[Federal Register Volume 65, Number 132 (Monday, July 10, 2000)]
[Rules and Regulations]
[Pages 42556-42565]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16895]



[[Page 42555]]

-----------------------------------------------------------------------

Part VIII





Department of Commerce





-----------------------------------------------------------------------



Bureau of the Census



-----------------------------------------------------------------------



Bureau of Export Administration



-----------------------------------------------------------------------



15 CFR Parts 30, 732, et al.



Foreign Trade Statistics Regulations; Shipper's Export Declaration or 
Filing Export Information Electronically Using Automated Export System; 
Clarification; Final Rule



Export Administration Regulations; Parties to Transaction and Their 
Responsibilities, Routed Export Transactions, Shipper's Export 
Declarations, and Export Clearance; Final Rule

Federal Register / Vol. 65, No. 132 / Monday, July 10, 2000 / Rules 
and Regulations

[[Page 42556]]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket No. 980716180-0030-03]
RIN 0607-AA20


Foreign Trade Statistics Regulations: Amendment to Clarify 
Exporter (U.S. Principal Party in Interest) and Forwarding or Other 
Agent Responsibilities in Preparing the Shipper's Export Declaration or 
Filing Export Information Electronically Using the Automated Export 
System and Related Provisions

AGENCY: Bureau of the Census, Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Bureau of the Census (Census Bureau) is amending the 
Foreign Trade Statistics Regulations (FTSR) to clarify the 
responsibilities of exporters and forwarding or other agents in 
completing the Shipper's Export Declaration (SED), or filing the 
information electronically using the Automated Export System (AES), and 
to clarify provisions for authorizing forwarding or other agents to 
prepare and file a paper SED or file the export information 
electronically using the AES on behalf of a principal party in 
interest. This rule also clarifies provisions on electronic 
transmissions of intangible transfers of software and technology; 
updates provisions related to mail shipments and certain related SED 
exemptions; notifies the public that in the near future the Census 
Bureau will revise appropriate ``exporter'' fields on the paper SED 
forms and the AES record to read ``U.S. principal party in interest,'' 
and require the reporting of the U.S. principal party in interest 
Employer Identification Number (EIN) or other identification number on 
the SED or AES record; clarifies what information should be listed in 
these newly revised blocks and the equivalent fields on the AES record; 
and clarifies provisions for providing import verification information 
to the Census Bureau.

DATES: Effective Date: This rule is effective July 10, 2000.
    Grace Period: A 90 day grace period will apply to the requirements 
set forth in this rule. Until October 10, 2000, Shipper's Export 
Declarations will be accepted with information that complies with the 
rules prior to July 10, 2000.

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be directed to C. Harvey Monk, Jr., Chief, Foreign Trade 
Division, U.S. Census Bureau, Room 2104, Federal Building 3, 
Washington, DC 20233-6700, by telephone on (301) 457-2255, or by fax on 
(301) 457-2645.

SUPPLEMENTARY INFORMATION:

Background

    The Census Bureau is responsible for collecting, compiling, and 
publishing trade statistics for the United States. These data are used 
by various Federal Government agencies and the private sector for 
planning and policy development. In order to accomplish its mission, 
the Census Bureau must receive accurate statistical information from 
the trade community. The Shipper's Export Declaration (SED) and the 
Automated Export System (AES) records are the primary vehicles used for 
collecting such trade data, and the information contained therein is 
used by the Census Bureau for statistical purposes only and is 
confidential under the provisions of Title 13, United States Code 
(U.S.C.), Section 301(g). The Census Bureau's primary objective in this 
rule is to ensure the accuracy of its trade statistics and to clarify 
reporting responsibilities for all parties involved in export 
transactions.
    As such, the Census Bureau is amending the Foreign Trade Statistics 
Regulations (FTSR), 15 Code of Federal Regulations (CFR) Part 30, to 
clarify responsibilities of exporters and forwarding or other agents in 
completing the SED, to notify the public that in the near future the 
Census Bureau will revise the title of the ``exporter'' blocks on the 
paper SED forms and the ``Exporter'' field on the AES record from 
reading ``Exporter'' to read ``U.S. principal party in interest,'' and 
to clarify in this rule what information should be listed in these 
newly revised blocks and the equivalent fields on the AES record. This 
rule defines new terms, including ``U.S. principal party in interest'' 
and ``routed export transaction,'' and clarifies existing ones (notably 
the definition of ``exporter'') for purposes of completing the SED or 
AES record. The rule clarifies provisions for authorizing a forwarding 
or other agent to prepare and file an SED or the AES record on behalf 
of a principal party in interest.
    The Census Bureau initially published a notice of proposed 
rulemaking on this subject in the Federal Register on August 6, 1998 
(63 FR 41979). As a result of comments received on that proposed 
rulemaking and subsequent discussions with the Bureau of Export 
Administration (BXA), the Census Bureau decided to issue a 
supplementary notice of proposed rulemaking to address the issues 
raised during the comment period and to further clarify provisions 
contained in that notice of proposed rulemaking. The Census Bureau 
published a supplementary notice of proposed rulemaking in the Federal 
Register on October 4, 1999 (64 FR 53861). The BXA also published a 
notice of proposed rulemaking in the Federal Register on October 4, 
1999 (64 FR 53854) revising the Export Administration Regulations (EAR) 
regarding the responsibilities of the parties to an export transaction, 
routed export transactions, SEDs, and export clearance. Subsequent to 
the publication of those notices in the Federal Register, the Census 
Bureau and BXA participated in numerous meetings, conferences, and 
seminars with the trade community to explain more clearly the 
provisions of the proposed rules and to resolve questions and concerns 
of the trade community. BXA is also revising appropriate sections of 
the EAR in a final rule published elsewhere in this issue of the 
Federal Register. The EAR will conform to the provisions of the FTSR in 
reference to clarifying the responsibilities of exporters and 
forwarding or other agents in completing the SED, and BXA also will 
issue changes to the EAR to simplify export clearance.
    In addition to issuing final rules on the provisions addressed in 
the proposed rulemakings, the Census Bureau and BXA also are issuing 
final rules in these notices to amend provisions regarding the 
reporting of value of exports in export transactions, exports of mail 
shipments via the U.S. Postal Service, amending certain provisions for 
miscellaneous exemptions and exports transhipped through Canada to a 
third destination, provisions regarding the electronic transmission of 
software and technology and other intangible transfers, and provisions 
for providing import information to the Census Bureau.
    The Census Bureau is amending the FTSR to specify that electronic 
transmissions to be received outside the United States and other 
intangible transfers, such as downloaded software and technology, are 
not subject to the FTSR, but may be subject to export control 
requirements under other laws and regulations. The Census Bureau is 
further amending the FTSR to clarify making corrections to SEDs 
submitted to the U.S. Postal Service and to increase the value 
limitation for mail shipments that do not require an SED or AES record 
from $500 or under to $2,500 or under. The Census Bureau is also 
amending the FTSR to clarify certain

[[Page 42557]]

miscellaneous exemption provisions and provisions for exports 
transshipped through Canada to be consistent with the EAR and to 
include a provision requiring importers to provide certain import 
information to the Census Bureau to verify the accuracy of import data.

