Throughout the export community, trade terminology runs rampant.

For someone new to the jargon, or even for a seasoned exporter, it can all be a bit overwhelming. We’d like to remove some confusion with a new blog series – Trade Terms.

Todays’ Trade Term is USPPI. U.S. Principal Party in Interest, or USPPI as you will commonly see it, is the U.S. person or entity that is the primary benefactor (monetarily or otherwise) from an export transaction. Generally, the USPPI falls into one of the following categories:

• U.S. Seller (wholesaler or distributor)
• U.S. Manufacturer
• U.S. Order Party

Simply put, if a U.S. manufacturing company receives an order from a foreign entity for their goods; they are now considered the USPPI in this export transaction, as they are the U.S. entity that would receive the financial benefit.

In export transactions, the USPPI has several responsibilities, including, but not limited to:

• Preparing and filing the Electronic Export Information (EEI) in the Automated Export System (AES)
• Selecting and authorizing an agent to file in AES on their behalf
• Determining any license requirements for the goods
• Responding to AES fatal errors or compliance alerts
• Retaining documentation for at least 5 years

For more information about USPPI, please visit the AES Section of the Foreign Trade Division website. You can also find USPPI and other trade terms in our Definitions page.