# Presentation: 543862

## Foreign Trade Statistics Regulations15 CFR Part 30*	*	*	*U.S. Principal Party in Interest and Forwarding Agent Responsibilities, Power of Attorney, Mail Exports, Intangible Software Transmissions

- U.S. International Trade Statistics
**Foreign Trade Division**
**July 11, 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....

## Trade Comments On  Proposed Rule

**Specify that SED/AES record is for statistical purposes.**
**Clarify forwarding agent documentation sharing responsibilities in a routed transaction.**
**Clarify U.S. principal party in interest liability concerns in a routed export transaction.**
**Add manufacturer/seller block/field to SED/AES.**
**Confidentiality of U.S. principal party in interest EIN.**
**Impact on consolidated/containerized shipments.**
**Clarify conformity of documents provisions.**

**Notes:**
• The Census Bureau is specifying in the regulation text that the data reported on the SED/AES
    is used by the Census Bureau for statistical purposes only.
•  The Census Bureau is specifying in the regulation text the documentation and documentation
    sharing responsibilities of all parties in an export  transaction.  In a routed export transaction
    the forwarding agent is responsible for providing the U.S. principal with documentation
    verifying that the information provided by the U.S. principal was accurately reported on the
    SED/AES.
•  The U.S. principal party in interest is only responsible for reporting their name, EIN, and basic
    commodity information to the U.S. agent  of the foreign principal party in interest in a routed
    export transaction (excluding ultimate consignee).  This is all they will be liable for.  
    BXA and Customs concur with this provision.
•  Census will not add a second block to the SED/AES.  However, the Census Bureau is revising the 
    appropriate exporter blocks/fields on the SED/AES record to read “U.S. Principal Party in Interest” 
    (USPPI), and require the reporting of the USPPI EIN or other identification number.
•  All information reported on the SED/AES is confidential as specified in § 30.91 of the FTSR.
•  Each shipment in a container or in a consolidated shipment will need a separate SED/AES record for
    each USPPI.
•  With the designation of USPPI on the SED/AES record, there is no longer a conformity of documents
    issue.  For purposes of completing the SED/AES the exporter is always designated as the USPPI, and 
    the FTSR clearly specifies who that party must be.  Also, the EAR defines the parties who may be listed 
    as “applicant” on the BXA license.  The only difference is that the EAR, in certain routed export 
    transactions, will allow the agent of the foreign principal party in interest to be listed as the exporter on
     the license. 

## Foreign Trade Statistics RegulationsExport Administration RegulationsObjectives

_**FTSR -- U.S. Census Bureau - 15 CFR Part 30**_
_**	**_**•  ****Accurate Trade Statistics**
**	****•  ****Provide provisions for completing the SED or AES **
**	****   ****record.**
**•    **_**EAR - - Bureau of Export Administration - **_
_**	**__**15 CFR Parts 730 - 774**_
**	****•  ****Export Control**
**	****•  ****Simplify Export Clearance                                          **
**        **

## Exporter (U.S. Principal Party in Interest)Export Transaction

**Prepare the SED/AES record OR authorize a forwarding or other agent to prepare and file the SED/AES record, with a power of attorney, written authorization, or signing the authorization on the paper SED.**
**If authorizing a forwarding or other agent....provide information to such agent for completing the SED/AES record.**
**Maintain documentation to support the information reported on the SED/AES record.**

**Notes:**
No major changes to this provision.

## EXPORTER (U.S. Principal Party in Interest)Routed Export Transaction

**Provide basic commodity information to the forwarding or other agent for completing the SED/AES record, including name, EIN, Schedule B no., and value, **_**excluding **_** ultimate consignee.**
**Maintain documentation to support information provided to the forwarding or other agent.**
**[NOTE:  In a routed export transaction, the U.S. Principal Party in Interest **_**is not required**_** to provide the forwarding or other agent with a power of attorney or written authorization].**

**Notes:**
Major Change:  In a routed export transaction, where the foreign principal party in interest
authorizes a U.S. forwarding or other agent, the exporter (U.S. principal party in interest)
is only responsible for providing basic commodity information to the forwarding agent.
The new regulation clearly specifies the USPPI’s reporting responsibility , in writing, 
in the regulation text.  [Includes name, EIN, commodity description, schedule B number, 
value, etc.  (it does not include ultimate consignee]. 

•  The USPPI is only liable for the accuracy of the information it is required to report in the FTSR.
    BXA and Customs are aware of the reporting requirements of the new  provision.  

•  In a routed export transaction the forwarding or other agent is responsible for
    obtaining a power of attorney or written authorization from the foreign principal
    party in interest.

