DFA & SCTC 2013 Annual Conference

1. DFA & SCTC 2013 Annual Conference Joe. A. Cortez U.S. Census BureauForeign Trade Division

2. Today’s Topics Background/Primary Responsibilities of the Foreign Trade Division (FTD) Electronic Export Information (EEI) Rewrite of Foreign Trade Regulations Timeline of Events Comments Received Highlighted Changes Outreach Efforts

3. Background Primary Responsibilities of the Foreign Trade Division • Collect, compile, and disseminate the official merchandise trade statistics for the United States 2. Issue the regulations governing the reporting of all export shipments from the United States

4. Foreign Trade Regulations (FTR) Purpose and Why it Matters • Facilitate Export Activities • Balance of Trade Statistics • Data Used to Identify New Trade Opportunities • Ensure Fair Trade Opportunities for American Businesses • Trade Data Influences U.S. Foreign and Domestic Policy

5. Export Related Regulations Census Bureau Foreign Trade Regulations (FTR) 15 CFR, Part 30 Bureau of Industry and Security (BIS) Export Administration Regulations (EAR) 15 CFR, Parts 700 - 799 Customs and Border Protection (CBP) Customs Regulations Title 19 CFR, Parts 1 – 199 State Department International Traffic in Arms Regulations (ITAR) Title 22 CFR, Parts 120 – 130

6. When is an EEI Record Required? (FTR 30.2) • An EEI record must be filed for exports of physical goods when shipped as follows: • U.S.  foreign countries • U.S.  U.S. Virgin Islands • Puerto Rico  foreign countries • Puerto Rico  U.S. Virgin Islands • U.S.  Puerto Rico • Licensable commodities

7. U.S. Principal Party in Interest (FTR 30.3) The U.S. Principal Party in Interest is the: • U.S. Person or Entity • Primary Benefactor (Monetary, or Otherwise) • Foreign Entity (if in the U.S. at time goods are purchased or obtained for export) Generally that Person can be the: • U.S. Seller: (Wholesaler or Distributor) • U.S. Manufacturer • U.S. Order Party • U.S. Customs Broker

8. What is a Shipment?(FTR 30.1) Tip: The One Rule • ONE USPPI shipping their merchandise, to • ONE Foreign consignee, on • ONE Carrier moving the product out of the U.S., on • ONE day, with • Value over $2,500 per Schedule B number or license is required

9. Two Types of Transactions(FTR 30.3) Export Transaction (Standard): • USPPI files the EEI record or authorizes a U.S. forwarder, or other agent to file the EEI. Routed Export Transaction: • Foreign principal party in interest (FPPI) authorizes a U.S. forwarder, other agent or USPPI to file the EEI.

10. Filing Time Frames

11. Delegation of Authority(FTR 30.73) Bureau of Industry and Security’s Office of Export Enforcement Customs and Border Protection U.S. Immigration and Customs Enforcement

12. FTR Changes and Corrections Notice of Proposed Rulemaking (NPR) published in the Federal Register on January 21, 2011 Public comment period ended on March 22, 2011 Final Rule published in the Federal Register Implementation of Final Rule

13. Comments Received Comment Analysis • Total Comments: 185 • Unique topics/issues: 22 • Postdeparture Comments: 68 • Responses to comments from trade groups, companies, agencies, and individuals: 53

14. Highlighted Changes Postdeparture Filing Household Goods Used Self-Propelled Vehicles Port of Export International Waters Additional Data Elements and Definitions

15. Postdeparture Filing [FTR 30.5] Current • Postdeparture filing time frame - from 10calendar days to 5calendar days • The moratorium on new applications will continue Future • The Census Bureau and Customs and Border Protection will implement an alternate pilot program

16. Household Goods[FTR 30.1] New Definition • Usual and reasonable kinds and quantities of personal property necessary and appropriate for use by the USPPI in the USPPI’s dwelling in a foreign country that are shipped under a bill of lading or an air waybill and are not intended for sale Reporting • Limited reporting can only be used for shipping household goods when the USPPI is the ultimate consignee

17. Used Self-Propelled Vehicles[FTR 30.2(a)(1)(iv)(H) & 30.4(b)(5)] Must be filed in the AES regardless of value or country of destination • Vehicle shipments to Canada MUST be filed Must be filed 72 hours prior to export

18. Port of Export[FTR 30.6(a)(9)] The port of export for shipments by overland transportation is where the goods cross the border Note: This includes transshipments through Canada or Mexico

19. Split Shipments[FTR 30.28] New Definition • A shipment booked for export that is divided by the carrier in two or more shipments from the same port within 24 hours Split shipments apply to all modes of transportation

