[Federal Register Volume 64, Number 29 (Friday, February 12, 1999)]
[Proposed Rules]
[Pages 7412-7420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3309]
[[Page 7411]]
_______________________________________________________________________
Part VII
Department of Commerce
_______________________________________________________________________
Bureau of the Census
_______________________________________________________________________
15 CFR Part 30
Amendment to Foreign Trade Statistics
Regulations: Provisions for Filing Shipper's Export Data Electronically
Using the Automated Export System, (AES); Proposed Rule
Federal Register / Vol. 64, No. 29 / Friday, February 12, 1999 /
Proposed Rules
[[Page 7412]]
DEPARTMENT OF COMMERCE
Bureau of the Census
15 CFR Part 30
[Docket No. 980929251-8329-02]
RIN 0607-AA19
Amendment to Foreign Trade Statistics Regulations: Provisions for
Filing Shipper's Export Data Electronically Using the Automated Export
System (AES)
AGENCY: Bureau of the Census, Commerce.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Bureau of the Census (Census Bureau) proposes amending the
Foreign Trade Statistics Regulations (FTSR) to add provisions for
filing shipper's export data electronically using the Automated Export
System (AES). The AES is an export information gathering and processing
system developed through cooperative efforts between the U.S. Customs
Service (Customs), the Census Bureau, other Federal agencies, and the
export community. The AES is a completely voluntary system that
provides an alternative to filing the paper Shipper's Export
Declaration (SED) and will greatly streamline and improve the exporting
process. Export information is collected electronically and edited
immediately, and errors are detected and corrected at the time of
filing. AES is a nationwide system operational at all ports and for all
methods of transportation. Customs is also revising appropriate
sections of its Customs Regulations in a document published elsewhere
in this issue of the Federal Register. The Customs regulations will
conform to the electronic filing provisions and requirements contained
in this proposed rule.
DATES: Written comments must be submitted on or before April 13, 1999.
ADDRESSES: Address all written comments on this proposed rulemaking to
the Director, Bureau of the Census, Room 2049, Federal Building 3,
Washington, D.C. 20233.
FOR FURTHER INFORMATION CONTACT: C. Harvey Monk, Jr., Chief, Foreign
Trade Division, Bureau of the Census, Room 2104, Federal Building 3,
Washington, D.C. 20233-6700, by telephone on (301) 457-2255, by fax on
(301) 457-2645, or by E-mail at: c.h.monk.jr@ccmail.census.gov.
SUPPLEMENTARY INFORMATION:
Background
On October 9, 1998, Customs and the Census Bureau published a joint
notice in the Federal Register (63 FR 54438) that informed the public
of the current status of the AES. The AES is an electronic reporting
system jointly developed by the Census Bureau and Customs that allows
exporters or their authorized forwarding agents to transmit commodity
SED information, and carriers to transmit transportation (outbound
manifest) information. That notice also informed the public of other
developments affecting the implementation of the AES and announced that
the Census Bureau and Customs would be developing regulations to
implement provisions and requirements for filing export information
electronically through the AES. Since the Background information
contained in that notice fully recounts the development of the AES to
date, it is incorporated here by reference. Customs is also revising
appropriate sections of its Customs Regulations, 19 CFR, Chapter 1, to
reference Census Bureau regulations that will provide for electronic
filing requirements using the AES to provide for certain procedural
safeguards regarding applicant's/participant's rights vis-a-vis Customs
actions, and to provide for a Sea Carriers Manifest Module for the
submission of manifest information in the ocean environment. (See
Customs' notice of proposed rulemaking published elsewhere in this
issue of the Federal Register.)
The AES is a joint venture between Customs, the Census Bureau, and
other Federal agencies that will provide a seamless Government export
information processing system to allow the trade community to report
export data electronically. The AES is also the cornerstone of Customs'
and the Census Bureau's reinvestment strategy to support and facilitate
the movement of exports. Automation will help remove the time consuming
paper processing barriers that now hinder the flow of trade. The AES
will greatly improve the accuracy of the export data provided to the
Census Bureau, and will allow the Census Bureau, in turn, to provide
more accurate export data and a wider range of export data needed by
businesses to stay competitive in the global trade market today. The
AES is in alignment with the long-term global shift to Electronic Data
Interchange (EDI), the North American Free Trade Agreement (NAFTA), and
the General Agreement on Tariff and Trade (GATT) making it easier to do
business in multiple countries.
The AES will result in the elimination of redundant reporting of
export data to multiple agencies. It brings savings in both human
resources and paper handling. It greatly increases the accuracy of
trade statistics, which will allow for improvement in national economic
policy making. Accurate trade information, policy decisions based on
sound balance of trade information, prohibition of illegal exports, and
effective enforcement of license requirements can be achieved while
facilitating the flow of trade. Although paper filing of the SED and
manifest documents will still be permitted, it is anticipated that
electronic filing through the AES will be the preferred method of
export reporting by the trade community in the near future.
This notice of proposed rulemaking includes provisions agreed upon
in the Interest Based Negotiations (IBN), between Customs, the Census
Bureau, and representatives of the trade community to create an
effective automated export reporting program. To ensure that the AES
meets current business practices and voluntary acceptance by the trade
community, Customs and the Census Bureau entered into IBN with members
of the trade community to discuss system enhancements and time frames
for the submission of commodity information. As a result of the IBN,
two significant improvements to the AES were agreed to: (1) the
creation of a filing option that requires no pre-departure information
(with the filing of full commodity information within ten (10) working
days from the date of exportation); and (2) creation of a two-stage
filing option that allows for transmissions where some basic export
information is filed prior to exportation with the remainder of the
information filed within five (5) working days from the date of
exportation.
