[Federal Register Volume 67, Number 196 (Wednesday, October 9, 2002)]
[Proposed Rules]
[Pages 62911-62918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25667]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 67, No. 196 / Wednesday, October 9, 2002 /
Proposed Rules
[[Page 62911]]
DEPARTMENT OF COMMERCE
Bureau of the Census
15 CFR Part 30
[Docket Number 010622161-2029-02]
RIN 0607-AA34
Automated Export System Mandatory Filing for Items on the
Commerce Control List (CCL) and the United States Munitions List (USML)
That Currently Require a Shipper's Export Declaration (SED)
AGENCY: Bureau of the Census, Commerce.
ACTION: Notice for proposed rulemaking and request for comments.
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SUMMARY: The U.S. Census Bureau (Census Bureau) is amending the Foreign
Trade Statistics Regulations (FTSR) to incorporate requirements for the
mandatory Automated Export System (AES)/AESDirect filing for items
identified on the Department of Commerce's Commerce Control List (CCL)
and the Department of State's United States Munitions List (USML). The
AES is the electronic method to file the Shipper's Export Declaration
(SED) and the ocean manifest information directly with the U.S. Customs
Service (Customs). AESDirect is the Census Bureau's free Internet-based
system for filing SED information with the Customs' AES. Further
references to AES covers both AES and AESDirect. You are only required
to file information via AES for those items that require a SED. This
rule will, among other things, provide provisions for AES mandatory
filing in the FTSR.
DATES: Submit written comments on or before December 9, 2002.
ADDRESSES: Please direct all written comments on this proposed rule to
the Director, U.S. Census Bureau, Room 2049, Federal Building 3,
Washington, DC 20233.
FOR FURTHER INFORMATION CONTACT: C. Harvey Monk, Jr., Chief, Foreign
Trade Division, U.S. Census Bureau, Room 2104, Federal Building 3,
Washington, D.C. 20233-6700, (301) 763-2255, by fax (301) 457-2645, or
by e-mail: [email protected].
SUPPLEMENTARY INFORMATION:
Background
On July 26, 2001, the Census Bureau published a program notice in
the Federal Register (66 FR 39006) announcing that we would be issuing
rules, and allowing the public to comment, on this subject.
The Census Bureau is responsible for collecting, compiling, and
publishing trade statistics for the United States under the provisions
of Title 13, United States Code (U.S.C.), Chapter 9, Section 301. The
paper SED and the AES are the primary media used for collecting such
trade data, and the information contained therein is used by the Census
Bureau for statistical purposes only. This information is exempt from
public disclosure under the provisions of Title 13, U.S.C., Chapter 9,
Section 301(g). The SED and AES records also are used for export
control purposes under Title 50, U.S.C., and Title 22, U.S.C., to
detect and prevent the export of certain critical technology and
commodities to unauthorized destinations or end users.
Under the current rules and regulations, export information is
compiled from both paper and electronic transactions filed by the
export community with Customs and the Census Bureau. The AES is an
electronic method by which the U.S. principal party in interest or the
authorized agent can transmit the required export information. For
purposes of completing the SED or AES record, the U.S. principal party
in interest (USPPI) is the person in the United States that receives
the primary benefit, monetary or otherwise, from the export
transaction. The authorized agent is the person in the United States
who is authorized by power of attorney or written authorization by the
USPPI or the foreign principal party in interest to prepare and file
the SED or AES record. A paper SED or the electronic equivalent AES
record is required, with certain exceptions, for exports of merchandise
valued at more than $2,500 from the United States, Puerto Rico, and the
United States Virgin Islands to foreign countries or exports between
U.S. Virgin Islands and Puerto Rico and the United States. The SED or
AES record also is required for all exports under a Bureau of Industry
and Security (BIS) or Department of State (State Department) export
license or State Department license exemption, regardless of value,
unless exempted from the requirement for an SED or AES record by the
State Department (see 15 CFR, part 30, Sec. 30.55(h)(2) and 22 CFR
parts 120-130).
