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Dale C. Kelly Assistant Division Chief Data Collection Foreign Trade Division U.S. Census Bureau U.S. Department of Commerce [email protected] (301) 763-6937 Foreign Trade Regulations Dale C. Kelly Bureau of Industry and Security Export Management Compliance Program Boston, MA May 21, 2009 Today’s Topics Foreign Trade Regulations (FTR) • Electronic Export Information (EEI) • • • • • • • • • Impact to the Trade Community Filing Requirements Filing Time Frames AES Downtime Policy Confidentiality Penalty Provisions Mitigation Guidelines Best Practices Outreach Efforts Impact to Trade Community • Required Filing Citations to Carriers • ITN Proof of Filing Citation • Exemption Citation • Post Departure Citation • New Compliance Requirements Lead to Shift in Business Practices • Meet Filing Time Frames – Know Who Files, What is Filed, and When to File Current AES Statistics • 99.96% eligible exports filed in AES • 87.10% predeparture shipments • 12.90% postdeparture shipments • 35,657 AES filers • 9,808 unresolved fatal errors • 29 SEDs keyed in March 2009 When is an EEI Record Required? (FTR 30.2) An EEI record must be filed for exports of physical goods when shipped as follows: • • • • • • • U.S. foreign countries U.S. U.S. Virgin Islands Puerto Rico foreign countries Puerto Rico U.S. Virgin Islands U.S. Puerto Rico Licensable commodities Over $2,500 per Schedule B Number U.S. Principal Party In Interest Section (30.3) USPPI is the primary benefactor (monetary or otherwise) Can Be The: • • • • • U.S. Seller (Wholesaler or Distributor) U.S. Manufacturer U.S. Order Party Foreign Entity Customs Broker Two Types of Transactions (FTR 30.3) 1) Export Transaction (Standard): USPPI files the EEI record or authorizes a U.S. forwarder or other agent to file the EEI. 2) Routed Export Transaction: Foreign principal party in interest (FPPI) authorizes a U.S. forwarder, other agent, or USPPI to file the EEI. Export Transaction (FTR 30.3 (c)) USPPI Responsibilities: Files or authorizes U.S. Forwarder or other agent to file the EEI Provide POA/Written Authorization and commodity data to Forwarder Responsible for license determination Forwarder Responsibilities: Provide transportation data File export information via the AES and citation to carrier Present USPPI with copy of data, upon request Routed Export Transaction (FTR 30.3 (e)) USPPI Responsibilites: Provide forwarder with commodity data & licensing information May obtain copy of the EEI filed by the forwarder If filing, USPPI must obtain POA from FPPI and present forwarder/carrier with citation Forwarder Responsibilities: Obtain a POA/Written Authorization from the FPPI File EEI record Present carrier with citation Present USPPI with copy of data, upon request Required Predeparture Filings Section (30.4 (b)) • U.S. Munitions List/Commerce Control List shipments • Drug Enforcement Agency (DEA) Permit • Used self-propelled vehicles as defined in 19 CFR 192.1 • “Sensitive” by Executive Order • Routed Exports • Rough Diamonds • Shipments to countries listed in 19 CFR 4.75(c) ITAR Filing Time Frames (FTR 30.4 (b)(1)) USML Shipments 8 hours prior to scheduled departure time 8 hours prior to truck arriving at U.S. border 24 hours prior to train arriving at U.S. border 24 hours prior to loading FTR Filing Time Frames (FTR 30.4 (b)(2)) Non-USML Shipments 24 hours prior to loading 1 hour prior to truck arriving at U.S. border 2 hours prior to scheduled departure time 2 hours prior to train arriving at U.S. border 2 hours prior to export AES Downtime Policy • When the AES filer’s system is down – Transmit through AESDirect – Select an Authorized U.S. Agent to report on your behalf • When the AES is down – You will be notified by a nationwide e-mail broadcast – Use Downtime Proof of Filing Citation to move cargo • Shipments subject to DDTC, whether licensed or ITAR exempt cannot be moved under AES Downtime Shipments Exempt from Filing Sections (30.36-30.40) • Country of ultimate destination is Canada (30.36) • $2,500 or less per Schedule B number (30.37(a)) • Tools of Trade: hand carried, personal or company use, not for sale, not shipped as cargo, returned within 1 year (30.37(b)) • Intangible exports of software & technology (30.37(g)) • Temporary Exports (e.g., Carnets) (30.37(r)) Exemptions Do Not Apply • Commerce (BIS) licenses • State Department licenses • License shipments from other government agencies • Shipments on Office of Foreign Assets Control Sanctions Program List • Diamonds classified under 6-HS subheading 7102.10, 7102.21, 7102.31 Confidentiality of the Data (FTR 30.60) - USPPI - USPPI’s Agent - BIS, CBP, ICE, BEA, BLS - IRS - Foreign Government - Private Attorneys Only Summary Statistics are published Record Retention Section (30.10) Census: • Retain documents verifying the shipment for 5 years from the date of export Other Government Agencies: • Adhere to requirements of other agencies with export control requirements Criminal Penalties (FTR 30.71(a)) 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 and/or IMPRISONMENT for no more than five years Civil Penalties (FTR 30.71(b)) Parties Violations USPPI Or Late Filings Authorized Agent Or Carrier Penalties Up to $1,100 per each day delinquency or up to a maximum of $10,000 per violation Up to $10,000 per Other Violations violation Penalties may be mitigated Common Errors/Violations Citing old FTSR Exemptions Submitting AES Citing Sec. 30.36 for exports not destined to Canada Incorrect Not Postdeparture citation w/o date format of ITNs/Reusing an ITN providing ITN on export documentation Mitigation Guidelines CBP Published Guidelines on January 2, 2009 • Effective Date • February 1, 2009 • Highlights: • • • • Penalties for failure to file Penalties for late filing Penalties for other violations Carrier Penalties Implement Best Practices Perform Cross Training Implement Mentoring Program Know your US authorized or forwarding agent Develop Training Manual Attend Seminars & Workshops Develop Training Manual Export Related Regulation Classifying Commodities Include FAQs, Websites, and Contacts Create Export Checklist How to File Export Information Using AES Resolve Fatal Error Review Warning, Compliance and Verify messages Maintaining Compliance Education Management, sales staff, users of the application, customers/clients Automation •Develop and implement upgrades to in-house systems to enhance edits •Download latest upgrades to AESDirect Operational •Provide accurate information •Appropriately formatted citations on the loading document Internal Reviews Request AES Data: • Who can receive data? • Requirements to receive data: Company letterhead EIN and Company name Time frame Purpose for request Voluntary Self Disclosure • Systematic Problems • Submit letter on company letterhead and include the following information: • Description of information unreported or reported incorrectly • Number and value of shipments affected • Steps taken to resolve problem • Point of contact • Retain documentation regarding all shipments involved in disclosure • File missing or correct data in AES Foreign Trade Division Outreach • AES Compliance Seminars • AES Compliance Review Program • Webinars • Company Training • Spanish Seminars Foreign Trade Division 1-800-549-0595 Automated Export System Branch (Option 1) Commodity Analysis Branch (Option 2) Regulations, Outreach and Education Branch (Option 3) Secure Fax: Email: Website: 301-763-8835 [email protected] [email protected] www.census.gov/trade Foreign Trade Division Dale C. Kelly Assistant Division Chief, Data Collection Phone #: 301-763-6937 Fax #: 301-763-8835 Email: [email protected]