General Description of the AES Process
The export process begins when the exporter decides to export
merchandise as specified in Sec. 30.1. Once the exporter makes this
decision, the exporter or his authorized forwarding agent makes
shipping arrangements with the carrier. The exporter or his authorized
forwarding agent transmits the shipper's export information using the
AES. This information can come directly from the exporter or his
authorized agent or indirectly from the aforementioned through a
service center or port authority. The shipper's export data are
transmitted in a timely manner in accordance with the provisions
[[Page 7413]]
contained in electronic filing Options 2, 3 and 4 (see Sec. 30.61,
Electronic Filing options). The AES validates the data against editing
tables and U.S. Government agency requirement files and generates
either a confirmation message or a fatal error message. The carrier or
an authorized forwarding agent transmits the export manifest data using
the AES. The AES validates the transportation data then generates
either a confirmation message or an error message. The exporter,
carrier, or an authorized forwarding agent must attend to any errors
generated by the AES. The AES allows the exporter, carrier, or an
authorized forwarding agent to transmit corrections.
Program requirements
In order to include provisions for the electronic filing of
shipper's export information, the Census Bureau will: (a) amend
existing sections of the Foreign Trade Statistics Regulations (FTSR),
15 CFR Part 30, and (b) add a new Subpart E to the FTSR to include
provisions for the electronic filing of shipper's export data.
The Census Bureau proposes amending appropriate sections of the
FTSR to include provisions for the electronic reporting of export data
using the AES.
The Census Bureau proposes amending Sec. 30.1, ``General statement
of requirements for Shipper's Export Declarations,'' to add a reference
that requirements for filing shipper's export data electronically can
be found in the new Subpart on electronic filing requirements.
The Census Bureau proposes amending the introductory text of
Sec. 30.7, ``Information required on Shipper's Export Declarations,''
to specify that the information in this section only applies to the
paper SED and referring users to the new Subpart for information
required for electronic filing of shipper's export data.
The Census Bureau proposes revising Sec. 30.39, ``Authorization for
reporting statistical information other than by means of individual
Shipper's Export Declarations filed for each shipment,'' to replace
existing electronic filing programs with the AES and to reflect current
Census Bureau authority to authorize alternative methods of filing
shipper's export data.
The Census Bureau proposes amending Sec. 30.91, ``Confidential
information, Shipper's Export Declarations,'' item (a) ``Confidential
status'' to clarify that confidentiality provisions apply to all export
information supplied to the Census Bureau whether filed electronically
or in any other approved format.
To include new provisions and requirements for the electronic
filing of shipper's export information using the AES, the Census Bureau
proposes to add a new Subpart (Subpart E) in the current FTSR on
electronic filing requirements for submitting shipper's export
information. To accomplish this, the current Subpart E--General
Requirements-Importers--will be redesignated to read Subpart F, and
Subpart E will be renamed and reserved for ``Electronic Filing
Requirements-Shippers Export Information.'' The current Subpart F will
be redesignated Subpart G--Special Provisions for Particular Types of
Import Transactions. The current Subpart G will be redesignated Subpart
H--General Administrative Provisions.
The proposed new Subpart E--Electronic Filing Requirements-
Shipper's Export Information will--consist of Secs. 30.60 through 30.66
to include:
Sec. 30.60 General requirements for filing export and manifest data
electronically using the Automated Export System (AES)
Sec. 30.61 Electronic filing options
Sec. 30.62 Certification, qualifications and standards
Sec. 30.63 Information required to be reported electronically
through AES (data elements)
Sec. 30.64 Transmitting and correcting AES information
Sec. 30.65 Annotating the proper exemption legends for shipments
transmitted electronically
Sec. 30.66 Recordkeeping and documentation requirements
The revisions contained in this notice of proposed rulemaking are
consistent with the provisions of the Customs Regulations. The U.S.
Customs Service, Department of the Treasury, concurs with the
provisions contained in this notice of proposed rulemaking.
Rulemaking Requirements
This notice of proposed rulemaking is exempt from all requirements
of Section 553 of the Administrative Procedures Act because it deals
with a foreign affairs function (5 U.S.C. (A) (1)). However, this
notice of proposed rulemaking is being published with an opportunity
for public comment because of the importance of the issues raised by
this notice of proposed rulemaking to the trade community.
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 notice of proposed rulemaking has been determined to be not
significant for purposes of Executive Order 12866. This rule does not
contain policies with Federalism implications sufficient to warrant
preparation of the Federalism assessment under Executive Order 12612.
Paperwork Reduction Act
Notwithstanding any other provisions 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 currently valid Office of Management and Budget
(OMB) control number.
This notice of proposed rulemaking covers collections of
information subject to the provisions of the PRA, which were cleared by
OMB under OMB control number 0607-0152.
This notice of proposed rulemaking will have no impact on the
current reporting-hour burden requirements as approved under OMB
control number 0607-0152 under provisions of the PRA of 1995, Public
Law 104-13.
List of Subjects in 15 CFR Part 30
Economic statistics, Exports, Foreign trade, Reporting and
recordkeeping requirements.
Proposed Amendments to 15 CFR Part 30
For the reasons set out in the preamble, the Census Bureau proposes
to amend 15 CFR chapter I, part 30, 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 FR 42765.
Subpart A--General Requirements--Exporters
2. Section 30.1 is amended by adding paragraph (c) to read as
follows:
Sec. 30.1 General statement of requirements for Shipper's Export
Declarations.
* * * * *
(c) In lieu of filing paper Shipper's Export Declarations as
provided above, exporters or their authorized forwarding
[[Page 7414]]
agents have the option to file shipper's export information
electronically, as provided in Subpart E of this part. The Electronic
filing requirements for filing shipper's export declaration information
are contained in Subpart E of this part, Electronic Filing
Requirements--Shipper's Export Information.
3. Section 30.7 is amended by revising the introductory text to
read as follows:
Sec. 30.7 Information required on Shipper's Export Declarations.
The following information shall be furnished in the appropriate
spaces provided on the paper copy of the Shipper's Export Declaration
and shall conform to the requirements set forth in this section. (See
Sec. 30.92 for information as to the statistical classification
Schedules C and D referred to in this section. Also, see Sec. 30.8 for
information required on Form 7513 in addition to these requirements.)