For export data filed via a paper SED, the USPPI or freight
forwarder must present the SED to the exporting carrier when the cargo
is tended to the carrier. The vessel, air or rail carrier must present
the manifest and supporting documentation to the Customs Port Director
at the port of export within four days after departure if a bond is
posted with Customs. However, this rule does not apply to SEDs or AES
shipments subject to BIS or State Department licenses or State
Department license exemptions. If the information is filed in the AES,
an exemption legend is included on the vessel, air, or rail manifest,
or other commercial loading document indicating that no SED is
attached, with a transaction identification number or unique identifier
to identify the electronic AES record. If no manifest is required or
the manifest is electronically filed, the paper SEDs or the
electronically filed AES exemption legends are presented directly to
Customs.
Electronic filing strengthens the U.S. Government's ability to
control the export of critical goods and technologies and weapons of
mass destruction to prohibited and unauthorized end-users and affords
the government the ability to significantly improve the quality,
timeliness, and coverage of export statistics. Currently, fifty (50)
percent of the paper SEDs submitted contain one or more errors in
export reporting, accounting for a significant percentage of unreported
exports. Reporting on the AES has demonstrated that, compared to paper
filing, the error rate is reduced substantially and coverage is
improved. Currently, the error rate for export transactions filed
through the AES is approximately six (6) percent. At this time, the
electronic AES filing of the required export information under Title
13, U.S.C., Section 301, is strictly voluntary for the export of any
item.
On November 29, 1999, the President signed H.R. 3194, the
Consolidated
[[Page 62912]]
Appropriations Act of 1999, into law (Pub. L. 106-113). Section 1252(a)
of this law, amends Title 13, U.S.C., Chapter 9, section 301 to add
subsection ``(h)'' authorizing the Secretary of Commerce to require by
regulation, mandatory reporting requirements for filing export
information through the AES for items identified on the CCL and USML
that require the SED. The effective date of this amendment is 270 days
after the Secretary of Commerce, the Secretary of the Treasury, and the
Director of the National Institute of Standards and Technology jointly
provide a certification to the Committee on Foreign Relations of the
Senate and the Committee on International Relations of the U.S. House
of Representatives that a secure AES mainframe computer system of
Customs and the Internet-based AESDirect system of the Census Bureau is
capable of handling the expected volume of information required to be
filed, plus the anticipated volume from voluntary use of the AES has
been successfully implemented and tested and is fully functional with
respect to reporting all items on the USML, including quantities and
destinations. The required certification report was submitted to
Congress on June 2001. The certification report described the security
measures in place to develop, implement, and maintain each system;
summarized the information system assessment reports prepared by the
General Services Administration (GSA), Office of Information Security,
and Customs; and provided the Census Bureau's response to those
security assessment reports listing the specific actions taken by both
agencies to ensure the security and functionality of the system. In
addition, the AES has received a security accreditation from Customs,
and the AESDirect system has received a security accreditation from the
Census Bureau. On July 26, 2001, the Census Bureau published a program
notice in the Federal Register (66 FR 39006) announcing that the AES
certification report was submitted to Congress.
As authorized by Section 1252(b) of Pub. L. 106-113, the Census
Bureau proposes to amend the FTSR to specify the mandatory provisions
for electronically filing SEDs as well as the time and place
requirements for filing. In addition, the Census Bureau proposes to
amend the FTSR to specify: (1) The requirements for the filing of SEDs
through the electronic AES and the provisions and responsibilities of
parties exporting items identified on the CCL and USML via the AES; (2)
the provision by the Department of Commerce for the establishment of
on-line assistance services to be available for those individuals who
must use the AES; (3) the provision by the Department of Commerce for
ensuring that an individual required to use the AES is able to print
out from the AES a validated record of the individual's submission,
including the date of submission and a transaction number or unique
identifier, where appropriate, for the export transaction; and (4) a
requirement that the Department of Commerce print out and maintain on
file a paper copy or other acceptable back-up record of the
individual's submission at a location selected by the Secretary of
Commerce. This rule defines the regulatory revisions that would be made
to implement this legislation. The Census Bureau also proposes to amend
the FTSR to specify how electronic export information is identified on
the manifest by mode of transportation and define the carrier's
responsibilities. In addition to proposing regulations on the
provisions for the mandatory filing via the AES, this Notice of
Proposed Rulemaking proposes to amend Sec. Sec. 30.63 (14)-(21) to
collect additional data through the AES to meet the State Department's
requirements. Finally, this notice proposes to add to the paper SED the
requirement to enter the freight forwarder's Employer Identification
Number (EIN) when required. This requirement applies to filers who are
not required to file through AES and who choose to file a paper SED,
rather than filing voluntarily through AES.
