Federal Register Notices
Federal Register: October 9, 2002 (Volume 67, Number 196)]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
DEPARTMENT OF COMMERCE
Bureau of the Census
15 CFR Part 30
[Docket Number 010622161-2029-02]
Automated Export System Mandatory Filing for Items on the Commerce Control
List (CCL) and the United States Munitions List (USML) That Currently
Require a Shipper's Export Declaration (SED)
AGENCY: Bureau of the Census, Commerce.
ACTION: Notice for proposed rulemaking and request for comments.
SUMMARY: The U.S. Census Bureau (Census Bureau) is amending the Foreign
Trade Statistics Regulations (FTSR) to incorporate requirements for the
mandatory Automated Export System (AES)/AESDirect filing for items identified
on the Department of Commerce's Commerce Control List (CCL) and the Department
of State's United States Munitions List (USML). The AES is the electronic
method to file the Shipper's Export Declaration (SED) and the ocean manifest
information directly with the U.S. Customs Service (Customs). AESDirect
is the Census Bureau's free Internet-based system for filing SED information
with the Customs' AES. Further references to AES covers both AES and AESDirect.
You are only required to file information via AES for those items that
require a SED. This rule will, among other things, provide provisions
for AES mandatory filing in the FTSR.
DATES: Submit written comments on or before December 9, 2002.
ADDRESSES: Please direct all written comments on this proposed rule to
the Director, U.S. Census Bureau, Room 2049, Federal Building 3, Washington,
FOR FURTHER INFORMATION CONTACT: C. Harvey Monk, Jr., Chief, Foreign
Trade Division, U.S. Census Bureau, Room 2104, Federal Building 3,
Washington, D.C. 20233-6700, (301) 763-2255, by fax (301) 457-2645, or
by e-mail: firstname.lastname@example.org.
On July 26, 2001, the Census Bureau published a program notice in the
Federal Register (66 FR 39006) announcing that we would be issuing rules,
and allowing the public to comment, on this subject.The Census Bureau
is responsible for collecting, compiling, and publishing trade statistics
for the United States under the provisions of Title 13, United States
Code (U.S.C.), Chapter 9, Section 301. The paper SED and the AES are the
primary media used for collecting such trade data, and the information
contained therein is used by the Census Bureau for statistical purposes
only. This information is exempt from public disclosure under the provisions
of Title 13, U.S.C., Chapter 9, Section 301(g). The SED and AES records
also are used for export control purposes under Title 50, U.S.C., and
Title 22, U.S.C., to detect and prevent the export of certain critical
technology and commodities to unauthorized destinations or end users.Under
the current rules and regulations, export information is compiled from
both paper and electronic transactions filed by the export community with
Customs and the Census Bureau. The AES is an electronic method by which
the U.S. principal party in interest or the authorized agent can transmit
the required export information. For purposes of completing the SED or
AES record, the U.S. principal party in interest (USPPI) is the person
in the United States that receives the primary benefit, monetary or otherwise,
from the export transaction. The authorized agent is the person in the
United States who is authorized by power of attorney or written authorization
by the USPPI or the foreign principal party in interest to prepare and
file the SED or AES record. A paper SED or the electronic equivalent AES
record is required, with certain exceptions, for exports of merchandise
valued at more than $2,500 from the United States, Puerto Rico, and the
United States Virgin Islands to foreign countries or exports between U.S.
Virgin Islands and Puerto Rico and the United States. The SED or AES record
also is required for all exports under a Bureau of Industry and Security
(BIS) or Department of State (State Department) export license or State
Department license exemption, regardless of value, unless exempted from
the requirement for an SED or AES record by the State Department (see
15 CFR, part 30, Sec. 30.55(h)(2) and 22 CFR parts 120-130).
For export data filed via a paper SED, the USPPI or freight forwarder
must present the SED to the exporting carrier when the cargo is tended
to the carrier. The vessel, air or rail carrier must present the manifest
and supporting documentation to the Customs Port Director at the port
of export within four days after departure if a bond is posted with Customs.
However, this rule does not apply to SEDs or AES shipments subject to
BIS or State Department licenses or State Department license exemptions.
If the information is filed in the AES, an exemption legend is included
on the vessel, air, or rail manifest, or other commercial loading document
indicating that no SED is attached, with a transaction identification
number or unique identifier to identify the electronic AES record. If
no manifest is required or the manifest is electronically filed, the paper
SEDs or the electronically filed AES exemption legends are presented directly
Electronic filing strengthens the U.S. Government's ability to control
the export of critical goods and technologies and weapons of mass destruction
to prohibited and unauthorized end-users and affords the government the
ability to significantly improve the quality, timeliness, and coverage
of export statistics. Currently, fifty (50) percent of the paper SEDs
submitted contain one or more errors in export reporting, accounting for
a significant percentage of unreported exports. Reporting on the AES has
demonstrated that, compared to paper filing, the error rate is reduced
substantially and coverage is improved. Currently, the error rate for
export transactions filed through the AES is approximately six (6) percent.
At this time, the electronic AES filing of the required export information
under Title 13, U.S.C., Section 301, is strictly voluntary for the export
of any item.
On November 29, 1999, the President signed H.R. 3194, the Consolidated
Appropriations Act of 1999, into law (Pub. L. 106-113). Section 1252(a)
of this law, amends Title 13, U.S.C., Chapter 9, section 301 to add subsection
``(h)'' authorizing the Secretary of Commerce to require by regulation,
mandatory reporting requirements for filing export information through
the AES for items identified on the CCL and USML that require the SED.
