Foreign Trade Regulations: Mandatory Automated Export System Filing for All Shipments Requiring Shipper's Export Declaration Information, 31548-31590 [E8-12133]

Agencies

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

[Federal Register Volume 73, Number 106 (Monday, June 2, 2008)]
[Rules and Regulations]
[Pages 31548-31590]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12133]



[[Page 31547]]

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Part II





Department of Commerce





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Bureau of the Census



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15 CFR Part 30



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

Federal Register / Vol. 73, No. 106 / Monday, June 2, 2008 / Rules 
and Regulations

[[Page 31548]]


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DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket Number: 031009254-6014-03]
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: Final rule.

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SUMMARY: The U.S. Census Bureau (Census Bureau) issues this final rule 
to amend its regulations to implement provisions in the Foreign 
Relations Authorization Act. Specifically, the Census Bureau is 
requiring mandatory filing of export information through the Automated 
Export System (AES) or through AESDirect for all shipments where a 
Shipper's Export Declaration (SED) is required.

DATES: Effective Date: This rule is effective July 2, 2008.
    Implementation Date: The Census Bureau will implement provisions of 
this rule on September 30, 2008. This will allow all affected entities 
sufficient time to come into compliance with this rule.

FOR FURTHER INFORMATION CONTACT: C. Harvey Monk, Jr., Assistant 
Director for Economic Programs, U.S. Census Bureau, Room 8K108, 
Washington, DC 20233-6010, by phone (301) 763-2932, by fax (301) 457-
3767, or by e-mail c.harvey.monk.jr@census.gov.

SUPPLEMENTARY INFORMATION:

Background

    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 such data is used by the Census 
Bureau for statistical purposes only. The export trade data reported 
pursuant to this Part 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. This information is exempt from 
public disclosure unless the Secretary of Commerce determines under the 
provisions of Title 13, U.S.C., Chapter 9, Section 301(g), that such 
exemption would be contrary to the national interest.
    This rule provides that all export information for which an SED is 
required be filed through the AES. The AES is an electronic method for 
filing the paper SED information directly with the U.S. Customs and 
Border Protection (CBP) and the Census Bureau. The AESDirect is the 
Census Bureau's free Internet-based system for filing SED information 
through the AES. Future references to the AES also shall apply to 
AESDirect unless otherwise specified. In addition, with regards to 
postdeparture filing, the Census Bureau and CBP have agreed that the 
moratorium placed on Option 4 (postdeparture filing) in August 2003, 
will remain in effect pending further review of the postdeparture 
filing program.
    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 the 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 
to 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 authorized 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 authorized the 
Secretary of Commerce to issue regulations regarding imposition of 
penalties, both civil and criminal, for the delayed filing, failure to 
file, false filing of export information, and/or using the AES to 
further any illegal activity. The Act provided for administrative 
proceedings for imposition of a civil penalty for violation(s) of 
Public Law 107-228. Finally, the Act authorized the Secretary of 
Commerce to designate employees of the Office of Export Enforcement of 
the Department of Commerce (DOC) to conduct investigations and perform 
the enforcement functions in Title 13, U.S.C., Chapter 9, and the 
Commissioner of Customs to designate employees of the Customs Service 
to enforce and conduct investigations under the same provisions. The 
latter authority is now exercised by the U.S. Immigration and Customs 
Enforcement (ICE) and CBP officials in the U.S. Department of Homeland 
Security (DHS). In addition, by Memorandum of Understanding dated 
September 25, 2005, the Secretary delegated the authority to enforce 
sections 304 and 305 of Title 13, U.S.C., and 15 CFR, part 30 to the 
Secretary of Homeland Security. Nothing in this rule is intended to 
restrict the authority of DHS under Section 343 of the Trade Act of 
2002.
    In the February 17, 2005, Federal Register (70 FR 8200), the Census 
Bureau published a Notice of Proposed Rulemaking (NPR) and request for 
comments on the regulations implementing the mandatory requirement to 
file export information through the AES or AESDirect for all shipments 
where SED information is required. Public comments were requested 
through April 18, 2005. A summary of comments received from the export 
trade community and the Census Bureau's response to those comments are 
presented in this rule.

Response to Comments

    The Census Bureau received 45 letters and/or e-mails commenting on 
the NPR published in the Federal Register on February 17, 2005, (70 FR 
8200). All the letters and/or e-mails contained comments on two or more 
issues. A summary of the comments and the Census Bureau's responses are 
provided below.
    The major concerns were as follows:
    1. Clarify the filing requirement for Electronic Export Information 
(EEI). Several commentors questioned whether the filing requirements 
had changed under the mandatory AES versus filing the paper SED. In 
addition, the commentors wanted clarification regarding the filing of 
EEI for Puerto Rico and U.S. territories. The requirements for filing 
EEI have not changed. All persons currently required