•  In a routed export transaction the forwarding or other agent is responsible for preparing,
    signing, and filing the SED.  Upon request, the forwarding agent must provide the USPPI with 
    documentation that the information provided by the USPPI was accurately reported on the 
    SED.

## FORWARDING AGENT RESPONSIBILITIESExport Transaction

**Prepare the SED/AES record based on information received from the exporter (U.S. principal party in interest) or other parties to the transaction.**
**Obtain a power of attorney, written authorization, or signed authorization on the paper SED from a principal party in interest.**
**Provide the exporter (U.S. principal party in interest) with a copy of the export information filed in the form of a completed SED, electronic facsimile, or in a manner prescribed by the exporter (U.S. principal party in interest).**
** ****Maintain documentation to support information reported on the SED/AES record.**

**Notes:**
No major changes to this provision.

## FORWARDING AGENT RESPONSIBILITIESRouted Export Transaction

**Prepare, sign, and file the SED based on information obtained from the exporter (U.S. principal party in interest) and/or other parties to the transaction.**
**Obtain a power of attorney or written authorization from the **_**foreign principal party in interest**_** to act on its behalf in the export transaction.**
**Maintain documentation to support information reported on the SED/AES.**
**Upon request, provide the U.S. principal party in interest with documentation that the information provided by the U.S. principal party in interest was accurately reported on the SED/AES record.**

**Notes:**
MAJOR  CHANGE:  In a routed export transaction, i.e. when the foreign principal party in 
interest authorizes a U.S. forwarding or other agent to act on its behalf, the forwarding or 
other agent is responsible for:

•  Obtaining a power of attorney or written authorization from the foreign principal party
in interest.

•  Preparing, signing, and filing the SED/AES record.

•  Maintaining documentation to support the information reported on the SED/AES record.
Upon request, provide the exporter (U.S. principal party in interest) with documentation 
verifying that the information provided by the U.S. principal party in interest was accurately
reported on the SED/AES record.

## 	WHO GOES IN BLOCK 1a & 2 ON THE SED

**The **_**U.S. Principal Party in Interest**_** - **The person in the United States that receives the primary benefit monetary or otherwise of the export transaction**.**
_**GENERALLY THAT PERSON CAN BE THE**_**:**
**U.S. Seller** (wholesaler/distributor) of the merchandise for export.
**U.S. Manufacturer** if selling the merchandise for export.
**U.S. Order Party - **Party who directly negotiated between the U.S. seller and foreign buyer and received the order for the export of the merchandise.
**Foreign Entity **if in the U.S. when items are purchased or obtained for export.** **

**Notes:**
•  For purposes of completing the SED  or AES record, in all export 
transactions (export & routed), the exporter (U.S. principal party in 
interest) is listed as the “U.S. Principal Party in Interest”.  

•  The forwarding or other agent is never the U.S. principal party in interest
on the paper SED or AES record except the forwarding or other agent
acts as an “order party”.

•  This is the same requirement as in the proposed rule. 

## U.S. PRINCIPAL PARTY IN INTERESTEmployer Identification Number (EIN)

**Section 30.91 of the FTSR prohibits disclosure of SED/AES information.**
**Forwarding or other agents are prohibited from releasing copies of SED/AES information to anyone for unauthorized or unofficial purposes.**
**EIN has been a SED regulatory reporting requirement since 1980.**
**EIN is used on numerous business and financial documents.**
**EIN on SED or AES record is strictly confidential.**

**Notes:**
No major change from previous rule except that the EIN will always
be that of the U.S. principal party in interest.

## CONSOLIDATED/CONTAINERIZED EXPORTS

**A shipment is defined as merchandise shipped from one U.S. principal party in interest, to one ultimate consignee, on the same vessel/flight, to the same country, on the same day.**
**Current regulations require a separate SED/AES record for each shipment in the container.**
**The forwarding agent or the consolidator **_**cannot**_** be listed as the U.S. principal party in interest on the SED or AES record.**

**Notes:**
Under the new regulation, a separate SED/AES record is required for each shipment in 
container for each U.S. principal party in interest..

The definition of shipment has not changed from current regulations.

Major Change:  The consolidator or forwarding agent can no longer be listed as the 
exporter or U.S. principal party in interest on the SED or AES record.

## CONFORMITY OF DOCUMENTSFTSR & EAR

**With the revision to the SED/AES record to list the U.S. Principal Party in Interest, there is no longer a conformity of documents issue.**
**There is no uniform and consistent conformity of documentation for all export documents due to the varying requirements of different Federal government agencies and private organizations.**
**The EAR specifies its conformity of documents requirements for the information on the license application.**
**There is no specific conformity of documents requirement in the FTSR.**
**Customs and BXA officials are aware of the document conformity requirements.**

**Notes:**
•  With the revision to the SED/AES record to reference “U.S. principal party
in Interest”, instead of “exporter” there is no longer a conformity of documents issue 
between the party listed on the SED/AES record and the party listed on the BXA license.

