CHAPTER XXXI INT'L FREIGHT FORWARDER & Automated Export System

1. CHAPTER XXXI INT'L FREIGHT FORWARDER & Automated Export System • International Freight Forwarder • Automated Export System Copyright(c) 2012 Dr. Chase C. Rhee

2. International Freight Forwarder • Agent for the exporter in moving cargo from the domestic warehouse to the overseas buyer's port of importation • Adviser for the exporter in estimating shipping costs, shipping methods, and export packing methods • Licensed by the Federal Maritime Commission Copyright(c) 2012 Dr. Chase C. Rhee

3. Services Provided by Int’l Freight Forwarder • Inland freight from a factory or a warehouse to the port of export • Space on ocean or air carriers • Consolidation of small packages into a container • Export packing • Electronic Export Information • Marine cargo insurance • Export License • Ocean B/L or Air Waybill • Export documentation Copyright(c) 2012 Dr. Chase C. Rhee

4. Automated Export System (AES) • AES is s computer system of U.S. Census Bureau that collects electronically export information of the U.S. exports. • AES-collected export information called EEI (Electronic Export Information) is used by U.S. Census Bureau, Customs, Bureau of Industry& Safety, and other regulatory agencies Copyright(c) 2012 Dr. Chase C. Rhee

5. Automated Export System (AES) • Electronic Export Information (EEI) • Export data as filed in the Automated Export System (AES). • Equivalent of paper Shipper’s Export Declaration (SED) Information • Dual use: Statistical purpose, and Export control and enforcement purpose • ITN (Internal Transaction Number): Generated by AES after the EEI is successfully filed and processed as a proof of filing Copyright(c) 2012 Dr. Chase C. Rhee

6. Automated Export System (AES) • Filing Requirements of EEI • All shipments from the United States to all foreign countries other than Canada if a shipment is valued over $2,500 per Schedule B number • All shipments regardless of the value if a shipment is made under an export license of U.S. government (c) All shipments to embargoed countries such as Cuba, Iran, North Korea, Sudan, and Syria. Copyright(c) 2012 Dr. Chase C. Rhee

7. Automated Export System (AES) • EEI can be electronically transmitted to Automated Export System (AES) by AESDirect, www.aesdirect.gov, a free online internet filing system of the U.S. Census Bureau (2) Exemptions from EEI Filing (a)Shipments to Canada regardless of the value, when shipments are not required to obtain an export license. (b)Shipments with $2,500 or less value per Schedule B Number including mail to any country except for embargoed countries Copyright(c) 2012 Dr. Chase C. Rhee

8. Automated Export System (AES) (2)Exemptions from EEI Filing (continued) (c) Baggage and household effects of a person leaving the United States, if • Owned by the person • In his possession at the time of departure • Intended for his use only • Merchandise must not move as cargo under a Bill of Lading, Air Waybill and not require export license Copyright(c) 2012 Dr. Chase C. Rhee

9. Automated Export System (AES) (3)Confidentiality of EEI • EEI is confidential and used for official purpose only. • May not be disclosed to anyone except for the exporter or his agent • Exporters may not furnish the EEI to anyone for unofficial purposes • Information may be made available only for National Interest by the Secretary of Commerce or his delegate Copyright(c) 2012 Dr. Chase C. Rhee

10. Automated Export System (AES) (4)Schedule B • All import and export codes are based on the Harmonized System (HS) adopted by the World Customs Organization (WCO). • The first 6-digit code is the same for all the HS countries & is called Harmonized System Number. • Schedule B is the Statistical Classification of Domestic and Foreign Commodities Exported from the United States. • Schedule B covers about 8,000 commodity classifications, compared to about 14,000 commodity classifications of the HTSUS. Copyright(c) 2012 Dr. Chase C. Rhee

11. Automated Export System (AES) (4)Schedule B (continued) • A 10-digit Schedule B number is currently used by shippers in reporting export shipments from the U.S. on the Electronic Export Information (EEI) to the Automated Export System (AES). • Schedule B is used to collect official statistics on merchandise exported from the U.S. • Schedule B is administered by the U.S. Census Bureau and the Harmonized Tariff Schedule of the United States is administered by the U.S. International Trade Commission. Copyright(c) 2012 Dr. Chase C. Rhee