-origin products from one foreign 
destination to another.
    Related Party Transaction. A transaction involving trade between a 
USPPI and ultimate consignee in which one exercises at least 10 percent 
of interest or more (voting securities) in both.
    Remission. The cancellation or release from a penalty, including 
fines, imprisonment, and/or forfeiture, under this part.
    Retention. The necessary act of keeping all documentation 
pertaining to an export transaction for a period of at least five years 
for an EEI filing, or a time frame designated by the controlling agency 
for licensed shipments.
    Routed Export Transaction. A transaction where the FPPI authorizes 
a U.S. agent to facilitate export of items from the United States on 
its behalf.
    Schedule B. The Statistical Classification of Domestic and Foreign 
Commodities Exported from the United States. These 10-digit commodity 
classification numbers are administered by the Census Bureau and cover 
everything from live animals and food products to computers and 
airplanes. It should also be noted that all import and export codes 
used by the United States are based on the Harmonized Tariff System. 
(See HTS.)
    Schedule C. The Classification of Country and Territory 
Designations. The Schedule C provides a list of country of origin 
codes. The country of origin is reported in terms of International 
Standards Organization codes.
    Schedule D. The classification of CBP ports. The Schedule D 
provides a list of CBP ports and the corresponding numeric codes used 
in compiling U.S. foreign trade statistics.
    Schedule K. The Classification of Foreign Ports by Geographic Trade 
Area and Country. The Schedule K lists the major seaports of the world 
that directly handle waterborne shipments in the foreign trade of the 
United States, and includes numeric codes to identify these ports. This 
schedule is maintained by the Army Corps of Engineers.
    Seller. The party, usually the manufacturer, producer, wholesaler, 
or distributor of the goods, that receives the monetary benefit of the 
export transaction (price) or other consideration for the exported 
goods.
    Shipment. Unless as otherwise provided, all goods being sent from 
one exporter to one consignee in a single country of destination on a 
single conveyance.
    Shipment Reference Number. A unique identification number assigned 
by the EEI filer for reference purposes. This number must remain unique 
for a period of five years.
    Shipping Weight. The total weight of a shipment in kilograms 
including goods and packaging.
    Split Shipment. A shipment booked for export on one aircraft but 
split by the carrier and sent on two or more aircraft of the same 
carrier.
    Subzone. A special purpose foreign trade zone established as part 
of a foreign trade zone project with a limited purpose that cannot be 
accommodated within an existing zone. Subzones are often established to 
serve the needs of a specific company and may be located within an 
existing facility of the company.
    Tariff Schedule. A comprehensive list or schedule of goods with 
applicable duty rates to be paid or charged for each listed article as 
it enters or leaves a country.
    Transportation Reference Number. A reservation number assigned by 
the carrier to hold space on the carrier for cargo being shipped. It is 
the booking number for vessel shipments and the master air waybill 
number for air shipments.

[[Page 8207]]

    U.S. Principal Party In Interest (USPPI). The person or legal 
entity in the United States that receives the primary benefit, monetary 
or otherwise, of the export transaction. Generally, that person or 
entity is the U.S. seller, manufacturer, or order party, or the foreign 
entity while in the United States when purchasing or obtaining the 
goods for export.
    Ultimate Consignee. The person located abroad who is the true 
principal party in interest, receiving the export or reexport for the 
designated end use. (See also End-User.)
    Unlading. The physical removal of cargo from an aircraft, truck or 
vessel.
    Vehicle Identification Number (VIN). A number used for the 
identification of a self-propelled vehicle.
    Verify Message. A notice sent to the filer by the AES when an 
unlikely condition is found. The data may or may not be correct, and 
the filer is required to transmit a correction, if warranted, within 
four calendar days.
    Warning Message. A notice sent to the filer by the AES when certain 
incomplete and conflicting data reporting conditions are encountered. 
AES accepts the information filed to facilitate the trade. The filer is 
required to transmit a correction to the commodity data within four 
calendar days. If left uncorrected, AES will periodically generate and 
transmit a ``warning reminder'' message back to the filer until the 
data have been corrected.
    Wholesaler/Distributor. An agent who sells directly for a supplier 
and maintains an inventory of the supplier's products.
    Written Authorization. A written consent by the USPPI or FPPI 
stating that the agent has authority to act as its true and lawful 
agent for purposes of preparing and filing the EEI in accordance with 
the laws and regulations of the United States.
    Zone Admission Number. A unique and sequential number assigned by a 
FTZ operator or user to shipments admitted to a zone.


Sec.  30.2  General requirements for filing Electronic Export 
Information.