Response to Comments

    The Census Bureau received 18 comments on the supplementary notice 
of proposed rulemaking published in the Federal Register on October 4, 
1999 (64 FR 53861). A general response was sent to each respondent 
addressing their concerns with a notation that a more detailed response 
to the comments would be contained in the final rule. The Census Bureau 
revised certain provisions in the final rule to address the concerns of 
the respondents and to more clearly explain our requirements. The major 
concerns addressed in the comments and the Census Bureau's response are 
as follows:
    1. Specify that the information required on the SED or AES record 
is for statistical purposes. There is concern among commentors that the 
Census Bureau did not clearly specify that the information reported on 
the SED or AES record is for statistical purposes. The Census Bureau is 
specifying in the regulation text of this rule, in Sec. 30.4(a), that 
the information reported on the SED or AES record is used by the Census 
Bureau for statistical purposes only. The provisions contained in this 
part apply only to statistical reporting requirements. However, it must 
be understood that the SED or AES record is a dual purpose document/
format used by the Census Bureau for statistical purposes and by the 
BXA and other government agencies for export control purposes.
    2. Specify and clarify the documentation and documentation sharing 
responsibilities of the forwarding or other agents in a routed export 
transaction. There is some concern and confusion among commentors that 
the Census Bureau did not clearly specify the documentation and 
documentation sharing responsibilities of forwarding or other agents, 
especially in a routed export transaction. The Census Bureau is 
specifying, in the regulation text of this rule in Sec. 30.4(b)(c), the 
reporting and documentation responsibilities of all parties involved in 
export and routed export transactions. The Census Bureau is further 
specifying, in the regulation text of this rule in Sec. 30.4(c)(2), the 
documentation sharing responsibilities of the forwarding or other agent 
in a routed export transaction. In a routed export transaction the 
forwarding or other agent, upon request by the exporter (U.S. principal 
party in interest), is responsible for providing the exporter (U.S. 
principal party in interest) with documentation verifying that the 
information provided by the exporter (U.S. principal party in interest) 
was accurately reported on the SED or AES record. The Census Bureau 
will not dictate the format by which this documentation should be made 
available between the parties. The new regulation does not impose any 
additional documentation requirements on any party. The documentation 
provisions stated in the regulation are provisions currently specified 
in Sec. 30.11 of this Part.
    3. Clarify the liability concerns of the Exporter (U.S. principal 
party in interest) in a routed transaction. There is concern among 
commentors regarding the liability of the exporter (U.S. principal 
party in interest) especially in a routed export transaction, when the 
foreign principal party in interest (foreign buyer) authorizes a U.S. 
forwarding or other agent to act on its behalf in facilitating the 
export transaction and prepare and file the SED or AES record. The new 
regulations clearly address the liability concerns of all parties in an 
export and routed export transaction and provide more protection to the 
exporter (U.S. principal party in interest) than they have under the 
current regulations. The new regulations, for the first time, clearly 
specify in writing, in the regulation text itself, the specific 
reporting and documentation responsibilities of the exporter (principal 
party in interest) in Sec. 30.4(c)(1) and the forwarding or other agent 
in Sec. 30.4(c)(2) in a routed export transaction. Specifically, in a 
routed export transaction, the exporter (U.S. principal party in 
interest) is only responsible for providing basic commodity information 
and their Internal Revenue Service (IRS), Employer Identification 
Number (EIN) to the forwarding or other agent. The forwarding or other 
agent is responsible for obtaining a power of attorney or written 
authorization from the foreign principal party in interest and 
preparing, signing, and filing the SED or AES record based on the 
information obtained from the exporter (U.S. principal party in 
interest) and other parties to the transaction. The exporter (U.S. 
principal party in interest) is only responsible and liable for the 
information it is required to provide the forwarding or other agent in 
Sec. 30.4(c)(2) of the FTSR.
    4. Add a second block/field to the SED or AES record for the 
manufacturer/seller or other responsible party. There was a request 
from some commentors for the Census Bureau to add another block to the 
paper SED and another field to the AES record for the manufacturer/
seller or other related party to the transaction. This addition would 
essentially duplicate information the Census Bureau currently collects 
and would increase the reporting burden on the public. For statistical 
reporting purposes the Census Bureau is only interested in capturing 
data on the entity that either sold or made available the goods for 
export abroad. That person is considered the exporter (U.S. principal 
party in interest), or for statistical reporting purposes on the SED or 
AES record, the U.S. principal party in interest. In addition, the 
Census Bureau believes that the public comments requesting the addition 
of another block on the SED were based upon the misconception that the 
party listed in the ``Exporter'' block of the SED or AES record was the 
person liable for the export under the EAR and the FTSR. The fact of 
the matter is that all parties that participate in an export 
transaction are liable for their own actions or inactions, whether they 
are listed on the export forms or not. In the near future, a revision 
to the title of the exporter blocks on the paper SED and equivalent 
fields of the AES record will be revised from reading ``Exporter'' to 
read ``U.S. principal party in interest,'' and ``Exporter's EIN (IRS) 
No.'' to read ``U.S. principal party in interest's EIN (IRS) No.'' Both 
BXA and the Census Bureau have the same definition for ``principal 
party in interest,'' therefore this revision will alleviate the 
confusion over the ``Exporter'' block of the SED or AES record.
    5. Exporter's concern on providing their Internal Revenue Service 
Employer Identification Number (EIN) to the forwarding or other agent 
in a routed transaction. There is some concern among commentors about 
providing their EIN to a U.S. forwarding or other agent especially in a 
routed transaction. The requirement for reporting the exporter's EIN 
has been part of export regulatory requirements since 1980. The Census 
Bureau uses the EIN to identify the specific company exporting 
merchandise from the United States. Company names are usually varied 
and the Census Bureau needs a more definitive identifier for this 
purpose. The appropriate fields on the SED and AES record will be 
revised to require the reporting of the U.S. principal party in 
interest's EIN or other ID number. In

[[Page 42558]]

addition, a company's EIN is reported on numerous business and 
financial documents to verify the identity of a specific business 
entity. The EIN on the SED or AES record is kept strictly confidential 
and is not released to any other party. Section 30.91 of the FTSR 
specifically prohibits the disclosure of information on the SED or AES 
record to anyone except the exporter or his agent by those having 
possession of or access to any copy for official purposes. The 
forwarding or other agent is not permitted to release copies of the SED 
or AES record to any other party for unofficial purposes.
    6. Clarify provisions on preparing SEDs for consolidated or 
containerized shipments. There is some concern among commentors on the 
implication the new regulations will have on consolidated or 
containerized shipments. The current regulations require the 
consolidator or forwarding or other agent to prepare a separate SED or 
AES record for each shipment in the container, i.e., all merchandise 
being sent from one exporter to one consignee, to a single country of 
destination, on a single carrier, on the same day. Under the new 
regulation, the consolidator or forwarding or other agent cannot be 
listed as exporter on the SED or AES record, but will need a separate 
SED or AES record by individual exporter (U.S. principal party in 
interest) for each shipment in the container.
    7. Clarify conformity of documents provisions. There is also some 
concern among commentors about the conformity of documentation 
requirements for export documents. The only conformity of documents 
requirement is contained in Sec. 758.4(b) of the EAR and states that 
when a license is issued by BXA, the information entered on related 
export control documents (e.g., the SED, bill of lading or air waybill) 
must be consistent with the license. Complying with the conformity of 
documents requirement in the EAR would have been a problem with the 
term ``Exporter'' in the exporter blocks on the paper SED and on the 
equivalent field of the AES record, but with the pending revision of 
the paper SED and AES record to revise the title of this block/field to 
``U.S. principal party in Interest,'' this will no longer be a concern.

