# Presentation: 834231

## Regulations Update

**Foreign Trade Division**
**September  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 Topics

- Mandatory filing in AES
- New Shipper’s Export Declaration
- U.S. Principal Party in Interest

## Mandatory Filing in AES

- 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

## New Shipper’s Export Declaration 

- Paper SED
- OMB clearance expires 9/30/2000
- Delete unused or outdated items
- Consistent with AES
- Consistent with USPPI

## New SED

- Effective 10/1/2000 (OMB approval)
- 180 day grace period - can use both
- Encourage use of the new SED
- Available via fax
- Regulations Branch  301-457-2238
- Electronic version available after OMB approval

## 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

## U.S. Principal Party in Interest

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

## 	USPPI

**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. 

## Types of Export Transactions

- Export transaction
- USPPI does documentation and may retain a forwarding agent
- Routed export transaction
- Foreign principal party authorizes an agent to conduct the export

## USPPI Responsibilities - Export

**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.

## Forwarding Agent Responsibilities - Export

**Prepare the SED/AES record based on information received from the USPPI 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 USPPI with a copy of the export information filed in the form of a completed SED, electronic facsimile, or in a manner prescribed by the USPPI.**
**Maintain documentation to support information reported on the SED/AES record.**

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

## USPPI Responsibilities in a 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 in a Routed Export Transaction

**Prepare, sign, and file the SED based on information obtained from the USPPI 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 USPPI  with documentation that the information provided by the USPPI 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.

## Outreach and Education

- U.S. Export Regulations Seminar
- September 26, 2000
- Full day   7:30 - 5:00
- Cleveland area
- $125.
- Commerce, BXA, Treasury, State
- Call USEAC  216-522-4750

## 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