# Presentation: 199296

## Reduce Exporting Stress with AES

**Gerard J. Horner**
**Division Chief**
**Foreign Trade Division**
**U.S. Census Bureau**

**Notes:**
Good morning/afternoon... My name is... I am an AES client rep with the US Census Bureau. Today I’m going to discuss with you some of the benefits and features of the Automated Export System (AES). Some of the information we are going to cover today will new for many of you, and a refresher for others. I’m also going to discuss the timeframes that are going to make AES fully mandatory for all shipments that currently require an SED.

Additional information: The export process is a very stressful process.  It all starts out by the seller making a sale with the overseas buyer.  The information regarding the sale is usually entered into a computer.  The seller or USPPI either creates a Shippers Export Declaration (7525-V) or gives authorization to a forwarder to create the SED for them.  The forwarder creates the SED and a bill of lading then passes the paperwork along with the cargo to a consolidator.  The consolidator completes a master bill of lading and passes both the bill and SEDs to the carrier with the cargo.  The carrier has 4 days after departure to file the complete manifest with bills and SEDs attached to Customs.  Customs reviews the manifest and strips one copy of the SED for each shipment and mails those SEDs to Census.  Census takes the SEDs and keys them back into a computer for publication into the monthly trade balance.

This entire process is time consuming and costly to each of the parties involved.  No matter how fast couriers and messengers can move an original piece of paper, they cannot compare to sending the information electronically.

## Today’s Topics

- AES Statistics
- Responding to AES Fatal Errors
- AES Post-Departure Filing Update
- AES*Direct* Update

## AES Statistics

- # of AES filers:				14,057
- Reportable Exports in AES:
- 	All Modes of Transportation	94.7%
- 	Air:						96.8%
- 	Overland:				90.6%
- 	Vessel:					96.9%
- Paper SED Exports			5.3%
- Approximately 70,000 SEDs a month
**	****	**

**Notes:**
Here are some of the current AES Statistics, as of... As you can see we currently have about 10,000 users of the system. And that number is continuing to increase as we get closer to mandatory AES.

## AES Statistics

- Pre-departure Filings:			84%
- Post-departure Filings:			16%
- Approvals for post-departure filing:	2,186
- Transactions Reported Late:		3.10%
- Transactions in Error:			0.3%
- Approximately 3,500 fatal errors in
- 1.2 million transactions monthly

**Notes:**
Here are some of the current AES Statistics, as of... As you can see we currently have about 10,000 users of the system. And that number is continuing to increase as we get closer to mandatory AES.

## Fatal Errors

- Filers are required to fix - FTSR 30.64 (b)
- Must be corrected prior to exportation to receive AES ITN
- Census will send follow-up email message
- Filer may lose filing privilege for non-compliance

**Notes:**
When a filer receives a verify message we don’t want you to ignore those messages. Make sure you review the data that you transmitted, to make sure you entered the correct information.

The filer may receive repetitive verify messages that are verified to be true.  When this has occurred more than 5 times for a specific classification number, the filer may request a Census Representative (1-800-549-0595) to look into adjusting the Census parameter for this commodity.  In order to accommodate the request of the filer, Census will require five shipment numbers from AES, the classification number (10 -digits), and an invoices the prove the commodity is actually the price, weight, etc. as reported.

## Identifying Fatal Errors

- Correct the Fatal Error by responding immediately to AES Output
- Review Census’ follow-up report and correct the fatal errors on the report

**Notes:**
When a filer receives a verify message we don’t want you to ignore those messages. Make sure you review the data that you transmitted, to make sure you entered the correct information.

The filer may receive repetitive verify messages that are verified to be true.  When this has occurred more than 5 times for a specific classification number, the filer may request a Census Representative (1-800-549-0595) to look into adjusting the Census parameter for this commodity.  In order to accommodate the request of the filer, Census will require five shipment numbers from AES, the classification number (10 -digits), and an invoices the prove the commodity is actually the price, weight, etc. as reported.