Program Requirements

    The Census Bureau is amending Title 15, Code of Federal Regulations 
(CFR), Part 30, to address the issues raised by commentors to the 
supplementary notice of proposed rulemaking to: (A) Define the term 
``exporter,'' for purposes of completing the SED or AES record, as the 
U.S. principal party in interest in the export transaction; (B) Clarify 
the reporting responsibilities of the U.S. principal party in interest 
and the forwarding or other agent in completing the SED or AES record; 
(C) Clarify provisions for authorizing a forwarding or other agent to 
prepare and file an SED or file the information electronically using 
the AES; and (D) Clarify the documentation and compliance 
responsibilities of parties involved in the export transaction. For 
purposes of this rule, all references to preparing and filing the paper 
SED also pertain to preparing and filing the AES electronic record.
    This rule clarifies the responsibilities of the exporter (U.S. 
principal party in interest) and the forwarding or other agent in 
preparing the SED or AES record. For export shipments, the Census 
Bureau recognizes ``routed export transactions'' as a subset of 
``export transactions.'' A routed export transaction is where the 
foreign principal party in interest authorizes a U.S. forwarding or 
other agent to facilitate export of items from the United States.
    The ``exporter'' and ``EIN'' fields on the SED and AES records are 
being revised to read U.S. principal party in interest.'' For purposes 
of completing the SED or AES record, use the definition found in 
section 30.4(a)(1) of the FTSR for ``Exporter (principal party in 
interest)'' to determine who should be listed in the new ``U.S. 
principal party in interest'' block/field of the SED or AES record. The 
FTSR defines the term exporter (U.S. principal party in interest) as 
the person in the United States that receives the primary benefit, 
monetary or otherwise, of the export transaction. Generally, that 
person is the U.S. seller, manufacturer, order party, or foreign 
entity. The foreign entity must be listed as the U.S. principal party 
in interest on the SED or AES record, if it is in the United States 
when the items are purchased or obtained for export. The foreign entity 
must then follow the provisions for preparing and filing the SED or AES 
record specified in Secs. 30.4 and 30.7 of the FTSR, pertaining to the 
U.S. principal party in interest. In most cases, the forwarding or 
other agent is not a principal party in interest.
    Keep in mind, however, that the EAR defines the exporter as the 
person in the United States who has the authority of a principal party 
in interest to determine and control the sending of items out of the 
United States (see EAR 15 CFR Part 772). In some transactions, this 
definition permits the forwarding or other agent to apply for a license 
and be the exporter, as defined in the EAR.
    The person who signs the SED must be in the United States at the 
time of signing. If a U.S. manufacturer sells merchandise directly to a 
foreign principal party in interest for export, the U.S. manufacturer 
must be listed as the U.S. principal party in interest on the SED or 
AES record. If a U.S. manufacturer sells merchandise, as a domestic 
sale, to a U.S. buyer (wholesaler/distributor) and that U.S. buyer 
sells the merchandise to a foreign principal for export, the U.S. buyer 
(wholesaler/distributor) must be listed as the U.S. principal party in 
interest on the SED or AES record. If a U.S. order party, as defined in 
Sec. 30.4(a)(1)(iii) of this rule, arranges for the sale and export of 
merchandise to a foreign principal party in interest directly, the U.S. 
order party must be listed as the U.S. principal party in interest on 
the SED or AES record. When a foreign entity is in the United States 
when the items are purchased or obtained for export it is the exporter 
(U.S. principal party in interest) and must be listed as the U.S. 
principal party in interest on the SED or AES record. The foreign 
entity must then follow the provisions for preparing and filing the SED 
or AES record specified in Secs. 30.4 and 30.7 pertaining to the U.S. 
principal party in interest.
    The forwarding or other agent is that person in the United States 
who is authorized by a principal party in interest to perform the 
services required to facilitate the export of items from the United 
States. The forwarding or other agent must be authorized by the 
exporter (U.S. principal party in interest), or in the case of a routed 
export transaction, the foreign principal party in interest. In a 
routed export transaction, the forwarding or other agent may be the 
exporter for compliance purposes under the EAR. However, the forwarding 
or other agent is never the ``U.S. principal party in interest'' on the 
paper SED or in the ``U.S. principal party in interest'' field of the 
AES record, except when the forwarding or other agent acts as an 
``order party.''
    The exporter (U.S. principal party in interest) can prepare and 
file the SED or AES record, or it can authorize a forwarding or other 
agent to prepare and file the SED or AES record on its behalf. If the 
exporter (U.S. principal party in interest) authorizes a forwarding or 
other agent to complete the SED or AES record on its behalf, the 
exporter (U.S. principal party in interest) is responsible for: (A) 
Providing the forwarding or other agent with the information necessary 
to complete the SED or AES record; (B) Providing the

[[Page 42559]]

forwarding or other agent with authorization to complete the SED or AES 
record, in the form of a power of attorney or written authorization, or 
signing the authorization block printed on the paper SED (block 23 on 
Commerce Form 7525-V or block 29 on Commerce Form 7525-V-ALT); and (C) 
Maintaining documentation to support the information provided to the 
forwarding or other agent for completing the SED or AES record.
    The forwarding or other agent, if authorized by a principal party 
in interest, is responsible for: (A) Preparing the SED or AES record, 
based on information received from the exporter (U.S. principal party 
in interest) or other parties in the transaction; (B) Maintaining 
documentation to support the information reported on the SED or AES 
record; and (C) Upon request, providing the exporter (U.S. principal 
party in interest) with a copy of the export information filed in the 
form of a completed SED, an electronic facsimile, or in any other 
manner prescribed by the exporter (U.S. principal party in interest).
    In a routed export transaction, where a foreign principal party in 
interest designates a U.S. forwarding or other agent to act on its 
behalf to prepare and file the SED or AES record, the exporter (U.S. 
principal party in interest) must provide the forwarding or other agent 
with the following information to assist them in preparing the SED or 
AES record: (1) Name and address of the U.S. principal party in 
interest; (2) U.S. principal party in interest's IRS, EIN; (3) Point of 
origin (State or Foreign Trade Zone (FTZ)); (4) Schedule B description 
of commodities; (5) Domestic (D), foreign (F), or Foreign Military Sale 
(FMS) (M) code; (6) Schedule B Number; (7) Quantity/unit of measure; 
(8) Value; (9) Upon request by the foreign principal party in interest 
or its agent, the Export Control Classification Number (ECCN) or with 
sufficient technical information to determine the ECCN; and (10) Any 
information that it knows will affect the determination of license 
authority.

    Note: For Items 9 and 10, where the foreign principal party in 
interest has assumed responsibility for determining and obtaining 
license authority, the EAR sets forth the information sharing 
requirements that apply at 15 CFR 758.3(c) of the EAR.

