Foreign Trade Regulations

Demystifying the Rules 

Exporting

August 22, 2012
Today’s Speakers

Host: Jennifer Smits 

Public Affairs and Media Events BrPublic Information Office 

Presenter: Omari Wooden 

Trade Ombudsman Foreign Trade Division 

The U.S. Census Bureau measures the nation

People, Places, and our Economy

www.census.gov 

#foreigntrade 
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Fundamentals of Export

Created by the Foreign Trade Division of th

Census Bureau, this in-depth webinar se

provides the tools necessary for a stro

foundation in the fundamentals of expor

Foreign Trade Regulations –

Demystifying the Rules of Exporting

The fourth webinar in the 8-part series 

http://www.census.gov/newsroom/releases/archives/news_conferences/webinars_e
Foreign Trade Division

The Foreign Trade Division is 

official source for U.S. export a

import statistics and is responsib

issuing regulations governing t

reporting of all export shipments 

the United States. 

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Today’s Topics

 Legal Requirements  U.S. Principal Party in Interest Types of export transactions  Penalties  Best Practices 

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Legal Requirements

Census Bureau 

Foreign Trade Regulations (FTR)

Title 15 Code of Federal Regulations, Part 3

Bureau of Industry and Security (BIS)

Export Administration Regulations (EAR) 

Customs and Border Protection (CBP)

Customs Regulations 

State Department

International Traffic in Arms Regulations (ITA

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When is Electronic Export Informatio

Required? (FTR 30.2)

EEI must be filed for exports of physical when shipped as follows: 

U.S. 

 foreign countries 

U.S. 

 U.S. Virgin Islands 

Puerto Rico 

 foreign countries 

Puerto Rico 

 U.S. Virgin Islan

U.S. 

 Puerto Rico 



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What is a Shipment?

(FTR 30.1)

Tip: The ONE 

1 Rule 

 ONE U.S. Principal Party in Interest shippin

merchandise, to 

 ONE Foreign consignee, on  ONE Carrier moving the product out of the  ONE day, with  Valued over $2,500 per Schedule B numbe

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license is required 
Four unique shipments based on the

four different US companies

Shipment Example

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US Company AUS Company BUS Company CUS Company D

German

Company X FedEx / UPS 

Four unique shipments based on the

four different US companies
Three unique shipments based on the

three different dates of export

Shipment example

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US Company A

German

Company X FedEx / UPS

Three unique shipments based on the

three different dates of export
U.S. Principal Party in Inter

(FTR 30.3)

The U.S. Principal Party in Interest (U

is the: 

 U.S. Person or Entity  Primary Benefactor (Monetary or Otherwise)  Foreign Entity (if in the U.S. at time goods are purc

obtained for export) 

Generally that Person can be the:  U.S. Seller: (Wholesaler or Distributor)  U.S. Manufacturer  U.S. Order Party 

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Ultimate Consignee 

(FTR 30.6(a)(3))

The person, party, or designee located aand actually receives the export shipmen

 Report the Ultimate Consign

at the time of export. 

 Licensed shipments shall be 

designated on the export lic

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Two Types of Transaction

(FTR 30.3)

Export Transaction (Standard): 

• USPPI files the EEI or authorizes an agent to file Routed Export Transaction: • Foreign Principal Party in Interest (FPPI) authoriz

agent to facilitate the export of items from the UnStates and to prepare and file the EEI 

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Export Transaction

(FTR 30.3(c))

USPPI Responsibilities: 

 Prepare and file EEI and provide proof of filing citatio Authorize a U.S. agent to file EEI via power of attorn

written authorization 

 Provide agent with accurate and timely export inform Assume responsibility for license determination  If filing, respond to AES fatal errors or compliance al

 Retain documentation 

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Export Transaction

(FTR 30.3(c))

U.S Authorized Agents’ Responsibili Obtain written authorization or power of attorney from USP

