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TABLE OF CONTENTS

[Overview of the AES Compliance Review Program
2](#overview-of-the-aes-compliance-review-program)

[BEST PRACTICES: Training 3](#best-practices-training)

[Training Manual 3](#training-manual)

[Cross-Training 3](#cross-training)

[Mentor Program 4](#mentor-program)

[Seminars & Workshops 5](#seminars-workshops)

[BEST PRACTICES: References 6](#best-practices-references)

[Contact Information 6](#contact-information)

[Frequently Asked Questions 7](#frequently-asked-questions)

[BEST PRACTICES: Classifying Commodities
8](#best-practices-classifying-commodities)

[BEST PRACTICES: Export Checklist 10](#best-practices-export-checklist)

[BEST PRACTICES: Software Enhancements
11](#best-practices-software-enhancements)

[Software Selection 11](#software-selection)

[Daily Reports 11](#daily-reports)

[APPENDIX A: Sample Training Manual
13](#appendix-a-sample-training-manual)

[APPENDIX B: Common Terms and Acronyms
23](#appendix-b-common-terms-and-acronyms)

[APPENDIX C: Helpful Websites 24](#appendix-c-helpful-websites)

[Government Agencies 24](#government-agencies)

[Export Regulations 25](#export-regulations)

[Useful References 26](#useful-references)

# Overview of the AES Compliance Review Program

In October 2006, the U.S. Census Bureau (Census Bureau), Foreign Trade
Division (FTD) developed the Automated Export System (AES) Compliance
Review Program. The program seeks to assist companies in Number range
CHAPTERcorrecting reporting deficiencies that are not in compliance with
the Foreign Trade Statistics Regulations (FTSR), Title 15, Code of
Federal Regulations (CFR),

Part 30. Section 30.66 (c) of the FTSR authorizes the Census Bureau to
visit companies with the purpose of reviewing all documentation
pertaining to export transactions. The ultimate goal of the program is
to educate and bring all AES filers into full compliance with the FTSR.
Failure to comply with reporting requirements may result in delayed
shipments, civil fines and/or criminal penalties.

The Census Bureau began this project by visiting companies that
maintained a compliance rate of 95% or higher to learn their best
practices. The compliance rate is calculated by dividing the number of
compliance alerts (designated on the report) by the number of shipments,
subtracted from 100%. As a result, we have compiled this "Best
Practices" document to share with AES filers a variety of effective
methods to stay compliant with the FTSR reporting requirements. While
this document is not all-inclusive, it does provide several excellent
examples of best practices that should assist exporting companies in
meeting the FTSR compliance standards.

# BEST PRACTICES: Training

## Training Manual

We strongly recommend that companies filing via the AES should develop a
formal AES training manual. A training manual provides the basis for
achieving consistent results that will support AES filers' efforts in
achieving and maintaining compliance. The main purpose of such a manual
is to familiarize the user with the AES process. See Appendix A for a
template on how to develop a training manual for your specific company
or to improve the content and effectiveness of AES filers' existing
manual. The manual should be reviewed periodically to ensure that it is
current with system enhancements, changes, practices, and requirements.

## 

## Cross-Training

Cross-training is defined as teaching an employee to do different tasks
of the organizational unit's work responsibilities. Many companies use
cross-training to build depth to cover critical tasks for filing in the
AES to be sure the company is filing timely and accurately when
employees are on leave, travel, other assignments, or otherwise
unavailable. Cross-training employees on both the FTSR and how to file
via AES will ensure that export transactions are reported accurately and
staff will be knowledgeable and equipped to properly file export
shipments. For example, staff should be familiar with filing export
transactions in the AES, including what actions to take for correcting
fatal errors. Cross-training provides improved coverage, increased
flexibility, knowledge sharing, and it minimizes or eliminates potential
problems that may cause chaotic work conditions.

#### BEST PRACTICES: Training

## Mentor Program

Mentoring allows experienced staff (mentors) to share lessons learned,
tips, and suggestions on how to file export transactions accurately and
timely. Mentoring provides ongoing support to new employees,
accelerating their learning curve to achieve the level of understanding
required to ensure compliance and reporting accuracy. The mentoring
section of a company's training manual should include internal as well
as external contacts who can offer assistance. Mentors should review the
FTSR with all new employees and review such concepts as U.S. Principal
Party in Interest (USPPI), reporting requirements of an export
transaction, routed export transaction, data elements and export filing
exemptions. The ultimate goal of the mentoring program is to have
experienced employees share their knowledge and skills with newly
employed staff that will be carrying on the company's work in the
future. For example, a new employee can shadow an experienced employee,
throughout the entire process of receiving/verifying documents, entering
information into the AES, responding to error messages and notating
loading documents with accurate proof-of-filing citations, etc. By
developing a mentoring program, the organization prepares its new
employees to become better equipped with the export filing process.
Emphasizing employee development will yield positive results for both
mentors and new employees.