The effective date of this amendment is 270 days after the Secretary of
Commerce, the Secretary of the Treasury, and the Director of the National
Institute of Standards and Technology jointly provide a certification
to the Committee on Foreign Relations of the Senate and the Committee
on International Relations of the U.S. House of Representatives that a
secure AES mainframe computer system of Customs and the Internet-based
AESDirect system of the Census Bureau is capable of handling the expected
volume of information required to be filed, plus the anticipated volume
from voluntary use of the AES has been successfully implemented and tested
and is fully functional with respect to reporting all items on the USML,
including quantities and destinations. The required certification report
was submitted to Congress on June 2001. The certification report described
the security measures in place to develop, implement, and maintain each
system; summarized the information system assessment reports prepared
by the General Services Administration (GSA), Office of Information Security,
and Customs; and provided the Census Bureau's response to those security
assessment reports listing the specific actions taken by both agencies
to ensure the security and functionality of the system. In addition, the
AES has received a security accreditation from Customs, and the AESDirect
system has received a security accreditation from the Census Bureau. On
July 26, 2001, the Census Bureau published a program notice in the Federal
Register (66 FR 39006) announcing that the AES certification report was
submitted to Congress.
As authorized by Section 1252(b) of Pub. L. 106-113, the Census Bureau
proposes to amend the FTSR to specify the mandatory provisions for electronically
filing SEDs as well as the time and place requirements for filing. In
addition, the Census Bureau proposes to amend the FTSR to specify: (1)
The requirements for the filing of SEDs through the electronic AES and
the provisions and responsibilities of parties exporting items identified
on the CCL and USML via the AES; (2) the provision by the Department of
Commerce for the establishment of on-line assistance services to be available
for those individuals who must use the AES; (3) the provision by the Department
of Commerce for ensuring that an individual required to use the AES is
able to print out from the AES a validated record of the individual's
submission, including the date of submission and a transaction number
or unique identifier, where appropriate, for the export transaction; and
(4) a requirement that the Department of Commerce print out and maintain
on file a paper copy or other acceptable back-up record of the individual's
submission at a location selected by the Secretary of Commerce. This rule
defines the regulatory revisions that would be made to implement this
legislation. The Census Bureau also proposes to amend the FTSR to specify
how electronic export information is identified on the manifest by mode
of transportation and define the carrier's responsibilities. In addition
to proposing regulations on the provisions for the mandatory filing via
the AES, this Notice of Proposed Rulemaking proposes to amend Sec. Sec.
30.63 (14)-(21) to collect additional data through the AES to meet the
State Department's requirements. Finally, this notice proposes to add
to the paper SED the requirement to enter the freight forwarder's Employer
Identification Number (EIN) when required. This requirement applies to
filers who are not required to file through AES and who choose to file
a paper SED, rather than filing voluntarily through AES.One additional
revision the Census Bureau proposes for the FTSR is the removal of AES
Filing Option 3. Option 3 allows the filer to provide partial pre-departure
information and complete information five (5) working days from the date
of exportation. The Census Bureau identified four (4) specific reasons
for making Option 3 inactive. Option 3 has shown to be underutilized by
the AES filers. Option 3 filers have frequently shown noncompliance with
timely filing for both the pre-departure and post departure filings and,
therefore, the data collected are often incomplete and inaccurate because
of missing post departure filings. Lastly, Option 3 has shown to be a
burden by requiring filers to transmit twice for one shipment. Of the
734,916 total average AES shipment transactions collected per month, Option
3 filings average only 28,739 or 3.9 percent. Additionally, of the 5,000
plus AES filers, only 53 filers are using Option 3 and of those, only
7 use Option 3 exclusively.The mandatory compliance date for these regulatory
requirements would be 90 days after issuance of any final rule.
In order to comply with the requirements of Pub. L. 106-113, the Census
Bureau proposes amending the appropriate sections of the FTSR to specify
the requirements for the AES mandatory filing and the revision to the
paper SED. For purposes of this rule, all references to filing mandatory
AES shipments do not apply to the paper SED.The Census Bureau proposes
revising the following sections of the FTSR: (a) Section 30.1 to specify
the general requirements for filing items identified on the CCL and USML,
that require the SED, via the AES; (b) Section 30.7 to add instructions
for filing the address of the USPPI, the freight forwarder's EIN on the
paper SED, the transportation reference number, instructions for filing
the gross shipping weight for air, vessel, truck and rail modes of transportation
via paper and the AES and delete references to ``marks and numbers'';
(c) Section 30.12 to specify the instructions regarding the time and place
for presenting SED information; (d) Section 30.21 to specify the departing
carrier's responsibility for filing export and manifest data via paper
and the AES; (e) Section 30.22 to specify the responsibilities of the
departing carrier to deliver to the Customs Port Director at the time
of exportation, the required documentation for electronically filed items;
(f) Section 30.23 to amend the requirements for the pipeline carrier when
the item is identified on the CCL or USML; (g) Section 30.60 is amended
to specify participation requirements in the AES; (h) Section 30.61 to
specify the electronic filing options required for mandatory filing and
to delete references to Option 3; (i) Section 30.62 is amended to update
the specifications for certification, qualification and standards for
AES and AESDirect; (j) Section 30.63 to revise the requirements for entering
a USPPI's profile in AES and to add data elements required in the AES
to validate State Department's Office of Defense Trade Controls (ODTC)
licensed or license-exempt shipments and to delete references to Option
3; (k) Section 30.65 to specify the requirements for annotating the proper
exemption legends when exports are filed through the AES; (l) Section
30.66 to specify requirements as stated in Section 1252(b)(2) of Pub.