•  The EAR specifically defines who the “applicant” must be on the license and 
the FTSR specifically defines who the “U.S. principal party in interest” must be on
the SED/AES record.  

•  The EAR specifies that, in certain routed export transactions, the forwarding or other 
agent may be listed as the “exporter” on the license application, but that for statistical 
reporting purposes under the FTSR, the exporter will always be the U.S. principal party 
in interest.  The FTSR will also specify these same conditions as to clarify this difference 
between the FTSR and the EAR.

•  However, the license number and commodity information must be consistent 
on the license application and the SED or AES record.

NOTE:  When preparing the SED or AES record refer to the FTSR.
              When preparing  a BXA license application refer to the EAR 

## ADDITIONAL AMENDMENTS

**Include provisions on electronic transfer of intangible software and technology not subject to the FTSR.**
**Amend provision on submitting corrections to mail exports.**
**Raise SED/AES mail exemption limit from $500 to $2500.**
**Amend the provision for reporting value to specify that the value on the SED/AES is the USPPI’s price to the foreign principal party in interest.**
**Amends and updates certain SED exemption requirements to be consistent with the EAR.**
**Clarifies provisions for providing import  verification information to the Census Bureau.**

**Notes:**
In addition to issuing the final rule on the provisions addressed in the 
Proposed Rulemaking, the Census Bureau is also issuing final rules on 
certain other provisions which were not contained in the proposed rules.
These amendments are being issued as final rules.

## REVISED SECTIONS OF THE FTSR

**§ 30.1 - Clarify provisions electronic transfer of software and technology not subject to FTSR.**
**§ 30.4 - Clarify that the SED/AES is only used for statistical purposes; the Exporter fields on the SED/AES are revised to read, U.S. Principal Party In Interest; clarifies when a foreign entity is listed as a U.S. principal party in interest; clarifies the documentation and documentation sharing requirements or all parties in a transaction.**
**§ 30.7 - Clarify USPPI and forwarding agent reporting responsibilities.  Clarify reporting  of value by the USPPI as the USPPI’s price to the foreign principal party in interest.**
**§ 30.16 - Clarify reporting corrections for mail exports.**
**§ 30.54 - The Special exemptions for mail shipments is removed.  With value limitation at $2500 mail exports are the same as all other exports and this section is no longer necessary.**
**§ 30.55 - Included SED/AES exemptions for software, technical data, mass market software, exports through Canada.**
**§ 30.70 - Provision to provide import verification information to the Census Bureau.**

**Notes:**
(1) Paragraph  (d) was added to § 30.1 to specify that electronic transmissions and other
intangible transfers such as downloaded software and technical data are not subject to the FTSR,
but may be subject export control requirements under the EAR.  The FTSR only covers exports
of tangible/physical merchandise exported by air, vessel, rail, truck, etc.

(2) A SED/AES record is now required for mail exports valued at  $2500 or over.  The previous requirement
was $500 or over.  This brings mail exports under the same provisions as for all other exports and Section
30.54 “Special Exemptions for Mail Shipments” is no longer required. 

(3) Paragraph (n) is added to § 30.55 “Miscellaneous Exemptions”  to state that an SED/AES
record is not required for exports of technology and software as defined in Part 772 of the EAR
that do not require an export license, except that an SED/AES is required for mass market 
software....mass market software is defined as software that is generally available to the public
by being sold at retail selling points or directly from the software developer, by means of over the 
counter transactions, mail order or phone transactions or email transactions.  Part 772 of EAR 
defines technology as specific information necessary for the development, production or use
of a product.  Custom software is software developed for a specific user for a specific application.  Once such
software becomes available to several users at a selling price over $2500 a SED/AES is required.

(4)  In § 30.7 (q) the definition of “Value” is amended by clarifying that in all export transactions the value
to be reported on the SED/AES is the U.S. Principal Party in Interest’s selling price to the foreign 
principal party in interest, including inland freight and insurance charges, and net any unconditional
discounts from list price, but without deducting discounts that are conditional upon a particular act
on the part of the customer.

## For Additional Information 

_**Contact**_**:**_**	**__**Regulations, Outreach, & Education Branch**_
_**Voice**_**:****	****301-457-2238**
_**FAX**_**:****	****301-457-3765**
_**Internet**_**:**_**	**_**www.census.gov/foreign-trade/www**
_**Mail**_**:****	****U.S. Census Bureau**
**	****	****Foreign Trade Division**
**	****	****Room 3125-3**
**	****	****Suitland Road**
**	****	****Washington, DC 20233**