[[Page 31549]]

to file the SED will be required to file the same information through 
the AES. The requirements to file EEI for goods shipped to the United 
States from Puerto Rico, goods shipped to Puerto Rico from the United 
States, and goods shipped to the U.S. Virgin Islands from the United 
States or Puerto Rico, remain unchanged.
    2. Status of the use of the External Transaction Number (XTN) and 
the Internal Transaction Number (ITN). Commentors wanted clarification 
on when the XTN and the ITN could be used under the new regulations. 
Under the Final Rule, only the ITN is acceptable as the proof of filing 
citation. The ITN confirms that the shipment information has been 
accepted in the AES. The XTN will no longer be accepted as a proof of 
filing.
    3. Clarify the time frame for filing EEI. Commentors indicated they 
were unclear about the time frames for filing in the AES. The time 
frame varies according to method of transportation for predeparture 
filing. For State Department USML shipments, refer to the International 
Traffic in Arms Regulations (ITAR) (22 CFR 120-130), Sec.  123.22, for 
the specific requirements concerning filing time frames. For non-USML 
shipments, file the EEI as follows: (1) For vessel cargo, the U.S. 
Principal Party in Interest (USPPI) or authorized agent shall file the 
EEI as required by Sec.  30.6 and provide the filing citation or 
exemption legend to the exporting carrier 24 hours prior to loading 
cargo on the vessel at the U.S. port where the cargo is laden; (2) for 
air cargo, the USPPI or authorized agent shall file the EEI as required 
by Sec.  30.6 and provide the filing citation or exemption legend to 
the exporting carrier, including air express couriers, no later than 
two hours prior to the scheduled departure time of the aircraft; (3) 
for truck cargo, the USPPI or authorized agent shall file the EEI as 
required by Sec.  30.6 and provide the filing citation or exemption 
legend to the exporting carrier no later than one hour prior to the 
arrival of the truck at the U.S. border to go foreign; (4) for rail 
cargo, the USPPI or authorized agent shall file the EEI as required by 
Sec.  30.6 and provide the filing citation or exemption legend to the 
exporting carrier no later then two hours prior to the time the cargo 
arrives at the U.S. border to go foreign; (5) for mail and cargo 
shipped by other methods, except pipeline exports, the USPPI or 
authorized agent shall file the EEI as required by Sec.  30.6 and 
provide the filing citation or exemption legend to the exporting 
carrier no later than two hours prior to exportation; (6) for pipeline 
exports, the USPPI or authorized agent shall file the EEI as required 
by Sec.  30.6 and provide the filing citation or exemption legend to 
the operator of the pipeline within four days following the end of each 
calendar month; and, (7) for postdeparture filing, by approved USPPIs, 
in accordance with Sec.  30.5(c), the USPPI or authorized agent shall 
file the EEI as required by Sec.  30.6 and provide the filing citation 
or exemption legend to the exporting carrier no later than ten calendar 
days from the date of export.
    4. Clarify Option 4 (Postdeparture) filing requirements. Commentors 
wanted clarification regarding parties that would be approved for 
postdeparture filing. In agreement with the Census Bureau and CBP, the 
moratorium placed on Option 4 (postdeparture filing) on August 15, 2003 
(see notice at https://www.census.gov/aes) will remain in effect pending 
further review of the postdeparture filing program.
    5. Amend the regulations to reduce or eliminate the $2,500 
exemption level. Several commentors proposed that the Census Bureau 
remove or reduce the current $2,500 exemption level. The Census Bureau 
believes that removing the $2,500 exemption level for reporting would 
substantially increase the reporting burden on the exporting community, 
especially on small businesses. This change would increase the number 
of shipments reported each month by approximately 4,000,000. In 
addition, the Census Bureau and CBP do not have the resources to 
process the additional workload.
    6. Amend the downtime requirements. Commentors were concerned that 
export shipments would be delayed if the AES became unavailable. The 
Census Bureau has found that during its 12 years in operation, the AES 
has demonstrated a high level of reliability in performance. The system 
has been available to users 99 percent of the time. For this reason, 
the Census Bureau has determined that mandatory filing through the AES 
would not cause a substantial delay in export shipments. In the 
unlikely event that the AES is unavailable, the filer of a USML 
shipment shall not be allowed to export until the AES is operational 
and the filer is able to acquire an ITN. See Sec.  30.4(b)(1) for more 
information. For non-USML shipments, the regulation provides for a 
downtime filing citation to allow goods to be exported. See Sec.  
30.4(b)(2) for more information.
    7. Clarify the requirements for power of attorney or written 
authorization. Commentors were concerned that the language regarding 
the requirement for power of attorney or written authorization was 
drafted incorrectly. The Census Bureau reviewed the NPR regarding the 
requirement and found an instance where it stated ``power of attorney 
and written authorization,'' and it should read ``power of attorney or 
written authorization.'' This language has been changed in the Final 
Rule. In addition, a commentor questioned whether the language had been 
changed regarding the power of attorney or written authorization 
requirement. The Census Bureau did not change the language or the 
requirement for power of attorney or the need for written authorization 
that currently exists in the regulations.
    8. Clarify manner in which fines and penalties will be enforced and 
how a filer submits a voluntary self-disclosure. Several commentors 
were concerned about which agency would enforce the penalty provisions 
of the Foreign Trade Regulations (FTR). Pursuant to the authority in 
Public Law 107-228, the Secretary of Commerce has delegated authority 
for enforcement to the Bureau of Industry and Security's (BIS) Office 
of Export Enforcement (OEE) and the DHS. The Census Bureau has worked 
with CBP and the BIS to develop regulations implementing the process 
and requirements for submitting a notification disclosing a violation 
or suspected violation of the FTR. These regulations are found in 
Subpart H, Sec.  30.74 Voluntary Self-Disclosure.
    9. Amend a number of definitions in the definition section of the 
proposed rule. Several commentors proposed changes to definitions 
contained in the NPR. The Census Bureau revised the following 
definitions in Sec.  30.1:
    Booking. The Census Bureau revised this definition to add ``truck 
and train'' as methods of transportation. The Census Bureau made this 
revision as a result of public comments.
    Carrier. The Census Bureau deleted ``non-vessel operating common 
carriers'' because a commentor felt that the term could cause confusion 
and the Census Bureau agreed.
    Commerce Control List (CCL). The Census Bureau revised the 
definition to provide the location of CCL items in the Export 
Administration Regulations (EAR).
    Commodity. The Census Bureau deleted this term and the 
corresponding definition because commentors indicated that it was too 
general.
    Domicile. The Census Bureau deleted this term because it is no 
longer used in the FTR.
    Exceptions. This term was changed to ``license exception'' and 
moved accordingly.