 Accurately prepare EEI via the AES, based on information 

by the USPPI and other parties 

 If filing, respond to AES fatal errors or compliance alerts  Provide AES Internal Transaction Number (ITN) to carrier 

required filing timeframes 

 Upon request, provide USPPI with copy of information filed 

behalf 

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

Routed Export Transactio

(FTR 30.3(e))

USPPI Responsibilities: 

 Must provide FPPI’s agent with commodity data and 

information 

 May request copy of the authorized agent’s power of 

written authorization from the FPPI 

 If filing, obtain power of attorney or written authorizat

to complete and file the EEI Maintain documentation 
Routed Export Transactio

(FTR 30.3(e))

U.S. Authorized Agent Responsib

 Obtains a POA or written authorization from the FPP Prepare and file the EEI  Upon request, provide the USPPI with data element

behalf 

 Upon request, provide the USPPI with a copy of the 

written authorization from the FPPI 

 Provide filing citation or exemption legend  Maintain documentation 

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Shipments Exempt from Fi

(FTR 30.36-30.40

)

 Country of ultimate destination is Canada (30.36)  $2,500 or less per Schedule B number (30.37(a))  Tools of Trade: hand carried, personal or company use, 

sale, not shipped as cargo, returned within 1 year (30.3

 Intangible exports of software & technology (30.37(f))  Temporary Exports (e.g., Carnets) (30.37(q)) 

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 Shipments consigned to the U.S. Armed Forces (30.39) 
Exemptions Do Not Appl

(FTR 30.2(a)(iv))

 Commerce (BIS) licenses  Country Group E:1 (Supplement 1 to 15 CF

 State Department licenses and ITAR controll License shipments from other government a Shipments on Office of Foreign Assets Co

Sanctions Program List 

 Rough Diamonds 

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Repair Items

(FTR 30.29(a))

 Report the value of the repairs, including 

and labor 

 Report Schedule B number 9801.10.0000 

the re-export of any article that was imporrepairs or alterations 

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purposes” 

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Warranty Items

(FTR 30.29(b))

 Report the value of the replacement commod Report original Schedule B number  If the value on the EEI record is different from 

on the bill of lading, invoice, etc., include a stnotating: 

“Product replaced under warranty, value for 
regarding all shipments involved in disclosure 

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Voluntary Self Disclosure

(FTR 30.74)

Submit letter on company letterhead and inclufollowing information: 

 Description of information unreported or reported incorre Number and value of shipments affected  Steps taken to resolve problem  Point of contact  Letters should be submitted to: 

File data in AES as soon as possible and retain docume
Parties Subject to Penalti

(FTR 30.70-30.74

)

All parties involved in an export transactare subject to penalties, including:  USPPI  Freight forwarder  Authorized agent  Carrier 

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Implement Best Practice

 Document!!! Document!!! Document!!!  Correct information as soon as possible 

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 Maintain compliance 

• Education & cross training • Automation & Procedures 

 Attend Seminars & Workshops
Additional Training Too

 Export training videos Webinars  Global Reach Blog 

http://globalreach.blogs.census.gov 

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Questions?

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For More Information

 Media Inquiries: 

• Public Information Office: 301-763-3030 

 FTD Call Center: 800-549-0595 

• Option 1 – AES Assistance • Option 2 – Commodity Classification Assistance • Option 3 – Regulations Assistance • Option 4 – Data Dissemination Branch 

 Fax: 301-763-8835  E-mail:ftdregs@census.gov 

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Upcoming Webinars

For more information or to sign up for our next w

to: http://www.census.gov/newsroom/releases/archives/news_conferences/webina

 Filing Export Information Electronically — The ABCs of AES

September 5, 2012 (RSVP available Monday, Aug. 27) 

 Your Free Tools of Trade — AESDirect and AESPcLink: 

September 19, 2012 

 Getting it Right the First Time — How to Avoid Common Pe

October 3, 2012 

 What is a Foreign Trade Zone and How Can It Help You?: 

October 17, 2012 

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