Omari Wooden Trade Ombudsman U.S. Census Bureau Foreign Trade Division

1. Omari WoodenTrade OmbudsmanU.S. Census Bureau Foreign Trade Division Automated Export System Overview

2. Legal Requirements 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

3. Arms and Ammunition Chapter 93 - Export Statistics $3.9 billion exported in 2011 Avg of $325 million per month in 2011

4. Revolvers & Pistols, designed to fire live ammoSubheading 9302 - Export Statistics $94.2 billion exported in 2011 Avg of $7.8 million per month in 2011

5. What is a Shipment?(FTR 30.1) 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 • Valued over $2,500 per Schedule B number or license is required

6. 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

7. Two Types of Transactions(FTR 30.3) Export Transaction (Standard): • USPPI files the EEI or authorizes an agent to file the EEI Routed Export Transaction: • Foreign Principal Party in Interest (FPPI) authorizes a U.S. agent to facilitate the export of items from the United States and to prepare and file the EEI

8. Value of Repair Items(FTR 30.29(a)) • Report the value of the repairs, including parts and labor • Report Schedule B number 9801.10.0000 for the reexport of any article that was imported for repairs or alterations

9. Value of Warranty Items(FTR 30.29(b)) • Report the value of the replacement commodity • Report original Schedule B number • If the value on the EEI record is different from the value on the bill of lading, invoice, etc., include a statement notating: “Product replaced under warranty, value for EEI record purposes”

10. Shipments Exempt from Filing (FTR 30.36-30.40) • Country of ultimate destination is Canada (30.36) • $2,500 or less per Schedule B number (30.37(a)) • Tools of Trade: hand carried, personal or company use, not for sale, not shipped as cargo, returned within 1 year (30.37(b)) • Intangible exports of software & technology (30.37(f)) • Temporary Exports (e.g., Carnets) (30.37(q)) • Shipments to U.S. Armed Forces (30.39), consigned to the U.S. Armed Forces

11. Special exemptions for certain shipments to US Government agencies(FTR 30.40) Filing EEI is not required for the following: • Office furniture, office equipment and office supplies • Household goods and personal effects • Food, medicines, and related items • Books, maps, charts, pamphlets, and similar articles

12. Exemptions Do Not Apply (FTR 30.2(a)(iv)) • Commerce (BIS) licenses • Country Group E:1 (Supplement 1 to 15 CFR 740) • State Department licenses and ITAR controlled items • License shipments from other government agencies • Shipments on Office of Foreign Assets Control Sanctions Program List • Rough Diamonds

13. CBP Penalty Guidelines • CBP Published Guidelines became effective on February 1, 2009 • Highlights: • Penalties for failure to file, late filing, and other violations • Mitigating and Aggravating Factors • Guidance for CBP officers • Carrier Penalties • http://www.cbp.gov/linkhandler/cgov/trade/legal/bulletins_decisions/bulletins_2009/vol43_01022009_no2/43genno2.ctt/43genno2.pdf

14. Mitigating Factors • Including, but not limited to: • First-time USPPI or authorized agent, FPPI, carrier, etc. • Voluntary self-disclosure of the violation • Clear documentary evidence of remedial measures undertaken to prevent future violation • Exceptional cooperation with CBP, Census or BIS • Demonstration by party of having a systematic export compliance effort.

15. Aggravating Factors • Including, but not limited to: • Several violations in the same export transaction • Circumstances suggest the intentional nature of the violation • High number of violations in preceding 3 year period • Evidence of criminal conviction for related violation, i.e. BIS violation • The party exports as a regular part of its business, but lacks a systematic export compliance effort.

16. Voluntary Self Disclosure (FTR 30.74) Submit letter on company letterhead and include the following information: • Description of information unreported or reported incorrectly • Number and value of shipments affected • Steps taken to resolve problem • Point of contact • Letters should be submitted to: Mr. Nick Orsini Chief, Foreign Trade Division U.S. Census Bureau 4600 Silver Hill Road, Room 6K032 Washington, DC 20233-6700 *File data in AES as soon as possible and retain documentation regarding all shipments involved in disclosure

17. Automated Export System (AES) & Electronic Export Information (EEI)

18. Automated Export System Uses • CBP uses AES to verify shipments directly at the port. • BIS uses AES to track export license transactions and to validate end users. • DDTC uses AES to track export license transactions and to automatically decrement values on some license types.

19. AES Process Flow

20. Before Filing the EEI Gather/Review filing resources Foreign Trade Regulations (FTR) Export Flipper AESDirect Support Center FTD Blog at blogs.census/gov/globalreach

21. Before Filing the EEI • Decide who is filing the EEI • USPPI files • Authorized U.S. Agent files on USPPI’s behalf. To avoid duplicate EEI filings, only one party files the EEI.

22. Filing the EEI and Troubleshooting Misreported Codes: • Port of Export: Four digit number • Misclassification: • Ink cartridges vs. weapon cartridges • Rubber seals vs. live seals • Country of Destination:Two alpha characters • IE – Ireland IR – Iran IQ – Iraq • Carrier SCAC/IATA • Four character code for Vessel, Truck, and Rail • Two or three character code for Air • Schedule B:Ten digit number • Search engine available at: http://www.census.gov/foreign-trade/schedules/b/

23. AES Responses Verify Compliance Warning Informational Fatal Shipment Accepted ITN Issued Shipment Rejected No ITN IssuedorUpdate Rejected Invalid ITN

24. Implement Best Practices • Document!!! Document!!! Document!!! • Correct information as soon as possible • Maintain compliance • Education & cross training • Automation & Procedures • Attend Seminars & Workshops

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

26. FTD Training Tools • AES Newsletters • TradeSource

27. For More Information • FTD Call Center: 800-549-0595 • Option 1 – AES Assistance • Option 2 – Commodity Classification Assistance • Option 3 – Regulations Assistance • Option 4 – Data Dissemination • Fax: 301-763-8835 • E-mail: ASKAES@census.gov • FTD Blog: blogs.census.gov/globalreach/

28. Questions?