**BEST PRACTICES: Training**

## Seminars & Workshops

A fundamental cause of noncompliance is a lack of understanding of the
FTSR, other export control regulations, and the AES process. If filing
via AES*Direct* or AES*PcLink,* all the AES staff should study the
tutorial and take the certification quiz prior to the initial filing of
information. Once a year as a refresher, your organization's AES staff
should study the tutorial and retake the quiz. The staff should attend
the Census Bureau sponsored training, such as the AES Export Compliance
Seminars and the AES*PcLink* Certification Workshops. Knowledgeable
Census Bureau experts lead the seminars and cover information on the
FTSR, researching commodity classifications, and the proper filing of
information via the AES. The seminars and workshops offered by the
Census Bureau can be tailored to meet the needs of your organization. It
is suggested that staff should also attend export seminars and workshops
hosted by State and local governments, other Federal Agencies, trade
groups, consultants and other private companies. The variety of training
options will provide employees with an opportunity to learn all aspects
of the export process. In addition, companies should conduct in-house
forums to share best practices, provide updates on the AES and the FTSR
along with information on other government export requirements that are
relevant to your company's export process.

# BEST PRACTICES: References

## 

## Contact Information

Develop a list of contacts when questions and/or problems arise. Please
refer to the following contact list:

-   FTD Census Call Center 800-549-0595

    -   AES Help Desk--Option 1

    -   Schedule B/HTS classification assistance--Option 2

    -   Regulations assistance--Option 3

-   AESDirect Technical Support 877-715-4433 or (301) 562-7790, Ext. 3

-   U.S. Customs & Border Protection -- (Number range CHAPTER202)
    344-3277

-   Bureau of Industry and Security (BIS)

    -   Commerce License Help Desk -- (202) 482-4811

    -   Western Regional Office -- (Number range CHAPTER949) 660-0144 or
        (Number range CHAPTER408) 351-3378

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-   U.S. State Department, Directorate Defense Trade Controls -- (202)
    663-2828

-   U.S. Department of Treasury, Office of Foreign Asset Control
    -- (202) 622-2480

#### BEST PRACTICES: References

## 

## Frequently Asked Questions

Develop a frequently asked questions (FAQs) list to provide explanations
and examples designed to clarify complex situations or common
misunderstandings specific to your company. Document commonly asked
questions regarding the AES filing process and export regulations. The
FAQs may include examples of:

-   Other export regulation requirements, for example: based on the
    Bureau of Industry and Security (BIS), U.S. Customs and Border
    Protection (CBP), and the State Department,

-   AES filing requirements,

-   Definitions and explanations of specific terms, such as the USPPI,
    Routed Export Transaction, Authorized Agent, et cetera

-   Common Terms and Acronyms (example listed in Appendix B), and

-   Helpful Web sites (example listed in Appendix C).

Please visit the FTD website at <http://www.census.gov/trade> for FAQs
compiled over a period of time to view the types of questions the trade
asks about the AES, regulations, tariff schedules, and related topics.
For additional assistance in reporting export shipments of commodities
on the Commerce Control List, refer to the BIS Export Management System.
The BIS website address can be found in Appendix C. Information on the
different export schedules such as U.S. Customs Ports by code and
description, Country and Territory Destination by Code and Description,
and Air Carrier Codes listed by name may be found at the following
website at [http://www.cbp.gov/xp/cgov/home.xml
.](http://www.cbp.gov/xp/cgov/home.xml . )

# 

# BEST PRACTICES: Classifying Commodities

In order to file your export shipment, you must know the 10-digit
Schedule B number(s) for the commodities you are exporting. The Schedule
B and its import counterpart, the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), are based on the six-digit
international Harmonized System (HS). Before attempting to classify a
product, you should have its complete description and knowledge of the
product's function, composition, and characteristics. While AES*Direct*
and AES*PcLink* offer look up capabilities to classify products, this
function provides limited descriptions. Do not rely solely on the
limited lookup functions within the AES*Direct* and AES*PcLink* software
for classifying merchandise.