For information required to be filed electronically see Sec. 30.63.
* * * * *
Subpart C--Special Provisions Applicable Under Particular
Circumstances
4. Section 30.39 is revised to read as follows:
Sec. 30.39 Authorization for reporting statistical information other
than by means of individual Shipper's Export Declarations filed for
each shipment.
(a) The Census Bureau, with the concurrence of appropriate
government agencies, may authorize exemptions from the requirement of
Sec. 30.6 that a separate shipper's export declaration be filed for
each shipment.
(b) Application for certification and approval to file shipper's
export data electronically using the Automated Export System (AES) can
be made directly to the Census Bureau in accordance with the provisions
specified in Sec. 30.60. Certification and approval procedures and
qualification standards for filing shipper's export data electronically
are contained in Sec. 30.62.
(c) Authorization for other alternative methods of filing shipper's
export information will be issued only when, in the judgment of the
Census Bureau, complete and accurate information will be available on a
prescribed basis from the records of the applicant, and where the
alternate filing method for shipments represents a reduction of
reporting cost or burden. Where export control is a consideration, such
authorizations will be granted only when, in the judgment of the
appropriate controlling government agency, the applicant has
demonstrated that it has established adequate internal operating
procedures and has taken other satisfactory safeguards to assure
compliance with export control regulations of the appropriate
government agency or agencies.
Subparts E through G [Redesignated as Subparts F Through H]
5. Subparts E through G are redesignated as Subparts F through H,
respectively.
6. A new Subpart E, consisting of Secs. 30.60 through 30.66, is
added to read as follows:
Subpart E--Electronic Filing Requirements--Shipper's Export Information
Sec.
30.60 General requirements for filing export and manifest data
electronically using the Automated Export System (AES).
30.61 Electronic filing options.
30.62 AES Certification, qualifications, and standards.
30.63 Information required to be reported electronically through
AES (data elements).
30.64 Transmitting and correcting AES information.
30.65 Annotating the proper exemption legends for shipments
transmitted electronically.
30.66 Recordkeeping and documentation requirements.
Subpart E--Electronic Filing Requirements--Shipper's Export
Information
Sec. 30.60 General requirements for filing export and manifest data
electronically using the Automated Export System (AES).
Automated Export System (AES) transmissions by exporters or their
authorized agents that meet the requirements of this Subpart constitute
the Shipper's Export Declaration (SED) for purposes of 15 CFR Part 30.
This section outlines the general requirements for participating in the
AES. Several filing options are available for transmitting shipper's
export data. The first option is the standard paper filing of the SED.
The AES will also provide AES participants with three electronic filing
options for submission of shipper's export data.
(a) Participation. Participation in the AES is voluntary and is
designed to use technology available to both large and small
businesses. Companies that are not automated can submit data through a
service center or port authority that provides the capability to
communicate with the Customs Data Center in the same way as automated
companies. Companies may also buy a software package designed by an AES
certified software vendor. Certified trade participants can transmit to
and receive data from the AES pertaining to merchandise being exported
from the United States. Participants in the AES process, who may apply
for AES certification, include exporters or their authorized forwarding
agents, carriers, non-vessel operating common carriers (NVOCC), port
authorities, software vendors, or service centers. Once becoming
certified an AES filer must agree to stay in complete compliance with
all export rules and regulations.
(b) Letter of Intent. The first requirement for all participation
in AES, including approval for Option 4 filing privileges, is to submit
a complete and accurate Letter of Intent to the Census Bureau. The
Letter of Intent is a written statement of a company's desire to
participate in AES. It must set forth a commitment to develop,
maintain, and adhere to Customs and Census Bureau performance
requirements and operations standards. Once the Letter of Intent is
received, a U.S. Customs Client Representative and a Census Bureau
Client Representative will be assigned to work with the company. The
Census Bureau will forward additional information to prepare the
company for filing export data using the AES. The format and content
for preparing the Letter of Intent is provided in Appendix A of this
part.
(c) General filing and transmission requirements. The data elements
required for filing shipper's export data electronically are contained
in Sec. 30.63. For AES, the difference is that the certified filer must
transmit the shipper's export information electronically using the AES,
rather than delivering the paper SED to the carrier. When transmitting
export information electronically, the AES filers must comply with the
data transmission procedures determined by Customs and the Census
Bureau (See Sec. 30.62 for AES certification, qualifications, and
standards).
(d) General responsibilities of exporters, forwarding agents, and
sea carriers. (1) Exporter and authorized forwarding agent
responsibilities. The exporter and/or their authorized forwarding
agents, certified for AES filing, are responsible for:
(i) Transmitting complete and accurate information to the AES (see
Sec. 30.4(a) and Sec. 30.7(d) (1), (2), and (e) for a delineation of
responsibilities of exporters and authorized forwarding agents);
(ii) Transmitting information to the AES in a timely manner in
accordance with the provisions and requirements contained in this
Subpart;
[[Page 7415]]
(iii) Responding to messages identified as fatal error, warning,
verify, or reminder generated by AES in accordance with the provisions
contained in this Subpart;
(iv) Providing the exporting carrier with the required exemption
statements or citations when an item or shipment is exempt from SED
filing requirements in accordance with provisions contained in this
Subpart;
(v) Transmitting corrections or cancellations to information
transmitted to the AES as soon as the need for such changes is
determined in accordance with provisions contained in this Subpart; and
(vi) Maintaining all necessary and proper documentation related to
the AES export transaction in accordance with provisions contained in
this Subpart.
(2) Sea carrier responsibilities. The exporting sea carrier is
responsible for transmitting timely, accurate, and complete manifests
and bills of lading information to AES for all cargo being shipped. The
exporting sea carrier is also responsible for transmitting booking,
receipt of booking, and manifest messages to AES. Customs and Census
Bureau officials, with written agreement of the exporting sea carrier,
can provide for alternative methods of filing manifest and SED
information to that found in this Subpart. For exporting carrier
responsibilities see Subpart B, of this part, General Requirements--
Exporting Carriers. For electronic filing of manifest information using
the AES, see 19 CFR 4.76, Procedures and responsibilities for
electronic filing of sea manifests through AES.
