Western Cargo Conference 2006

1. Western Cargo Conference 2006 Foreign Trade Division U.S. Census Bureau October 20, 2006

2. Today’s Topics • AES Benefits • Fatal Errors • Marketing Efforts • Proposed Initiatives • Delegation of Authority / Enforcement • Penalty Provisions • Lessons Learned

3. Benefits of AES • Improves compliance • Improves trade statistics • Reduces duplicate reporting • Eliminates paper • Saves time and money

4. AES Statistics July 2006 • Number of AES Filers: 23,000 • Number of Shipments: 1,106,000 Air: 600,000 Overland: 200,000 Vessel: 300,000 Other: 6,000 • AES % of Export Trade: 97.2%

5. Fatal Errors • Filers are required to correct all fatal errors • Must be corrected prior to exportation to receive AES ITN • Census will send follow-up e-mail messages twice a month

6. Fatal Errors Continued Top Fatal Errors by Filers • Ultimate Consignee Contact Last Name Ineligible • Carrier Unknown • Invalid USPPI Phone Number Format: Format must be NNNNNNNNNN (Where N=Number) • USPPI Postal Code Not Valid For State

7. Fatal Errors Continued What happens when fatal errors are not corrected • Verbal (Phone) Communication • 1st Letter • 2nd letter – deactivation notice • 3rd and final letter • Deactivation

8. How to get reactivated • Filer must submit a letter to request reinstatement. • If deactivated company uses: AESDirectcompany will be reactivated in 60 days from date of deactivation. Vendor or self programmingcompany must retest software to reinstate filing privileges.

9. Reducing Paper and Fatal Errors High paper SED concentrations • Laredo, TX • JFK Intl. Airport, NY • Miami Intl. Airport, FL • L.A. Intl. Airport, CA • Otay Mesa Station

10. AES Marketing Efforts • Paper Filer Project • Target top 50 companies filing paper SEDs (monthly) • Educate USPPI/Forwarder on filing AES through Compliance Seminars and AES workshops

11. Proposed Initiative • Company Audit Project • Monthly team visits to companies meeting the following proposed criteria: • Non compliant option 4 filers • Companies reporting late • Companies with large amount of unresolved fatal errors, etc. • Audits scheduled to begin January 2007.

12. Delegation of Authority / Enforcement • Department of Commerce Bureau of Industry and Security (BIS) • Department of Homeland Security Immigration and Customs Enforcement (ICE) Customs and Border Protection (CBP)

13. Penalty Provisions • Criminal Penalties • Voluntary Self-Disclosure

14. Criminal Penalties • $10,000 or imprisonment up to 5 years or both • Failure to file, submission of false or misleading information • Furtherance of illegal actions • Forfeiture penalties

15. Voluntary Self Disclosure • Type of violation • Description of misreported data • When and how the violation occurred • Identify involved parties • Mitigating circumstances

16. Lessons Learned • Know your Regulations • Communicate with all involved parties • Do not assume • Ask Questions

17. Outreach and Education AES Compliance Conference • $199 Seminar $60 Workshop • ROEB, CAB, AES, CBP • Upcoming Seminars in 2006: Seattle, WA Oct. 17, 2006 San Diego Oct. 19, 2006 Miami, FL Nov. 8, 2006

18. Tentative 2007 Cities • San Francisco, CA • Wilmington, NC • El Paso, TX • Brownsville/Galveston, TX • Biloxi, MS • Norfolk, VA • Cleveland, OH • Tucson, AZ • Syracuse, NY • Minneapolis, MN

19. Contact Information William G. Bostic, Jr. Chief, Foreign Trade Division Phone #: 301-763-2255 Fax #: 301-457-2645 Email: william.g.bostic.jr@census.gov

20. Contact Information Jerome M. Greenwell, Jr. Chief, Regulations, Outreach and Education Branch Phone #: 301-763-6975 Fax #: 301-457-3765 Email: jerome.m.greenwell@census.gov

21. Contact Information • The FTD Call Center • 1-800-549-0595 • Hours of Operation: AES: 7:30 am – 6 pm EST Regulations/Commodities: 8 am – 5:30 pm • Jerry Greenwell (Regulations, Outreach and Education Branch) • Jerome.M.Greenwell@census.gov • 1-301-763-3502 • Gerard Horner (AES Branch) • Gerard.J.Horner@census.gov • 1-301-763-3501