Census Bureau Reports That AESDirect Export Filing System Back On-line

As previously advised, the AESDirect http://www.aesdirect.gov/ electronic export information filing system was down yesterday due to a power outage resulting from severe weather conditions in the DC area. AESDirect service was restored last night.

The Census Bureau's advisory issued this morning is reprinted below. As indicated in the advisory further information on the AES Downtime policy can be found on the blog of the Census Bureau's Foreign Trade Division Census.  

AES Broadcast 08/13/2010 Broadcast # 2010043

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AESDirect Program Back On-line

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This message is intended for AESDirect program users only.

The power has been restored to the primary datacenter for the AESDirect program and AESDirect is back on-line.

All AESDirect program transactions for shipments that moved under the AES Downtime Policy must now be filed along with any new AES transactions.

For further information or questions, contact the U.S. Census Bureau's AES Branch.

Telephone: (800) 549-0595, select option 1 for AES Email: askaes@census.gov
Online: www.census.gov/trade.
Blog: blogs.census.gov/globalreach/2010/07/a-look-into-the-aes-downtime-policy.html

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Census Bureau Unveils New and Improved Schedule B Search Tool

The Census Bureau's Foreign Trade Division recently unveiled a new search tool to help exporters determine the correct Schedule B number for purposes of filing Electronic Export Information.

Schedule B numbers, officially known as the Statistical Classification of Domestic and Foreign Commodities Exported from the United States, are 10-digit commodity classification numbers administered by the Census Bureau and based on the Harmonized Tariff System of the United States (HTSUS). The Census Bureau's Foreign Trade Regulations state that the HTSUS number "may be reported in lieu of the Schedule B commodity classification number except as noted in the headnotes" of the HTSUS.

According to the software developer 3CE (Commodity Code Classification Engine), the search engine tool uses artificial intelligence to read and understand product descriptions to generate the proper numerical codes

A test of the 3CE Schedule B search engine found the system to be intuitive and easy to navigate. Based on the product description entered the system walks the user through a series of questions, which ultimately leads to a HTS description. Once at that description the user then clicks a button at the bottom of the screen to find the corresponding Schedule B number.

Like any automated tariff schedule tool, the final result is only as good as the information provided by the user. While useful for determining Schedule B numbers for exports and determining a range of possible HTS numbers for imports, U.S. importers should be careful on over relying on the search engine tool for determining HTS numbers for customs classification purposes since the system may not conform to the General Rules of Interpretation set forth in the tariff schedule for determining HTS numbers.

The new search tool is available at http://uscensus.prod.3ceonline.com.

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Census Bureau Now Providing Exporters With AES Data Associated With Routed Export Transactions

The Census Bureau's Foreign Trade Division (FTD) recently started providing U.S. Principal Parties in Interest (USPPIs) and other filers requesting their Electronic Export Information filed in the Automated Export System (AES) with the 10 data elements required in routed export transactions.

Data associated with routed export transactions was not previously provided to USPPIs but was added by Census due to numerous requests from exporters.

A routed export transaction transaction is where a Foreign Principal Party in Interest (FPPI) authorizes a U.S. agent to facilitate the export of items from the U.S. on its behalf and prepare and file the Electronic Export Information (EEI) via AES. Section 30.3(e)(1) of the Foreign Trade Regulations (15 CFR § 30.3(e)(1)) requires the USPPI to provide the forwarding or other authorized agent with the following 10 data elements for purposes of preparing the AES filing:

(i) Name and address of the USPPI
(ii) USPPI’s EIN
(iii) State of origin
(iv) FTZ if applicable
(v) Commercial description of commodities
(vi) Origin of goods indicator: Domestic (D) or Foreign (F)
(vii) Schedule B or HTSUS Classification Commodity Code
(viii) Quantities/units of measure
(ix) Value
(x) Export Control Classification Number (ECCN)

The FTD's Regulations, Outreach and Education Branch will provide USPPIs with validated records of their AES submissions upon written request. This data is useful for companies conducting internal audits of their AES compliance. Census will provide companies with 12 months of AES data free of charge every 365 days.

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Census Bureau Issues Important AES Export Compliance Notice

U.S. exporters, freight forwarders and other authorized agents filing Electronic Export Information (EEI) using the Automated Export System should be aware that today the Census Bureau's Foreign Trade Division issued an important export compliance notice.

The notice, which is reprinted below, advises that on October 1, 2009, the Bureau of Industry and Security (BIS) will be adding new electronic edits on ECCNs, Special Comprehensive Licenses and certain license exceptions to ensure that EEI information reported is correct and accurate.

AES Broadcast 06/30/2009 Broadcast # 2009024

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BIS to Add New Edits on ECCNs, Special Comprehensive Licenses, and Certain License Exceptions

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United States Principal Parties in Interest (USPPIs) and their authorized filing agents (AES filers) are reminded that the AES record containing the Electronic Export Information (EEI) is an export control record under § 758.1(f) of the Export Administration Regulations (EAR). Furthermore, the AES record represents whether the export authorized under the terms and conditions of a license, license exception or no license required is true, accurate and complete.