Sec. 30.61 Electronic filing options.
As an alternative to filing paper Shipper's Export Declaration
forms (Option 1), three electronic filing options for transmitting
shipper's export information are available to exporters or their
authorized forwarding agents. Two of the electronic filing options
(Options 3 & 4) take into account that complete information concerning
export shipments is not always available at the time of shipment. The
available AES electronic filing options are as follows:
(a) AES with full information transmitted prior to exportation
(Option 2). Option 2 provides for the electronic filing of all
information required for exports to AES prior to exportation (see
Sec. 30.63 for information required to be reported electronically).
Full predeparture information is always required to be transmitted to
AES for the following specific types of shipments:
(1) Used self-propelled vehicles as defined in 19 CFR 192.1;
(2) Essential and precursor chemicals requiring a permit from the
Drug Enforcement Administration;
(3) Shipments defined as ``sensitive'' by Executive Order; and
(4) Shipments where full export information is required prior to
exportation by a Federal Government agency.
(b) AES with partial information transmitted prior to exportation
(Option 3). Option 3 provides for the electronic filing of specified
data elements to the AES prior to exportation (see Appendix B of this
part for a list of specified data elements). Filing Option 3 is
available for all methods of transportation. Option 3 is designed for
those shipments for which full data are not available prior to
exportation. No prior approval from the Census Bureau or Customs is
required for certified AES filers to use Option 3. However, full
predeparture information must be transmitted to the AES for certain
specified transactions (as specified in Option 2). For shipments that
require an export license, the exporter must file using Option 2 or 3,
unless the licensing agency specifically approves the exporter for
Option 4 filing for the licensed shipment under its jurisdiction. Where
partial information is provided under Option 3, complete export
information must be transmitted as soon as it is known, but not later
than five (5) working days from the date of exportation. The exporter,
their authorized forwarding agent, or other certified AES filer
authorized by the exporter, must provide the exporting carrier with a
unique shipment reference number prior to exportation.
(c) AES with no information transmitted prior to exportation
(Option 4). Option 4 is only available for approved exporters and
requires no export information to be transmitted electronically using
AES prior to exportation. For approved Option 4 filers, all shipments
(other than those requiring an export license, unless specifically
approved by the licensing agency for Option 4 filing, and those
specifically required under electronic filing Options 2 or 3) by all
methods of transportation may be exported with no information
transmitted prior to exportation. Certified AES authorized forwarding
agents or service centers may transmit information post-departure on
behalf of approved Option 4 exporters. All exporters filing a Letter of
Intent for Option 4 filing privileges will be cleared through a formal
review process by Customs, the Census Bureau, and other federal
government agencies participating in the AES (partnership agencies) in
accordance with provisions contained in Sec. 30.62. Where exportation
is made with no prior AES filing, complete export information should be
transmitted as soon as it is known, but no later than ten (10) working
days from the date of exportation. The exporter or their authorized
forwarding agent must provide the exporting carrier with the exporter's
Option 4 AES identification number prior to exportation.
Sec. 30.62 AES certification, qualifications, and standards.
(a) AES certification process. Certification for AES filing will
apply to any exporter, authorized forwarding agent, carrier,
consolidator, service center, port authority, or software vendor
transmitting export information electronically using the AES.
Applicants interested in AES filing must submit a Letter of Intent to
the Census Bureau in accordance with the provisions contained in
Sec. 30.60. Customs and the Census Bureau will assign client
representatives to work with the applicant to prepare them for AES
certification. The AES applicant must perform an initial two-part
communication test to ascertain whether the applicant's system is
capable of both transmitting data to and receiving data from the AES.
The applicant must demonstrate specific system application
capabilities. The capability to correctly handle these system
applications is the prerequisite to certification for participation in
the AES. The applicant must successfully transmit the AES certification
test. Assistance is provided by the Customs' and Census Bureau's client
representatives during certification testing. These representatives
make the sole determination as to whether or not the applicant
qualifies for certification. Upon successful completion of
certification testing, the applicant's status is moved from testing
mode to operational mode. Upon certification, the filer will be
required to maintain an acceptable level of performance in AES filings.
The certified AES filer may be subject to repeat the certification
testing process at any time to ensure that operational standards for
quality and volume of data are maintained.
(1) Forwarding agent certification. Once an authorized forwarding
agent has successfully completed the certification process, the
exporter(s) using that forwarding agent need no further AES
certification of their own. The certified forwarding agent must have a
properly executed power of attorney, a written authorization from the
exporter, or an SED signed by the exporter to transmit the exporter's
data electronically using the AES. The
[[Page 7416]]
exporter or authorized forwarding agent that utilizes a service center
or port authority must complete certification testing unless the
service center or port authority has a formal power of attorney or
written authorization from the exporter to submit the export
information on behalf of the exporter.
(2) AES certification letter. The Census Bureau will provide the
certified AES filer with a certification letter after the applicant has
been approved for operational status. The certification letter will
include:
(i) The date that filers may begin transmitting ``live'' data
electronically using AES;
(ii) Reporting instructions; and
(iii) Examples of the required AES exemption legends.
(3) AES filing standards. The certified AES filer's data will be
monitored and reviewed for quality, timeliness, and coverage. The
Census Bureau will notify the AES filer in writing if they fail to
maintain an acceptable level of quality, timeliness, and coverage in
the transmission of export data or fail to maintain compliance with
Census Bureau regulations contained in this chapter. The Census Bureau
will direct that appropriate action to correct the specific
situation(s) be taken.
(b) Criteria for denial of applications requesting Option 4 filing
status; appeal procedure. Approval for Option 4 filing privileges will
apply only to exporters. However, forwarding agents may apply for
Option 4 filing privileges on behalf of an individual exporter. Option
4 applicants must submit a Letter of Intent to the Census Bureau in
accordance with the provisions contained in Sec. 30.60.