    In a routed export transaction, the forwarding or other agent is 
responsible for preparing, signing, and filing the SED or AES record 
based on information received from the exporter (U.S. principal party 
in interest) and other parties involved in the transaction. In addition 
to reporting the information provided by the exporter (U.S. principal 
party in interest) on the SED or AES record, the forwarding or other 
agent must provide the following export information on the SED or AES 
record: (1) Date of exportation; (2) Bill of lading/airway bill number; 
(3) Ultimate consignee; (4) Intermediate consignee; (5) Forwarding or 
other agent name and address; (6) Country of ultimate destination; (7) 
Loading pier; (8) Method of transportation; (9) Exporting carrier; (10) 
Port of export; (11) Port of unloading; (12) Containerized; (13) 
Weight; (14) ECCN; (15) License Authority; and (16) Signature in the 
certification block on the paper SED (block 24 on Commerce Form 7525-V 
and block 36 on Commerce Form 7525-V-ALT). In a routed export 
transaction, the exporter (U.S. principal party in interest) must be 
listed as the U.S. principal party in interest on the SED or the AES 
record.

    Note: For items 14 and 15 where the foreign principal party in 
interest has assumed responsibility for determining and obtaining 
license authority, the EAR sets forth the information sharing 
requirements that apply at 15 CFR 758.3(c) of the EAR.

    In a routed export transaction, the forwarding or other agent is 
responsible for: (A) Obtaining a power of attorney or written 
authorization from the foreign principal party in interest to act on 
its behalf; (B) Preparing, signing, and filing the SED or AES record 
based on information received from the exporter (U.S. principal party 
in interest) and other parties involved in the transaction; (C) 
Maintaining documentation to support the information reported on the 
SED or AES record, and (D) Upon request, providing the exporter (U.S. 
principal party in interest), with appropriate documentation verifying 
that the information provided by the exporter (U.S. principal party in 
interest) in interest was accurately reported on the SED or AES record.
    The FTSR places primary responsibility for compliance of the SED 
and AES requirements on the exporter (U.S. principal party in interest) 
in an export transaction and on the forwarding or other agent in a 
routed export transaction. However, the FTSR also considers all parties 
involved in the transaction responsible for the truth, accuracy, and 
completeness of the information reported on the SED or AES record. The 
parties to the transaction must provide the forwarding or other agent 
with the information necessary to correctly prepare the paper SED or to 
file the data electronically using the AES. As always, documentation 
must be maintained by all parties involved in the transaction to 
support the information reported on the SED or the AES record.
    All parties that participate in transactions subject to the FTSR 
are responsible for compliance with the FTSR. In all cases where a 
violation of the FTSR occurs, the documentation of all parties involved 
in the transaction must be made available to the proper enforcement 
officials to determine the liability and responsibility for the export 
violation pursuant to FTSR Sec. 30.11. Acting through a forwarding or 
other agent or delegating or redelegating authority does not in and of 
itself relieve anyone of their compliance responsibility.
    This notice further clarifies provisions for using a power of 
attorney or written authorization when a principal party in interest 
authorizes a forwarding or other agent to prepare and file the SED on 
its behalf and when the SED information is filed electronically using 
the AES. Suggested formats for a power of attorney and a written 
authorization for executing a SED are available upon request from the 
U.S. Census Bureau, Foreign Trade Division.
    This rule further specifies in Sec. 30.4(f) the requirement that 
the SED be prepared in English. This provision is already included in 
the Census Bureau's instructions for completing the SED and this rule 
will simply include that requirement in the CFR.
    In addition, this amendment clarifies the provision in 
Sec. 30.7(d)(2) that a foreign entity, if in the United States when the 
items are purchased or obtained for export, must be listed as the U.S. 
principal party in interest on the SED or AES record and follow the 
provisions as specified in this part pertaining to the U.S. principal 
party in interest. In such situations, when the foreign entity does not 
have an EIN or Social Security Number (SSN), a border crossing number, 
passport number, or any number assigned by U.S. Customs is required to 
be reported on the SED or the AES record. On the paper SED, the 
appropriate number should be preceded by the symbol ``T.'' On the AES 
record, the appropriate AES identifier code, as specified in the 
Automated Export System Trade Interface Requirements (AESTIR) must be 
reported. Using another's EIN or SSN is prohibited.
    In addition to addressing the issues contained in the supplementary 
notice of proposed rulemaking (addressed above), this rule is also 
amending the FTSR to: (A) Include provisions on electronic transmission 
of software and technology; (B) Amend the provision for reporting value 
in an export transaction; (C) Include revisions to provisions

[[Page 42560]]

concerning mail shipments and certain related SED miscellaneous 
exemptions; (D) Clarify provisions for exports of items subject to the 
EAR that are transhipped through Canada to a third destination; and (E) 
Clarify provisions for providing import verification information to the 
Census Bureau. The specific revisions to the FTSR to include these 
changes are detailed in this rule.
    In order to clarify the provisions of the FTSR with regards to the 
export reporting requirements for electronic transmissions and 
intangible transfers of software and technology, the Census Bureau is 
including a new section, 30.1(d), to the FTSR to state that electronic 
transmissions to be received outside the United States and other 
intangible transfers, such as downloaded software, and technology, are 
not subject to the provisions of the FTSR, but may be subject to export 
control requirements under other laws and regulations. Such 
transmissions and transfers are outside the scope and control of the 
Census Bureau and the FTSR. The FTSR only covers shipments of tangible/
physical merchandise.
    The Census Bureau is amending Sec. 30.7(q), Value, to clarify the 
provision for reporting value information on the SED or AES record in 
an export transaction. In all export transactions the selling price or 
value to be reported on the SED or AES record is the U.S. principal 
party in interest's price to the foreign principal party in interest.
    In order to update the Census Bureau's provisions on mail shipments 
currently included in the FTSR, the Census Bureau is clarifying 
provisions contained in Sec. 30.16 for submitting corrections to SEDs 
that were initially submitted through the U.S. Postal Service. The 
Census Bureau is directing that all corrections to SEDs filed through 
the U.S. Postal Service be sent directly to the Census Bureau's 
National Processing Center in Jeffersonville, Indiana. The Census 
Bureau is also increasing the value limitation for goods exported 
through the mail that do not require a SED or AES record from $500 or 
under to $2,500 or under. This will bring all mail exports under the 
same provisions as for all other exports. Therefore, the Census Bureau 
will remove and reserve Sec. 30.54, Special exemptions for mail 
shipments, as it is no longer necessary.
    The Census Bureau is amending Sec. 30.55, Miscellaneous exemptions, 
by revising paragraphs (g) and (h), and by adding paragraphs (n) and 
(o). Paragraphs (g) and (h) are being revised to make the FTSR language 
consistent with EAR revisions. Paragraph (n) will state that a SED or 
AES record is not required for exports of software and technology that 
does not require an export license, except that a SED or AES record is 
required for mass market software. For purposes of the FTSR, mass 
market software is defined as software that is generally available to 
the public by being sold from stock at retail selling points or 
directly from the software developer or supplier, by means of over the 
counter transactions, mail order transactions, telephone transactions, 
or electronic mail order transactions, and designed for installation by 
the user without further substantial technical support by the developer 
or supplier. Paragraph (o) will state that a SED or AES record is not 
required for any intangible exports of software and technology, such as 
downloaded software and technical data, including technology and 
software that requires an export license and mass market software 
exported electronically.
    This rule is amending Sec. 30.58 to revise the phrase ``validated 
export license'' to read ``license'' in paragraph (c)(1) and by adding 
paragraph (c)(6) for exports of items subject to the EAR that will be 
transhipped through Canada to a third country.
    This rule also will include a provision to Sec. 30.70, Statistical 
information required on import entries, to require importers to provide 
certain import information to the Census Bureau to verify the accuracy 
of import data. This is being included to ensure the cooperation of the 
importer in responding to requests from the Census Bureau when 
resolving problems or errors on import documents.
    The revisions contained in this final rule are consistent with the 
provisions contained in the final rule issued by the BXA in its 
revisions to the EAR regarding the export control responsibilities of 
exporters and forwarding or other agents. The Department of the 
Treasury concurs with the provisions contained in this final rule.