L. 106-113, which pertains to record keeping and documentation requirements;
(m) revise Appendix A to amend the instructions for the Letter of Intent;
revise Appendix B to delete references to Option 3 filing and to reserve
it for future use; and (o) revise Appendix C, Part II--Export Information
Codes and Part III--License Codes, Bureau of Industry and Security Codes
and Department of State Codes to specify additional license codes required
and reference as to where to locate the International Traffic in Arms
Regulations (ITAR) license exemption citations. Revise Part IV--In-Bond
Code to delete codes that pertain only to import shipments. The collection
of additional data items listed in Appendix C has been approved by the
Office of Management and Budget (OMB).
The State Department and the Department of Treasury concur with the provisions
contained in this notice of proposed rulemaking.
Administrative Procedure Act
This proposed rule is exempt from all requirements of Section 553 of
the Administrative Procedure Act, because it deals with a foreign affairs
function of the United States (5 U.S.C. 553(a)(1)). However, this rule
is being published as a proposed rule with an opportunity for public comment,
because of the importance of the issues raised by this rulemaking.
Regulatory Flexibility Act
The Chief Counsel for Regulation of the Department of Commerce certified
to the Chief Counsel for Advocacy of the Small Business Administration
that this rule will not have a significant impact on a substantial number
of small entities. This action requires that exporters file export information
through the AES for items identified on the CCL and USML that currently
require the SED. Currently, 85 percent of all export transactions are
voluntarily filed electronically and the remaining 15 percent are filed
on paper SEDs.Based on year 2000 data, the Census Bureau estimates there
were 128,000 exporters who were considered small entities under the Small
Business Act--because they had less than 500 employees--and that filed
one or more export shipments. Of these 128,000 exporters, 90 percent used
a forwarding agent to file export documentation, the SED, on their behalf.
Although, it is not possible to determine how many of the 128,000 small
businesses exported merchandise identified on the CCL or the USML and
that are currently required to file an SED, the Census Bureau anticipates
that the new requirement would not significantly affect the small businesses
who must now file through AES. It is unlikely that the regulations that
require mandatory use of AES to file export information would affect a
substantial number of small entities because 90 percent of all exporters
who are considered small entities already use a forwarding agent to file
export documentation.In addition, those small exporters that do not currently
use a forwarding agent to file export documentation will not be significantly
impacted by this regulation. We can safely assume that small businesses
involved in exporting items on the CCL and USML are electronically sophisticated,
and would have access to a computer and the Internet. The Census Bureau
has provided a free Internet-based system, AESDirect, especially for small
businesses to submit their export information electronically. The implementation
of AESDirect was the primary criteria required in order for Section 1252
of Pub. L. 106-113 to become effective. Therefore, it is not necessary
for small businesses to purchase software for this task. Small businesses
currently filing paper and who will now be required to file electronically
will be able to continue to use their current forwarding agent who will
be required to file the export information electronically on their behalf
or the exporters can use AESDirect and file directly for themselves.
This rule has been determined to be not significant for purposes of
Executive Order 12866. It has been determined that this rule does not
contain policies with Federalism implications as that term is defined
under Executive Order 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, OMB approved
on April 26, 2002, with control number 0607-0512, the collection of all
information associated with the AES and SED under this rule. We estimate
that each electronic SED will take approximately 3 minutes to complete;
we estimate that each paper SED will take approximately 11 minutes to
List of Subjects in 15 CFR Part 30
Economic statistics, Foreign trade, Exports, Reporting and record keeping
For the reasons set out in the preamble, it is proposed that Part 30 be
amended as follows:
PART 30--FOREIGN TRADE STATISTICS
1. Revise the authority citation for part 30 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); and Department of Commerce Organization
Order No. 35-2A, July 22, 1987, as amended.
2. In Part 30, revise all references to the ``Bureau of Export Administration''
to read the ``Bureau of Industry and Security'' and revise all reference
to ``BXA'' to read ``BIS.''
3. Revise the heading of Subpart A to read as follows:
Subpart A--General Requirements--U.S. Principal Party In Interest
4. Amend Sec. 30.1 to revise all references to ``exporters or their
authorized agents'' to read ``U.S. principal party in interest or the
authorized agent,'' in paragraph (a), revise paragraph (b) and paragraph
(c) to read as follows:
Sec. 30.1 General statement of requirement for Shipper's Export Declarations.
* * * * *
(b) Export information that is required to be filed for items identified
on the Commerce Control List (CCL) of the Export Administration Regulations
(EAR) (15 CFR Supplement No. 1 to Part 774) or the U.S. Munitions List
(USML) of the International Traffic in Arms Regulations (ITAR) (22 CFR,
part 121) is to be filed electronically through AES. This requirement
to file information via AES applies to those items that require a Shipper's
Export Declaration. Exemptions from these requirements and exceptions
to some of the provisions of these regulations for particular types of
transactions are found in subparts C and D of this part.