Effective October 1, 2009, BIS is tightening up the edits on the EEI to improve statistics and to ensure that AES filers are correctly certifying the use of a license or license exception authorization or no license required designation. AES filers must prepare for these edits, as described below to prevent the return of fatal errors from AES.

- The export Control Classification Number (ECCN), when reported in AES must be [a] valid 5 - position ECCN as listed on the Commerce Control List. See Supplement 1 to § 774 of the EAR for a complete list of valid ECCNs and their descriptions. www.access.gpo.gov/bis/ear/ear_data.html

- The Special Comprehensive License (SCL) number reported in AES under license type C31 must be a BIS approved SCL.

- License exceptions LVS(C35), GBS(C36), CIV(C37), and TSR(C38) must designate an eligible ECCN and country. See Part 740 (License Exceptions) and Supplement 1 to § 774 (Commerce Control List) www.access.gpo.gov/bis/ear/pdf/740spir.pdf and
www.access.gpo.gov/bis/ear/ear_data.html

- In accordance with the EAR § 740.17, license exception ENC(C50) must only be used with ECCNs 5A002, 5B002, 5D002 and 5E002. www.access.gpo.gov/bis/ear/pdf/740.pdf

Please note that by using a License Exception, you are certifying that the terms, provisions and conditions for the use of the License Exception described in the EAR have been met. See Part 740 of the EAR.

If you are unable to resolve fatal errors related to the above and require regulatory guidance from BIS, please contact its Office of Exporter Services at one of the following locations.

Western Regional Office (949) 660-0144
San Jose, CA Branch (408) 291-4212
Headquarters, Washington, DC (202) 482-4811

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Census Bureau's Foreign Trade Division Names New Trade Ombudsman

The U.S. Census Bureau's Foreign Trade Division has announced that Mr. Omari Wooden has been named as the Foreign Trade Division's Trade Ombudsman. Mr. Wooden replaces Jerry Greenwell, who retired in January 2009 after more than 36 years with Census.

Mr. Wooden joined the U.S. Census Bureau's Foreign Trade Division in October 1997. He had been the project manager for postdeparture reporting program in the Automated Export System (AES) Branch.

Mr. Wooden has been recognized numerous times for his outstanding work with the export trade community, including special recognition for his effort with AES Team for marketing and customer service. Most recently, Mr. Wooden received a team Silver Medal Award for Leadership from the Department of Commerce for his work on the revision and implementation of the new Foreign Trade Regulations.

Mr. Wooden received his BS degree in Mathematics from the University of Maryland at College Park. He also received a Master of Science in Management from the University of Maryland and a Master's Certificate in Project Management from the George Washington University School of Business.

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Census Modifies AES Filing Time Frames for Shipments Between U.S. and Puerto Rico

The U.S. Census Bureau has modified the Automated Export System filing time frames for shipments between the U.S. and Puerto Rico.

Since Puerto Rico is part of the "Customs territory of the United States", shipments between the U.S. and Puerto Rico are exempt from the advance filing requirements set forth in the Foreign Trade Regulations that were issued last year.

In FTR Letter No. 1 issued in September 2008, Census advised that even though Puerto Rico-related shipments were exempt from the FTR's advance filing requirements, the proof of filing citation had to be presented to the carrier “prior to departure” of the shipment.

After consulting with the trade community servicing Puerto Rico Census has modified the filing deadline. In FTR Letter No. 4, which was issued on April 23rd, Census stated that for shipments between the U.S. and Puerto Rico the proof of filing citation, postdeparture filing citation or exemption citation now has to be presented to the carrier “by the time the shipment arrives at the port of unlading.”

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Census Issues Amended Foreign Trade Letter Clarifying Shipments to International Waters

The Census Bureau's Foreign Trade Division has issued an amended version of its December 3, 2008 Foreign Trade Letter No. 3 explaining the requirement for filing Electronic Export Information (EEI) through the Automated Export System (AES) for shipments located in international waters, including offshore oil rigs and drilling platforms.

The revised version of FTR Letter No. 3 clarifies the scope of U.S. territory for AES filing purposes as follows:

U.S. territory includes the U.S. territorial sea, which extends 12 nautical miles measured from the baselines of the United States. A shipment made within the U.S. territorial sea would not be considered an “export.” The U.S. territory also includes the continental shelf, which, in some cases, extends more than 12 miles from the baseline. As such, shipments to vessels, platforms, or buoys attached permanently or temporarily to the U.S. continental shelf also would not generally be considered exports. The territory of foreign countries would also generally include the territorial seas and continental shelf of those countries.

Under this interpretation, any shipment to an offshore oil platform or vessel located outside U.S. territory involving commodities valued greater than $2,500 per Schedule B number would require the filing of Electronic Export Information.