After identifying possible codes, closely read the descriptions for the
4-digit heading and subsequent subheadings in the Schedule B number,
paying close attention to indentations and alignments. Follow through
the detailed descriptions until you arrive at a complete, ten-digit
classification code. For further classification guidance, read pertinent
section, chapter, and statistical notes in the Schedule B/HTSUSA manual
posted at the website cited in the preceding paragraph. An online search
of the Schedule B Index produces a list of descriptions and their
six-digit codes or ranges. Selecting a link from this list brings the
user directly to the four-digit heading in the text version of the
Schedule B/HTSUSA manual. After reading the heading and verifying that
it is the appropriate location for the commodity in question, the USPPI
or AES filer should then compare the subsequent subheadings, paying
close attention to indentations and alignment. Upon determination of the
best six-digit subheading, repeat the process of comparison to find the
correct Schedule B number.

**BEST PRACTICES: Classifying Commodities**

Use the Schedule B search engine or manual, available at
<http://www.census.gov/foreign-trade/schedules/b/index.html> to assist
in your initial classification and for periodic review and updates.

## 

## 

# BEST PRACTICES: Export Checklist

Develop a checklist that identifies what the staff must do prior to
submitting a shipment transaction via the AES. A checklist provides a
tool for collecting information and establishing procedures to ensure
that your organization complies with FTSR and with export regulations of
other government agencies. The following are some examples of the items
that should appear on your checklist:

-   Check if the goods being shipped require licenses (Refer to the BIS,
    State Department, Office of Foreign Assets Control or other
    government agency website in Appendix C),

-   Check the consignees name against the Denied Parties List (Refer to
    the BIS website in Appendix C),

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-   Verify that the ultimate destination is not a sanctioned country
    (Refer to the Office of Foreign Asset Control website in Appendix
    C),

-   Confirm that an Internal Transaction Number (ITN) is received for
    each shipment submitted,

-   Take appropriate action to correct all fatal errors,

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-   Based upon the estimated date of departure, determine the filing
    deadline:

    -   Option 2 filers must file prior to export,

    -   If the USPPI is an Option 4 approved filer (Post Departure), the
        USPPI or authorized agent must file within 10 working days of
        exportation,

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-   Verify that the commodity classification code is from the current
    Schedule B/HTSUSA manual,

-   Ensure the classification code properly identifies the commodity
    being shipped, and

-   Verify that the commodity code is 10 digits with no embedded spaces
    or characters.

# BEST PRACTICES: Software Enhancements

## Software Selection

The software (proprietary or purchased) used to file in AES should
contain certain edits that will flag/reject invalid export information
before it is submitted. For example, if the product value is missing,
the selected software should reject the shipment, requiring the filer to
correct the error before it is transmitted to AES. Once the errors are
identified, correct them immediately. Companies must ensure that they
have current updates to code tables as well as the most recent error
messages built in the software. This allows a company to be proactive in
identifying errors before the AES records are transmitted.

If you use the standard-edition AES*PcLink* software, you must update
the software and tables on all individual computers using the software.
If you use the network-edition (LAN) software, your network
administrator must update the software and tables for all users. We
recommend that you perform the update functions at least once per month,
or more often if you experience coding errors.

## Daily Reports

Develop or purchase software that has the capabilities of identifying
unresolved errors by running specific reports based on different types
of criteria. For example, the software could generate a report for
"Shipments without an ITN," "Shipments with an ITN," "Shipments pending
response," "Shipments reported over 24 hour time period," etc. The
ability to create

#### BEST PRACTICES: Software Enhancements

these reports gives the filer a snap shot of their progress with
compliance alerts, fatal errors, verify messages, etc. If you are a
USPPI with an authorized agent that files on your behalf, request that
your agent provide you with reports of these types.

# APPENDIX A: Sample Training Manual

***[Introduction to AES]{.underline}***

The Automated Export System (AES) is a joint venture between the U.S.
Customs and Border Protection (CBP), the Foreign Trade Division (FTD) of
the U.S. Census Bureau, other Federal partnership agencies, and the U.
S. export trade community. The AES provides an alternative to filing
paper Shippers' Export Declarations (SEDs) by collecting export
information electronically, applying a series of edits, and responding
back to the filer so that errors are detected and corrected at the time
of filing.