(c) In lieu of filing paper SEDs as provided elsewhere in this Section,
the U.S. principal party in interest or the authorized agent is required
to file shippers' export information, when required, electronically through
the AES for the export of items identified on the CCL of the EAR (15 CFR
Supp. No. 1 to part 774) or the USML of the ITAR (22 CFR, part 121) as
provided for in
subpart E of this part, Electronic Filing Requirement-Shipper's Export
Information. Information for items identified on the USML, including those
exported under an export license exemption, must be filed electronically
prior to export, unless exempted from the SED filing requirement by the
State Department. For State Department USML shipments, refer to the International
Traffic in Arms Regulations (22 CFR, parts 120-130) for State Department
requirements concerning the AES exemption legend and filing time requirements.
The U.S. principal party in interest or the authorized agent filing SEDs
for the export of items not on the CCL or the USML have the option of
filing this information electronically as provided for in subpart E of
5. Amend Sec. 30.7 as follows:
a. Add paragraph (d)(3).
b. Revise the first sentence of paragraph (e).
c. Remove and reserve paragraph (k).
d. Revise paragraphs (j) and (o).
e. Add a sentence after the second sentence in paragraph (l).
The additions and revisions read as follows:
Sec. 30.7 Information required on Shipper's Export Declaration.
* * * * *
(d) * * *
(3) Address (number, street, city, state, Zip Code) of the USPPI. In all
export transactions, the USPPI shall report the address location from
which the merchandise actually starts its journey to the port of export.
For example, a Shipper's Export Declaration covering merchandise laden
aboard a truck at a warehouse in Georgia for transport to Florida for
loading onto a vessel for export to a foreign country shall show the address
of the warehouse in Georgia. If the USPPI does not have a facility (processing
plant, warehouse or distribution center, retail outlet, etc.) at the location
from which the goods began their export journey, report the USPPI address
from which the export was directed. For shipments of multiple origins
reported on a single SED, report the address from which the greatest value
begins its export journey or, if such information is not known at the
time of export, the address from which the export is directed.(e) Forwarding
or other agent. The name, address, and Employer Identification Number
(EIN) or Social Security Number (SSN) 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. * * *
(j) Transportation Reference Number. Enter the Transportation Reference
Number as follows:
(1) Vessel Shipments. Report the booking number for all sea shipments.
The booking number is the reservation number assigned by the carrier to
hold space on the vessel for cargo being exported.(2) Air Shipments. Report
the master air waybill number for all air shipments. The air waybill number
is the reservation number assigned by the carrier to hold space on the
airplane for cargo being exported.(3) Rail Shipments. Report the bill
of lading (BOL) number for all rail shipments. The BOL number is the reservation
number assigned by the carrier to hold space on the rail car for cargo
being exported.(4) Truck Shipments. Report the Freight or Pro Bill number
for all truck shipments. The Freight or Pro Bill number is the number
assigned by the carrier to hold space on the truck for cargo being exported.
The Freight or Pro Bill number correlates to a bill of lading number,
air waybill number or Trip number for multi-modal shipments.
(l) * * * Include marks, numbers or other identification shown on packages
and the number and kinds of packages (i.e., boxes, barrels, baskets, bales,
etc.). * * *
(o) Gross (shipping) weight. Enter the gross shipping weight in kilograms
on the SED or the AES record, including the weight of containers, for
air, vessel, truck, and rail methods of transportation.However, for containerized
cargo in lift vans, cargo vans, or similar substantial outer containers,
the weight of such containers should not be included in the gross weight
of the commodities. If the gross shipping weight information is not available
for individual Schedule B items because commodities covered by more than
one Schedule B number are contained in the same shipping container, approximate
shipping weights should be used for each Schedule B item in the container.
The total estimated weights must equal the actual shipping weight of the
entire container or containers and contents.
* * * * *
6. Revise Sec. 30.12 to read as follows:
Sec. 30.12 Time and place for presenting the SED or Exemption Legends.
The following conditions govern the time and place to present paper
SEDs or the AES transaction identification number that identifies the
lectronic record. It is the duty of the principal party in interest or
the authorized agent to deliver the required number of copies of the SED
or the exemption legends when the cargo is tendered to the exporting carrier.
Information on items identified on the Commerce Control List (CCL) of
the EAR (15 CFR Supp. No. 1 to part 774) or the U.S. Munitions List (USML)
of the International Traffic in Arms Regulations (ITAR) (22 CFR, Part
121) that require an SED, must be filed through the AES. Information for
items identified on the USML, including those exported under an export
license exemption, must be filed electronically prior to export, unless
exempted from the SED filing requirements by the State Department. For
State Department USML shipments, refer to the ITAR (22 CFR, Parts 120-130)
for more specific requirements concerning the AES exemption legend and
filing time requirements. Failure of the U.S. principal party in interest
or the authorized agent of either the U.S. principal party in interest
or foreign principal party in interest to comply with these requirements
constitutes a violation of the provisions of these regulations, and reders
such principal party or the authorized agent subject to the penalties
provided for in Sec. 30.95 of this part.
(a) Postal Exports. SEDs for exports of items being sent by mail, as required
in Sec. 30.1 of this part, shall be presented to the postmaster with the
packages at the time of mailing.