One additional revision the Census Bureau proposes for the FTSR is
the removal of AES Filing Option 3. Option 3 allows the filer to
provide partial pre-departure information and complete information five
(5) working days from the date of exportation. The Census Bureau
identified four (4) specific reasons for making Option 3 inactive.
Option 3 has shown to be underutilized by the AES filers. Option 3
filers have frequently shown noncompliance with timely filing for both
the pre-departure and post departure filings and, therefore, the data
collected are often incomplete and inaccurate because of missing post
departure filings. Lastly, Option 3 has shown to be a burden by
requiring filers to transmit twice for one shipment. Of the 734,916
total average AES shipment transactions collected per month, Option 3
filings average only 28,739 or 3.9 percent. Additionally, of the 5,000
plus AES filers, only 53 filers are using Option 3 and of those, only 7
use Option 3 exclusively.
The mandatory compliance date for these regulatory requirements
would be 90 days after issuance of any final rule.
Program Requirements
In order to comply with the requirements of Pub. L. 106-113, the
Census Bureau proposes amending the appropriate sections of the FTSR to
specify the requirements for the AES mandatory filing and the revision
to the paper SED. For purposes of this rule, all references to filing
mandatory AES shipments do not apply to the paper SED.
The Census Bureau proposes revising the following sections of the
FTSR: (a) Section 30.1 to specify the general requirements for filing
items identified on the CCL and USML, that require the SED, via the
AES; (b) Section 30.7 to add instructions for filing the address of the
USPPI, the freight forwarder's EIN on the paper SED, the transportation
reference number, instructions for filing the gross shipping weight for
air, vessel, truck and rail modes of transportation via paper and the
AES and delete references to ``marks and numbers''; (c) Section 30.12
to specify the instructions regarding the time and place for presenting
SED information; (d) Section 30.21 to specify the departing carrier's
responsibility for filing export and manifest data via paper and the
AES; (e) Section 30.22 to specify the responsibilities of the departing
carrier to deliver to the Customs Port Director at the time of
exportation, the required documentation for electronically filed items;
(f) Section 30.23 to amend the requirements for the pipeline carrier
when the item is identified on the CCL or USML; (g) Section 30.60 is
amended to specify participation requirements in the AES; (h) Section
30.61 to specify the electronic filing options required for mandatory
filing and to delete references to Option 3; (i) Section 30.62 is
amended to update the specifications for certification, qualification
and standards for AES and AESDirect; (j) Section 30.63 to revise the
requirements for entering a USPPI's profile in AES and to add data
elements required in the AES to validate State Department's Office of
Defense Trade Controls (ODTC) licensed or license-exempt shipments and
to delete references to Option 3; (k) Section 30.65 to specify the
requirements for annotating the proper exemption legends when exports
are filed through the AES; (l) Section 30.66 to specify requirements as
stated in Section 1252(b)(2) of Pub. L. 106-113, which pertains to
record keeping and documentation requirements; (m) revise Appendix A to
amend the instructions for the Letter of Intent; (n)
[[Page 62913]]
revise Appendix B to delete references to Option 3 filing and to
reserve it for future use; and (o) revise Appendix C, Part II--Export
Information Codes and Part III--License Codes, Bureau of Industry and
Security Codes and Department of State Codes to specify additional
license codes required and reference as to where to locate the
International Traffic in Arms Regulations (ITAR) license exemption
citations. Revise Part IV--In-Bond Code to delete codes that pertain
only to import shipments. The collection of additional data items
listed in Appendix C has been approved by the Office of Management and
Budget (OMB).
The State Department and the Department of Treasury concur with the
provisions contained in this notice of proposed rulemaking.
Rulemaking Requirements
Administrative Procedure Act
This proposed rule is exempt from all requirements of Section 553
of the Administrative Procedure Act, because it deals with a foreign
affairs function of the United States (5 U.S.C. 553(a)(1)). However,
this rule is being published as a proposed rule with an opportunity for
public comment, because of the importance of the issues raised by this
rulemaking.