Changes to the Proposed Rule

    In order to comply with comments received from the trade community, 
and to update the FTSR to clarify all of the items discussed above, 
minor revisions were made to the proposed rule. These revisions are not 
substantial and reflect changes required to clarify the concerns of 
commentors to the supplementary notice of proposed rulemaking and to 
make minor updates to the FTSR to reflect changes the Census Bureau and 
the BXA are making to harmonize the FTSR and the EAR. The changes to 
the proposed rule are as follows:
    (1) Section 30.1 is amended by adding paragraph (d) to clarify that 
electronic transmissions and other intangible transfers of software and 
technology are not subject to the provisions of the FTSR.
    (2) Section 30.4(a) is amended by including clarifying language to 
specify that the information reported on the SED or AES record is used 
by the Census Bureau for statistical reporting purposes only and that 
for purposes of this part the provisions apply only to statistical 
reporting requirements.
    (3) Section 30.4(a)(1) is amended by including clarifying language 
to specify that the person listed in the previously designated 
``exporter'' block of the paper SED or in the ``exporter'' field on the 
AES record must be the U.S. principal party in interest; and adding 
paragraph (iv) to clarify provisions for when a foreign entity must be 
listed as U.S. principal party in interest on the SED or AES record.
    (4) Section 30.4(a)(1)(iii) is amended by adding the definition for 
order party in the regulation text and removing order party as a 
footnote.
    (5) Section 30.4(b)(1) Designating a forwarding or other agent in 
export transactions is removed and the provisions included in the 
Exporter (U.S. principal party in interest) responsibilities in export 
transactions, which is now designated Section 30.4(b)(1).
    (6) Section 30.4(b)(3) is now designated Section 30.4(b)(2) 
Forwarding or other agent responsibilities.
    (7) Section 30.4(c)(1) Designating a forwarding or other agent in 
routed export transactions is removed and the provisions included in 
the Forwarding agent responsibilities in routed export transactions, 
that is now designated Section 30.4(c)(2). Section 30.4(c)(2) Exporter 
(U.S. principal party in interest) responsibilities in routed export 
transactions is now designated section 30.4(1). Section 30.4(c)(3) 
Forwarding agent responsibilities in routed export transactions is now 
designated Section 30.4(c)(2).
    (8) Section 30.4(c)(1) is amended by adding clarifying language to 
specify the documentation requirements of the exporter (U.S. principal 
party in interest) in a routed export transaction and to reference the 
current documentation provisions as specified in Sec. 30.11.
    (9) Section 30.4(c)(2) is amended by clarifying the 
responsibilities of the forwarding or other agent in a routed export 
transaction, and by adding specific language, in the regulation text, 
to clarify the documentation and

[[Page 42561]]

documentation sharing responsibilities of the forwarding or other agent 
in a routed export transaction, as referenced in Sec. 30.11. In a 
routed export transaction, upon request of the exporter (U.S. principal 
party in interest), the forwarding or other agent must provide the 
exporter (U.S. principal party in interest) with documentation 
verifying that the information provided by the exporter (U.S. principal 
party in interest) was accurately reported on the SED or AES record.
    (10) Section 30.7(d)(1) and (2) is amended by clarifying that for 
purposes of completing the SED or AES record, the exporter (U.S. 
principal party in interest) must be listed as the ``U.S. principal 
party in interest,'' that the U.S. principal party in interest's EIN or 
other identification number be reported on the SED or AES record, and 
clarifying reporting responsibilities of a foreign entity who is in the 
United States when conducting an export transaction, and not possessing 
an EIN or SSN. In such situations, the foreign entity is required to 
report a border crossing number, a passport number, or any other number 
assigned by U.S. Customs on the SED or AES record in lieu of the EIN or 
SSN.
    (11) Section 30.7(q) Value, is amended by clarifying the provision 
for reporting value information in an export transaction. In all export 
transactions the selling price or value to be reported on the SED or 
AES record is the U.S. principal party in interest's price to the 
foreign principal party in interest.
    (12) Section 30.16 is amended by revising provisions for submitting 
corrections to SEDs for mail exports filed with the U.S. Postal 
Service. The Census Bureau will require that, in the case of mail 
exports, exporters submit corrections to SEDs directly to the Census 
Bureau's National Processing Center in Jeffersonville, Indiana. Current 
regulations require that corrections be submitted through the 
Postmaster at the post office where the export was mailed.
    (13) Section 30.54, Special exemptions for mail shipments, is 
removed and reserved from this part. This section is no longer 
necessary since the Census Bureau is raising the value limitation for 
when a SED or AES record is not required from $500 or under to $2,500 
or under. This change in the value requirement for mail exports, brings 
mail exports under the same provisions as for all other exports and no 
further special exemptions are required.
    (14) Section 30.55(g) is amended by updating and clarifying 
language to reflect the Bureau of Export Administration's, Export 
Administration Regulations for License Exception GFT for single gift 
parcels.
    (15) Section 30.55(h) is amended by making the FTSR language 
consistent with EAR provisions.
    (16) Section 30.55 is further amended by adding paragraphs (n) and 
(o). Paragraph (n) will state that a SED or AES record is not required 
for exports of technology and software that does not require a license, 
except that a SED or AES record is required for mass market software. 
For purposes of the FTSR, mass market software is defined as software 
that is generally available to the public by being sold from stock at 
retail selling points or directly from the software developer or 
supplier, by means of over the counter transactions, mail order 
transactions, telephone transactions, or electronic mail order 
transactions, and designed for installation by the user without further 
substantial technical support by the developer or supplier. Paragraph 
(o) will state that a SED or AES record is not required for any 
intangible exports of software and technology, such as downloaded 
software and technical data, including technology and software that 
requires an export license and intangible mass market software exported 
electronically.
    (17) Section 30.58 is amended by revising the phrase ``validated 
export license'' to read ``license'' in paragraph (c)(1) and by adding 
paragraph (c)(6) to include provisions for the export of items subject 
to the EAR that will be transshipped through Canada to a third 
destination.
    (18) Section 30.70 is amended by adding provisions to require 
importers to provide certain import information to the Census Bureau to 
verify the accuracy of import data.

Rulemaking Requirements

    This rule is exempt from all requirements of Section 553 of the 
Administrative Procedure Act because it deals with a foreign affairs 
function (5 U.S.C.), 553(a)(1)).

Regulatory Flexibility Act

    Because a notice of proposed rulemaking is not required by 5 U.S.C. 
553 or any other law, a Regulatory Flexibility Analysis is not required 
and has not been prepared (5 U.S.C. 603(a)).

Executive Orders

    This rule has been determined to be significant for purposes of 
Executive Order (E.O.) 12866. This rule does not contain policies with 
Federalism implications sufficient to warrant preparation of a 
Federalism assessment under E.O. 13132.