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Census and U.S. Commercial Service Offering Export Compliance Webinars

The U.S. Census Bureau and the U.S. Commercial Service are offering a series of Export Compliance Webinars from February 17, 2009 throughMarch 5, 2009.

The webinars are designed to educate the exporting trade community on the Foreign Trade Regulations. All webinars will be held from 2:00 - 3:00pm ET with a cost of $50.00 per module.

Webinar topics will be divided into the following five modules:

February 17 Filing Requirements
February 19 Export Commodity Classification
February 24 AES Overview
February 26 How to Use AESPcLink
March 5 CBP's Enforcement Guidelines

The Census Bureau's Foreign Trade Regulations, that were issued on June 2, 2008, require all Electronic Export Information (formerly known as Shipper's Export Declarations or SEDs) be filed via the Automated Export System (AES) prior to the departure of the cargo from the U.S.

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2008 Marked Highest Number of Export License Applications Received by BIS in Past 10 Years

The Census Bureau's most recent AES Newsletter contains the following FY 2008 export licensing statistics and information from the Bureau of Industry and Security (BIS):

In Fiscal Year (FY) 2008, BIS processed 21,290 export license applications involving trade worth approximately $72.2 billion. This marked an increase of 9% over the 19,504 applications processed in FY 2007 and represented the highest number of applications reviewed by BIS in over a decade.

BIS approved 17,942 license applications, returned 3,171 applications without action, and denied 177 applications. In FY 2008, BIS continued to ensure the timely review of all license applications with an average processing time of 27 days.

Eighty-seven percent of AES transactions involving a license or license exception were reported accurately in FY 2008. The following lists the top compliance problems with EAR-related reporting in AES:

1) Incorrect Use of “No License Required” (NLR) License Type.
2) Missing Export Control Classification Number (ECCN).
3) Incorrect Use of EAR99.
4) Invalid Country Use With Commerce Control List (CCL)-Based License Exception.
5) CCL-Based License Exception Not Applicable to an ECCN.
6) Country Mismatch Between License and AES Destinations.

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Congratulations to Jerry Greenwell on Retirement From Census

The front page of the recent edition of the Census Bureau's AES Newsletter contains the following story on Jerry Greenwell's recent retirement from Census after 36 years of government service:

Yes, the rumors are true! Trade Ombudsman Jerome (Jerry) Greenwell retired in early January 2009, after more than 36 years of federal service, all of it in the Foreign Trade Division (FTD) of the U. S. Census Bureau. At the time of this publication, Mr. Greenwell had not announced his future plans, but hoped to continue in the area of export compliance. We congratulate Jerry Greenwell on his retirement and numerous accomplishments, and thank him for many years of excellent service representing the FTD throughout the trade community.

Ms. Dale Dickerson Kelly has been named Assistant Division Chief for Data Collection Programs and Mr. Joe Cortez is now Branch Chief of the Regulations, Outreach, and Education Branch. Along with Jerry Greenwell and Bill Bostic, Ms. Kelly and Mr. Cortez played major roles in the publication of the new FTR published in the Federal Register last year.

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2009 Version of U.S. Harmonized Tariff Schedule and Schedule B Numbers Now Available

The 2009 version of the Harmonized Tariff Schedule of the United States Annotated (HTUSA) is now available and can be found here on the U.S. International Trade Commission's website.

Among other things, the 2009 HTSUSA contains the rules of origin for the U.S.-Oman Free Trade Agreement that went into effect on January 1, 2009 and other changes made to the HTSUSA during 2008.

The 2009 version of the Schedule B codes for use in filing Electronic Export Information via the Automated Export System can be found here. AES will accept shipments with outdated 2008 codes during a grace period for 30 days beyond the expiration date of December 31, 2008. Reporting an outdated 2008 code after the 30 day grace period will result in a fatal error.

Current HTSUSA numbers that are invalid for use in AES as of January 1, 2009 can be found here.

Export codes (which the U.S. calls Schedule B) are administered by the U.S. Census Bureau. Import codes are administered by the U.S. International Trade Commission (USITC).

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Census Issues AES Notification Regarding Shipments to International Waters

The Census Bureau's Foreign Trade Division last week issued a notice (pdf) clarifying the Foreign Trade Regulations' requirement for the filing of Electronic Export Information (EEI) through the Automated Export System (AES) for shipments to international waters.

The notice states that the shipments to international waters must be reported via AES when (a) the commodity is valued at over $2,500 per Schedule B number; or (b) if a shipment is licensed by the Bureau of Industry and Security, regardless of value.

In order to permit the reporting of such shipments, Census has modified AES by adding a new Export Information Code known as "IW". AES filers who report "IW" are required to report either license code C30 (General License) or C31 (Special Comprehensive License), a valid BIS license number and the Export Control Classification Number corresponding to the license must be reported when applicable.

A common example of the use of "IW" is the export of a controlled item to an offshore oil platform located in international waters.

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