The AES is a nationwide system operational at all ports and for all
modes of transportation, designed to ensure compliance with the
enforcement of export laws. The collection of export data electronically
improves trade statistics and ensures timely and accurate filings along
with reducing filers reporting burden to multiple agencies.

The Bureau of Industry and Security (BIS), the State Department's
Directorate Defense Trade Controls (DDTC) and other Federal agencies
have identified data fields in the AES that are critical to their
agency's mission. The AES serves as the central point for multiple
Federal government agencies in capturing export shipment data
electronically.

 

***[Benefits of AES]{.underline}***

**Ensure Export Compliance.** The AES, with its editing system and your
subsequent corrections, ensures a company's compliance with current U.S.
export reporting requirements. The system returns an Internal
Transaction Number (ITN) as confirmation that you have successfully
filed your export documentation.

Sample ITN: X20070620581949

The ITN always begins with an X, followed by the four-digit year,
two-digit month, two-digit day and six-digit random identifier generated
by AES. Although the ITN is linked to your filer ID and shipment number,
these are not printed or shown in the message to protect your privacy
and data security.

**Correct Errors as They Occur.** The AES provides immediate feedback to
the filer when data are omitted or incorrect. The AES allows you to
correct errors early in the process, before your goods are subject to
delay or penalties.

**Decrease Your Costs.** Eliminate the cost of corrections with up-front
data edits. Save money by replacing the costly delays of paper handling
with free web-based electronic reporting. Avoid duplicate reporting by
creating a simple, straightforward reporting procedure.

**Eliminate Paper Review of Licenses Against Shipments.** The interface
with the Department of Commerce's BIS, DDTC electronically validates
data on export shipments against previously

#### APPENDIX A: Sample Training Manual

approved licenses and transmits the transaction to the appropriate
Partnership Agency. All shipments of goods on either the Commerce
Control List (CCL) or the United States Munitions List (USML) must be
reported electronically through the AES. Paper SEDs are not valid for
these shipments.

***[Response messages from AES]{.underline}***

Number range CHAPTERBelow are the AES Response Code Identifiers and the
requirement for each. These response code identifiers are returned to
the AES filer in the AES output record, along with the specific Response
Code and message.

F = Fatal Error

> Shipments with a Fatal Error message have not been accepted by AES.
> The AES output record will display the Response Code "F" and the
> Response Code Message. Shipments with Fatal Error message(s) must be
> corrected prior to the cargo leaving the U.S. or Number range
> CHAPTERprior to the tenth day after exportation if the U.S. Principal
> Party in Interest (USPPI) is approved for postdeparture (Option 4)
> filing.

W = Warning

> Shipments with a Warning message must be corrected within 4 days from
> the date of transmission.

C = Compliance Alert

> Number range CHAPTERShipments with a Compliance Alert message were
> filed late and/or a postdeparture change was made to certain elements
> in the shipment. Receiving a compliance alert means that your shipment
> is in violation of the export reporting requirements. You cannot
> correct a compliance alert message. If a filer consistently receives
> compliance alerts, then the filer must identify and correct certain
> business practices that lead to these alerts. Otherwise, the filer may
> be subject to delays, fines and/or penalties.

V = Verify

> Shipments with a Verify message receive an ITN, but some information
> in question must be verified as correct. No further action is required
> if the information reported is verified. If not correct, please make
> the necessary correction and resubmit.

I = Informational

> Shipments with an Informational message require no action. This is a
> non-critical response. The information noted is for your records only.

**APPENDIX A: Sample Training Manual**

***[When is the AES information required?]{.underline}***

 

An AES record must be filed for exports of physical goods valued at more
than \$2,500 per commodity classification code, when shipped as follows:

-   From U.S. 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, and

-   Licensable commodities (regardless of value).

***[What is an Export Shipment?]{.underline}***

An export shipment is defined as 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/ Harmonized Tariff Schedule
of the United States Annotated (HTSUSA) number or (any value) where a
license is required

***[Types of Transactions]{.underline}***

**Standard Export Transaction:** In a standard export transaction the
USPPI files the AES record or authorizes a U.S. forwarder or other agent
to facilitate export of items out of the United States and/or to file
the information with CBP. In the standard export transaction, the USPPI
controls the movement of the cargo.