## Census Fatal Error Report

- Company Name
- Email:  fatals@fallyrejected.com
- _Shipment Reference Number            Fatal Error Response Code_
-     10524                         284  FWRD AGT CONTACT PH# MISSING
-     10524                         571  DDTC REGISTRANT UNKNOWN
-     10000559                   649  QUANTITY 1 CANNOT EXCEED SWT
-     10500692                   120  CARRIER UKNOWN
-     10501068                   133  PORT OF EXP MUST BE AN AIR PORT
-      7000003743              515  ECCN MUST BE FORMATED NANNN
-      7000003757              123  CONVEYANCE NAME MISSING

**Notes:**
When a filer receives a verify message we don’t want you to ignore those messages. Make sure you review the data that you transmitted, to make sure you entered the correct information.

The filer may receive repetitive verify messages that are verified to be true.  When this has occurred more than 5 times for a specific classification number, the filer may request a Census Representative (1-800-549-0595) to look into adjusting the Census parameter for this commodity.  In order to accommodate the request of the filer, Census will require five shipment numbers from AES, the classification number (10 -digits), and an invoices the prove the commodity is actually the price, weight, etc. as reported.

## Removing Fatal Errors

- Send the transaction again and fix the fatal error condition
- Report to Census that the shipment was canceled.
- Report to Census that you corrected the fatal condition under a new shipment number.
- 		Ftd.aes.fatal.reports@census.gov

**Notes:**
When a filer receives a verify message we don’t want you to ignore those messages. Make sure you review the data that you transmitted, to make sure you entered the correct information.

The filer may receive repetitive verify messages that are verified to be true.  When this has occurred more than 5 times for a specific classification number, the filer may request a Census Representative (1-800-549-0595) to look into adjusting the Census parameter for this commodity.  In order to accommodate the request of the filer, Census will require five shipment numbers from AES, the classification number (10 -digits), and an invoices the prove the commodity is actually the price, weight, etc. as reported.

## Ignoring Fatal Errors

- Census may call you to follow-up
- Census may write you a warning letter
- Census may give you a deadline for correcting the fatal errors
- Census may deactivate your filing privilege

**Notes:**
When a filer receives a verify message we don’t want you to ignore those messages. Make sure you review the data that you transmitted, to make sure you entered the correct information.

The filer may receive repetitive verify messages that are verified to be true.  When this has occurred more than 5 times for a specific classification number, the filer may request a Census Representative (1-800-549-0595) to look into adjusting the Census parameter for this commodity.  In order to accommodate the request of the filer, Census will require five shipment numbers from AES, the classification number (10 -digits), and an invoices the prove the commodity is actually the price, weight, etc. as reported.

## Pre-Departure Filing Rules

- _Pre-Departure _
- File all Elements in AES Prior to Exportation
- Proposed Filing Time frames
- Air – 2 hours prior to takeoff
- Vessel – 24 hours prior to departure
- Rail – 2 hours prior to train at the U.S. border
- Truck – 1 hour prior to truck at the U.S. border
- Mail – 2 hours prior to exportation
- Exports to Puerto Rico
- Prior to Arrival will be removed

**Notes:**
Option 2 is reporting all of the export information (36 data elements) prior to departure/exportation.  Filers must use this option when exporting used vehicles, exporting shipments under State Department Licenses or DEA permit and when the data is available to send prior to departure.  AES will accept the data 120 days prior to departure.

Option 4 is reporting all of the export information (36 data elements) within 10 calendar days after departure.  Only USPPIs are approved for this option because it is their merchandise being exported.  The approval process takes about 30 days.  The USPPI sends Census a letter of intent; Census retains the original; Census distributes a copy to OFAC, BIS and Customs.  All four agencies review the data on the letter of intent to ensure the company is compliant with their regulations.  If any violations or problems found the company is denied.  If no problems are found, the company is approved for Option 4.

Refer to Letter of Intent Outline in book or via the website.

