Routed export transactions are a much discussed topic. Therefore, we are revisiting this blog topic to give some helpful tips on remaining compliant if you’re involved in a routed export transaction. We’ll also take a look at an example. For those not familiar with routed export transactions, it is when the Foreign Principal Party in Interest (FPPI) directs the movement of the goods out of the U.S. and authorizes a U.S. agent to file the Electronic Export Information (EEI) on their behalf.
A U.S. Principal Party in Interest (USPPI) sells two paintings to a FPPI located in Italy. Keep in mind, the USPPI is defined as the person or legal entity in the U.S. that receives the primary benefit, monetary or otherwise, from the transaction. The FPPI instructs the USPPI to send the paintings to an agent located in Florida. The FPPI authorizes the agent to file the EEI in the AES on their behalf and ship the goods to Italy. In this example, each party has important responsibilities that are outlined below.