(1) Option 4 approval process. The Census Bureau will distribute
the Letter's of Intent for Option 4 filing privileges to Customs and
the other partnership agencies participating in the AES Option 4
approval process. Failure to meet the standards of the Census Bureau,
Customs, or one of the partnership agencies is reason for nonselection
or denial of the application for Option 4 filing privileges. Each
partnership agency will develop its own internal Option 4 acceptance
standards and each agency will notify the Census Bureau of the
applicant's failure to meet that agency's acceptance standards. If the
Census Bureau does not receive either notification of denial, or a
request for extension from the partnership agency within thirty (30)
calendar days after the date of referral of the Letter of Intent to the
partnership agency, the applicant is deemed to be approved by that
agency. The Census Bureau will provide the Option 4 applicant with an
approval or denial letter. If a denial letter is issued, the Census
Bureau will indicate the partnership agency that denied the
application. The applicant must contact the denying partnership agency
for the specific reason(s) for denial.
(2) Grounds for denial of Option 4 filing status. The Census Bureau
may deny an exporter's application for Option 4 filing privileges for
any of the following reasons:
(i) Applicant is not an established exporter, as defined in this
chapter, with regular operations;
(ii) Applicant has failed to submit SED's to the Census Bureau for
processing in a timely and accurate manner;
(iii) Applicant has a history of noncompliance with Census Bureau
export laws and regulations contained in this chapter;
(iv) Applicant has been indicted, convicted, or is currently under
investigation for a felony involving a violation of Federal export laws
or regulations and the Census Bureau has evidence of probable cause
supporting such violation, or the applicant is in violation of Census
Bureau laws or regulations contained in this chapter; and
(v) Applicant has made or caused to be made in the Letter of Intent
a false or misleading statement or omission with respect to any
material fact.
(3) Notice of nonselection and appeal procedures for Option 4
filing. The Census Bureau will notify applicants in writing of the
decision to either deny or approve the applicant for Option 4 filing
privileges within thirty (30) days of receipt of the Letter of Intent
by the Census Bureau, or if a decision cannot be reached at that time
the applicant will be notified of an expected date for a final decision
as soon as possible after the thirty (30) calendar days. Applicants for
Option 4 filing privileges denied Option 4 status by other partnership
agencies must contact those agencies regarding the specific reason(s)
for nonselection and for their appeal procedures. Applicants denied
Option 4 status by the Census Bureau will be provided with a specific
reason for nonselection and a Census Bureau point of contact in the
notification letter. Option 4 applicants may appeal the Census Bureau's
nonselection decision by following the appeal procedure provided in
paragraph (b)(5) of this section.
(4) Revocation of Option 4 filing privileges. The Census Bureau may
revoke Option 4 filing privileges of approved Option 4 exporters for
the following reasons:
(i) The exporter has made or caused to be made in the Letter of
Intent a false or misleading statement or omission with respect to
material fact;
(ii) The exporter submitting the Letter of Intent is indicted,
convicted, or is currently under investigation for a felony involving a
violation of Federal export laws or regulations and the Census Bureau
has evidence of probable cause supporting such violation, or the
applicant is in violation of Census Bureau laws or regulations
contained in this chapter;
(iii) The exporter has failed to substantially comply with existing
Census Bureau or other agency export regulations; or
(iv) The Census Bureau determines that continued participation in
Option 4 by an exporter would pose a significant threat to national
security interests such that their continued participation in Option 4
should be terminated.
(5) Notice of revocation; appeal procedure. Approved Option 4
filers whose Option 4 filing privileges have been revoked by other
agencies must contact those agencies for their specific revocation and
appeal procedures. When the Census Bureau makes a determination to
revoke an approved Option 4 filer's AES Option 4 filing privileges, the
exporter will be notified in writing of the reason(s) for the decision.
The exporter may challenge the Census Bureau's decision by filing an
appeal within thirty (30) calendar days of receipt of the notice of
decision. In most cases, the revocation shall become effective when the
exporter has either exhausted all appeal proceedings, or thirty (30)
calendar days after receipt of the notice of revocation, if no appeal
is filed. However, in cases when required by national security
interests, revocations will become effective immediately upon
notification. Appeals should be addressed to the Chief, Foreign Trade
Division, Bureau of the Census, Washington, D.C. 20233. The Census
Bureau will issue a written decision to the exporter within thirty (30)
calendar days from the date of receipt of the appeal by the Census
Bureau. If a written decision is not issued within thirty (30) calendar
days, a notice of extension will be forwarded within that time period.
The exporter will be provided with the reasons for the extension of
this time period and an expected date of decision. Approved Option 4
exporters who have had their Option 4 filing status revoked may not
reapply for this status for one year following written notification of
the revocation. Such applications will not be considered before the
one-year time period.
[[Page 7417]]
Sec. 30.63 Information required to be reported electronically through
AES (data elements).
The information (data elements) listed in this section is required
for shipments transmitted electronically through AES. The data elements
as they pertain to electronic reporting are defined as paragraphs (a),
(b), and (c) of this section. Those data elements that are defined in
more detail in other sections of the FTSR are so noted. The data
elements identified as ``mandatory'' must be reported for each
transmission. The data elements identified as ``conditional'' must be
reported if they are required for or apply to the specific shipment.
The data elements identified as ``optional'' may be reported at the
discretion of the exporter.
(a) Mandatory data elements are as follows:
(1) Exporter/exporter identification. (i) Name and address of the
exporter. The exporter is any person in the United States who is the
principal or seller in the export transaction. Generally the exporter
is the U.S. manufacturer (if selling the merchandise for export), the
U.S. seller, order party, or licensee on an export license. A
forwarding agent may be reported as exporter when named as applicant
and licensee on an export license. A foreign entity, not located in the
United States at the time of export, must not be reported as exporter.
(See Sec. 30.4(a) and Sec. 30.7(d) (1), (2), and (e) for details).