(b) Pipeline Exports. SEDs for exports being sent by pipeline are not
required to be presented prior to exportation; however, they are required
to be filed within four (4) working days after the end of each calendar
month. These SEDs must be filed with the Customs Port Director having
jurisdiction for the pipeline, and the filer must deliver the SED in the
number of copies specified in Sec. 30.5 of this part to cover exports
to each consignee during the calendar month.(c) Exports by other methods
of transportation. For exports sent other than by mail or pipeline, the
required number of copies of SEDs as prescribed in Sec. 30.5 of this part
shall be delivered to the exporting carrier when the cargo is tendered
to the exporting carrier.(d) Exports Filed Via AES. For exports filed
through the AES, it is the duty of the U.S. principal party in interest
or the authorized agent to deliver to the exporting carrier, the AES exemption
legends as provided for in Sec. 30.65 of this part or 22 CFR (parts 120-130)
of the ITAR when the cargo is tendered to the exporting carrier.
Subpart B--General Requirements--Exporting Carriers
7. Revise Sec. 30.21 to read as follows:
Sec. 30.21 Requirements for the filing of manifests.
Carriers transporting merchandise via vessel, aircraft, or rail are
required to file an outbound manifest (along with the required SEDs, supporting
documentation and/or the exemption statement) to the Customs Port Director
at the port of exportation. Outbound vessel manifests may be filed via
paper or electronically through the vessel transportation module, a component
of the AES, as provided in U.S. Customs Service Regulations, 19 CFR 4.63
and 4.76. SEDs may be filed via paper or electronically via the AES.
(a) Paper SED--paper manifest. If filing paper SEDs and paper manifest,
attach the copies of the SEDs to the manifest. For each item of cargo,
the Transportation Reference Number on the SED covering the item must
be shown on the manifest.
(b) Paper SED--electronic manifest. If filing paper SEDs and the electronic
outbound vessel manifest, carriers are responsible for submitting paper
SEDs directly to the Customs Port Director.(c) Electronic SED--paper manifest.
If filing the electronic SED and paper outbound manifest, carriers must
annotate the outbound manifest with the appropriate AES exemption legends
as provided in Sec. 30.65 of this part.
(d) Electronic SED and manifest. If filing the SED information and outbound
vessel manifest electronically through the AES, the carrier must adhere
to the instructions specified in U.S. Customs Regulations, 19 CFR, 4.76
and Sec. 30.60 of this Part and transmit the appropriate exemption legend
as provided in Sec. 30.65 of this part.
(e) When an SED is not required. If an item does not require a SED, the
proper exemption legend must be annotated on the outbound manifest or
other appropriate commercial documents as provided in Sec. 30.50 of this
(f) Exports to Puerto Rico. When filing paper manifests for shipments
from the United States to Puerto Rico, the manifest shall be filed with
the Customs Port Director where the merchandise is unladen in Puerto Rico.
(1) Vessels. Vessels transporting merchandise as specified in Sec. 30.20
of this part (except vessels exempted by paragraph (e)(4) of this section)
shall file a complete Cargo Declaration Outward With Commercial Forms,
Customs Form 1302-A. In addition, vessel carriers are required to perform
(i) Bunker fuel. Vessel manifest (including vessels carrying bunker fuel
to be laden aboard vessels on the high seas) clearing for foreign countries
shall show quantities and values of bunker fuel taken aboard at that port
for fueling use of the vessel, apart from such quantities as may have
been laden on vessels as cargo.
(ii) Coal and Fuel Oil. The quantity of coal shall be reported in metric
tons (2240 pounds), and the quantity of fuel oil shall be reported in
barrels of 158.98 liters (42 gallons). Fuel oil shall be described in
such manner as to identify diesel oil as distinguished from other types
of fuel oil.
(2) Aircraft. Aircraft transporting merchandise as specified in Sec. 30.20
of this part, shall file a complete manifest on Customs Form 7509, as
required in U.S. Customs Regulations, 19 CFR 122.72 through 122.76. All
the cargo so laden shall be listed and shall show, for each item, the
air waybill number or marks and numbers on packages, the number of packages,
and the description of the goods.(3) Rail carriers. Rail carriers transporting
merchandise as specified in Sec. 30.20 of this Part shall file a car manifest.
Such manifest shall be filed with the Customs Port Director at the port
of exportation, giving the marks and numbers, the name of the shipper
or consignor, description of goods and the destination thereof. The manifest
may be a waybill, or copy thereof, or a copy of the manifest prepared
for foreign customers.
(4) Carriers not required to file manifests. Carriers other than vessels,
aircraft, and rail carriers, or vessels under 5 net tons engaged in trade
with a foreign country other than by sea are not required to file manifests.
Vessels specifically exempted from entry by section 441 of the Tariff
Act of 1930 are exempt from filing manifests. Carriers exempted from filing
manifests are required, upon request, to present to the Customs Port Director
regulatory SED exemption legends or AES exemption legends. Failure of
the carrier to do so constitutes a violation of the provisions of these
regulations, and renders such carrier subject to the penalties provided
for in Sec. 30.95 of this
8. Amend Sec. 30.22 by adding a sentence to the end of paragraph (a),
adding a sentence after the first sentence in paragraph (b), and adding
paragraph (f) to read as follows:
Sec. 30.22 Requirements for the filing of Shipper's Export Declarations
or AES Exemption Legends by departing carriers.
(a) * * * When the export information for a shipment is filed via the
AES, the carrier is responsible for presenting the proper AES exemption
legend as provided in Sec. 30.65 of this part and the ITAR (22 CFR part
121) for U.S. Munitions List (USML) shipments.(b) * * * If the export
information is filed electronically via the AES, the carrier is responsible
for providing the Customs Port Director at the port of exportation with
the proper AES exemption legend as provided in Sec. 30.65 of this part
and the ITAR (22 CFR, part 121) for U.S. Munitions List (USML) shipments.