Regulatory Flexibility Act
The Chief Counsel for Regulation of the Department of Commerce
certified to the Chief Counsel for Advocacy of the Small Business
Administration that this rule will not have a significant impact on a
substantial number of small entities. This action requires that
exporters file export information through the AES for items identified
on the CCL and USML that currently require the SED. Currently, 85
percent of all export transactions are voluntarily filed electronically
and the remaining 15 percent are filed on paper SEDs.
Based on year 2000 data, the Census Bureau estimates there were
128,000 exporters who were considered small entities under the Small
Business Act--because they had less than 500 employees--and that filed
one or more export shipments. Of these 128,000 exporters, 90 percent
used a forwarding agent to file export documentation, the SED, on their
behalf. Although, it is not possible to determine how many of the
128,000 small businesses exported merchandise identified on the CCL or
the USML and that are currently required to file an SED, the Census
Bureau anticipates that the new requirement would not significantly
affect the small businesses who must now file through AES. It is
unlikely that the regulations that require mandatory use of AES to file
export information would affect a substantial number of small entities
because 90 percent of all exporters who are considered small entities
already use a forwarding agent to file export documentation.
In addition, those small exporters that do not currently use a
forwarding agent to file export documentation will not be significantly
impacted by this regulation. We can safely assume that small businesses
involved in exporting items on the CCL and USML are electronically
sophisticated, and would have access to a computer and the Internet.
The Census Bureau has provided a free Internet-based system, AESDirect,
especially for small businesses to submit their export information
electronically. The implementation of AESDirect was the primary
criteria required in order for Section 1252 of Pub. L. 106-113 to
become effective. Therefore, it is not necessary for small businesses
to purchase software for this task. Small businesses currently filing
paper and who will now be required to file electronically will be able
to continue to use their current forwarding agent who will be required
to file the export information electronically on their behalf or the
exporters can use AESDirect and file directly for themselves.
Executive Orders
This rule has been determined to be not significant for purposes of
Executive Order 12866. It has been determined that this rule does not
contain policies with Federalism implications as that term is defined
under Executive Order 13132.
Paperwork Reduction Act
Notwithstanding any other provision of law, no person is required
to respond to, nor shall a person be subject to a penalty for failure
to comply with, a collection of information subject to the requirements
of the Paperwork Reduction Act (PRA), unless that collection of
information displays a current, valid Office of Management and Budget
(OMB) control number. In accordance with the PRA, 44 U.S.C., Chapter
35, OMB approved on April 26, 2002, with control number 0607-0512, the
collection of all information associated with the AES and SED under
this rule. We estimate that each electronic SED will take approximately
3 minutes to complete; we estimate that each paper SED will take
approximately 11 minutes to complete.
List of Subjects in 15 CFR Part 30
Economic statistics, Foreign trade, Exports, Reporting and record
keeping requirements.
For the reasons set out in the preamble, it is proposed that Part
30 be amended as follows:
PART 30--FOREIGN TRADE STATISTICS
1. Revise the authority citation for part 30 to read as follows:
Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization Plan
No. 5 of 1950 (3 CFR 1949-1953 Comp., 1004); and Department of
Commerce Organization Order No. 35-2A, July 22, 1987, as amended.
PART 30--[AMENDED]
2. In Part 30, revise all references to the ``Bureau of Export
Administration'' to read the ``Bureau of Industry and Security'' and
revise all reference to ``BXA'' to read ``BIS.''
3. Revise the heading of Subpart A to read as follows:
Subpart A--General Requirements--U.S. Principal Party In Interest
4. Amend Sec. 30.1 to revise all references to ``exporters or
their authorized agents'' to read ``U.S. principal party in interest or
the authorized agent,'' in paragraph (a), revise paragraph (b) and
paragraph (c) to read as follows:
Sec. 30.1 General statement of requirement for Shipper's Export
Declarations.
* * * * *
(b) Export information that is required to be filed for items
identified on the Commerce Control List (CCL) of the Export
Administration Regulations (EAR) (15 CFR Supplement No. 1 to Part 774)
or the U.S. Munitions List (USML) of the International Traffic in Arms
Regulations (ITAR) (22 CFR, part 121) is to be filed electronically
through AES. This requirement to file information via AES applies to
those items that require a Shipper's Export Declaration. Exemptions
from these requirements and exceptions to some of the provisions of
these regulations for particular types of transactions are found in
subparts C and D of this part.
