Foreign Trade Regulations Eliminate Social Security Number as ID Number in AES
08/06/09 08:36 PM
On
August 5, 2009, the United States Census Bureau
issued an interim final rule
with request
for comment in the Federal Register amending the
Foreign Trade Regulations (FTR) to eliminate the
requirement to report a Social Security Number
(SSN) as an identification number when
registering to file and filing electronic export
information in the Automated Export System (AES)
or AES Direct. This new rule will ensure that a
USPPI’s or U.S. authorized agent’s SSN is
protected in accordance with the Privacy Act of
1974, Title 5, United States Code, Section 552a.
Under the current regulations, the U.S. Principal Party in Interest (USPPI) or U.S. authorized agent residing or having an office located in the United States is required to enter (1) SSN, (2) Dun and Bradstreet Number (DUNS) or (3) an Employer Identification Number (EIN), when reporting export transactions in the AES or AESDirect.
(1) An SSN is used as an identification number principally by individual filers
(2) DUNS are available only to business entities, and
(3) EINs are available to both businesses and individuals.
Under the Interim Final Rule, if the USPPI or the U.S. authorized agent who resides or has an office located in the United States does not have an EIN, that USPPI, or U.S. authorized agent must obtain an EIN through the Internal Revenue Service’s website, or by calling (800) 829-4933. Former SSN filers who are business entities and want to use a DUNS rather than an EIN for identification purposes, must first obtain an EIN from the IRS and apply to Dun & Bradstreet for a DUNS.
The new rule is effective on September 4, 2009 and the Census Bureau will implement its provisions on December 3, 2009. Comments on the interim rule should be submitted in writing to the address shown below on or before October 5, 2009 to be considered in the formation of the final rule.
You may submit your comments to: William G. Bostic, Jr., Chief, Foreign Trade Division, U.S. Census Bureau, 4600 Silver Hill Road, Room 6K032, Washington, DC 20233–6700; by telephone at (301) 763–2255; by fax at (301) 763–6638; or by e-mail: william.g.bostic.jr@census.gov.
Under the current regulations, the U.S. Principal Party in Interest (USPPI) or U.S. authorized agent residing or having an office located in the United States is required to enter (1) SSN, (2) Dun and Bradstreet Number (DUNS) or (3) an Employer Identification Number (EIN), when reporting export transactions in the AES or AESDirect.
(1) An SSN is used as an identification number principally by individual filers
(2) DUNS are available only to business entities, and
(3) EINs are available to both businesses and individuals.
Under the Interim Final Rule, if the USPPI or the U.S. authorized agent who resides or has an office located in the United States does not have an EIN, that USPPI, or U.S. authorized agent must obtain an EIN through the Internal Revenue Service’s website, or by calling (800) 829-4933. Former SSN filers who are business entities and want to use a DUNS rather than an EIN for identification purposes, must first obtain an EIN from the IRS and apply to Dun & Bradstreet for a DUNS.
The new rule is effective on September 4, 2009 and the Census Bureau will implement its provisions on December 3, 2009. Comments on the interim rule should be submitted in writing to the address shown below on or before October 5, 2009 to be considered in the formation of the final rule.
You may submit your comments to: William G. Bostic, Jr., Chief, Foreign Trade Division, U.S. Census Bureau, 4600 Silver Hill Road, Room 6K032, Washington, DC 20233–6700; by telephone at (301) 763–2255; by fax at (301) 763–6638; or by e-mail: william.g.bostic.jr@census.gov.
CBP Publishes Increased AES Penalties
01/03/09 05:40 PM
On
January 2, 2009, CBP
published increased AES
penalty guidelines effective February 1, 2009, for
enforcing recent Census Bureau rules requiring
exporters and forwarders to electronically file
export declarations before cargo is loaded for
transport.
The regulation requiring use of AES of the web-based AESDirect went into effect on July 2, 2008, enforcement began on September 30, 2008, but penalty assessment was postponed. The new rules increase the maximum fine for failure to file, late or incomplete filing or submitting false information to $10,000 per violation.
CBP said that first time violators are likely to receive a warning or informational letter reminding the company of the new rules. Penalty ranges can be lower based on mitigating factors such as, inter alia, self-disclosure.
The regulation requiring use of AES of the web-based AESDirect went into effect on July 2, 2008, enforcement began on September 30, 2008, but penalty assessment was postponed. The new rules increase the maximum fine for failure to file, late or incomplete filing or submitting false information to $10,000 per violation.
CBP said that first time violators are likely to receive a warning or informational letter reminding the company of the new rules. Penalty ranges can be lower based on mitigating factors such as, inter alia, self-disclosure.
Reuse of Shipment Reference Numbers Prohibited in AES
10/01/08 11:38 PM
On September 26, 2008, U.S. Department of Commerce
Economics and Statistics Administration’s U.S.
Census Bureau (Census Bureau) issued
a
memorandum,
which clarifies the Foreign Trade Regulations (FTR)
requirement for the shipment reference number
reported in the Automated Export System (AES). A
shipment reference number is a unique
identification number assigned by the filer that
allows the shipment to be identified in the filer’s
system. Under current regulations, the shipment
reference number must be unique for five years.