* * * * *
(f) Information on items identified on the Commerce Control List of the
EAR (15 CFR Supp. No. 1 to part 774) or the U.S. Munitions List of the
ITAR (22 CFR part 121) that require an SED, must be filed through AES.
The exporting carrier must not accept paper SEDs or cargo that does not
have the appropriate AES filing exemption legend as set forth in Sec.
30.65 of this part and the ITAR (22 CFR part 121) for U.S. Munitions List
(USML) shipments. Acceptance of paper SEDs or cargo without the appropriate
exemption legend constitutes a violation of the provisions of these regulations,
and renders such carrier subject to the penalties provided for in Sec.
30.95 of this part.
* * * * *
9. Amend Sec. 30.23 by adding a sentence to the end of the paragraph to
read as follows:
Sec. 30.23 Requirements for the filing of Shipper's Export Declarations
by pipeline carriers.
* * * If the merchandise transported by pipeline is identified on the
Commerce Control List of the EAR (15 CFR Supplement No.1 to part 774)
or the U.S. Munitions List of the ITAR (22 CFR, part 121), and requires
an SED, the data regarding the shipment must be filed electronically through
Subpart E--Electronic Filing Requirements--Shipper's Export Information
10. Amend 30.60 to revise paragraph (a) to read as follows:
Sec. 30.60 General requirements for filing export and manifest data electronically
using the Automated Export System.
* * * * *
(a) Participation. Filing using the AES is mandatory for those items identified
on the Commerce Control List (CCL) of the EAR (15 CFR Supplement No. 1
to part 774) or the U.S. Munitions List (USML) of the ITAR (22 CFR, part
121). You are only required to file information via AES for those items
that require a Shipper's Export Declaration. All other participation in
the AES in voluntary. Information for items
identified on the CCL or the USML filed via AES must be filed by the
U.S. principal party in interest or the authorized agent. A Data Entry
Center, service center, or port authority may transmit an AES record for
CCL or USML items, completed by the U.S. principal party in interest or
the authorized agent, without obtaining a power of attorney or written
authorization. A Data Entry Center, service center, or port authority
must have a power of attorney or written authorization from the U.S. principal
party in interest or foreign principal party in interest if it completes
any export information in AES for CCL or USML shipments. Companies may
also buy a software package designed by an AES certified software vendor.
Certified trade participants (filing agents) 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,
includeU.S. principal parties in interest or the authorized agents, carriers,
non-vessel operating common carriers (NVOCC), consolidators, port authorities,
software vendors, or service centers. Once becoming certified, an AES
filer (filing agent) must agree to stay in complete compliance with all
export rules and regulations.
* * * * *
11. Amend Sec. 30.61 to revise the introductory text, remove paragraph
(b), and redesignate paragraph (c) as paragraph (b) to read as follows:
Sec. 30.61 Electronic filing options.
As an alternative to filing paper Shipper's Export Declaration forms
(Option 1), two electronic filing options (Option 2 and 4) for transmitting
shipper's export information are available to U.S. principal parties or
the authorized filing agent. The electronic filing Option 4 takes into
account that complete information concerning export shipments is not always
available prior to exportation. Information on the export of items identified
on the Commerce Control List of the EAR (15 CFR Supplement No. 1 to part
774) or the U.S. Munitions List of the ITAR (22 CFR, part 121) that require
an SED can be filed using Options 2 or 4. Option 4 may only be used when
the appropriate licensing agency has granted the U.S. principal party
in interest or the authorized agent authorization to use this option.
The available AES electronic filing options are as follows:
* * * * *
12. Revise Sec. 30.62 to read as follows:
Sec. 30.62 AES/AESDirect Certification, qualification, and standards.
Certification for AES filing will apply to the U.S. principal party
in interest, authorized forwarding agent, carrier, non-vessel operating
common carriers (NVOCC), consolidator, port authority, software vendor,
or service center transmitting export information electronically using
(a) AES Certification Process. 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. The Customs' and Census Bureau's client representatives
provide assistance 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 required
to repeat the certification testing process at any time to ensure that
operational standards for quality and volume of data are maintained. 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:
(1) The date that filers may begin transmitting ``live'' data
electronically using AES;
(2) Reporting instructions; and
(3) Examples of the required AES exemption legends.
(b) AESDirect Certification process. Applicants interested in AESDirect
filing must complete the online AESDirect registration form. After submitting
the registration, an AESDirect filing account is created for the filing
company. The applicant will receive separate e-mails providing an AESDirect
user name, temporary administrator code, and temporary password. The filer
uses the temporary administrator code
to create a permanent administrator code that allows the user to create
a permanent password. The user name and new permanent password will allow
the filer to complete a certification quiz. Upon passing the qui, notification
by e-mail will be sent when an account is fully activated for filing via
AESDirect. Print the page congratulating the filer on passing the quiz
for retention purposes. The activation notice will specify which AES filing
status the account has been authorized.
(c) Filing agent certification. Once an authorized filing agent has successfully
completed the certification process, the U.S. principal party in interest
using that agent does not need further AES certification. The certified
filing agent must have a properly executed power of attorney, a written
authorization from the U.S. principal party in interest or foreign principal
party in interest, or a SED signed by the U.S. principal party in interest
to transmit their data electronically using the AES. The U.S. principal
party in interest or authorized 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
the U.S. principal party in interest to file the export information on
behalf of the U.S. principal party in interest.