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    Exclusions. The Census Bureau added this definition as a result of 
comments that requested clarification of this term.
    Export Control Classification Number (ECCN). This definition was 
revised to clarify the description and purpose of this number.
    Filers. The Census Bureau added this definition as a result of 
comments that requested clarification of this term.
    Filing Electronic Export Information. The Census Bureau added this 
definition as a result of comments that requested clarification of this 
term.
    Foreign Entity. The Census Bureau added this definition as a result 
of comments that requested clarification of this term.
    Foreign Principal Party in Interest (FPPI). The Census Bureau 
revised this definition because it was inconsistent with the 
regulations defining the responsibilities of the parties to an export 
transaction. Therefore the Census Bureau revised this definition to 
ensure clarity.
    Merchandise. The Census Bureau revised this term and corresponding 
definition in accordance with industry standards as commentors 
indicated that it was too general.
    Service Center. The Census Bureau added this definition as a result 
of comments that requested clarification of this term.
    Transmitting Electronic Export Information. The Census Bureau added 
this definition as a result of comments that requested clarification of 
this term.
    Ultimate Consignee. The Census Bureau revised this definition to 
expand the definition of ultimate consignee to also include a party or 
designee that is located abroad and actually receives the export 
shipment. The definition was also revised to provide examples of the 
ultimate consignee. The Census Bureau revised the definition as a 
result of comments that indicated that the definition was inaccurate.
    Violation of the FTR. The Census Bureau added this definition to 
clarify what constitutes a violation.
    10. Amend the proposed rule to make it a requirement that the agent 
of FPPI provides the USPPI with a copy of the power of attorney or 
written authorization from the FPPI. Commentors were concerned about 
the requirement to provide information to an agent of the FPPI in a 
routed export transaction. The Census Bureau has revised Sec.  
30.3(e)(2) of the FTR to require the agent of the FPPI, upon request, 
to provide the USPPI with a copy of power of attorney or the written 
authorization giving the agent the authority to file the EEI on behalf 
of the FPPI before the USPPI provides the required information 
necessary to complete the EEI filings.
    11. Clarify whether an export license or license exemption is 
required for exports from U.S. territories. Also clarify whether paper 
SEDs are required by CBP for items that are controlled by the 
Department of State or the BIS. The commentor's request for 
clarification on whether an export license or license exemption or 
items that are controlled by the Department of State or the BIS is 
required for export from U.S. territories is outside the scope of the 
Foreign Trade Regulations. The commentor's question should be addressed 
to the Department of State and the BIS. Neither the Census Bureau nor 
CBP requires EEI or a paper SED for goods shipped from U.S. territories 
including, Guam Island, American Samoa, Wake Island, Midway Island, and 
the Northern Mariana Islands to foreign countries or areas and goods 
shipped between the United States and these territories.
    12. Amend the proposed rule to address the treatment of split 
shipments by air. Several commentors were concerned about having to 
identify the piece count details of shipments that are split among 
multiple flights. The commentors indicated that the regulations 
regarding the treatment of split shipments by air would have a 
substantial impact on air carriers. Commentors provided no further 
information. The Census Bureau reviewed this section of the NPR and 
found that the requirement was not changed from the previous 
regulations and remains appropriate. This requirement has existed for 
more than 20 years.
    13. Amend the proposed rule to relax the security requirements 
regarding reporting computer viruses and the requirement that the AES 
Administrator change administrator codes or passwords for security 
purposes when employees leave the company. Several commentors were 
concerned that these requirements would be a burden to the AES filers. 
The requirement to notify the Census Bureau Foreign Trade Division's 
Security Officer when a virus infection occurs only applies to systems 
connected to the AESDirect. This procedure is a security requirement 
for the purpose of maintaining the federal government's system 
certification for AESDirect. The requirement to change the password 
when an employee leaves the company only applies to employees leaving 
the company who had direct access to the AES Sec.  30.5(d)(2). This is 
not a new requirement and remains appropriate.
    14. Amend the regulations by dropping Subpart F--Import 
Requirements. One commentor believes that having import regulations in 
15 CFR 30, and also in 19 CFR is confusing to the trade. More than one 
federal agency has jurisdiction over imports, therefore, it is 
appropriate for regulations to exist in more than one place. While CBP 
regulations (19 CFR) cover most of the requirements for filing import 
information, there are additional statistical requirements specific to 
the Census Bureau that are found in the FTR (15 CFR) and that are not 
the subject of CBP regulations.
    15. Amend the proposed rule Sec.  30.52--Foreign Trade Zones (FTZ). 
Commentors are concerned that language in Sec.  30.52 did not describe 
some of the activities of FTZs. The Census Bureau reviewed the proposed 
language changes and replaced the word ``enter'' with ``are admitted 
into'' in the introductory paragraph and the word ``mode'' with 
``method'' in Sec.  30.52(h) to more accurately reflect the activities 
of the zones.
    16. Create a registration number to be used in place of the 
Employer Identification Number (EIN) or Social Security Number (SSN). A 
commentor was concerned about providing the EIN or SSN to a FPPI's 
agent or placing the EIN or SSN on the proof of filing citation. The 
Census Bureau agrees that a registration number should be created so 
that filers', USPPI's, or agents' EIN or SSN can be kept confidential. 
The Census Bureau is currently working with CBP to develop a system 
that allows the reporting of registration numbers, and will address 
this issue in a future rulemaking.
    17. Clarify the filing of foreign waterborne in-transit shipments 
by the U.S. Army Corps of Engineers. A commentor believes that the U.S. 
Army Corps of Engineers should not be responsible for reporting EEI on 
export of in-transit shipments. Previously, the Census Bureau, the U.S. 
Army Corps of Engineers, and the Maritime Administration jointly 
collected in-transit information for vessel shipments. This joint 
collection activity dates back to 1948, with the Census Bureau 
designated as the primary collection agency. In 1996, under joint 
agreement among the Census Bureau, U.S. Army Corps of Engineers, the 
Maritime Administration, and the Office of Management and Budget (OMB), 
the U.S. Army Corps of Engineers was designated the primary data 
collection agency for vessel in-transit data. Thus, it is the 
responsibility of the U.S. Army Corps of Engineers to collect data 
regarding vessel in-transit shipments leaving the United States. This 
does not, however, affect or alter the

