# Presentation: 689074

## Reduce Exporting Stress with AES

**Gerry Horner, Chief**
**Automated Export System Branch**
**Foreign Trade Division**
**U.S. Census Bureau**

## Today’s Topics

**AES Statistics**
**USML and CCL Items in AES**
**AES Commodity Redesign**
**Proposed Option 4 Changes**
**AES*****Direct*****/*****PcLink***** Enhancements**

## Exports by Source

**AES**

**Paper SEDs**

**AES*****Direct***

**Notes:**
AES has been functional since July 1995.  Over this almost 9 year period, the rise of electronically filed shipment transactions has increased as the number of paper SEDs has diminished.  At the same time as electronic transactions have increased, so has the number of internet based filings in AESDirect.

To date, AES collects approximately 1.1 million transactions monthly.
Paper SEDs account for about 100,000 documents a month.
AESDirect collects approximately 300,000 transactions of the 1.1 million AES transactions monthly.

## Slide 4

**Notes:**
Automation by modality of transportation differs as well.

Almost all export shipment transactions are collected electronically in the air and vessel environments.  However, a good number of paper SEDs are still being collected at land border ports.

Almost 97% of Vessel transactions are collected in AES.
Almost 93% of Air transactions are collected in AES.
Likewise, only 82% of rail and truck transactions are collected in AES.

## Slide 5

**Notes:**
AES collects export shipment transactions both pre-departure and post-departure.

This chart shows that AES collects the majority of its data prior to departure.  In fact, 84% of all AES transactions are filed pre-departure.  16% are filed post-departure.

## AES Filers

**Notes:**
As electronic filing continues to become mandatory, Census and CBP continue to do our best in supporting the industry with your questions and problems.  To date, we are now supporting over 10,674 filers within AES.

Of these 10,674 filers, 50% are freight forwarders.

## AES Statistics

**AES % of Export Trade****	****	****91.5%**
**AES Error rate****	****	****	****0.7%**
**Late AES Transactions****	****	****4.3%**

**Notes:**
Leading up to mandatory AES, we don’t have too much farther to go.

The late filing is a problem.  Approximately 50,000 of the 1.1 million transactions or 4.3% are filed late.  This number will need to improve or else there will be a number of penalties issued by CBP for delayed filings.

## Phase I of Mandatory AES

- Items on the CCL and USML must be filed in AES
- Removed AES Filing Option 3
- Reduced Data Entry Center privileges
- Proof of Filing Citations required when cargo is tendered to the exporting carrier
- Moratorium on new Option 4 applications

**Notes:**
With implementation of Phase I, there were some additional changes in AES. Option 3 was eliminated due to low usage and poor data quality.  We received the least amount of shipments via option 3, it became a burden on the trade to file in 2 stages.

DECs must have a POA/WA from the USPPI or FPPI to complete any info in AES for CCL/USML shipments. Also, DECS may only “transmit” an AES record for CCL/USML items completed by the USPPI or authorized agent, without obtaining a POA/WA.

Also, we begin use the term AES Proof of filing citation instead of AES exemption statement.

USPPI address – see section 30.7 of the NPR 10-09-02

## Problems & Concerns from Phase I

- Registration code for USML shipments
- Paper SED requirement for USML shipments
- Additions, deletions and corrections to license information
- Office of Field Operations – Outbound CBP - 202-927-6060
- _[www.census.gov/aes/](http://www.census.gov/aes/)__ _
-  	click on FAQs for Mandatory AES

**Notes:**
There were several problems and concerns that arose after the Phase I implementation. There was confusion over the USML registration code. On the license the code would be 8 or 9 digits long, but AES would only allow 6 characters.

Another problem that is still being ironed out is the paper requirement. We have found that some ports require a paper copy of the AES shipment for USML shipments, and other ports don’t. The requirement from the State Dept was they would only require the paper copy for specific licenses until January 18, 2004.

There were questions on additions, and deletions to shipments, whether the value would be added back to the license. If a license has not been exhausted, and a shipment is deleted, then the value will be added back to the license. If its already exhausted, then you will have to contact CBP to see if you will need a new license or if the value can be added back on the license.

CBP number is listed here... 202-927-6060

Here is a helpful web link for ODTC frequently asked questions www.census.gov/aes/

## AES Commodity Redesign

- Test Region available – April 5, 2004
- Vendors and Self-Programmers MUST test
- Production Implementation- June 8, 2004
- A “Replace” shipment filing action will take the place of the “Delete” and “Add” action used to change data
- Increase the number of business edits
- CBP introduces a “Compliance Alert” message
- Response Messages will be modified

**Notes:**
One of the biggest changes will the called the replace feature. Those of you that file through AESDirect, after you make a change you get back a new ITN and sometime a late message. With the replace feature, you will keep that original ITN and you won’t get back invalid late messages.

The response messages will look different. Census and Customs has had meetings to discuss the upcoming changes. The testing region will be available on April 5. The full implementation will be on June 8th.