Paperwork Reduction Act

    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall a person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the Paperwork Reduction Act (PRA) unless that collection of 
information displays a current valid Office of Management and Budget 
(OMB) control number. In accordance with the PRA, 44 U.S.C., Chapter 
35, this rule's collections of information are cleared by the OMB under 
OMB Control Number 0607-0152. This rule will not impact the current 
reporting-hour burden requirements as approved under that OMB Control 
Number. We will furnish report forms to organizations included in the 
survey, and additional copies are available on written request to the 
Director, U.S. Census Bureau, Washington, DC 20233-0101.

List of Subjects in 15 CFR Part 30

    Economic statistics, Exports, Foreign trade, Reporting and 
recordkeeping requirements.

    For the reasons set out in the preamble, 15 CFR Part 30 is amended 
as follows:

PART 30--FOREIGN TRADE STATISTICS

    1. The authority citation for 15 CFR Part 30 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization Plan 
No. 5 of 1950 (3 CFR 1949-1953 Comp., 1004); Department of Commerce 
Organization Order No. 35-2A, August 4, 1975, 40 CFR 42765.

Subpart A--General Requirements--Exporters

    2.-3. Section 30.1 is amended by adding paragraph (d) to read as 
follows:


Sec. 30.1  General statement of requirement for Shipper's Export 
Declarations.

* * * * *
    (d) Electronic transmissions and intangible transfers. Electronic 
transmissions to be received outside the United States and other 
intangible transfers, such as downloaded software, technical data, and 
technology, are not subject to this part, but may be subject to export 
control requirements under other laws and regulations. See 15 CFR parts 
730 through 774 of the EAR.

    4. Section 30.4 is revised to read as follows:


Sec. 30.4  Preparation and signature of Shipper's Export Declaration 
(SED).

    (a) General requirements (SED). For purposes of this part, all 
references to

[[Page 42562]]

preparing and filing the paper SED also pertain to preparing and filing 
the AES electronic record. The SED or AES record is a dual purpose 
document used by the Census Bureau for statistical reporting purposes 
only, and by the Bureau of Export Administration (BXA) and other 
government agencies for export control purposes. For purposes of this 
part, the provisions apply only to statistical reporting requirements. 
The Shipper's Export Declaration (SED) or the AES record must be 
prepared and signed by a principal party in interest or by a forwarding 
or other agent authorized by a principal party in interest. The person 
who signs the SED must be in the United States at the time of signing. 
That person, whether exporter (U.S. principal party in interest) or 
agent, is responsible for the truth, accuracy, and completeness of the 
SED or AES record, except insofar as that person can demonstrate that 
he or she reasonably relied on information furnished by others. The 
Census Bureau recognizes ``routed export transactions'' as a subset of 
export transactions. A routed export transaction is where the foreign 
principal party in interest authorizes a U.S. forwarding or other agent 
to facilitate export of items from the United States. See paragraph (c) 
of this section for responsibilities of parties in a routed export 
transaction.
    (1) Exporter (U.S. principal party in interest). For purposes of 
completing the paper SED or AES record in all export transactions, the 
exporter (U.S. principal party in interest) is listed as the ``U.S. 
principal party in interest'' on the SED or AES record. In all export 
transactions, the person listed in the U.S. principal party in interest 
block on the paper SED or in the U.S. principal party in interest field 
of the AES record is the exporter (U.S. principal party in interest) in 
the transaction. The U.S. principal party in interest is the person in 
the United States that receives the primary benefit, monetary or 
otherwise, of the transaction. Generally that person is the U.S. 
seller, manufacturer, order party, or foreign entity. The foreign 
entity must be listed as the U.S. principal party in interest on the 
SED or AES record, if it is in the United States when the items are 
purchased or obtained for export. The foreign entity must then follow 
the provisions for preparing and filing the SED or AES record specified 
in Secs. 30.4 and 30.7 pertaining to the U.S. principal party in 
interest. In most cases, the forwarding or other agent is not a 
principal party in interest.
    (i) If a U.S. manufacturer sells merchandise directly for export to 
a foreign principal party in interest, the U.S. manufacturer must be 
listed as the U.S. principal party in interest on the SED or AES 
record.
    (ii) If a U.S. manufacturer sells merchandise, as a domestic sale, 
to a U.S. buyer (wholesaler/distributor) and that U.S. buyer sells the 
merchandise for export to a foreign principal party in interest, the 
U.S. buyer (wholesaler/distributor) must be listed as the U.S. 
principal party in interest on the SED or AES record.
    (iii) If a U.S. order party directly arranges for the sale and 
export of merchandise to a foreign buyer, the U.S. order party must be 
listed as the U.S. principal party in interest on the SED or AES 
record. The order party is that person in the United States who 
conducted the direct negotiations or correspondence with the foreign 
principal party in interest and who, as a result of these negotiations, 
received the order from the foreign principal party in interest.
    (iv) If a foreign entity is in the United States when the items are 
purchased or obtained for export, it is the exporter (U.S. principal 
party in interest) and must be listed as the U.S. principal party in 
interest on the SED or AES record (see Sec. 30.4(a)(1)).

    Note to paragraph (a)(1): The EAR defines the ``exporter'' as 
the person in the United States who has the authority of a principal 
party in interest to determine and control the sending of items out 
of the United States (see 15 CFR Part 772 of the EAR). For 
statistical purposes the Foreign Trade Statistics Regulations (FTSR) 
have a different definition of ``exporter'' from the Export 
Administration Regulations (EAR). Under the FTSR the ``exporter'' 
will always be the U.S. principal party in interest. For purposes of 
licensing responsibility under the EAR, the U.S. agent of the 
foreign principal party in interest may be the ``exporter'' or 
applicant on the license, in certain routed export transactions (see 
15 CFR 758.3 of the EAR).

    (2) Forwarding or other agent. The forwarding or other agent is 
that person in the United States who is authorized by a principal party 
in interest to perform the services required to facilitate the export 
of items from the United States. The forwarding or other agent must be 
authorized by the exporter (U.S. principal party in interest) or, in 
the case of a routed export transaction, the foreign principal party in 
interest to prepare and file the SED or the AES record. In a routed 
export transaction, the forwarding or other agent can be the exporter 
for export control purposes under the EAR. However, the forwarding or 
other agent is never the ``U.S. principal party in interest'' in the 
U.S. principal party in interest block on the paper SED or in the 
``U.S. principal party in interest'' field of the AES record unless the 
forwarding or other agent acts as an ``order party.'' (See paragraph 
(a)(1)(iii) for definition of order party)
    (3) Principal parties in interest. Those persons in a transaction 
that receive the primary benefit, monetary or otherwise, of the 
transaction. Generally, the principals in a transaction are the seller 
and the buyer. In most cases, a forwarding or other agent is not a 
principal party in interest.
    (b) Responsibilities of parties in export transactions. (1) 
Exporter (U.S. principal party in interest) responsibilities. (i) The 
exporter (U.S. principal party in interest) can prepare and file the 
SED or AES record itself, or it can authorize a forwarding or other 
agent to prepare and file the SED or AES record on its behalf. If the 
exporter (U.S. principal party in interest) prepares the SED or AES 
record itself, the exporter (U.S. principal party in interest) is 
responsible for the accuracy of all the export information reported on 
the SED or AES record, for signing the paper SED, filing the paper SED 
with U.S. Customs, or transmitting the AES record to U.S. Customs.
    (ii) When the exporter (U.S. principal party in interest) 
authorizes a forwarding or other agent to complete the SED or AES 
record on its behalf, the exporter (U.S. principal party in interest) 
is responsible for:
    (A) Providing the forwarding or other agent with the export 
information necessary to complete the SED or AES record;
    (B) Providing the forwarding or other agent with a power of 
attorney or written authorization to complete the SED or AES record, or 
signing the authorization block printed on the paper SED (block 23 on 
Commerce Form 7525-V and block 29 on Commerce Form 7525-V-ALT); and
    (C) Maintaining documentation to support the information provided 
to the forwarding or other agent for completion of the SED or AES 
record, as specified in Sec. 30.11.
    (2) Forwarding or other agent responsibilities. The forwarding or 
other agent, when authorized by an exporter (U.S. principal party in 
interest) to prepare and sign the SED or prepare and file the AES 
record in an export transaction, is responsible for:
    (i) Accurately preparing the SED or AES record based on information 
received from the exporter (U.S. principal party in interest) and other 
parties involved in the transaction;
    (ii) Obtaining a power of attorney or written authorization to 
complete the SED or AES record, or obtaining a paper SED with a signed 
authorization from