(ii) Exporter's profile. The exporter's Employer Identification
Number (EIN) or Social Security Number (SSN) and exporter name,
address, contact, and telephone number must be reported with the
initial shipment. Subsequent shipments may be identified by either EIN,
SSN, or DUNS (Dunn and Bradstreet) number. If no EIN, SSN, or DUNS
number is available for the exporter, as in the case of a foreign
entity being shown as exporter as defined in Sec. 30.7(d), the border
crossing number, passport number, or any other number assigned by U.S.
Customs is required to be reported. (See Sec. 30.7(d)(2) for a detailed
description of the EIN.)
(2) Date of exportation/date of arrival. The exporter or the
authorized forwarding agent in the export transaction must report the
date the merchandise is scheduled to leave the United States for all
modes of transportation. If the actual date is not known, report the
best estimate of departure. The estimated date of arrival must be
reported for shipments to Puerto Rico. (See Sec. 30.7(r) for additional
information.)
(3) Ultimate consignee. The ultimate consignee is the person, party
or designee on the export license who is located abroad and actually
receives the export shipment. The ultimate consignee known at the time
of export must be reported. For goods sold en route, report ``SOLD EN
ROUTE'' and report corrected information as soon as it is known. (See
Sec. 30.7(f) for more information.)
(4) U.S. state of origin. Report the 2-character postal
abbreviation for the state in which the merchandise begins its journey
to the port of export. (See Sec. 30.7(t) (1) and (2) for more
information.)
(5) Country of ultimate destination. Report the 2-character
International Standards Organization (ISO) code for the country of
ultimate destination. The country of ultimate destination, as shown on
the export license, or the country as known to the exporter or
principal party in interest in the export transaction at the time of
export is the country in which the merchandise is to be consumed or
further processed or manufactured. For goods sold en route, report the
country of the first port of call and then report corrected information
as soon as it is known. (See Sec. 30.7(i) for more information.)
(6) Method of transportation. The method of transportation is
defined as that by which the goods are exported or shipped. Report one
of the codes listed in Part I of Appendix C of this part. (See
Sec. 30.7(b) for detailed information on method of transportation.)
(7) Conveyance name. The name of the carrier (sea--vessel name;
others--carrier name) must be reported by the exporter or the
exporter's agent as known at the time of shipment for all shipments
leaving the country by sea, air, truck or rail. Terms such as
``airplane,'' ``train,'' ``truck,'' or ``international footbridge'' are
not acceptable and will generate an error message. (See Sec. 30.7(c)
for more information.)
(8) Carrier identification. Report the 4-character Standard Carrier
Alpha Code (SCAC) for vessel, rail, and truck shipments and the 2- or
3-character International Air Transport Association (IATA) Code for air
shipments to identify the carrier actually transporting the merchandise
out of the United States. (See Sec. 30.7(c) for more information.)
(9) Port of export. Report the code of the U.S. Customs port of
export in terms of Schedule D, ``Classification of Customs Districts
and Ports.'' (See Secs. 30.7(a) and 30.20(c) and (d) for more
information on port of export.)
(10) Related/nonrelated indicator. Indicate if the shipment is
between related parties. Report the information as defined in
Sec. 30.7(v).
(11) Domestic or foreign indicator. Indicate if the commodities are
of domestic or foreign production. Report the information as defined in
Sec. 30.7(p).
(12) Commodity classification number. Report the 10-digit commodity
classification number as provided in Schedule B, ``Statistical
Classification of Domestic and Foreign Commodities Exported from the
United States'' (Schedule B). The 10-digit commodity classification
number provided in the Harmonized Tariff Schedule (HTS) may be reported
in lieu of the Schedule B Commodity classification number except as
noted in the headnotes of the HTS. (See Sec. 30.7(l) for detailed
information.)
(13) Commodity description. Report the commercial description in
sufficient detail to permit the verification of the commodity
classification number. (See Sec. 30.7(l) for more information regarding
reporting the description.)
(14) First net quantity/unit of measure. Report the primary net
quantity in the specified unit of measure and the unit of measure as
prescribed in the Schedule B or HTS or as specified on the export
license.
(15) Gross shipping weight. Report the gross shipping weight in
kilograms for vessel, air, truck, and rail shipments. Include the
weight of containers but exclude the weight of carrier equipment. (See
Sec. 30.7(o) for more information.)
(16) Value. The value shall be the selling price or cost if not
sold, including inland freight, insurance, and other charges to the
U.S. port of export. Report the value in U.S. currency. (See
Sec. 30.7(q) for more information.)
(17) Export information code. Report the appropriate 2-character
export information code as provided in Part II of Appendix C of this
part.
(18) Filer reference number. The filer of the export transaction
provides a unique reference number that allows for identification of
the transaction in their system. This reference number must be unique
for five years.
(19) Line item number. Report a line number for each commodity for
a unique identification of the commodity.
(20) Hazardous material indicator. This is a ``Yes'' or ``No''
indicator identifying the shipment as hazardous as defined by the
Department of Transportation.
(21) In-bond code. Report one of the 2-character in-bond codes
listed in Part IV of Appendix C of this part to indicate the type of
In-Bond or Not In-Bond shipment.
(b) Conditional data elements are as follows:
(1) Forwarding agent/forwarding agent identification. (i) Name and
[[Page 7418]]
address of the forwarding agent. The forwarding agent is any person in
the United States or under jurisdiction of the United States who is
authorized by the exporter to perform the services required to
facilitate the export of merchandise out of the United States or the
person named in the validated export license. (See Secs. 30.4(a) and
30.7(e) for details.)
(ii) Forwarding agent's profile. The forwarding agent's
identification number, EIN, DUNS, or SSN and name and address must be
reported with the initial shipment. Subsequent shipments may be
identified by the identification number.
(2) Intermediate consignee. The intermediate consignee is the
intermediary (if any) who acts in a foreign country as an agent for the
exporter or the principal party in interest or the ultimate consignee
for the purpose of effecting delivery of the export shipment to the
ultimate consignee or the person named on the export license. (See
Sec. 30.7(g) for more information.)