20. Exclusions[FTR 30.2(d)] New Exclusion • AES filing is not required for licensed goods where the country of ultimate destination is the United States • Goods destined to international waters where the person(s) or entity assuming control of the item(s) is a U.S. citizen or permanent resident alien of the United States [30.2(d)(5)] The exclusion legend is required to be reported on commercial loading documents

21. New Exemptions[FTR 30.37] The following exemptions were added: • Exports of technical data and defense service exemptions as defined in 22 CFR 123.22 (b)(3)(iii) are exempt from the EEI filing requirements [30.37(u)] • Reporting vessels, aircraft, cargo vans, and other carriers and containers when shipping as tools of international trade [30.37(v)] • Shipments to Army Post Office, Diplomatic Post Office, Fleet Post Office [30.37(w)] • Shipments exported under License Exception BAG [30.37(x)]

22. New Exemptions Continued…[FTR 30.37(y)] Specific types of shipments destined for a country listed in Country Group E:1 [30.37(y)] • Shipments of published books, software, maps, charts, pamphlets, or any other similar media available for general distribution • Shipments to U.S. government entities under License Exception GOV • Personal effects under License Exception BAG • Individual gift under License Exception GFT • Vessels and aircraft leaving the U.S. for a temporary sojourn under License Exception AVS • Tools of the trade under License Exception BAG or TMP

23. Exemptions Removed[FTR 30.37] The following exemptions were deleted: • In-bond (in-transit) shipments [30.37(e)] • Goods previously imported under a Temporary Import Bond for return in the same condition as when imported [30.37(r)] • Temporary exports [30.37(q)] Temporary shipments of goods valued over $2,500 per Schedule B or that fall under 30.2(a)(1)(iv) must be filed in the AES • Report the appropriate export information code for temporary goods such as “TE” and “TP”

24. International Waters[FTR 30.6] Definition • Waters located outside the U.S. territorial sea, which extends 12 nautical miles measured from the baselines of the United States, and outside the territory of any foreign country, including the territorial water thereof. Note that vessels, platforms, buoys, undersea systems, and other similar structures that are located in international waters, but are attached permanently or temporarily to a country’s continental shelf, are considered to be within the territory of that country. Licensable Shipments • The person designated on the export license must be reported as the ultimate consignee License Exceptions/Non-licensable Shipments • Report the nationality of the person(s) or entity assuming control of the item(s) subject to the EAR [30.6(a)(5)(i)]

25. Data Elements Added[FTR 30.6] License Value Ultimate Consignee Type • Direct Consumer • Government Entity • Reseller • Other/Unkown

26. New Definitions[FTR 30.1] The following definitions were added: • Commercial loading document • Diplomatic pouch • Electronic CBP Form 214 Admissions (e214) • Filer ID • Foreign port of unlading • Household goods • International waters • Issued banknote

27. New Definitions Continued…[FTR 30.1] The following definitions were added: • Kimberely Process Certificate (KPC) • Mass-market software • Non Vessel Operating Common Carrier (NVOCC) • Shipping documents • Transshipment • Value • Voluntary Self-Disclosure (VSD)

28. Proposed Changes Not Implemented Data Elements • Country of Origin • Address of License Applicant • End User • Equipment Number • Seal Number Elimination of reporting requirement for exclusion legend

29. Foreign Trade Division - Outreach • AES Compliance Seminars and Workshops • Also offered in Spanish • Company Training • AES Compliance Review Program • Port Visits

30. Training Tools • Export training videos • Webinars • Global Reach Blog http://globalreach.blogs.census.gov

31. FTD Training Tools • AES Newsletters • TradeSource

32. Training Tools • Export training videos • Webinars • Global Reach Blog http://globalreach.blogs.census.gov

33. FTD Training Tools • AES Newsletters • TradeSource

34. Outreach & Education • AES Compliance Seminars 2013 • April 10-11 Norfolk, VA • May 15-16 Chicago, IL • June 5-6 Seattle, WA • September 9-10 Orlando, FL • October 9-10 Milwaukee, WI • October 23-24 Boston, MA • November 6-7 Dallas, TX • December 4-5 Savannah, GA

35. For More Information Regulations, Outreach and Education Branch Branch Chief: Joe A. Cortez joe.a.cortez@census.gov 301-763-1413 Phone: 1-800-549-0595 (Option 3) Fax: 301-763-8835 Email: FTDRegs@census.gov Website: www.census.gov/trade Blog: http://globalreach.blogs.census.gov/

36. Resources FTD Call Center: 800-549-0595 Option 1 – AES Assistance Option 2 – Commodity Classification Assistance Option 3 – Regulations Assistance Option 4 – Data Dissemination Branch Secure Fax: 301-763-8835 E-mail: FTDREGS@census.gov or ASKAES@census.gov FTD Website: www.census.gov/trade FTD Blog: blogs.census.gov/globalreach/