    (a) Filing requirements--(1) The AES is the electronic system for 
collecting SED (or any successor document) information from persons 
exporting goods from the United States, Puerto Rico, Foreign Trade 
Zones (FTZs) located in the United States or Puerto Rico, the U.S. 
Virgin Islands, between Puerto Rico and the United States, and to the 
U.S. Virgin Islands from the United States or Puerto Rico. References 
to the AES also shall apply to AESDirect unless otherwise specified. 
For purposes of the regulations in this part, SED information shall be 
referred to as Electronic Export Information (EEI). Electronic Export 
Information shall be filed through the AES by the U.S. principal party 
in interest (USPPI), the USPPI's authorized agent, or the authorized 
U.S. agent of the foreign principal party in interest (FPPI) for 
exports of physical goods, including shipments moving pursuant to 
orders received over the Internet. Exceptions, exclusions, and 
exemptions to this requirement are provided for in paragraphs 
(a)(1)(iv) and (d) of this section and subpart D of this part. Filing 
through the AES shall be done in accordance with the definitions, 
specifications, and requirements of the regulations in this part for 
all export shipments, except as specifically excluded in Sec.  30.2(d) 
or exempted in subpart D, when shipped as follows:
    (i) To foreign countries or areas, including free (foreign trade) 
zones located therein (see Sec.  30.36 for exemptions for shipments 
from the United States to Canada), from any of the following:
    (A) The United States, including the 50 states and the District of 
Columbia.
    (B) Puerto Rico.
    (C) FTZs located in the United States or Puerto Rico.
    (D) The U.S. Virgin Islands.
    (ii) Between any of the following non-foreign areas:
    (A) To Puerto Rico from the United States.
    (B) To the United States from Puerto Rico.
    (C) To the U.S. Virgin Islands from the United States or Puerto 
Rico.
    (iii) Electronic export information shall be filed for goods moving 
as described in paragraphs (a)(1)(i) and (ii) of this section by any 
mode of transportation. (Instructions for filing EEI for vessels, 
aircraft, railway cars, and other carriers when sold while outside the 
areas described in paragraphs (a)(1)(i) and (ii) are covered in Sec.  
30.26.)
    (iv) Notwithstanding exemptions in subpart D, EEI shall be filed 
for the following types of export shipments, regardless of value:
    (A) Destined for countries subject to the Department of Treasury 
export licensing under the Office of Foreign Assets Control (OFAC) 
regulations (31 CFR parts 500 through 599).
    (B) Requiring a Department of Commerce, Bureau of Industry and 
Security (BIS) license (15 CFR parts 730 through 774).
    (C) Requiring a Department of State, Directorate of Defense Trade
    Controls (DDTC) export license under the International Traffic in 
Arms Regulations (ITAR) (22 CFR parts 120 through 130).
    (D) Subject to the ITAR but exempt from license requirements.
    (E) Requiring a Department of Justice, Drug Enforcement 
Administration (DEA) export permit (21 CFR part 1312).
    (F) Requiring an export license issued by any other federal 
government agency.
    (G) Classified as rough diamonds under 6-digit Harmonized System 
subheadings 7102.10, 7102.21, and 7102.31.
    (2) Filing methods. The USPPI has four optional means for filing 
EEI: use AESDirect; develop AES software using the AESTIR; purchase 
software developed by certified vendors using the AESTIR; or use an 
authorized agent.
    (b) General requirements--(1) Electronic Export Information shall 
be filed prior to exportation unless the USPPI has been authorized to 
submit export data on a postdeparture basis (See Sec.  30.5(c)). 
Shipments requiring a license or license exemption may be filed 
postdeparture only when the appropriate licensing agency has granted 
the USPPI authorization.
    (2) Specific data elements required for EEI filing are contained in 
Sec.  30.6.
    (3) The AES downtime procedures provide uniform instructions for 
processing export transactions when the AES, AESDirect or the computer 
system of an AES participant is unavailable for transmission. (See 
Sec.  30.4(b)(1) and Sec.  30.4(b)(3).)
    (4) Instructions for particular types of transactions and 
exemptions from these requirements are found in subparts C and D of 
this part.
    (5) Electronic Export Information is required to be presented to 
CBP prior to export for commodities being exported by vessel going 
directly to the countries identified in 19 CFR 4.75(c) and by aircraft 
going directly or indirectly to those countries (See 19 CFR 
122.74(b)(2)).
    (c) Certification and filing requirements. Filers of EEI shall be 
required to meet application, certification, and filing requirements 
before being approved to submit export data through the AES or 
AESDirect. Steps leading toward approval for the AES or the AESDirect 
filing include the following processes: (See Sec.  30.5 for specific 
application, certification, and filing standards applicable to AES and 
AESDirect submissions.)
    (1) Submission of a Letter of Intent for AES filing or submission 
of an online registration for filing through AESDirect.