## Post-Departure Filing Rules

- _Proposed Post-Departure Filing Changes _
- Approved USPPIs will be grand-fathered in
- Forwarders may still _file_ for approved USPPIs
- File prior to 10 _calendar_ days after exportation
- USPPIs must _apply_ on their own behalf
- Routed transactions will be prohibited
- Most USPPIs will have to export regularly
- Higher compliance rates required

**Notes:**
Option 2 is reporting all of the export information (36 data elements) prior to departure/exportation.  Filers must use this option when exporting used vehicles, exporting shipments under State Department Licenses or DEA permit and when the data is available to send prior to departure.  AES will accept the data 120 days prior to departure.

Option 4 is reporting all of the export information (36 data elements) within 10 calendar days after departure.  Only USPPIs are approved for this option because it is their merchandise being exported.  The approval process takes about 30 days.  The USPPI sends Census a letter of intent; Census retains the original; Census distributes a copy to OFAC, BIS and Customs.  All four agencies review the data on the letter of intent to ensure the company is compliant with their regulations.  If any violations or problems found the company is denied.  If no problems are found, the company is approved for Option 4.

Refer to Letter of Intent Outline in book or via the website.

## Post-Departure Filing Rules

- _Proposed Post-Departure Filing Changes _
- Moratorium since August 2003
- Census will begin accepting new applications when final rule is _published_
- Any approvals will be granted once final rule becomes _effective_

**Notes:**
Option 2 is reporting all of the export information (36 data elements) prior to departure/exportation.  Filers must use this option when exporting used vehicles, exporting shipments under State Department Licenses or DEA permit and when the data is available to send prior to departure.  AES will accept the data 120 days prior to departure.

Option 4 is reporting all of the export information (36 data elements) within 10 calendar days after departure.  Only USPPIs are approved for this option because it is their merchandise being exported.  The approval process takes about 30 days.  The USPPI sends Census a letter of intent; Census retains the original; Census distributes a copy to OFAC, BIS and Customs.  All four agencies review the data on the letter of intent to ensure the company is compliant with their regulations.  If any violations or problems found the company is denied.  If no problems are found, the company is approved for Option 4.

Refer to Letter of Intent Outline in book or via the website.

## AES Proof of Filing Citations

- _For Pre-Departure Filing_
- AES ITN
- AES  X20041008096045
- Will be required with Full Mandatory AES
- _For Post-Departure Filing_
- AESPOST USPPI ID – Filer ID DOE
- AESPOST USPPI ID DOE
- Ex. AESPOST 879564231MI 10/23/2004

**Notes:**
Some of you that are not familiar with AES, may wonder what will I show my forwarder, or carrier, or Customs, if I am not reporting the 7525-V form? You will use these proof of filing citations, currently known as AES exemption statements

When confirmation (ITN) of AES’ acceptance of the transmission is received, place one of the exemption statements outlined in FTSR Letter 168 Amendment 2, (included in your package) on the front page of the bill of lading, airway bill or other commercial documentation.  The master copy is preferred over the house bills.  Deliver the cargo and the exemption legend to the carrier.

The examples listed here as “NO SED REQUIRED” followed by the filer’s ID number and shipment reference number. For example, here we have the company’s ID number, 123456789, followed by their shipment number, MIA001. You may also use the confirmation number back from the AES, as a part of the proof of filing citation, as shown here.

Be sure the exemption is clear and easy to see by the inspector.  If the inspector keys in the exemption number in AES the expect to see the transaction.  If the shipment cannot be found by entering in your XTN or ITN, the shipment may be delayed or detained. 
The shipment reference number must be unique for 5 years.

## AESDirect

- Reporting Options
- Interactive Filing
- AES*PcLink*
- Server Version
- Batch Filing (EDI Upload)
- AES*WebLink*

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

- E-mail
- Virtual Private Network (VPN) connection
- Two way exchange of data between the companies computer and the AES*Direct* Service

**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

- _AES Support:_
- 	AES Operational Questions/Issues:
- 	Phone:		1-800-549-0595
- 	Email:		askaes@Census.gov
- _AESDirect Technical Questions:__	__AES__*Direct*__ Help Desk_
- 	Phone:		877-715-4433

**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)_
**CBP:**_[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/)_

**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.