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responsibility of USPPIs and others to comply with other agency in-
transit requirements such as those required by CBP. (See e.g., 19 CFR 
18)
    18. Redesign the Vessel Transportation Module (VTM) of the AES to 
allow paperless submissions of proof of filing citations and exemption 
legends and revise the FTR to require the paperless submission of the 
proof of filing citation and exemption legends. Several commentors from 
the vessel shipping lines wanted to submit electronic manifests and 
wanted to receive the proof of filing citation and exemption legends 
from the filers electronically. The Census Bureau determined that this 
proposal would require a significant redesign of the AES, VTM, and the 
AES Commodity Module, and would likely need to be developed as a part 
of CBP's Automated Commercial Environment development. At this time, 
neither CBP nor the Census Bureau has the resources available to 
implement this proposal. Until the implementation of a system that has 
the capability described by the commentor, the AES will continue to 
require the filer to provide the vessel carriers with the proof of 
filing citations or the exemption legends.
    19. Clarify the retention of export information and the authority 
to require proof of documentation of EEI. Several commentors indicated 
that the requirements of Sec.  30.10 were unclear. The Census Bureau 
agreed, and the section was completely revised to clarify the 
requirements for retaining export information and to eliminate the 
requirement to retain paper certification notices. In the course of 
clarifying this section, the Census Bureau determined that it was not 
necessary for filers to retain paper copies of certain documents. In 
order to reduce the recordkeeping burdens on filers, the Census Bureau 
eliminated the requirement that AES filers retain a paper copy of the 
Letter of Intent to participate in the AES and the requirement that 
AESDirect and/or AESPcLink filers print and maintain a copy of their 
electronic certification notice. In addition, the Census Bureau 
modified this section to add a note describing its responsibilities 
with respect to the retention and maintenance of EEI.
    20. Amend the rule to provide exemption from filing EEI for 
temporary exports including carnets. Several commentors believe that 
the regulation should state that temporary exports are exempt from 
filing. The Census Bureau's regulations have always exempted temporary 
exports, such as carnets, from filing requirements. However, the Census 
Bureau agrees that carnets should be expressly stated in regulations 
and thus it has been added to that exemption in Sec.  30.37. However, 
temporary exports that require an export license, temporary exports 
destined for a country listed in Country Group E:1 as set forth in 
Supplement 1 to 15 CFR 740, or an ITAR licensing exemption are not 
exempt.
    21. Amend the filing citation and exemption legend requirements. 
Several commentors requested changes in language with respect to the 
filing citations and exemption legends requirement because it was 
inconsistent with industry practice. The Census Bureau made several 
changes to the language to reflect industry practice with respect to 
who must provide exemption legends (see Sec.  30.7).
    22. Clarify the procedures for responding to fatal error messages 
when filing postdeparture. A commentor stated that Sec.  30.9(b) did 
not take postdeparture filing into account. The Census Bureau has 
reviewed the section and has revised the Final Rule to address 
postdeparture filings. If a filer encounters a fatal error when filing 
a postdeparture shipment, the filer must resubmit the EEI no later than 
ten calendar days after export.
    23. Clarify that estimated date of departure can be used if the 
actual date of departure is not known. A commentor was concerned that 
sometimes the filer may not know the actual date of departure. The 
Census Bureau acknowledges that there are times when the filer may not 
know the actual date of departure. In these instances, the filer may 
provide an estimated departure date. However, it is the USPPI's or the 
authorized filing agent's responsibility to transmit accurate export 
information as known at the time of filing in the AES and transmit any 
changes to that information as soon as they are known.
    24. Clarify whether export shipments to Mexico and Canada must be 
filed in AES. A commentor questioned whether SEDs are required to be 
filed for shipments destined to Canada and Mexico. All export shipments 
to Mexico valued over $2,500 or shipments that require an export 
license, a license exemption, or a Kimberley Process Certificate for 
rough diamonds classified under the 6-digit Harmonized Schedule 
subheadings 7102.10, 7102.21, and 7102.31, are required to be reported 
in the AES. Export shipments to Canada are not required to be filed 
through the AES, unless they require an export license, a license 
exemption, or a Kimberley Process Certificate for rough diamonds 
classified under the 6-digit Harmonized Schedule subheadings 7102.10, 
7102.21, and 7102.31. See Sec. Sec.  30.2(a) and 30.36.
    25. Amend the proposed rule regarding the annotation of proof of 
filing citations, 15 CFR Sec.  30.7. A commentor requested that the 
Census Bureau limit the length of the AES downtime filing citation to 
no more than 32 characters. The Census Bureau acknowledges that the 
filing citation may be lengthy, and thus may result in mistakes. 
Therefore, the Census Bureau has removed the ``shipment reference 
number'' from the downtime citation to make the AES downtime filing 
citation less than 32 characters.
    26. Amend Sec.  30.7 Annotating Proof of Filing Citation. The 
commentor requested that the Census Bureau amend the regulations to 
define the difference between an authorized agent and an exporting 
carrier when both roles are fulfilled by the same, affiliated, or 
controlled subsidiary legal entity. The Census Bureau reviewed the 
request and Sec.  30.7 was revised to define the different roles of 
authorized agents and carriers.
    27. Clarify that intangible exports of software and technology are 
exempt from the EEI requirements. A commentor requested that the Census 
Bureau confirm that EEI is not required for intangible exports of 
software and technology. The Census Bureau's FTR does not require the 
reporting of intangible exports of software and technology. However, 
the Department of State, and/or the DOC may require separate filings 
for intangible exports of software and technology and technical data 
that require a license. The Census Bureau recommends that the 
Department of State and DOC be contacted regarding their specific 
licensing requirements.
    28. Amend the proposed rule by removing the carrier name and 
Standard Carrier Alpha Code (SCAC) as data elements. One commentor 
requested that carrier name and SCAC be removed as data elements. The 
Census Bureau is unable to discontinue collection of these data 
elements because each remains a statistical and enforcement 
requirement.
    29. Amend the proposed rule regarding responsibilities in a routed 
export transaction. A commentor requested language be added to Sec.  
30.3(e), ``Parties are free to structure transactions as they wish and 
to delegate functions and tasks as they deem necessary, as long as the 
transactions comply with the FTR.'' The Census Bureau considered the 
proposal and decided that the addition of the proposed language would 
create confusion rather than clarity. In a routed