There will be testing available for those companies that have direct connections to the AES mainframe, as well as software vendors. Those of you that are using AESDirect will not have to worry about testing, that will all be transparent to you. We will allow the AESDirect software to be tested to ensure it is ready for the system change.

## New Letter of Intent (LOI) requirements
Only USPPIs can submit the LOI; Forwarders will no longer be able to submit Option 4 LOIs on behalf of their clients
USPPIs will be measured against higher compliance levels
Minimum volume of export shipments
Exceptions will be made for certain commodities

- Only USPPIs can submit the LOI; Forwarders will no longer be able to submit Option 4 LOIs on behalf of their clients
- USPPIs will be measured against higher compliance levels
- Minimum volume of export shipments
- Exceptions will be made for certain commodities

**Option 4 Proposed Changes**

**Notes:**
There will also be changes to the Option 4 requirements. We will now require the Schedule B number to be included on the LOI, and the USPPI must state their need for Option 4. If the USPPI is a seasonal exporter, they must state the nature of their seasonal products.

Only the USPPI will be able to submit the Option 4 LOI, on their own letterhead. Forwarders will not longer be able to submit LOIs on behalf of their clients.

There will be a minimum requirement of export shipments to be reported on a monthly basis, in order to receive Option 4 approval. Exceptions will be made, on a case by case basis, depending on the type of product exported, whether it is agricultural or bulk cargo. (We will make exceptions for USPPIs specifically, not a broad “exception for all”)

## Virtual Private Network (VPN) connection
Two-way exchange of data between the companies computer and the AESDirect Service.

AESPcLink Server Version
Available mid-April 2004
Load the AESPcLink software to a companies server.

- Two-way exchange of data between the companies computer and the AES*Direct* Service.
- AES*PcLink* Server Version
- Available mid-April 2004
- Load the AES*PcLink* software to a companies server.

**AES*****Direct*****/AES*****PcLink***** Enhancements**

**Notes:**
There will also be changes to the Option 4 requirements. We will now require the Schedule B number to be included on the LOI, and the USPPI must state their need for Option 4. If the USPPI is a seasonal exporter, they must state the nature of their seasonal products.

Only the USPPI will be able to submit the Option 4 LOI, on their own letterhead. Forwarders will not longer be able to submit LOIs on behalf of their clients.

There will be a minimum requirement of export shipments to be reported on a monthly basis, in order to receive Option 4 approval. Exceptions will be made, on a case by case basis, depending on the type of product exported, whether it is agricultural or bulk cargo. (We will make exceptions for USPPIs specifically, not a broad “exception for all”)

## For More Information

**Census:    **800-549-0595     AES Client Representatives
- 			 E-mail:  ASKAES.Census.gov
- 		      877-715-4433     AES*Direct* Help Desk
- 		     301-763-3484     (Commodity Analysis Ch. 1-71)
-                   301 763-3259      (Commodity Analysis Ch. 72-98)
**BIS**	     202-482-4811      Licensing questions
**CBP:****	****     **202-927-5301     Robert Rawls
**State:****	****     **202-663-2818     Wil McAveney
- 		     202-663-2819      Peter Sabatini

**Notes:**
For your convenience we have several contacts if you have further questions after today.  You may call State Department directly and ask for Mary Sweeney or Peter Sabitini.  They can be reached at the following telephone numbers.

Of course the AES Branch is available to assist in any way we can.

You may email us at the following address.  We have staff that regularly monitors and responds to messages
If you desire additional information, please go to our websites.

Newsletter/Broadcasts 

## For More Information

**Census – Foreign Trade Division **
**	**_**http://www.census.gov/trade**_
- 	AES** **
**	**_[http://www.census.gov/aes](http://www.census.gov/aes)_
- 	Regulations
**	**_[http://www.census.gov/traderegs](http://www.census.gov/traderegs)_
- 	Schedule B Classification
**	**_[http://www.census.gov/tradereference](http://www.census.gov/tradereference)_
**Customs:**_[http://www.customs.gov/](http://www.customs.gov/xp/cgov/export/aes/)__[xp](http://www.customs.gov/xp/cgov/export/aes/)__[/](http://www.customs.gov/xp/cgov/export/aes/)__[cgov](http://www.customs.gov/xp/cgov/export/aes/)__[/export/aes/](http://www.customs.gov/xp/cgov/export/aes/)_
**State:****	**_[http://www.](http://www.pmdtc.org/)__[pmdtc](http://www.pmdtc.org/)__[.org/](http://www.pmdtc.org/)_

**Notes:**
For your convenience we have several contacts if you have further questions after today.  You may call State Department directly and ask for Mary Sweeney or Peter Sabitini.  They can be reached at the following telephone numbers.

Of course the AES Branch is available to assist in any way we can.

You may email us at the following address.  We have staff that regularly monitors and responds to messages
If you desire additional information, please go to our websites.