(c) In lieu of filing paper SEDs as provided elsewhere in this
Section, the U.S. principal party in interest or the authorized agent
is required to file shippers' export information, when required,
electronically through the AES for the export of items identified on
the CCL of the EAR (15 CFR Supp. No. 1 to part 774) or the USML of the
ITAR (22 CFR, part 121) as provided for in
[[Page 62914]]
subpart E of this part, Electronic Filing Requirement-Shipper's Export
Information. Information for items identified on the USML, including
those exported under an export license exemption, must be filed
electronically prior to export, unless exempted from the SED filing
requirement by the State Department. For State Department USML
shipments, refer to the International Traffic in Arms Regulations (22
CFR, parts 120-130) for State Department requirements concerning the
AES exemption legend and filing time requirements. The U.S. principal
party in interest or the authorized agent filing SEDs for the export of
items not on the CCL or the USML have the option of filing this
information electronically as provided for in subpart E of this part.
5. Amend Sec. 30.7 as follows:
a. Add paragraph (d)(3).
b. Revise the first sentence of paragraph (e).
c. Remove and reserve paragraph (k).
d. Revise paragraphs (j) and (o).
e. Add a sentence after the second sentence in paragraph (l).
The additions and revisions read as follows:
Sec. 30.7 Information required on Shipper's Export Declaration.
* * * * *
(d) * * *
(3) Address (number, street, city, state, Zip Code) of the USPPI.
In all export transactions, the USPPI shall report the address location
from which the merchandise actually starts its journey to the port of
export. For example, a Shipper's Export Declaration covering
merchandise laden aboard a truck at a warehouse in Georgia for
transport to Florida for loading onto a vessel for export to a foreign
country shall show the address of the warehouse in Georgia. If the
USPPI does not have a facility (processing plant, warehouse or
distribution center, retail outlet, etc.) at the location from which
the goods began their export journey, report the USPPI address from
which the export was directed. For shipments of multiple origins
reported on a single SED, report the address from which the greatest
value begins its export journey or, if such information is not known at
the time of export, the address from which the export is directed.
(e) Forwarding or other agent. The name, address, and Employer
Identification Number (EIN) or Social Security Number (SSN) of the duly
authorized forwarding or other agent (if any) of a principal party in
interest must be recorded where required on the SED or AES record. * *
*
(j) Transportation Reference Number. Enter the Transportation
Reference Number as follows:
(1) Vessel Shipments. Report the booking number for all sea
shipments. The booking number is the reservation number assigned by the
carrier to hold space on the vessel for cargo being exported.
(2) Air Shipments. Report the master air waybill number for all air
shipments. The air waybill number is the reservation number assigned by
the carrier to hold space on the airplane for cargo being exported.
(3) Rail Shipments. Report the bill of lading (BOL) number for all
rail shipments. The BOL number is the reservation number assigned by
the carrier to hold space on the rail car for cargo being exported.
(4) Truck Shipments. Report the Freight or Pro Bill number for all
truck shipments. The Freight or Pro Bill number is the number assigned
by the carrier to hold space on the truck for cargo being exported. The
Freight or Pro Bill number correlates to a bill of lading number, air
waybill number or Trip number for multi-modal shipments.
(k) [Reserved]
(l) * * * Include marks, numbers or other identification shown on
packages and the number and kinds of packages (i.e., boxes, barrels,
baskets, bales, etc.). * * *
(o) Gross (shipping) weight. Enter the gross shipping weight in
kilograms on the SED or the AES record, including the weight of
containers, for air, vessel, truck, and rail methods of transportation.
However, for containerized cargo in lift vans, cargo vans, or similar
substantial outer containers, the weight of such containers should not
be included in the gross weight of the commodities. If the gross
shipping weight information is not available for individual Schedule B
items because commodities covered by more than one Schedule B number
are contained in the same shipping container, approximate shipping
weights should be used for each Schedule B item in the container. The
total estimated weights must equal the actual shipping weight of the
entire container or containers and contents.
* * * * *
6. Revise Sec. 30.12 to read as follows:
Sec. 30.12 Time and place for presenting the SED or Exemption
Legends.