##### Responsibilities in a Standard Export Transaction

[USPPI Responsibilities:]{.underline}

-   Appoints authorized U.S. agent to facilitate movement of cargo,

-   Provides power of attorney or written authorization to the
    authorized U.S. agent,

-   Makes a license determination, and

-   Reports required export information or authorizes agent to file
    report.

[Authorized U.S. Agent Responsibilities:]{.underline}

-   Provides transportation data,

-   Obtains the authorization from the USPPI,

-   Provides the USPPI with a copy of the export information that was
    filed, if requested, and

-   Reports required export information if authorized by the USPPI.

**Routed Export Transaction:** In a routed export transaction the
foreign principal party in interest (FPPI) authorizes a U.S. forwarder,
USPPI or other agent to facilitate the export of items

#### APPENDIX A: Sample Training Manual

out of the United States. In the routed export transaction, the FPPI
controls the movement of the cargo.

##### Responsibilities in a Routed Export Transaction

[USPPI Responsibilities:]{.underline}

-   May file on behalf of the FPPI if a power of attorney or written
    authorization is obtained from the FPPI,

-   Provides FPPI-authorized U.S. agent with specific export and
    licensing information,

-   Is entitled to a copy of the required export information that was
    submitted to the FPPI-authorized U.S. agent to file, and

-   May request in writing from the FPPI (See Export Administration
    Regulations (EAR) 758.3).

[Authorized U.S. Agent:]{.underline}

-   Obtains a power of attorney or written authorization from the FPPI
    to move cargo,

-   Completes export information for filing, as authorized by the FPPI,
    and

-   Provides a copy of the export information to the USPPI when
    requested.

**[Correcting Export Shipments]{.underline}**

Based on FTSR 30.64, the USPPI or their authorized agent is responsible
for transmitting corrections, cancellations, or amendments to export
shipment information previously transmitted using the AES. Corrections,
cancellations, or amendments must be made as soon as possible, whether
before or after exportation.

**[Correcting Fatal Errors]{.underline}**

When you receive notice of a fatal error from the AES, this means that
your export shipment was rejected and you have not actually filed;
therefore, your shipment report was not added to the CBP database and
cannot be viewed by the CBP inspectors. Your cargo may be subject to
delay, seizure, fines or penalties. Immediate attention to correcting
such errors is therefore in your company's best interests.

All error messages, including causes and corrective measures, can be
found in Appendix A of the Automated Export System Trade Interface
Requirements (AESTIR). The link to the AESTIR is at the following Web
site address <http://www.cbp.gov/xp/cgov/export/aes/tech_docs/>

#### APPENDIX A: Sample Training Manual

Use this section to list errors common to your company. Below are
examples of some of the most frequent errors reported to the Census
Bureau:

**Fatal Error 256 USPPI Postal Code Not Valid for State**

This error occurs frequently in Routed Transaction shipments, when a
Foreign Country Postal Code is reported instead of a U.S. Postal Code.
The Postal Code must be the Postal Code for the USPPI address
(reflecting a U.S. Postal Code). It must be reported as either five
numeric digits followed by four spaces or nine numeric digits. The state
code must match the state associated to the postal code.

**Fatal Error 649 "Quantity 1" Cannot Exceed Shipping Weight**

This error occurs, for example, when the "Unit of Measure 1" requires KG
(kilograms) and the net quantity exceeds the shipping weight. The
Shipping Weight must always be expressed in kilograms and equal the net
kilograms plus the weight of the packing materials. Shipping weight
cannot be less than net weight when the unit of measure is expressed in
kilograms.

**Fatal Error 643 "Quantity 2" Must Be Greater Than Zero**

This error occurs when the Schedule B/HTSUSA Number requires "Quantity
2" to be reported and "Quantity 2" is missing or has been reported as
zero. Quantity 2 must be reported when required by the Schedule B/HTSUSA
Manual.

**Fatal Error 128 "Port Of Export" Unknown**

This error occurs when the filer reports an invalid "Port Code." You
cannot use the port name, but must use the four-digit Schedule D port
code. The Schedule D codes may be found in the appendices of the AESTIR
or on the Census Bureau website.

#### APPENDIX A: Sample Training Manual

***[Export Commodity Classification Codes]{.underline}***

The 2007 edition of Schedule B supersedes all previous editions as the
official schedule of commodity classifications to be used by shippers in
reporting export shipments from the United States, and in compiling the
official statistics on exports of merchandise from the United States.
This edition became effective in January 2007.