[[Page 42563]]

the exporter (U.S. principal party in interest);
    (iii) Maintaining documentation to support the information reported 
on the SED or AES record, as specified in Sec. 30.11; and
    (iv) Upon request, providing the exporter (U.S. principal party in 
interest) with a copy of the export information filed in the form of a 
completed SED, an electronic facsimile, or in any other manner 
prescribed by the exporter (U.S. principal party in interest).
    (c) Responsibilities of parties in a routed export transaction. (1) 
Exporter (U.S. principal party in interest) responsibilities. In a 
routed export transaction where the foreign principal party in interest 
authorizes a U.S. forwarding or other agent to prepare and file the SED 
or AES record, the exporter (U.S. principal party in interest) must 
maintain documentation to support the information provided to the 
forwarding or other agent for preparing the SED or AES record as 
specified in Sec. 30.11 and provide such forwarding or other agent with 
the following information to assist in preparing the SED or AES record:
    (i) Name and address of the U.S. principal party in interest;
    (ii) U.S. principal party in interest's, IRS, EIN;
    (iii) Point of origin (State or FTZ);
    (iv) Schedule B description of commodities;
    (v) Domestic (D), foreign (F), or FMS (M) code;
    (vi) Schedule B Number;
    (vii) Quantity/unit of measure;
    (viii) Value;
    (ix) Upon request from the foreign principal party in interest or 
its agent, the Export Control Classification Number (ECCN) or 
sufficient technical information to determine the ECCN; and
    (x) Any information that it knows will affect the determination of 
license authority.

    Note to paragraph (c)(1): For items in paragraph (c)(1)(ix) and 
(x) of this section, where the foreign principal party in interest 
has assumed responsibility for determining and obtaining license 
authority, the EAR sets forth the information sharing requirements 
that apply at 15 CFR 758.3(c) of the EAR.

    (2) Forwarding or other agent responsibilities. 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 to prepare and file the SED or AES record 
on its behalf; preparing, signing, and filing the SED or AES record 
based on information obtained from the exporter (U.S. principal party 
in interest) or other parties involved in the transaction; maintaining 
documentation to support the information reported on the SED or AES 
record, and upon request by the exporter (U.S. principal party in 
interest), provide appropriate documentation to the exporter (U.S. 
principal party in interest) verifying that the information provided by 
the exporter (U.S. principal party in interest) was accurately reported 
on the SED or AES record. The forwarding or other agent must also 
provide the following export information on the SED or AES record:
    (i) Date of exportation;
    (ii) Bill of lading/airway bill number;
    (iii) Ultimate consignee;
    (iv) Intermediate consignee;
    (v) Forwarding or other agent name and address;
    (vi) Country of ultimate destination;
    (vii) Loading pier;
    (viii) Method of transportation;
    (ix) Exporting carrier;
    (x) Port of export;
    (xi) Port of unloading;
    (xii) Containerized;
    (xiii) Weight;
    (xiv) ECCN;
    (xv) License Authority;
    (xvi) Signature in the certification block on the paper SED (block 
24 on Commerce Form 7525-V and block 36 on Commerce Form 7525-V-ALT). 
In a routed export transaction the exporter (U.S. principal party in 
interest) must be listed as U.S. principal party in interest on the SED 
or on the AES record;

    Note to paragraph (c)(2): For items in paragraph (c)(2)(xiv) and 
(xv) of this section, where the foreign principal party in interest 
has assumed responsibility for determining and obtaining license 
authority, the EAR sets forth the information sharing requirements 
that apply at 15 CFR 758.3(c) of the EAR.

    (d) Information on the Shipper's Export Declaration (SED) or 
Automated Export System (AES) record. The data provided on the SED or 
AES electronic record shall be complete, correct, and based on personal 
knowledge of the facts stated or on information furnished by the 
parties involved in the export transaction. All parties involved in 
export transactions, including U.S. forwarding or other agents, should 
be aware that invoices and other commercial documents may not 
necessarily contain all the information needed to prepare the SED or 
AES record. The parties must ensure that all the information needed for 
completing the SED or AES record, including correct export licensing 
information, is provided to the forwarding or other agent for the 
purpose of correctly preparing the SED or AES record as stated in this 
section.
    (e) Authorizing a Forwarding or other agent. In a power of attorney 
or other written authorization, authority is conferred upon an agent to 
perform certain specified acts or kinds of acts on behalf of a 
principal (see 15 CFR 758.1(h) of the EAR). In cases where a forwarding 
or other agent is filing export information on the SED or AES record, 
the forwarding or other agent must obtain a power of attorney or 
written authorization from a principal party in interest to file the 
information on its behalf. A power of attorney or written authorization 
should specify the responsibilities of the parties with particularity, 
and should state that the forwarding or other agent has authority to 
act on behalf of a principal party in interest as its true and lawful 
agent for purposes of the export transaction in accordance with the 
laws and regulations of the United States.
    (f) Format requirements for SEDs: The SED shall be prepared in 
English and shall be typewritten or prepared in ink or other permanent 
medium (except indelible pencil). The use of duplicating processes, as 
well as the overprinting of selected items of information, is 
acceptable.
    (g) Copies of SEDs: All copies of the SEDs must contain all of the 
information called for in the signature space as to name of firm, 
address, name of signer, and capacity of signer. The original SED must 
be signed in ink, but signature on other copies is not required. The 
use of signature stamps is acceptable. A signed legible carbon or other 
copy of the export declaration is acceptable as an ``original'' of the 
SED.

    5. Section 30.7 is amended by revising paragraphs (d), (e) and 
(q)(1) to read as follows:


Sec. 30.7  Information required on Shipper's Export Declarations.