The following conditions govern the time and place to present paper
SEDs or the AES transaction identification number that identifies the
electronic record. It is the duty of the principal party in interest or
the authorized agent to deliver the required number of copies of the
SED or the exemption legends when the cargo is tendered to the
exporting carrier. Information on items identified on the Commerce
Control List (CCL) of the EAR (15 CFR Supp. No. 1 to part 774) or the
U.S. Munitions List (USML) of the International Traffic in Arms
Regulations (ITAR) (22 CFR, Part 121) that require an SED, must be
filed through the AES. Information for items identified on the USML,
including those exported under an export license exemption, must be
filed electronically prior to export, unless exempted from the SED
filing requirements by the State Department. For State Department USML
shipments, refer to the ITAR (22 CFR, Parts 120-130) for more specific
requirements concerning the AES exemption legend and filing time
requirements. Failure of the U.S. principal party in interest or the
authorized agent of either the U.S. principal party in interest or
foreign principal party in interest to comply with these requirements
constitutes a violation of the provisions of these regulations, and
renders such principal party or the authorized agent subject to the
penalties provided for in Sec. 30.95 of this part.
(a) Postal Exports. SEDs for exports of items being sent by mail,
as required in Sec. 30.1 of this part, shall be presented to the
postmaster with the packages at the time of mailing.
(b) Pipeline Exports. SEDs for exports being sent by pipeline are
not required to be presented prior to exportation; however, they are
required to be filed within four (4) working days after the end of each
calendar month. These SEDs must be filed with the Customs Port Director
having jurisdiction for the pipeline, and the filer must deliver the
SED in the number of copies specified in Sec. 30.5 of this part to
cover exports to each consignee during the calendar month.
(c) Exports by other methods of transportation. For exports sent
other than by mail or pipeline, the required number of copies of SEDs
as prescribed in Sec. 30.5 of this part shall be delivered to the
exporting carrier when the cargo is tendered to the exporting carrier.
(d) Exports Filed Via AES. For exports filed through the AES, it is
the duty of the U.S. principal party in interest or the authorized
agent to deliver to the exporting carrier, the AES exemption legends as
provided for in Sec. 30.65 of this part or 22 CFR (parts 120-130) of
the ITAR when the cargo is tendered to the exporting carrier.
[[Page 62915]]
Subpart B--General Requirements--Exporting Carriers
7. Revise Sec. 30.21 to read as follows:
Sec. 30.21 Requirements for the filing of manifests.
Carriers transporting merchandise via vessel, aircraft, or rail are
required to file an outbound manifest (along with the required SEDs,
supporting documentation and/or the exemption statement) to the Customs
Port Director at the port of exportation. Outbound vessel manifests may
be filed via paper or electronically through the vessel transportation
module, a component of the AES, as provided in U.S. Customs Service
Regulations, 19 CFR 4.63 and 4.76. SEDs may be filed via paper or
electronically via the AES.
(a) Paper SED--paper manifest. If filing paper SEDs and paper
manifest, attach the copies of the SEDs to the manifest. For each item
of cargo, the Transportation Reference Number on the SED covering the
item must be shown on the manifest.
(b) Paper SED--electronic manifest. If filing paper SEDs and the
electronic outbound vessel manifest, carriers are responsible for
submitting paper SEDs directly to the Customs Port Director.
(c) Electronic SED--paper manifest. If filing the electronic SED
and paper outbound manifest, carriers must annotate the outbound
manifest with the appropriate AES exemption legends as provided in
Sec. 30.65 of this part.
(d) Electronic SED and manifest. If filing the SED information and
outbound vessel manifest electronically through the AES, the carrier
must adhere to the instructions specified in U.S. Customs Regulations,
19 CFR, 4.76 and Sec. 30.60 of this Part and transmit the appropriate
exemption legend as provided in Sec. 30.65 of this part.
(e) When an SED is not required. If an item does not require a SED,
the proper exemption legend must be annotated on the outbound manifest
or other appropriate commercial documents as provided in Sec. 30.50 of
this Part.
(f) Exports to Puerto Rico. When filing paper manifests for
shipments from the United States to Puerto Rico, the manifest shall be
filed with the Customs Port Director where the merchandise is unladen
in Puerto Rico.
(1) Vessels. Vessels transporting merchandise as specified in Sec.
