Getting it Right the First Time

October 3, 2012

How to Avoid Common 

Penalties

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The U.S. Census Bureau measures the nation's 

People, Places, and our Economy

www.census.gov

#foreigntrade

Host: Jennifer Smits

Public Affairs and Media Events

Public Information Office

Presenter: Omari Wooden

Trade Ombudsman

Foreign Trade Division

Today’s Speakers

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Created by the Foreign Trade Division of the U.S. 

Census Bureau, this in-depth webinar series 

provides the tools necessary for a strong 

foundation in the fundamentals of exporting. 

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Fundamentals of Exporting

Getting it Right the First Time—How to Avoid Common 

Penalties

The seventh webinar in the 8-part series

http://www.census.gov/newsroom/releases/archives/news_conferences/webinars_exporting.html
The Foreign Trade Division is the 

official source for U.S. export and 

import statistics and is responsible for 

issuing regulations governing the 

reporting of all export shipments from 

the United States.

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Foreign Trade Division
Today’s Topics

 Legal Requirements

 What is a penalty

 Types of penalties

 Common Penalties

 Best Practices

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Legal Requirements

Census Bureau

 Foreign Trade Regulations (FTR)

 • Title 15 Code of Federal Regulations, Part 30

Bureau of Industry and Security (BIS)

 Export Administration Regulations (EAR)

 

Customs and Border Protection (CBP)

 Customs Regulations

 

State Department

 International Traffic in Arms Regulations (ITAR)

 

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A penalty is where a company or entity is found to 

have violated the Foreign Trade Regulations 

The details of penalties can be found in the FTR, 

Subpart H, sections 30.70-30.74.

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What is a penalty?
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Parties Subject to Penalties

(FTR 30.70-30.74)

All parties involved in an export transaction 

are subject to penalties, including:

 USPPI

 Freight forwarder

 Authorized agent

 Carrier

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Penalties

(FTR 30.71)

 Criminal Penalties

 U.S. exporters, agents, or carriers who knowingly fail to file, file false or 

misleading information, or continue to participate in illegal activities

 Penalty can be up to $10,000 per violation and/or imprisonment for no 

more than five years

 Civil Penalties

 U.S. exporters, agents, or carriers who report incorrect information or 

report export information late

 Penalty can be up to $10,000 per violation or $1,100 per each day of 

delinquency

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Mitigating Factors

Including, but not limited to:

• First-time USPPI or authorized agent, FPPI, carrier, etc.

• Voluntary self-disclosure of the violation

• Clear documentary evidence of corrective measures 

undertaken to prevent future violation

• Cooperation with CBP, Census or BIS

• Demonstration by party of having a systematic export 

compliance effort.

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Aggravating Factors

Including, but not limited to:

• Several violations in the same export transaction

• Circumstances suggest the intentional nature of the 

violation

• High number of violations in preceding 3-year period

• Evidence of criminal conviction for related violation, 

i.e. BIS violation

• The party exports as a regular part of its business, 

but lacks a systematic export compliance effort. 

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Top 3 Common Penalties

 Incorrect port of export

 $10,000 per violation

 Late filed shipments

 $1,100 per day of delinquency

 Failure to file

 $10,000 per violation

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Incorrect Port of Export

Best practices

 Air or Vessel

 Shall be reported as the seaport or airport where the goods are 

loaded on the exporting carrier that is taking the goods out of 

the US

 Rail or Truck

 Shall be reported where exports cross the US border into the 

foreign country

 The port of export is NOT necessarily your location

 Communicate with your agent and/or carrier for any 

changes

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Late filed shipments

Best Practices

 Shipments must be reported in the AES, based on the 

following timeframes (for non-US Munitions items):

 Vessel: 24 hours prior to loading the goods on the carrier

 Truck: 1 hour prior to goods arriving at the port of export

 Air: 2 hours prior to the scheduled departure time

 Rail: 2 hours prior to the train reaching the border

 Make sure you report your export information based 

on the time frames above

 Hold your export to make sure the shipment if it has 

not been accepted

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Failure to File

Best Practices

 Shipments that must be reported in the AES for the 

movement of physical goods based on the following:

 Shipments valued over $2,500 per Sch B/HTS number

 Shipments licensed by government agencies

 State Department controlled items

 Shipments to countries on the Office of Foreign Assets Control Sanctions 

Program List

 Rough diamonds

 Make sure you know the reporting requirements for 

your shipment

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Voluntary Self Disclosure

(FTR 30.74)

Submit letter on company letterhead and include the 

following information:

 Description of information unreported or reported incorrectly 

 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 documentation 

regarding all shipments involved in disclosure

 

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Implement Best Practices

 Document!!! Document!!! Document!!!

 Correct information as soon as possible

 Maintain compliance

 Education & cross training

 Automation & Procedures

 Attend Seminars & Workshops

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Implement Best Practices

 Implement mentoring program

 Know your US authorized or forwarding agent

 Perform routine audit

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Develop Training Manual

 Export Related Regulation 

 Classifying Commodities

 Include FAQs, Websites, and Contacts

 Create Export Checklist

 How to File Export Information Using AES

 Resolve Fatal Error

 Review Warning, Compliance and Verify messages

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Foreign Trade Division Outreach

 DOC Export Compliance Program

 AES Compliance Review Program

 Company Training

 Spanish Seminars

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 Export training videos 

 http://www.census.gov/foreign-trade/aes/exporttraining/videos/index.html

 Global Reach Blog 

http://globalreach.blogs.census.gov

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Additional Training Tools
America’s Economy Mobile App

• www.census.gov/mobile

• 16 Key Economic 

Indicators, including 

International Trade

• Available for iPhone, 

iPad and Android 

devices

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Questions?

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 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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For More Information
For more information or to sign up for our next 

webinar go to: 

http://www.census.gov/newsroom/releases/archives/news_conferences/webinars_exporting.html

 What is a Foreign Trade Zone and How Can It Help You?: October 17, 

2012

Upcoming Webinar

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