(3) Foreign Trade Zone number. Report the unique 5-character code
assigned by the Foreign Trade Board that identifies the Foreign Trade
Zone from which merchandise is withdrawn for export. (See
Sec. 30.7(t)(3) for more information.)
(4) Foreign port of unloading. For sea shipments only, the code of
the foreign port of unloading should be reported in terms of the 5-
digit codes designated in Schedule K, ``Classification of Foreign Ports
by Geographic Trade Area and Country.'' (See Sec. 30.7(h) for detailed
definitions of port of unloading.)
(5) License number/CFR citation/license code. For licensable
commodities, report the license number of the license issued for the
merchandise. If no license is required, report the regulatory citation
exempting the merchandise from licensing or the conditions under which
the merchandise is being shipped that make it exempt from licensing.
Report one of the 3-character codes listed in Part III of Appendix C of
this part to indicate the type of license, permit, License Exception,
or no license required.
(6) Export Control Classification Number. Report the Export Control
Classification Number for merchandise as required by the Bureau of
Export Administration Regulations (15 CFR Parts 730 through 774).
(7) Second net quantity/unit of measure. When Schedule B requires
two units of quantity be reported, report the second net quantity in
the specified unit of measure and the unit of measure as prescribed in
the Schedule B or HTS. (See Sec. 30.7(n) for more information.)
(8) Used self-propelled vehicles. Report the following items of
information for used self-propelled vehicles as defined in 19 CFR
192.1:
(i) Vehicle Identification Number. Report the unique Vehicle
Identification Number (VIN) in the proper format;
(ii) Product Identification Number. Report the Product
Identification Number (PIN) for those used self-propelled vehicles for
which there are no VINs;
(iii) Vehicle title number. Report the unique title number issued
by the Motor Vehicle Administration; and
(iv) Vehicle title state. Report the 2-character postal
abbreviation for the state or territory of the vehicle title.
(9) Entry number. Report the Import Entry Number when the export
transaction is to be used as proof of export for import transactions
such as In-Bond, Temporary Import Bond, Drawback, and so forth.
(10) Wavier of prior notice. This is a ``Yes'' or ``No'' indicator
to determine if the person claiming drawback received a waiver of prior
notice for the exported merchandise.
(11) Booking number. Report the booking number for all sea
shipments.
(c) Optional data elements are as follows:
(1) Marks and numbers. The exporter or the authorized forwarding
agent in the export transaction may opt to report any special marks or
numbers that appear on the physical merchandise or its packaging that
can identify the shipment or a portion thereof. (See Sec. 30.7(j) for
more information.)
(2) Equipment number. Report the container number for containerized
shipments. This number may be reported in conjunction with the booking
number.
(3) Seal number. Report the security seal number of the seal placed
on the equipment.
Sec. 30.64 Transmitting and correcting AES information.
(a) The exporter or their authorized forwarding agent is
responsible for electronically transmitting corrections, cancellations,
or amendments to shipment information previously transmitted using the
AES. Corrections, cancellations, or amendments should be made as soon
as possible after exportation when the error or omission is discovered.
(b) For shipments where the exporter or their authorized forwarding
agent has received an error message from AES, the corrections must take
place immediately. A fatal error message will cause the shipment to be
rejected. This error must be corrected prior to exportation of the
merchandise. For shipments where a warning message is received, the
correction must be made within four (4) working days of receipt of the
transmission, otherwise AES will generate a reminder message to the
filer. For shipments with a verify message, corrections when warranted
should be made as soon as possible after notification of the error by
the AES.
Sec. 30.65 Annotating the proper exemption legends for shipments
transmitted electronically.
The exporter or their authorized forwarding agent is responsible
for annotating the proper exemption legend on the bill of lading,
airway bill, or other commercial loading document for presentation to
the carrier, either on paper or electronically prior to export. The
exemption legend will identify that the shipment information has been
transmitted electronically using the AES. The exemption legend will
include the statement ``NO SED REQUIRED-AES'' followed by the filers
identification number and a unique shipment reference number or the
returned confirmation number. For exporters who have been approved to
participate in Filing Option 4, the exemption statement will include
the exporter's identification number and the filers identification
number if other than the exporter. The exemption legend must appear on
the first page of the bill of lading, airway bill, or other commercial
loading document and must be clearly visible.
Sec. 30.66 Recordkeeping and documentation requirements.
All parties to the export transaction (owners and operators of the
exporting carriers and exporters and their authorized forwarding
agents) must retain documents or records verifying the shipment for
five (5) years from the date of export. Customs, the Census Bureau, and
other participating agencies may require that these documents be
produced at any time within the 5-year time period for inspection or
copying. These records may be retained in an elected format including
electronic or hard copy. Acceptance of the documents by Customs or the
Census Bureau does not relieve the exporter or their authorized
forwarding agent from providing complete and accurate information after
the fact.
Subpart H--General Administrative Provisions
7. Section 30.91 is amended by revising paragraph (a) to read as
follows:
[[Page 7419]]
Sec. 30.91 Confidential information, Shipper's Export Declarations.
(a) Confidential status. The Shipper's Export Declaration is an
official Department of Commerce form, prescribed jointly by the Bureau
of the Census and the Bureau of Export Administration. Information
required thereon is confidential, whether filed electronically or in
any other approved format, for use solely for official purposes
authorized by the Secretary of Commerce. Use for unauthorized purposes
is not permitted. Information required on the Shipper's Export
Declarations may not be disclosed to anyone except the exporter or his
agent by those having possession of or access to any copy for official
purposes, except as provided in paragraph (e) of this section.