The correct commodity number shown in the current edition of Schedule B
must be reported on the AES record. A description of the merchandise, in
sufficient detail to permit the verification of the Schedule B number,
must also be furnished on the export declaration, as well as other
statistical data, in accordance with the Foreign Trade Statistics
Regulations (FTSR). Import classification codes, found in the HTSUSA may
be substituted for export codes, with a short list of exceptions noted
on the Census Bureau website at www.census.gov/trade.

***[Organization of the Schedule B Classification]{.underline}***

Schedule B, based on the Harmonized System (HS), consists of 22 sections
divided into 97 chapters. Chapters 1 through 97 correspond with the
International System of Numbering, with chapter 77 being blank. An
additional chapter, 98, is used for special classification provisions
that apply only to U.S. exports. The 10-digit Harmonized System-Based
Schedule B codes (commodity numbers) comprise these chapters. There are
approximately 9,000 of these 10-digit classification codes in the 2007
edition of Schedule B. The definitions for these codes are as follows:

**Code** **Definition** **Example**

07 Chapter in which a commodity is classified Chapter 7, Edible
Vegetables

and Certain Roots and Tubers

0713 Represents the heading in that chapter Dried Leguminous

> Vegetables, Shelled,
>
> Whether or not Skinned or
>
> Split

0713.10 Represents the Harmonized System code International Harmonized

subheading Code for Peas (Pisum

Sativum)

0713.10.4020 Represents statistical subdivisions Commodity Code for
Green Peas

#### APPENDIX A: Sample Training Manual

***[Locating the Correct Schedule B Number]{.underline}***

The table of contents of the Schedule B manual lists all of the sections
and chapters with their descriptions. This will serve as a guide to the
general area in which a commodity may be classified. The Schedule B
manual also contains an alphabetical index that indicates the first six
digits or six-digit range of the 10-digit Schedule B numbers for the
listed item. Although only the first six digits of the Schedule B number
are given in the index, the complete 10-digit code must be used in
reporting export shipments. The only purpose of the index is to assist
in locating the part of the document in which a particular
classification can be found. Failure to find the item in the index does
not relieve the shipper of the responsibility for locating the correct
Schedule B number for the item being reported.

After locating the description and six-digit code for an item in the
alphabetical index, the USPPI then searches for that numerical sequence
in the body of the Schedule B. After reading all pertinent section,
chapter, and statistical notes, the USPPI should assign the appropriate
10-digit Schedule B number.

In cases where the USPPI is unable to locate an item in the alphabetical
index, one of two methods of assigning a Schedule B number may be
chosen. [If the HTSUSA number is known, in most cases it may be reported
in lieu of the Schedule B number]{.underline}. The item also may be
located in the Schedule B numeric sequence by referring to the table of
contents in the front of the Schedule B and locating the appropriate
chapter, and subsequently, the correct Schedule B number. The General
and U.S. Rules of Interpretation and Definitions, as well as the notes
appearing in the sections and chapters of Schedule B, should be reviewed
before attempting to locate the correct commodity number.

**If you need assistance with classification call 1-800-549-0595 and
select option 2.**

***[Reporting Requirements]{.underline}***

**Not Elsewhere Specified or Included (n.e.s.o.i.).** If a Schedule B
number has been located that seems to apply to the commodity being
classified, but the description for the number carries the limitation
n.e.s.o.i., the commodity number should not be used until a check has
been made to determine whether there is a classification elsewhere into
which the item will fit more specifically. Other classifications under
the same general heading should be examined.

**Double Units of Quantity.** When two units of quantity are specified
in the "Unit of Quantity" column for a Schedule B classification, unless
there are blocks specifically provided and labeled, the first, or
primary, unit should be reported on the AES record, on the same line
with the Schedule B number and the value. Report the second, or
secondary, unit of quantity directly below the first unit of quantity.

**Shipping Containers.** When shipping containers are exported as
merchandise for sale or transfer of ownership abroad, they must be
reported on export declarations under the

appropriate Schedule B commodity number for the particular type of
container. However, in accordance with the FTSR, shipping containers are
not considered to be exported when they are moving, either Number range
CHAPTERloaded or empty, strictly in their capacity as carriers of
merchandise, i.e., as instruments of international traffic, not for sale
or transfer from U.S. ownership or title to foreign ownership or title.
Therefore, containers leaving the United States strictly as instruments
of international traffic do not have to be reported on the AES record.
If for any reason a USPPI wishes to report the movements of such
containers on export declarations, they may be reported under Schedule B
number 9801.20.0000. This classification is not to be used to report the
contents of the containers. Contents of such containers are to be
reported under the appropriate classification(s) for the merchandise.