(d) 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 if the filer fails 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 Section. The Census Bureau, if necessary, will take appropriate
action to correct the specific situation(s). In the case of AESDirect,
when submitting a registration form to AESDirect, the registering company
is certifying that they will be in compliance with all applicable laws
and regulations. This includes complying with the following security requirements:
(1) AESDirect user names and passwords are to be neither written down
nor disclosed to any unauthorized user or any persons outside of the registered
company. Filers must change passwords for security purposes when prompted
to do so.
(2) Registered companies are responsible for those persons having a user
name and password. If an employee with access to the user name
and password leaves the company or otherwise is no longer an authorized
user, the company must change the password and user name in the system
and must do so immediately in order to ensure the integrity and confidentiality
of Title 13 data.
(3) Antivirus software must be installed and set to run automatically
on all computers that access AESDirect. All AESDirect registered companies
will maintain subscriptions with their antivirus software vendor to keep
antivirus lists current. Registered companies are responsible for performing
full scans of these systems on a regular basis and eliminating any virus
contamination. If the registered company's computer system is infected
with a virus, the company should refrain from using AESDirect until it
is virus free. Failure to comply with these requirements will result in
immediate loss of privilege to use AESDirect until the registered company
can establish to the satisfaction of the Census Bureau's Foreign Trade
Division Computer Security Officer that the company's computer systems
accessing AESDirect is virus free.
13. Amend Sec. 30.63 by revising paragraph (a)(1), (b)(11), (b)(13), and
(c), and by adding paragraphs (b)(14) through (b)(21) to read as follows:
Sec. 30.63 Information required to be reported electronically through
AES (data elements).
(a) * * *
(1) U.S. Principal Party in Interest (USPPI)/USPPI identification'(i)
Name and address of the USPPI. For details on the reporting responsibilities
of USPPIs, see Sec. 30.4 and Sec. 30.7 (d)(1), (2), (3), and (e).
(ii) USPPI's profile. The USPPI's Employer Identification Number (EIN)
or Social Security Number (SSN) and the USPPI name, address, contact,
and telephone number must be reported with every shipment. If neither
EIN or SSN is available for the USPPI, as in the case of a foreign entity
being shown as the USPPI as defined in Sec. 30.7(d), the border crossing
number, passport number, or any other number assigned by Customs is required
to be reported. (See Sec. 30.7(d)(2) for a detailed description of the
(b) * * *
(11) Transportation Reference Number. Report the Transportation Reference
Number as follows:
(i) Vessel Shipments. Report the booking number for all sea shipments.
The booking number is the reservation number assigned by the carrier to
hold space on the vessel for cargo being exported.(ii) Air Shipments.
Report the master air way bill number for all air shipments. The air waybill
number is the reservation number assigned by the carrier to hold space
on the airplane for cargo being exported.
(iii) Rail Shipments. Report the bill of lading (BOL) number for all rail
shipments. The BOL number is the reservation number assigned by the carrier
to hold space on the rail car for cargo being exported.(iv) Truck Shipments.
Report the Freight or Pro Bill number for all truck shipments. The Freight
or Pro Bill number is the number assigned by the carrier to hold space
on the truck for cargo being exported. The Freight or Pro Bill number
correlates to a bill of lading number, air waybill number or Trip number
for multi-modal shipments.
* * * * *
(13) Filing option indicator. Report the 1-character filing option that
indicates Option 2 or 4 filing.
(14) Office of Defense Trade Controls (ODTC) Registration Number. The
number assigned by ODTC to persons who are required to register per Part
122 of the International Traffic in Arms Regulations (ITAR) (22 CFR parts
120-130), that has an authorization from ODTC (license or exemption) to
export the article.
(15) ODTC Significant Military Equipment (SME) Indicator. A term used
to designate articles on the United States Munitions List for which special
export controls are warranted because of their capacity for substantial
military utility or capability. See section 120.7 of the International
Traffic in Arms Regulations (ITAR) 22 CFR parts 120-130, for a definition
of SME and Section 121.1 for items designated as SME articles.
(16) ODTC Eligible Party Certification Indicator. Certification by the
U.S. exporter that the exporter is an eligible party to participate in
defense trade. See ITAR 22 CFR, Sec. 120.1(c). This certification is required
only when an exemption is claimed.
(17) ODTC USML Category Code. The United States Munitions List category
of the article being exported (22 CFR part 121).
(18) ODTC Unit of Measure (ULM). This unit of measure is the ULM covering
the article being shipped as described on the export authorization or
declared under an ITAR exemption.
(19) ODTC Quantity. This quantity is for the article being shipped. The
quantity is the total number of units that corresponds to the ODTC Unit
of Measure Code.
(20) ODTC Exemption Number. The exemption number is the specific citation
from the Code of Federal Regulations (22 CFR parts 120--130) that exempts
the shipment from the requirements for a license or other written authorization
(21) ODTC Export License Line Number. The line number of the State
Department export license that corresponds to the article being exported.
(c) Seal Number. Optional. Report the security seal number of the seal
placed on the equipment.
