Foreign Trade Statistics Regulations U.S. Census Bureau Foreign Trade Division Regulations, Outreach and Education Bra

1. Foreign Trade Statistics RegulationsU.S. Census Bureau Foreign Trade DivisionRegulations, Outreach and Education Branch

2. Today’s Topics • Legal Requirements • Filing Requirements • U.S. Principal Party In Interest (USPPI) • Types of Transactions • Exemptions • Automated Export System (AES) • Compliance • Penalties

3. Legal Requirements Census Bureau Foreign Trade Statistics Regulations (FTSR) • 15 CFR, Part 30 Section 30.1-30.99 Bureau of Industry and Security (BIS) Export Administration Regulations (EAR) • 15 CFR, Parts 700-799

4. What is an SED Shipment? An SED shipment is: • Merchandise shipped from One USPPI to One Consignee • On the Same Flight/Vessel • To the Same Country • On the Same Day • Valued Over $2,500 per Schedule B Number or License Required

5. When is the SED Required? For virtually all shipments:. • To Foreign Countries • Between the U.S. and Puerto Rico • From Puerto Rico to Foreign Countries • From Puerto Rico to U.S. Virgin Islands • From the U.S. to the U.S. Virgin Islands

6. U.S. Principal Party in Interest The U.S. Principal Party in Interest is the: • U.S. Person or Entity • Primary Benefactor (Monetary, or Otherwise) Generally that Person can be the: • U.S. Seller: (Wholesaler or Distributor) • U.S. Manufacturer • U.S. Order Party • Foreign Entity (If in U.S. at time goods purchased or obtained)

7. Two Types of Transactions Export Transaction (Standard): USPPI files the AES record or appoints an authorized U.S. agent to file the export information. Routed Export Transaction: Foreign Principal Party in Interest (FPPI) appoints an authorized U.S. agent to file the export information.

8. Export Transaction USPPI Responsibilities: • Files the export information or appoints authorized U.S. agent • Provides POA to the authorized U.S. agent • Responsible for license determination Authorized U.S. Agent Responsibilities: • Obtains a POA from the USPPI • Provides transportation data • Files accurate and complete export information

9. Routed Export Transaction USPPI Responsibilities: • Must provide the FPPI’s agent with commodity data & licensing information • Upon request be provided with their portion of the SED upon completion by authorized U.S. agent Authorized U.S. Agent Responsibilities: • Obtain a POA from the FPPI • Provide transportation data • Files accurate and complete export information

10. Shipments Exempt from Filing • $2,500 or less per Schedule B Number • Intangible exports of software & technology • Tools of Trade: hand carried, personal or company use, not for sale, returned within 1 year • Country of ultimate destination is Canada

11. Exemptions Do Not Apply • Commerce (BIS) Licenses • State Department Licenses • License Shipments from Other Government Agencies • OFAC Prohibited Countries

12. Record Retention For the Census Bureau: • Retain documents verifying the shipment for 5 years from the date of export Other Government Agencies: • Retention periods may differ

13. Automated Export System The Automated Export System is the electronic filing of: • Shipper’s Export Declaration AES Filers can be: • U.S. Principal Parties in Interest • U.S. Authorized Agents

14. AES Filing Methods • Direct connection to the CBP mainframe • Self-developed Software • Certified Vendor Software • Certified Service Center • AESDirect • Interactive Filing • AESPcLink • Batch Filing (EDI Upload) • AESWebLink

15. AESDirect • Census Bureau’s FREE Internet based system for filing SEDs with AES • www.aesdirect.gov • On-line help facility • Help Desk / Tech Support 7am-7pm EST, 7days a week • Data Security through encryption, user authentication and password maintenance

16. Staying Compliant with AES • Filings are monitored for quality, timeliness and coverage • Census will take the appropriate action to correct non-compliance • AES filers can be penalized for: • Failure to File • Late Filing • Providing false or misleading information

17. Compliance Review Program Goals • Identify and Develop Best Practices • Offer Assistance and Guidance with AES Filings • Help you Avoid Costly Encounters with Government Enforcement Agencies

18. Compliance Review Process • Notification letter sent prior to meeting • Compliance Team will visit companies • Attendees, Managers, Compliance Officers, Forwarders, and/or staff with AES responsibilities • 90 days to achieve compliance • Referrals to OEE and/or CBP

19. Penalty Provisions Delegation of Authority – Enforcement Criminal Penalty Civil Penalty Voluntary Self Disclosure

20. Criminal Penalties USPPI or Authorized Agent who knowingly: Fails to file • Files false and misleading information • Continues to participate in illegal activities Fines: • Up to $10,000 per violation • Imprisonment for not more than five years • Both

21. Civil Penalties USPPI or Authorized Agent or Carrier: Late Filings Up to $1,100 per each day delinquency or up to a maximum of $10,000 per violation Other Violations Up to $10,000 per violation Penalties may be Mitigated

22. Voluntary Self Disclosure Reflects due diligence in preventing, detecting, and correcting violations. Letter should include the following information: Nature of the problem Mitigating Factors (I.e. training) Number and value of shipments affected Corrective Actions Taken Exhibits/Attachments (I.e. ITNs, AES Records Contact information A VSD should not be used to report a correction to a record

23. For More Information • FTD Call Center: 1-800-549-0595 • Choose 1 – AES Assistance • Choose 2 – Commodity Classification Assistance • Choose 3 – Regulations Assistance • Fax: 301-763-6638 or 301-763-4670 • Secure Fax: 301-763-8835 • Email: ASKAES@census.gov FTDREGS @census.gov • www.census.gov/trade