**Commodities Donated for Relief or Charity by Individuals or Private
Agencies.** Chapter 98 provides for exports of certain commodities
donated for relief or charity by individuals or private agencies. In
general, except for bulk grain, such classifications are provided for
those commodities that are known to be, or are likely to be, exported
for relief or charity in fairly sizable amounts. In addition to chapter
notes for chapter 98, please read the chapter notes for chapters 1
through 16, 21, 30, and 63, to ensure that relief or charity shipments
are correctly classified.

**Reporting the Value of Repairs and Alterations.** USPPIs and
authorized agents must report, under Schedule B number 9801.10.0000, the
value of repairs and alterations made on articles previously imported
for such purposes. These articles must be reported as domestic
merchandise, and the value to be reported must represent the total value
of repairs and alterations made in the United States. Even if the
customer pays no fees or charges, you must report the actual or
estimated cost of repairs to the USPPI. The original or current value of
the article that was imported to be repaired or altered must NOT be
reported and therefore should not be included in the value reported for
commodity number 9801.10.0000.

**Export of Articles Previously Imported for Processing.** Articles
exported after having been imported temporarily under bond for
processing (HTS 9813.00.0520) must be reported as domestic merchandise.
The Schedule B number assigned must be selected from chapters 1 through
97, according to the exported article. The Value reported must be the
total value of the article.

**APPENDIX A: Sample Training Manual**

**[Instructions for Submitting a Number range CHAPTERVoluntary
Self-Disclosure (VSD)]{.underline}**

The Census Bureau strongly encourages companies, without prompting from
Federal agencies, to discover, disclose, and correct potential
violations of the FTSR. Identifying possible causes of incidents or
practices will address noncompliance issues and encourage you to pursue
compliance with due diligence. A VSD must be made when information was
not reported or when incorrect information was provided (whether
deliberate or unintentional).

A VSD [cannot]{.underline} be used to report a correction to a shipment.
Shipments must be filed based on the information known at the time of
export. If that information changes after the export,
corrections/amendments must be made to the transaction information in
the AES/SED. See Sections 30.64 of the FTSR for instructions on making
corrections. Furthermore, shipments must be corrected as soon as
possible, whether prior to or after submission of the VSD

Follow these steps to submit a VSD:

> \(1\) [Initial notification]{.underline}. The disclosure must be made
> promptly after knowledge of the noncompliance. The individual making
> the disclosure must do so with full knowledge and authorization of the
> firm's senior management. The initial notification must be in writing
> and be sent to the address in­ (4) below. The notification must include
> the name of the person making the disclosure and a brief description
> of the suspected violations. The notification must describe the
> general nature and extent of the violations.

***Note***: Also, disclosure must be made of suspected violations that
involve export of items controlled, licensed, or otherwise subject to
the jurisdiction by a department or agency of the Federal Government.
These disclosures must be made to the appropriate Federal department or
agency, in addition to the VSD required by the Census Bureau.

(2) [Narrative account]{.underline}. The narrative account must in­clude:

> \(i\) The kind of violation involved, for example, failure to file,
> failure to correct fatal errors, failure to file timely corrections,

\(ii\) Describe all FTSR-mandated information that was either unreported
or reported incorrectly;

\(iii\) An explanation of when and how the violations occurred,

(iv) The complete identities and addresses of all individuals and
     organizations, whether foreign or domestic, involved in the
     activities giving rise to the violations,

(v) Describe corrective measures applied to resolve violations that
    occurred, and

#### APPENDIX A: Sample Training Manual

\(vi\) A description of any mitigating circumstances.

(3) [AES Information.]{.underline} Report all data required under the
    FTSR that was not previously reported or was reported incorrectly.