14. Revise Sec. 30.65 to read as follows:
Sec. 30.65 Annotating the proper exemption legends for shipments transmitted
(a) Items identified on the U.S. Munitions List (USML), must meet the
predeparture reporting requirements identified in the ITAR (22 CFR Parts
120-130) for the State Department requirements concerning AES exemption
legends and time and place of filing.(b) For shipments other than USML,
the U.S. principal party in interest or the authorized agent is responsible
for annotating the proper exemption legend on the bill of lading, air
waybill, or other commercial loading document for presentation to the
carrier prior to export. The carrier is responsible for providing the
proper exemption legend to the Customs Port Director at the port of exportation
as stated in Sec. 30.21 of this Part. The exemption legend will identify
that the shipment information has been accepted as transmitted and electronically
filed using the AES. The exemption legend must appear on the bill of lading,
air waybill, or other commercial loading documentation and the manifest
and must be clearly visible and include either of the following:
(1) For shipments other than USML, the exemption legend will include the
statement, ``NO SED REQUIRED--AES,'' followed by the filer's identification
number and a unique shipment reference number referred to as the ``XTN''
or the returned confirmation number provided by AES when the transmission
is accepted, referred to as the ``ITN.'' Items on the USML must meet the
pre-departure reporting requirements in the ITAR (22 CFR parts 102-130).
(2) For U.S. principal parties in interest who have been approved to participate
in Filing Option 4, the exemption statement, ``NO SED REQUIRED--AES4,''
followed by the U.S. principal party's in interest employer identification
number followed by the filer's identification number if other than the
U.S. principal party in interest files the data.
15. Revise Sec. 30.66 to read as follows:
Sec. 30.66 Support, documentation and record keeping requirements.
(a) Support. ASKAES@census.gov is an online service that allows electronic
filers to seek assistance pertaining to AES. AESDirect is supported by
a help desk available twelve (12) hours a day, seven (7) days a week.
(b) Documentation. Filers using the AESDirect are able to print out from
the AESDirect a validated record of the filer's submission. Filers using
AES are able to print records containing date of submission and a unique
identification number for each AES record submitted. The Census Bureau
will maintain an electronic file of data sent through AES to ensure that
an individual is able to receive from the system, a validated record of
the submission. The U.S. principal party in interest or the authorized
agent of the U.S. principal party in interest or foreign principal party
in interest may request a copy of the electronic record submitted as provided
for in Sec. 30.91 of this part.
(c) Recordkeeping. All parties to the export transaction (owners and operators
of the exporting carriers and U.S. principal party and/or the authorized
agents) must retain documents or records pertaining to 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 as provided in the applicable agency's regulations. Acceptance
of the documents by Customs or the Census Bureau does not relieve the
U.S. principal party in interest or the authorized agent from providing
complete and accurate information after the fact. The Department of State
or other regulatory agencies may have additional record keeping requirements
16. Amend Appendix A as follows:
a. Add an introductory paragraph;
b. Revise items A.5, A.6, and A.10;
c. Remove item A.6(i) and redesignate items A.6(ii) and A.6(iii) as
A.6(i) and A.6(ii), respectively;
d. Revise paragraphs B and C;
e. Add paragraph D.
The additions and revisions read as follows:
Appendix A to Part 30-Format For Letter of Intent, Automated Export System
The first requirement for participation in AES is a Letter of Intent.
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 performance requirements and operations standards.
Once the letter of intent is received, a U.S. Customs Client Representative
and U.S. Census Bureau Client Representative will be assigned to the company.
Census will forward additional information to prepare the company for
participation in AES.
A. Letters of Intent should be on company letterhead and must include:
* * * * *
5. Computer Site Location Address, City, State, Postal Code (Where transmissions
will be initiated)
6. Type of Business--U.S. Principal Party in Interest, Freight Forwarder/Broker,
Carrier, NVOCC, Port Authority, Software Vendor, Service Center, etc.
(Indicate all that apply)
(i) Freight Forwarders/Brokers, indicate the number of U.S. principal
parties in interest for whom you file export information
(ii) U.S. Principal Parties in Interest, indicate whether you are applying
for AES Option 2 or Option 4
* * *
10. Filer Code--EIN, SSN or SCAC (Indicate all that apply)
* * * * *
B. The following self-certification statement, signed by an officer of
the company, must be included in your letter of intent: ``We (COMPANY
NAME) certify that all statements made and all information provided herein
are true and correct. I understand that civil and criminal penalties,
including forfeiture and sale, may be imposed for making false or fraudulent
statements herein, failing to provide the requested information or for
violation of U.S. laws on exportation (13 U.S.C. Sec. 305; 22 U.S.C. Sec.
401; 18 U.S.C. Sec. 1001; 50 U.S.C. App. 2410.''
C. The AES Option 4 privilege allows a U.S. principal party in interest
to send no data prior to exportation and complete data within 10 working
days after exportation. Participants will be reviewed by several government
agencies prior to acceptance into the Option 4 program.
D. Send AES or Option 4 Letter of Intent to : Chief, Foreign Trade Division,
U.S. Census Bureau, Washington, DC 20233. Or, the copy can be faxed to
Appendix B To Part 30--Required Pre-Departure Data Elements For Filing
17. [Removed] Remove and reserve Appendix B.
Dated: October 4, 2002.
Charles Louis Kincannon,
Director, Bureau of the Census.
[FR Doc. 02-25667 Filed 10-8-02; 8:45 am]
BILLING CODE 3510-07-P
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2003 AES Option 4 Moratorium
Option 4 Filing Review Process Suspended
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Related Party Database Application:
Time series RELATED PARTY data for specific commodities and countries.
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