[[Page 31552]]

export transaction the authorized agent of the FPPI shall be 
responsible for filing the EEI accurately and timely in accordance with 
the FTR.
    30. Amend the rule by adding a note to Sec.  30.3. A commentor 
requested that the Census Bureau revise the FTR to be consistent with 
the EAR. The Census Bureau added a note to Sec.  30.3 to alert filers 
that the definition used for exporter in the EAR is different from the 
definition used for the USPPI in the FTR because of each agency's 
distinct obligations and requirements. Therefore, due to the different 
mission of each agency, conformity of documentation is not required in 
the FTR.
    31. Amend the proposed rule, Sec.  30.37(a)--Miscellaneous 
Exemptions. A commentor requested that the Census Bureau confirm if the 
miscellaneous exemption for goods valued $2,500 or less can be used if 
the domestic value and the foreign value are each under $2,500, even if 
their total value exceeds $2,500. The Census Bureau's FTR requires that 
items of domestic or foreign origin under the same commodity 
classification number should always be reported separately and listed 
only if either is valued over $2,500.

Changes to the Proposed Rule Made by This Final Rule

    After consideration of the comments received, the Census Bureau 
revised certain provisions and added several provisions in the Final 
Rule to address the concerns of the commentors and to clarify the 
requirements of the rule. The changes made in this Final Rule are as 
follows:
    1. Section 30.2(a)(ii) is amended to clarify that goods previously 
admitted to customs warehouses or FTZs moving under CBP bond between 
Puerto Rico and United States and to the U.S. Virgin Islands from the 
United States or Puerto Rico shall require filing EEI. This change is 
in response to concerns addressed in item 15 in the ``Response to 
Comments'' section.
    2. Section 30.2(a)(iv) is amended to clarify exemptions in Subpart 
D by deleting (A), specific references to Office of Foreign Assets 
Control regulations, renumbering existing (B) through (E) to (A) 
through (D), and adding a new (E) to clarify a BIS requirement. This 
change was made to provide clarity and consistency.
    3. Section 30.2(d)(2) is amended by deleting ``* * * when an export 
license or license exemption is not required,'' because currently no 
export license is required for the following U.S. territories: Guam 
Island, American Samoa, Wake Island, Midway Island, and the Northern 
Mariana Islands. This change was in response to concerns addressed in 
item 11 in the ``Response to Comments'' section.
    4. In response to item 20 in the ``Response to Comments'' section, 
Sec.  30.3(b)(2)(iv) is deleted because it relates to an exemption for 
reexports that is addressed in Sec.  30.37. Section 30.3(b)(2)(v) is 
renumbered Sec.  30.3(b)(2)(iv). A new Sec.  30.3(b)(2)(v) has been 
added to provide clarification on who shall be the USPPI when goods are 
imported for consumption and reexported without being changed or 
enhanced. This change was made during internal agency review.
    5. Section 30.3(e)(1) is amended to clarify the language describing 
the treatment of a routed export transaction if the FPPI agrees to 
allow the USPPI to file EEI. This change is in response to concerns 
addressed in item 10 in the ``Response to Comments'' section. Also, 
Sec.  30.3(e)(1) is amended by adding a note to paragraph (e)(1) that 
was inadvertently dropped in the proposed rule.
    6. Section 30.3(e)(2) is amended to clarify the authorized agents 
responsibilities in a routed export transaction. This change is in 
response to concerns addressed in item 10 in the ``Response to 
Comments'' section.
    7. Section 30.3(e)(2)(xiii) and (xiv) is amended by adding a 
clarifying note to this paragraph that was inadvertently dropped in the 
proposed rule. This change was made to provide clarity and consistency.
    8. Section 30.3(e)(1) is amended by adding a clarifying note to 
this section that was inadvertently dropped in the proposed rule. This 
change is in response to concerns addressed in item 29 in the 
``Response to Comments'' section.
    9. Section 30.3(f) is amended to clarify that in a routed export 
transaction the USPPI is not required to provide the agent of the FPPI 
with a power of attorney or written authorization. This change is in 
response to concerns addressed in item 10 in the ``Response to 
Comments'' section.
    10. Section 30.6(a)(18) is amended by deleting shipments under 
carnet from the list of export codes. This listing of carnets in the 
export codes was in error. This change is made to ensure consistency 
with the response to concerns addressed in item 20 in the ``Response to 
Comments'' section.
    11. Section 30.6(b)(13) is amended to specify that an entry number 
is required for goods withdrawn from a FTZ and exported. This change is 
in response to concerns addressed in item 15 in the ``Response to 
Comments'' section.
    12. Section 30.10 is amended to clarify the requirements for the 
retention of EEI and the authority to require production of 