Some AES filers attempted to reuse the shipment reference numbers after the five-year period had expired. An analysis of the AES revealed that the system was not designed for the shipment reference numbers to be reused. To add the reuse of the shipment reference numbers feature, the system would require complete redesign.
Therefore, the Census Bureau has decided to prohibit the reuse of the shipment reference numbers. Once the number has been assigned to a shipment, the filer cannot assign the same shipment reference number to future shipments.
Some AES filers attempted to reuse the shipment reference numbers after the five-year period had expired. An analysis of the AES revealed that the system was not designed for the shipment reference numbers to be reused. To add the reuse of the shipment reference numbers feature, the system would require complete redesign.
Therefore, the Census Bureau has decided to prohibit the reuse of the shipment reference numbers. Once the number has been assigned to a shipment, the filer cannot assign the same shipment reference number to future shipments.
Census Issues Mandatory AES Final Rule
06/04/08 01:21 PM
On
June 2, 2008, the U.S. Census Bureau (Census)
issued a final rule
requiring
mandatory filing of export information through
the Automated Export System (AES) or through
AESDirect
for
all shipments where a Shipper's Export
Declaration (SED) is required (an announcement
of the rule can be found here).
The new rule substantially revises Census' export
regulations, significantly increases penalties, and
allows for greater enforcement by Bureau of
Industry and Security (BIS) and U.S. Immigration
and Customs Enforcement (ICE). Although the
effective date for this rule is July 2, 2008, the
rule will not be implemented until September 30,
2008.
Census has posted mandatory AES frequently asked questions (FAQs) here and "A Quick Guide to Title 15, Part 30 Foreign Trade Regulations" here.
The final rule was issued following a three year dispute between Census and the Department of Homeland Security (DHS) involving the sharing of confidential export information with foreign governments and the Option 4 program, which allows export data to be filed up to 10 days following vessel departure. DHS had pushed for the sharing of certain export data with foreign governments for antiterrorism purposes and Census strongly opposed this. In addition, DHS sought to end the Option 4 program because it believed it created an avenue for illegal exports, while Census disagreed. In the end, Census maintained the confidentiality of export data that existed in its previous regulations and continued the moratorium on new users for the Option 4 program with the program only allowed for current users.
Key changes made by the new regulations are as follows:
Census has posted mandatory AES frequently asked questions (FAQs) here and "A Quick Guide to Title 15, Part 30 Foreign Trade Regulations" here.
The final rule was issued following a three year dispute between Census and the Department of Homeland Security (DHS) involving the sharing of confidential export information with foreign governments and the Option 4 program, which allows export data to be filed up to 10 days following vessel departure. DHS had pushed for the sharing of certain export data with foreign governments for antiterrorism purposes and Census strongly opposed this. In addition, DHS sought to end the Option 4 program because it believed it created an avenue for illegal exports, while Census disagreed. In the end, Census maintained the confidentiality of export data that existed in its previous regulations and continued the moratorium on new users for the Option 4 program with the program only allowed for current users.
Key changes made by the new regulations are as follows:
- The Foreign Trade Statistics Regulations are renamed, "Foreign Trade Regulations" (FTR);
- All export data must be filed electronically through AES -- no paper SEDs will be accepted after September 30, 2008;
- Electronic Export Information (EEI) is the term for data filed through AES and is the equivalent to the data in the SEDs;
- Increased civil penalties of a maximum of $1,100 per day of delinquency (but, not more than $10,000 per violation) for failures to file or delinquent filings; a maximum of $10,000 per violation for false filings or misleading information in AES, in addition to other penalties; and civil forfeiture of any property involved in a violation of the FTR;
- Criminal penalties of a maximum of $10,000 per violation or five years' imprisonment or both for a knowing failure to file or a knowing filing, directly or indirectly, of false or misleading information;
- New voluntary self-disclosure are "strongly encouraged" by Census of any violation or suspected violation of the FTR. Voluntary disclosures are to be directed to Census, which will notify Customs and Border Protection (CBP), BIS' Office of Export Enforcement (OEE) and ICE.
- Specific rules on what constitutes proper proof of AES filing citations or exemptions are provided as well as how they are to be annotated on other shipping documents. For example, only the Internal Transaction Number (ITN), which confirms that the shipment information has been accepted in AES, is acceptable as proof of filing citation. The External Transaction Number (XTN) will no longer be accepted as proof of filing.
- Time frames for filing AES are provided based on the mode of transportation.
New AES Reporting Requirements for BIS License Exceptions
02/27/08 10:51 AM
BIS has issued new AES
reporting requirements for BIS license exceptions.
The notice can be found here.
The notice states that as of April 28, 2008, the following reporting change will be implemented:
The notice states that as of April 28, 2008, the following reporting change will be implemented:
The Export Control Classification Number (ECCN) will be required for License Exceptions reportable under the following License Exception codes: C38-TSR, C41-RPL, C42-GOV, C43-GFT, C44-TSU, C45-BAG, C46-AVS, C47-APR, C48-KMI, C49-TAPS, C50-ENC