# Presentation: 949540

## Foreign Trade Statistics Regulations Update

** ****Foreign Trade Division**
**         ****November  2000**

**Notes:**
Title 13 United States Code, Chapter 9

....The Census Bureau is authorized to collect information 
from all persons exporting from, or importing into the 
United States and the noncontiguous areas over which
 the U.S. exercises sovereignty, jurisdiction, or control....
and shall compile and publish such information pertaining
to exports , imports, trade, and transportation relating thereto, 
as deemed appropriate to foster, promote, and develop the
commerce of the United States....

## Today’s Quiz

- How do we value software for SED purposes?
- When will AES be mandatory?
- What are the changes to the SED?
- Are SEDs required for shipments to and from Puerto Rico?
- Who is the exporter (U.S. Principal Party in Interest)?

## How Do We Value Software for SED?

- Tangible transfer - no change
- Mass market - SED, if needed, based on the full selling price
- Customized software - SED, if needed, based on value of media
- Intangible transfer - electronically
- No SED for software downloaded
- License required - SED required

##  When Will AES Be Mandatory?

- Proliferation Prevention Act of 1999  -  H.R. 3194
- Section 1252
- 270 days after certification of the security and functionality of AES and AES*Direct*
- AES is mandatory for USML and CCL shipments (licensed or not)

## Mandatory Filing in AES

- Section 1254
- Submit a report to Congress
- Advisability and feasibility of making AES mandatory for all exports
- The manner in which AES can be used by other Federal agencies
- A timetable for implementation

## Mandatory Filing in AES

- Certification report
- Assessments of AES and AES*Direct*
- Issues addressed
- Report being drafted
- Feasibility report
- Submitted to Congress early August
- All agencies agree
- Mandate AES in 4 phases over 5 years

## What Are the Changes to the SED?

- Paper Shipper’s Export Declaration : DOC form 7525-V
- OMB approval effective 10/1/2000
- Delete unused or outdated items
- Consistent with AES
- Consistent with USPPI

## New SED

- Effective 10/1/2000
- 180 day grace period - can use both
- Encourage use of the new SED
- Available via fax
- Regulations Branch  301-457-2238
- Electronic version of SED and the new “Correct Way” are available at www.census.gov/foreign-trade

## New SED

- Examples of changes:
- USPPI
- Change B/L or AWB No. to Transportation Reference Number
- Delete check digit
- Examples of added blocks:
- Carrier code - SCAC or IATA
- VIN
- HAZMAT

## Are SEDs Required for Shipments to and from Puerto Rico?

- There has been no change - YES
- Required by contract to provide Puerto Rico / US trade statistics
- SEDs are required by regulation
- Filed in Puerto Rico (unless electronic in AES)
- FTSR # 174

## Who is the Exporter? (U.S. Principal Party in Interest)

- Regulations published in the Federal Register - July 10, 2000
- Effective October 10, 2000
- Foreign Trade Statistics Regulations - Census
- Export Administration Regulations - Bureau of Export Administration

## USPPI

- US Principle Party in Interest
- Person in US
- Receives primary benefit of the export transaction
- US seller, wholesaler, distributor, or manufacturer
- Foreign entity if in the US at the time

## Types of Export Transactions

- Export transaction
- USPPI prepares documentation or may retain a forwarding agent
- Routed export transaction
- Foreign principal party authorizes a U.S. agent to conduct the export

## Responsibilities of Parties

- USPPI
- Export               - SED
- Routed Export  - information
- Forwarding Agent
- Export               - SED (if authorized)
- Routed Export  - SED (authorized)

## Who Goes in Box 1A?

- USPPI
- Always - for either an export or routed export transaction
- Never the forwarding agent
- FTSR #173 - special case
- In-transit, in-bond through US
- Formally entered, then SED required
- US importer or agent of FPPI can be listed as USPPI

## Outreach and Education

- U.S. Export Regulations Seminar
- Full day   7:30 - 5:00
- $150.
- Census, BXA, Treasury, State
- 5 scheduled in 2001
- January 23, 2000 - Ft. Lauderdale

## For More Information

- Phone:	1-800-549-0595  or                                                		301-457-2238
- Fax: 		301-457-3765
- Email: 	ASKAES@census.gov
- Web Sites:
- AES*Direct*:  www.aesdirect.gov
- Customs AES Site: www.customs.gov/aes
- Census Site: www.census.gov/foreign-trade

## Reduce Exporting Stress with AES