documentation of EEI. This change is in response to concerns addressed 
in item 19 in the ``Response to Comments'' section.
    13. Section 30.37 is amended by adding exemptions (q), (r), (s), 
and (t) that were not included in the proposed rule. This change was 
made to provide clarity and consistency.
    14. Section 30.4(b)(2)(i) is amended to read: ``(i) For vessel 
cargo, the USPPI or authorized agent shall file the EEI required by 
Sec.  30.6 and provide the filing citation or exemption legend to the 
exporting carrier 24 hours prior to the cargo being loaded on the 
vessel at the U.S. port where the cargo is laden.'' This change is in 
response to concerns addressed in item 21 in the ``Response to 
Comments'' section.
    15. Section 30.4(b)(2)(iv) is amended to read: ``(iv) For rail 
cargo, the USPPI or the authorized agent shall file the EEI, required 
by Sec.  30.6, and provide the filing citation or exemption legend to 
the exporting carrier no later than two hours prior to the time train 
arrives at the U.S. border to go foreign.'' This change is in response 
to concerns addressed in item 21 in the ``Response to Comments'' 
section.
    16. Section 30.45(a) is amended by deleting ``* * * U.S. 
possessions'' and replacing it with ``the U.S. Virgin Islands.'' The 
reference to U.S. territories was too broad. Also language was added to 
clarify that CBP may require a variety of documents, depending upon the 
method of transportation, to contain the proof of filing citation or 
exemption legend. This change is in response to concerns addressed in 
item 21 in the ``Response to Comments'' section.
    17. Section 30.45(f) is amended to clarify by method of 
transportation when the carrier must obtain the filing citations or 
exemption legends. This change is in response to concerns addressed in 
item 21 in the ``Response to Comments'' section.
    18. Section 30.37 is amended to include carnets as temporary 
exports that should have been included in the proposed rule. This 
change is in response to concerns addressed in item 20 in the 
``Response to Comments'' section.
    19. Section 30.71(b)(1) is amended by adding a note to paragraph 
(b)(1), which notes an inflation adjustment to penalty provision of 
Subpart H. This change was made as a result of the Adjustment for 
Inflation Final Rule effective December

[[Page 31553]]

14, 2004, and provided for by the Debt Collection Improvement Act of 
1996, Public Law 104-134.
    20. Subpart H is amended by adding Sec.  30.74, Voluntary Self-
Disclosure, to specify how to disclose violations or suspected 
violations of the FTR. This change is in response to concerns addressed 
in item 8 in the ``Response to Comments'' section.
    21. Sections 30.2(c)(1), 30.5(a), and 30.5(c) are amended to 
clarify that the letter of intent to participate in AES must be filed 
electronically at www.aesdirect.gov. This change was made to eliminate 
the requirement to submit the paper letter of intent and to be 
consistent with a pure electronic environment because filing the 
information electronically reduces the burden on both trade and the 
government.
    22. Section 30.1 is amended to clarify a number of definitions. 
These changes are in response to concerns addressed in item 9 in the 
``Response to Comments'' section.
    23. Section 30.5(d)(1) is amended to clarify that the requirement 
to change password only applies to employees leaving the company that 
had direct access to the AES. This change is in response to concerns 
addressed in item 13 in the ``Response to Comments'' section.
    24. Section 30.9(b) is amended to clarify that fatal errors for EEI 
filed postdeparture must be corrected as soon as possible, but no later 
than ten days after departure if filed postdeparture. This change is in 
response to concerns addressed in item 22 in the ``Response to 
Comments'' section.
    25. Section 30.7 is amended by deleting the filing citation from 
the section and adding an Appendix D to Part 30 AES Filing Citation, 
Exemption and Exclusion Legends. In addition, the Census Bureau limited 
the length of the AES downtime filing citation to no more than 32 
characters. These changes were in response to concerns addressed in 
item 25 of the ``Response to Comments'' section and to provide clarity 
and consistency.
    26. Appendix A to Part 30--Format for Letter of Intent has been 
removed. The Appendix B sample of Power of Attorney and written 
authorization has been renamed A.
    27. Appendix B to Part 30--AES Filing Codes have been added to 
provide one reference for all the filing codes.
    28. Appendix C to Part 30--Summary of Exemptions and Exclusions 
from EEI filing is being added to provide a summary of all FTR 
exemptions and exclusions.
    29. Appendix D to Part 30--AES Filing Citation, Exemption and 
Exclusion Legends are being added to provide a summary of all citations 
and legends.
    30. Appendix E to Part 30--FTSR to FTR Concordances are being added 
to provide a crosswalk between the FTSR and FTR.
    31. Appendix F to Part 30--FTR to FTSR Concordances are being added 
to provide a crosswalk between the FTR and FTSR.