* * * * *
    (d) Name of the U.S. principal party in interest and U.S. principal 
party in interest's Employer Identification Number (EIN). For purposes 
of completing the paper SED or AES record the exporter (U.S. principal 
party in interest) is the U.S. principal party in interest. The name 
and address (number, street, city, state, ZIP Code) of the U.S. 
principal party in interest and the U.S. principal party in interest's 
EIN shall be entered where requested on the SED or AES electronic 
record. The EIN shall be the U.S. principal party in interest's own and 
not another's EIN.
    (1) Name of the U.S. principal party in interest. In all export 
transactions, the person listed in the U.S. principal party in interest 
block on the SED or in the U.S. principal party in interest field on

[[Page 42564]]

the AES record must be the exporter (U.S. principal party in interest) 
in the transaction. The U.S. principal party in interest is the person 
in the United States that receives the primary benefit, monetary or 
otherwise, of the export transaction. Generally that person is the U.S. 
seller, manufacturer, order party, or foreign entity, if in the United 
States when the items are purchased or obtained for export. The foreign 
entity must then follow the provisions for preparing and filing the SED 
or AES record specified in Secs. 30.4 and 30.7 pertaining to the U.S. 
principal party in interest. (See Sec. 30.4 for details on the specific 
reporting responsibilities of exporter (U.S. principal party in 
interest)).
    (2) U.S. principal party in interest's Employer Identification 
Number (EIN). An exporter (U.S. principal party in interest) shall 
report its own Internal Revenue Service (IRS) EIN in the U.S. principal 
party in interest's (IRS) EIN block/field on the SED. If, and only if, 
no IRS EIN has been assigned to the exporter (U.S. principal party in 
interest), the exporter's (U.S. principal party in interest) own SSN, 
preceded by the symbol ``SS,'' must be reported on the paper SED. On 
the AES record the appropriate SSN symbol must be reported. When a 
foreign entity is in the United States when the items are purchased or 
obtained for export it is the exporter (U.S. principal party in 
interest). In such situations, when the foreign entity does not have an 
EIN or SSN, a border crossing number, passport number, or any number 
assigned by U.S. Customs must be reported on the SED or the AES record. 
On the paper SED, the appropriate number should be preceded by the 
symbol ``T.'' On the AES record, the appropriate AES identifier code as 
specified in the Automated Export System Trade Interface Requirements 
(AESTIR) must be reported. Use of another's EIN or SSN is prohibited.
    (e) Forwarding or other agent. The name and address of the duly 
authorized forwarding or other agent (if any) of a principal party in 
interest must be recorded where required on the SED or AES record. (See 
Sec. 30.4 for details on the specific reporting responsibilities of 
forwarding or other agents).
* * * * *
    (q) Value. (1) In general, the value to be reported on the 
Shipper's Export Declaration or AES record shall be the value at the 
U.S. port of export (selling price or cost if not sold, including 
inland freight, insurance, and other charges to U.S. port of export) 
(nearest whole dollar; omit cents figures). The ``Selling price'' for 
goods exported pursuant to sale, and the value to be reported on the 
SED or AES record, is the exporter's (U.S. principal party in interest) 
price to the foreign principal party in interest, net any unconditional 
discounts from list price, but without deducting any discounts which 
are conditional upon a particular act or performance on the part of the 
customer. Commissions to be paid by an exporter (U.S. principal party 
in interest) to his agent abroad, or to be deducted from the selling 
price by the agent abroad should be excluded. For goods shipped on 
consignment without a sale actually having been made at the time of 
export, the ``selling price'' to be reported on the SED or AES record 
is the market value at the time of export at the United States port 
from which exported.
* * * * *

    6. Section 30.16 is amended by revising the first sentence to read 
as follows:


Sec. 30.16  Corrections to Shipper's Export Declarations.

    The Exporter (U.S. principal party in interest) (or its agent) must 
report corrections, cancellations, or amendments to information 
reported on Shipper's Export Declarations to the Customs Director at 
the port of exportation (or, in the case of mail shipments directly to 
the U.S. Census Bureau, National Processing Center, Attention: Foreign 
Trade Section, 1201 East 10th Street, Jeffersonville, Indiana 47132) as 
soon as the need to make such correction, cancellation, or amendment is 
determined. * * *

Subpart D--Exemptions from the Requirements for the Filing of 
Shipper's Export Declarations


Sec. 30.54  [Removed and reserved]

    7. Section 30.54 is removed and reserved.

    8. Section 30.55 is amended by revising paragraphs (g) and (h), 
adding paragraphs (n) and (o), and removing the authority citation at 
the end of the section, to read as follows:


Sec. 30.55  Miscellaneous exemptions.

* * * * *
    (g) Shipments of single gift parcels as authorized by the Bureau of 
Export Administration under License Exception GFT, see 15 CFR 740.12 of 
the EAR.
    (h) Except as noted in paragraph (h)(2) of this section exports of 
commodities where the value of the commodities, shipped from one 
exporter to one consignee on a single exporting carrier, classified 
under an individual Schedule B number, is $2,500 or less.
    (1) This exemption applies to individual Schedule B commodity 
numbers regardless of the total shipment value. In instances where a 
shipment contains a mixture of individual Schedule B commodity numbers 
valued $2,500 or less and individual Schedule B commodity numbers 
valued over $2,500, only those commodity numbers valued $2,500 or more 
need be reported on a Shipper's Export Declaration or AES record.
    (2) This exemption does not apply to exports:
    (i) Destined for Cuba, Iran, Iraq, Libya, North Korea, Serbia 
(excluding Kosovo), Sudan and Syria.
    (ii) Requiring a Department of Commerce license (15 CFR Parts 730 
through 774 of the EAR).
    (iii) Requiring a Department of State, Office of Defense Trade 
Controls export license under the International Traffic In Arms 
Regulations (ITAR) (22 CFR Parts 120 through 130).
    (iv) Subject to the ITAR but exempt from license requirements.
    (v) Requiring a Department of Justice, Drug Enforcement 
Administration export permit (21 CFR Part 1312). This exemption shall 
be conditioned upon the filing of such reports as the Bureau of the 
Census shall periodically require to compile statistics on $2,500 and 
under shipments.
* * * * *
    (n) Exports of technology and software as defined in 15 CFR Part 
772 of the EAR that do not require an export license, except that an 
SED or AES record is required for mass market software. For purposes of 
the FTSR, 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 or supplier, by means of over the 
counter transactions, mail order transactions, telephone transactions, 
or electronic mail order transactions, and designed for installation by 
the user without further substantial technical support by the developer 
or supplier.
    (o) Intangible exports of software and technology, such as 
downloaded software and technical data, including technology and 
software that requires an export license and mass market software 
exported electronically.

    9. Section 30.58 is amended by revising the phrase ``validated 
export license'' to read ``license'' in paragraph (c)(1), and by adding 
paragraph (c)(6) to read as follows:

[[Page 42565]]

Sec. 30.58  Exemption for shipments from the United States to Canada.

* * * * *
    (c) * * *
    (6) For all exports of items subject to the EAR (15 CFR Parts 730 
through 799) that will be transhipped through Canada to a third 
destination, that would require an SED, AES record, or Commerce license 
if shipped directly to the final destination from the United States 
(see Sec. 30.55(h)(2), including exports of items subject to the EAR 
that will be transhipped through Canada to Cuba, Iran, Iraq, Libya, 
North Korea, Serbia (excluding Kosovo), Sudan, and Syria.

Subpart F--General Requirements--Importers

    10. Section 30.70 is amended by redesignating footnote 9 as 
footnote 7 and adding a sentence before the last sentence of the 
introductory text to read as follows:


Sec. 30.70  Statistical information required on import entries.

    * * * Upon request, the importer or import broker must provide the 
Census Bureau with information or documentation necessary to verify the 
accuracy or resolve problems regarding the reported import transaction 
received by the Census Bureau.* * *
* * * * *

    Dated: June 29, 2000.
Kenneth Prewitt,
Director, U.S. Census Bureau.
[FR Doc. 00-16895 Filed 7-6-00; 8:45 am]
BILLING CODE 3510-07-P