[[Page 8208]]

    (2) Successful completion of certification testing for AES or for 
AESDirect filing.
    (d) Exclusions from filing EEI. The following types of transactions 
are outside the scope of this part and shall be excluded from EEI 
filing:
    (1) Goods shipped under CBP bond through the United States, Puerto 
Rico, or the U.S. Virgin Islands from one foreign country or area to 
another where such goods do not enter the consumption channels of the 
United States. Shipments under CBP bond leaving the United States by 
vessel may require the filing of Form 7513, Shipper's Export 
Declaration for In-transit Goods.
    (2) Goods shipped from the U.S. possessions of Guam Island, 
American Samoa, Wake Island, Midway Island, Northern Mariana Islands, 
and Canton and Enderbury Islands to foreign countries or areas, and 
goods shipped between the United States and these possessions when an 
export license or license exemption is not required. As per this 
section, EEI is required for shipments between the United States and 
Puerto Rico, or from the United States or Puerto Rico to the U.S. 
Virgin Islands. (See subpart B of this part for filing requirements for 
export control purposes.)
    (3) Electronic transmissions and intangible transfers. (See subpart 
B for export control requirements for these types of transactions.)
    (4) Goods shipped to Guantanamo Bay Naval Base in Cuba from the 
United States, Puerto Rico, or the U.S. Virgin Islands and from 
Guantanamo Bay Naval Base to the United States, Puerto Rico, or the 
U.S. Virgin Islands. (See Sec.  30.39 for filing requirements for 
shipments exported by the U.S. armed services.)
    (e) Penalties. Failure of the USPPI, the authorized agent of either 
the USPPI or the FPPI, the exporting carrier, or any other person 
subject thereto to comply with any of the requirements of the 
regulations in this part renders such persons subject to the penalties 
provided for in subpart H of this part.


Sec.  30.3  Electronic Export Information filer requirements, parties 
to export transactions, and responsibilities of parties to export 
transactions.

    (a) General requirements. The filer of EEI for export transactions 
is either the USPPI, its authorized agent, or the authorized U.S. agent 
of the FPPI. Export data provided to the AES shall be complete, 
correct, and based on personal knowledge of the facts stated or on 
information furnished by the parties to the export transaction. The 
filer shall be physically located in the United States at the time of 
filing, have an Employer Identification Number (EIN) or social security 
number (SSN), and be certified to report in the AES. The filer is 
responsible for the truth, accuracy, and completeness of the EEI, 
except insofar as that party can demonstrate that he or she reasonably 
relied on information furnished by other responsible persons 
participating in the transaction. All parties involved in export 
transactions, including U.S. authorized agents, should be aware that 
invoices and other commercial documents may not necessarily contain all 
the information needed to prepare the EEI. The parties shall ensure 
that all information needed for reporting to the AES, including correct 
export licensing information, is provided to the authorized agent for 
the purpose of correctly preparing the EEI.
    (b) Parties to the export transaction--(1) Principal parties in 
interest. Those persons in a transaction that receive the primary 
benefit, monetary or otherwise, are considered principal parties to the 
transaction. Generally, the principals in a transaction are the seller 
and buyer.
    (2) USPPI. For purposes of filing EEI, the USPPI is the person or 
legal entity in the United States that receives the primary benefit, 
monetary or otherwise, from the transaction. Generally, that person or 
entity is the U.S. seller, manufacturer, order party, or foreign entity 
purchasing or obtaining goods for export. The foreign entity shall be 
listed as the USPPI if it is in the United States when the items are 
purchased or obtained for export. The foreign entity shall then follow 
the provisions for filing the EEI specified in Sec.  30.3 and Sec.  
30.6 pertaining to the USPPI.
    (i) If a U.S. manufacturer sells goods directly to an entity in a 
foreign area, the U.S. manufacturer shall be listed as the USPPI in the 
EEI.
    (ii) If a U.S. manufacturer sells goods, as a domestic sale, to a 
U.S. buyer (wholesaler/distributor) and that U.S. buyer sells the goods 
for export to a FPPI, the U.S. buyer (wholesaler/distributor) shall be 
listed as the USPPI in the EEI.
    (iii) If a U.S. order party directly arranges for the sale and 
export of goods to a foreign entity, the U.S. order party shall be 
listed as the USPPI in the EEI.
    (iv) If goods are temporarily imported into the United States for 
reexport within one year (e.g., carnets), the authorized agent entering 
the goods may be listed as the USPPI in the EEI.
    (v) If a customs broker is listed as the importer of record when 
entering goods into the United States for immediate consumption or 
warehousing entry, the customs broker may be listed as the USPPI in the 
EEI if the goods are subsequently exported without change or 
enhancement.
    (3) Authorized agent. The agent shall be authorized by the USPPI 
or, in the case of a routed export transaction, the FPPI to prepare an