Program Requirements

    To comply with the requirements of Public Law 107-228, the Census 
Bureau is amending in its entirety the FTSR to specify the requirements 
for the mandatory reporting of all export information through the AES 
when a SED was required. All future references to the SED shall be 
referred to as AES EEI.
    The Census Bureau is making the following changes to Title 15, Code 
of Federal Regulations (CFR), part 30:
     Rename the FTSR to ``Part 30--Foreign Trade Regulations'' 
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), 
Commerce Form 7525-V, from Title 15 CFR 30, so that the AES will be the 
only mode for filing information previously required by the SED.
     Remove requirements for filing the in-transit SED, ENG 
Form 7513, from 15 CFR 30. Responsibility for ENG Form 7513 was 
transferred to the U.S. Department of the Army, U.S. Army Corps of 
Engineers.
     In Sec.  30.2(a)(2), language was included to specify the 
four optional means for filing EEI. Two of those methods require the 
development of AES software using the Automated Export System Trade 
Interface Requirements (AESTIR).
     Section 30.2(d), lists types of export transactions 
outside the scope of the FTR. The list of out-of-scope transactions 
included in Sec.  30.2(d) is not all-inclusive, but includes those 
types of shipments about which the Census Bureau receives frequent 
inquiries. These types of shipments are to be excluded from EEI filing.
     In Sec.  30.3, language was included to specify that in a 
``routed'' transaction, the USPPI can compile and transmit export 
information on behalf of the FPPI when agreed upon by the FPPI. This 
language is consistent with the language of Sec.  758.3 of the EAR and 
permits the USPPI to act as an agent of the FPPI upon the written 
authorization by the FPPI.
     In Sec.  30.4, the time and place-of-filing requirements 
for presenting proof of filing citations, postdeparture filing 
citations, and/or exemption legends are specified. Specific time and 
place-of-filing requirements are included in the FTR in accordance with 
provisions of Sec.  341(a) of Public Law 107-210, the Trade Act of 
2002. With the exception of the State Department, USML shipments under 
the control of the ITAR and shipments approved for postdeparture 
filing, the appropriate proof of filing citations and/or exemption 
legends are required to be provided to the exporting carrier within 
specified time frames depending on the mode of transportation used. For 
example, proof of filing citations 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 the cargo is laden. Time and place-
of-filing requirements for other modes of transportation also are 
presented in Sec.  30.4 of the FTR.
     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.  30.5(c), the postdeparture (formerly Option 4) 
approval procedures were removed. 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 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 the AES predeparture filing 
requirements by filing EEI through the AES before being approved for 
the postdeparture filing privilege; (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.  30.6, language was added delineating the specific 
procedure for reporting the value of goods to the AES when inland 
freight and insurance

[[Page 31554]]

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, a Routed Export Transaction Indicator and a 
Vehicle Identification Qualifier were added to the list of data 
elements to be reported through the AES. Both the Routed Export 
Transaction Indicator and the Vehicle Identification Qualifier indicate 
the conditions of other data elements reported to the AES. The Routed 
Export 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 vehicle 
number reported.
     In Sec.  30.6, the Date of Arrival and the Waiver of Prior 
Notice Indicator were removed from the list of data elements that 
should be reported through 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 
from other export shipments.
     Subpart B sets forth export control and export licensing 
issues relevant to 15 CFR 30. This subpart adds references to export 
control and licensing requirements of the Department of State and other 
federal agencies. 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, 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 was revised. 
The FTSR did not specifically describe the manner in which these export 
transactions should 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.
     Subpart E sets forth carrier and manifest issues 
pertaining to provisions relevant to 15 CFR 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.
     Subpart F sets forth requirements for import shipments 
relevant to 15 CFR 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. Instructions to import filers on where to obtain 
information on reporting import data are added to Subpart F. 
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.
     A new Subpart H was created to cover the FTR penalty 
provisions formerly addressed in Sec.  30.95 of the FTSR. New penalty 
provisions addressed in Subpart H of this part describe the increase in 
penalties imposed for violations from $100 to $1,000 for each day of 
delinquency, to a maximum from $1,100 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 no more than five years, or both, per violation. 
Finally, Subpart H provides for the enforcement of these penalty 
provisions by the BIS' Office of Export Enforcement (OEE) and the DHS's 
CBP, and ICE.
     Other nonsubstantive revisions were made to include 
language incorporated from the FTSR to clarify the intent of the 
provisions in the FTR.
    The Department of State and DHS concur with the provisions 
contained in this Final Rule.

