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.