(4) [Where to make a VSD]{.underline}. The information constituting or
    pertaining to VSD may be submitted to:

Chief, Foreign Trade Division

U.S. Census Bureau

4600 Silver Hill Road, Room 6K032

Washington, D.C. 20233-6700

Suggested Appendices

-   Common Terms and Acronyms

-   Helpful Websites/Links

-   Company Policies & Procedures

#  APPENDIX B: Common Terms and Acronyms

AES Automated Export System

AESTIR Automated Export System Trade Interface Requirements

BIS Bureau of Industry and Security

BOL Bill of Lading

CBP U.S. Customs and Border Protection

CCL Commerce Control List

CFR Code of Federal Regulations

DDTC Department of State, Directorate of Defense Trade Controls

DUNS Data Universal Numbering System (Dun & Bradstreet Number)

EAR Export Administration Regulations

ECCN Export Control Classification Number

EEI Electronic Export Information

EIN Employee Identification Number

FPPI Foreign Principal Party in Interest

FTD Foreign Trade Division

FTSR Foreign Trade Statistics Regulations

FTZ Foreign Trade Zone

HTSUSA Harmonized Tariff Schedule of the United States Annotated

IATA International Air Transport Association

ISO International Standards Organization

ITA International Trade Administration

ITAR International Traffic in Arms Regulations

LOI Letter of Intent

NMFTA National Motor Freight Traffic Association

OEA Office of Enforcement Analysis

OEE Office of Export Enforcement

OFAC Office of Foreign Assets Control

SCAC Standard Carrier Alpha Code

Sch B Schedule B number

SED Shipper\'s Export Declaration, form 7525-V

USC United States Code

USITC U.S. International Trade Commission

USML U.S. Munitions List

USPPI U.S. Principal Party in Interest**Number range CHAPTER**

VSD Voluntary Self Disclosure

# APPENDIX C: Helpful Websites

# 

## Government Agencies

U.S. Census Bureau, Foreign Trade Division

[www.census.gov/trade](http://www.census.gov/trade)

U.S. Bureau of Industry and Security

[www.bis.doc.gov](http://www.bis.doc.gov/)

U.S. International Trade Commission

[www.usitc.gov](http://www.usitc.gov/)

U.S. Department of State, Directorate of Defense Trade Controls,

<http://www.pmddtc.state.gov/>

U.S. Army Corps of Engineers

[www.iwr.usace.army.mil](http://www.iwr.usace.army.mil/)

U.S. Customs and Border Protection

[www.cbp.gov](http://www.cbp.gov/)

U.S. Department Treasury, Office of Foreign Assets Control

<http://www.treas.gov/offices/enforcement/ofac/index.shtml>

USDA - Importing Regulations and Policies

> <http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?navid=IMPORTING_GOODS&parentnav=MARKETING_TRADE&navtype=RT>

USDA - Exporting Regulations and Policies

> <http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?navid=EXPORTING_GOODS&parentnav=MARKETING_TRADE&navtype=RT>

USDA - Foreign Agricultural Service

<http://www.fas.usda.gov/>

> NOAA\'s National Marine Fisheries Service - Authorization to
> import/export pre-Act Marine Mammal Parts/Products

<http://www.nmfs.noaa.gov/pr/permits/parts_instructions.htm>

Ex

## 

## Export Regulations

Foreign Trade Statistics Regulations

<http://www.census.gov/foreign-trade/regulations/regs/index.html>

Export Administration Regulations

<http://www.access.gpo.gov/bis/ear/ear_data.html>

International Traffic in Arms Regulations

<http://www.pmddtc.state.gov/itar_index.htm>

**APPENDIX C: Helpful Websites**

## Useful References

Schedule B

<http://www.census.gov/foreign-trade/schedules/b/index.html>

Harmonized Tariff Schedule of the United States Annotated

<http://www.usitc.gov/tata/hts/bychapter/index.htm>

> AES Data Elements Reference Table
>
> <http://www.census.gov/foreign-trade/regulations/forms/sedreftable.pdf>
>
> Commodity Filing Response Messages Appendix A (AES Error Messages)
>
> <http://www.customs.gov/linkhandler/cgov/export/aes/tech_docs/aestir/june04_intro/appendices/apndx_a.ctt/apndx_a.doc>
>
> Routed Export Procedures
>
> <http://www.census.gov/foreign-trade/regulations/regs062004.pdf>
> Section 30.4
>
> Export Compliance Quick Link to Field Questions on CCL/USML (Brief
> overview)
>
> <http://www.bis.doc.gov/licensing/exportingbasics.htm>
>
> Instructions for Resolving Fatal Errors
>
> <http://www.census.gov/foreign-trade/aes/documentlibrary/fatals.html>

Lists to Check

<http://www.bis.doc.gov/ComplianceAndEnforcement/ListsToCheck.htm>

Trade Restrictions & Sanctions

<http://www.treas.gov/offices/enforcement/ofac/>