Rulemaking Requirements

Regulatory Flexibility Act

    The Chief Counsel for Regulation of the DOC 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. The factual basis for this certification was published 
in the proposed rule and is not repeated here. No comments were 
received regarding the economic impact of this rule. As a result, a 
final regulatory flexibility analysis is not required and none was 
prepared.

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 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 the AES and related documents (e.g., the AES 
Participant Application (APA) 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, Exports, Foreign trade, Reporting and 
recordkeeping requirements.

[[Page 31555]]


0
For the reason stated in the preamble, the Census Bureau revises 15 CFR 
part 30 to read as follows:

PART 30--FOREIGN TRADE REGULATIONS

Subpart A--General Requirements
Sec.
30.1 Purpose and definitions.
30.2 General requirements for filing Electronic Export Information 
(EEI).
30.3 Electronic Export Information filer requirements, parties to 
export transactions, and responsibilities of parties to export 
transactions.
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, or other commercial 
loading documents with the proof of filing citations, and exemption 
legends.
30.8 Time and place for presenting proof of filing citations, and 
exemption and exclusions legends.
30.9 Transmitting and correcting Electronic Export Information.
30.10 Retention of export information and authority to require 
production of documents.
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 
Electronic Export Information 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 Voluntary self-disclosure.
30.75-30.99 [Reserved]
Appendix A To Part 30--Sample for Power of Attorney and Written 
Authorization
Appendix B To Part 30--ES Filing Codes
Appendix C To Part 30--Summary of Exemptions and Exclusions from EEI 
filing
Appendix D To Part 30--AES Filing Citation, Exemption and Exclusion 
Legends
Appendix E To Part 30--FTSR to FTR Concordance
Appendix F To Part 30--FTR to FTSR Concordance

    Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization plan 
No. 5 of 1990 (3 CFR 1949-1953 Comp., p.1004); Department of 
Commerce Organization Order No. 35-2A, July 22, 1987, as amended and 
No. 35-2B, December 20, 1996, as amended; Public Law 107-228, 116 
Stat. 1350.

Subpart A--General Requirements


Sec.  30.1  Purpose and definitions.

    (a) This part sets forth the Foreign Trade Regulations (FTR) as 
required under the 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 (the Act). 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 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 the Act and these regulations.
    (b) Electronic filing through the AES strengthens the U.S. 
government's ability to prevent the export of certain items to 
unauthorized destinations and/or end users because the AES aids in 
targeting, identifying, and when necessary confiscating suspicious or 
illegal shipments prior to exportation.
    (c) Definitions used in the FTR. 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 export 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, their authorized agent, or the authorized 
agent of the FPPI to transmit EEI through 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 AESDirect computer systems 
experiences a major failure. The downtime filing citation must appear 
on the bill of lading, air waybill, export shipping instructions, or 
other commercial loading documents.
    AES participant application (APA). An electronic submission 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.
    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-

[[Page 31556]]

negotiable bill of lading and is used for similar purposes.
    Annotation. An explanatory note (e.g., proof of filing citation, 
postdeparture filing citation, AES downtime filing citation, exemption, 
or exclusion legend) placed on the bill of lading, air waybill, export 
shipping instructions, or other loading document.
    Authorized agent. An individual or legal entity physically located 
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 summary data on goods imported into the United States.
    Automated Export System (AES). The system, including AESDirect, for 
collecting EEI 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 information 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 security to ensure the payment 
of duties, taxes and fees and/or compliance with certain requirements 
such as the submission 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 of goods 
on a specific voyage, flight, truck or train.
    Bureau of Industry and Security (BIS). This bureau within the U.S. 
Department of Commerce is concerned with the advancement of U.S. 
national security, foreign policy, and economic interests. The BIS is 
responsible for regulating the export of sensitive goods and 
technologies; enforcing export control, antiboycott, and public safety 
laws; cooperating with and assisting other countries on export control 
and strategic trade issues; and assisting U.S. industry to comply with 
international arms control agreements.
    Buyer. The principal in the export transaction that purchases the 
commodities for delivery to the ultimate consignee. The buyer and 
ultimate consignee may be the same.
    Cargo. Goods being transported.
    Carnet. An international customs document that allows the carnet 
holder to import into the United States or export to foreign countries 
certain goods on a temporary basis without the payment of duties.
    Carrier. An individual or legal entity in the business of 
transporting passengers or goods. Airlines, trucking companies, 
railroad companies, shipping lines, pipeline companies, and slot 
charterers are all examples of carriers.
    Civil penalty. A monetary penalty imposed on a USPPI, authorized 
agent, FPPI, carrier, or other party to the transaction for violating 
the FTR, including failing to file export information, filing false or 
misleading information, filing information late, and/or using the AES 
to further any illegal activity, and/or violating any other regulations 
of this part.
    Commerce Control List (CCL). A list of items found in Supplement 
No. 1 to Part 774 of the EAR. Supplement No. 2 to Part 774 of the EAR 
contains the General Technology and Software Notes relevant to entries 
contained in the CCL.
    Compliance alert. An electronic response 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 their filing 
practices and take steps to conform with export reporting requirements.
    Consignee. The person or entity named in a freight contract, a 
contract of carriage that designates to whom goods have been consigned, 
and that has the legal right to claim the goods at the destination.
    Consignment. Delivery of goods from a USPPI (the consignor) to an 
agent (consignee) under agreement that the agent sells the goods for 
the