* * * * *
8. Appendices A, B, and C are added to part 30 to read as follows:
Appendix A to Part 30--Format for Letter of Intent, Automated
Export System (AES)
A. Letters of Intent should be on company letterhead and must
include:
1. Company Name, Address (no P.O. Boxes), City, State, Postal Code
2. Company Contact Person, Phone Number, Fax Number
3. Technical Contact Person, Phone Number, Fax Number
4. Corporate Office Address, City, State, Postal Code
5. Computer Site Location Address, City, State, Postal Code
6. Type of Business--Exporter, Freight Forwarder/Broker, Carrier,
NVOCC, Port Authority, Software Vendor, Service Center, etc.
(Indicate all that apply)
(i) Are you currently an AERP Participant? What is the AERP
symbol?
(ii) Freight Forwarder/Brokers indicate the number of exporters
for whom you file export information (AERP and SEDs).
(iii) Exporters indicate whether you are applying for AES,
Option 4 filing, or both.
7. U.S. Ports of Export Currently Utilized
8. Average Monthly Volume of Export Shipments
9. Average Monthly Value of Export Shipments
10. Filer Code--EIN, DUNS, SSN, or SCAC (Indicate all that apply)
11. Software Vendor Name, Contact, and Phone Number (if using vendor
provided software)
12. Look-a-Like Remote to Copy (as provided by vendor)
13. Modes of Transportation used for export shipments (Air, Vessel,
Truck, Rail, etc.)
14. Types of Merchandise exported
15. Types of Licenses or Permits
16. Anticipated Implementation Date
B. The following self-certification statement, signed by an
officer of the company, must be included in your letter of intent:
``I hereby certify that Company Name is, and will continue to be, in
compliance with all applicable laws and regulations.''
C. Send AES Letter of Intent to: Chief, Foreign Trade Division,
Bureau of the Census, Washington, DC 20233. Or, the copy can be
faxed to: 301-457-1159.
Appendix B to Part 30--Required Pre-Departure Data Elements for
Filing Option 3
(1) Identifier of Exporter--EIN, etc.
(2) Forwarding Agent I.D.--EIN, etc.
(3) Carrier I.D. (SCAC or IATA).
(4) Country of Ultimate Destination--ISO code.
(5) Name of Ultimate Consignee.
(6) (a) Commodity description or (b) Optional--Schedule B No. or HTS
code
(7) Unique Identifying Number--shipment reference number (17
characters or less), e.g., airway bill number. (The unique
identifying number/shipment reference number must appear in the
shipper's reference number field on the ocean bill of lading).
(8) Intended U.S. Port of Export
(9) Estimated Date of Export.
(10) Transportation Reference Number, e.g., vessel booking number,
airway bill number.
(11) Method of Transportation (MOT) code.
(12) HAZMAT--Y/N
(13) License code.
(14) Export License Number.
Appendix C to Part 30--Electronic (AES) Filing Codes
Part I--Method of Transportation Codes
10 Sea
11 Sea Containerized
12 Sea (Barge)
20 Rail
30 Truck
32 Auto
33 Pedestrian
34 Road, Other
50 Mail
40 Air
60 Passenger, Hand Carried
70 Fixed Transport (Pipeline and Powerhouse)
Part II--Export Information Codes
LC Shipments valued $2,500 or less per classification number that
are required to be reported
TP Temporary exports of domestic merchandise
IP Shipments of merchandise imported under a Temporary Import Bond
for further manufacturing or processing
IR Shipments of merchandise imported under a Temporary Import Bond
for repair
DB Drawback
CH Shipments of goods donated for charity
FS Foreign Military Sales
OS All other exports
HV Shipments of personally owned vehicles
HH Household and personal effects
SR Ship's stores
TE Temporary exports to be returned to the United States
TL Merchandise leased for less than a year
IS Shipments of merchandise imported under a Temporary Import Bond
for return in the same condition
CR Shipments moving under a carnet
GP U.S. government shipments
LV Shipments valued $2,500 or less that are not required to be
reported
SS Carriers' stores for use on the carrier
MS Shipments consigned to the U.S. armed forces
GS Shipments to U.S. government agencies for their use
DP Diplomatic pouches
HR Human remains
UG Gift parcels under Bureau of Export Administration License
Exception GFT
IC Interplant correspondence
SC Instruments of international trade
DD Other exemptions:
Currency
Airline tickets
Bank notes
Internal revenue stamps
State liquor stamps
Advertising literature
Shipments of temporary imports by foreign entities for their use
RJ Inadmissible merchandise
(See Secs. 30.50 through 30.58 for information on filing
exemptions.)
Part III--License Codes
Department of Commerce, Bureau of Export Administration (BXA) Licenses
C30 BXA Licenses
C31 SCL
C32 NLR (CCL/NS Column 2)
C33 NLR (All Others)
C34 Future Use
C35 LVS
C36 GBS
C37 CIV
C38 TSR
C39 CTP
C40 TMP
C41 RPL
C42 GOV
C43 GFT
C44 TSU
C45 BAG
C46 AVS
C47 APR
C48 KMI
C49 TAPS
C50 ENC
Nuclear Regulatory Commission (NRC) Codes
N01 NRC Form 250/250A
N02 NRC General License
Department of State, Office of Defense Trade Controls (ODTC) Codes
SAG Agreements
S00 License Exemption Citation
S05 DSP-5
S61 DSP-61
S73 DSP-73
S85 DSP-85
Department of Treasury, Office of Foreign Assets Control (OFAC) Codes
T10 OFAC Specific License
T11 OFAC General License
[[Page 7420]]
Other License Types
OPA Other Partnership Agency Licenses not listed above
Part IV--In-Bond Codes
70 Not-In-Bond
36 Warehouse Withdrawal for Immediate Exportation
37 Warehouse Withdrawal for Transportation and Exportation
62 Transportation and Exportation
63 Immediate Exportation
67 Immediate Exportation from a Foreign Trade Zone
68 Transportation and Exportation from a Foreign Trade Zone
Dated: January 19, 1999.
Kenneth Prewitt,
Director, Bureau of the Census.
[FR Doc. 99-3309 Filed 2-11-99; 8:45 am]
BILLING CODE 3510-07-P
