# Presentation: 249436

## Foreign Trade RegulationsNational Customs Brokers and Forwarders Association of AmericaMarch 15, 2005San Diego, CA

## Topics

- •	Legal Authority
- Mandatory Filing
- Filing Time Frames
- Major Changes to the Foreign Trade Statistics Regulations (FTSR)
- Penalty Provisions
- Confidentiality Provisions
- Next Steps

## Legal Authority

- Public Law 107-288 Security Assistance Act of  2002
- Requires full electronic filing of SED information through AES
- Paper SED is not an option
- Increase penalties
- Ability to delegation authority for enforcement to the Bureau of Customs and Border Protection and Office of Export Enforcement of the Bureau of Industry and Security

## Filing Time Frames

- State Department’s United States Munitions List items (USML)
- 	–	Air:  8 hours prior to departure
- 	–	Truck:  8 hours prior to 	departure
- 	–	Rail:  24 hours prior to attachment 	of engine before going foreign
- 	–	Vessel:  24 hours prior to departure

## Filing Time Frames cont.

- Non-USML Items
- 	–	Air:  2 hours prior to departure
- 	–	Rail:  4 hours prior to attachment of 	engine before going foreign
- 	–	Vessel:  24 hours prior to 	departure
- 	–	Truck:  1 hour prior to border 	crossing

## Major Changes to FTSR

- No SEDs
- Name Change – Foreign Trade Regulations
- Eliminate the use of Shipper’s Export Declaration information collected will be referred to as Electronic Export Information

## Major Changes to FTSR cont.

- Option 2 referred to as Predeparture filing
- Option 4 referred to as Postdeparture filing
- Changes in requirements for approval for Postdeparture filings
- 	–	new letter of intent (LOI)
- 	–	only USSPIs can submit the LOI
- 	–	higher compliance standards
- 	–	minimum volume of export 	shipments

## Major Changes to FTSR cont.

- Introduction of Proof of Filing Citations
- Provide instructions for reporting EEI when AES is unavailable
- Expand instructions regarding confidentiality
- Created separate subpart covering the penalty provision
- Created sections on definitions

## Penalty Provisions

- Criminal penalties ($10,000 or imprisonment for not more than 5 years, or both for each violation)
- 	–	Failure to file, submission of 	false or 	misleading information
- 	–	Furtherance of illegal actions
- 	–	Forfeiture penalties (any person 	convicted could forfeit goods or 	interest in, or security of claim 	against export of goods that was 	subject of the violation)

## Penalty Provisions cont.

- Civil penalties ($1,000 each day to $10,000 per per violation)
- 	–	Delayed filing, filing 	false/misleading information, 	failure to file, furtherance of 	illegal activities
- 	–	Penalties for other violations 	subject to 15 CFR Part 30

## Penalty Provisions cont.

- Civil penalty procedures
- Remission and mitigation
- Enforcement

## Confidentiality Provision

- Export information in AES is confidential
- Penalties for disclosure of the confidential information
- Export information disclosed for only official purposes
- Described official purposes uses

## Next Steps

- Review the notice of proposed rulemaking
- Comment period 60 days—ends April 18, 2005
- Review submitted comments
- Revised *Federal Register* notice
- Issue the Final Rule
- Effective date—the day the notice is published
- Implementation date 90 days after effective date

## Contact Information

- C. HARVEY MONK, JR.
- Chief, Foreign Trade Division
- Phone #: 301-763-2255
- Fax #:     301-457-2645
- Email:  c.harvey.monk.jr@census.gov