30.20 of this part (except vessels exempted by paragraph (e)(4) of this
section) shall file a complete Cargo Declaration Outward With
Commercial Forms, Customs Form 1302-A. In addition, vessel carriers are
required to perform the following:
(i) Bunker fuel. Vessel manifest (including vessels carrying bunker
fuel to be laden aboard vessels on the high seas) clearing for foreign
countries shall show quantities and values of bunker fuel taken aboard
at that port for fueling use of the vessel, apart from such quantities
as may have been laden on vessels as cargo.
(ii) Coal and Fuel Oil. The quantity of coal shall be reported in
metric tons (2240 pounds), and the quantity of fuel oil shall be
reported in barrels of 158.98 liters (42 gallons). Fuel oil shall be
described in such manner as to identify diesel oil as distinguished
from other types of fuel oil.
(2) Aircraft. Aircraft transporting merchandise as specified in
Sec. 30.20 of this part, shall file a complete manifest on Customs
Form 7509, as required in U.S. Customs Regulations, 19 CFR 122.72
through 122.76. All the cargo so laden shall be listed and shall show,
for each item, the air waybill number or marks and numbers on packages,
the number of packages, and the description of the goods.
(3) Rail carriers. Rail carriers transporting merchandise as
specified in Sec. 30.20 of this Part shall file a car manifest. Such
manifest shall be filed with the Customs Port Director at the port of
exportation, giving the marks and numbers, the name of the shipper or
consignor, description of goods and the destination thereof. The
manifest may be a waybill, or copy thereof, or a copy of the manifest
prepared for foreign customers.
(4) Carriers not required to file manifests. Carriers other than
vessels, aircraft, and rail carriers, or vessels under 5 net tons
engaged in trade with a foreign country other than by sea are not
required to file manifests. Vessels specifically exempted from entry by
section 441 of the Tariff Act of 1930 are exempt from filing manifests.
Carriers exempted from filing manifests are required, upon request, to
present to the Customs Port Director regulatory SED exemption legends
or AES exemption legends. Failure of the carrier to do so constitutes a
violation of the provisions of these regulations, and renders such
carrier subject to the penalties provided for in Sec. 30.95 of this
part.
8. Amend Sec. 30.22 by adding a sentence to the end of paragraph
(a), adding a sentence after the first sentence in paragraph (b), and
adding paragraph (f) to read as follows:
Sec. 30.22 Requirements for the filing of Shipper's Export
Declarations or AES Exemption Legends by departing carriers.
(a) * * * When the export information for a shipment is filed via
the AES, the carrier is responsible for presenting the proper AES
exemption legend as provided in Sec. 30.65 of this part and the ITAR
(22 CFR part 121) for U.S. Munitions List (USML) shipments.
(b) * * * If the export information is filed electronically via the
AES, the carrier is responsible for providing the Customs Port Director
at the port of exportation with the proper AES exemption legend as
provided in Sec. 30.65 of this part and the ITAR (22 CFR, part 121)
for U.S. Munitions List (USML) shipments.
* * * * *
(f) Information on items identified on the Commerce Control List of
the EAR (15 CFR Supp. No. 1 to part 774) or the U.S. Munitions List of
the ITAR (22 CFR part 121) that require an SED, must be filed through
AES. The exporting carrier must not accept paper SEDs or cargo that
does not have the appropriate AES filing exemption legend as set forth
in Sec. 30.65 of this part and the ITAR (22 CFR part 121) for U.S.
Munitions List (USML) shipments. Acceptance of paper SEDs or cargo
without the appropriate exemption legend constitutes a violation of the
provisions of these regulations, and renders such carrier subject to
the penalties provided for in Sec. 30.95 of this part.
* * * * *
9. Amend Sec. 30.23 by adding a sentence to the end of the
paragraph to read as follows:
Sec. 30.23 Requirements for the filing of Shipper's Export
Declarations by pipeline carriers.
* * * If the merchandise transported by pipeline is identified on
the Commerce Control List of the EAR (15 CFR Supplement No.1 to part
774) or the U.S. Munitions List of the ITAR (22 CFR, part 121), and
requires an SED, the data regarding the shipment must be filed
electronically through the AES.
Subpart E--Electronic Filing Requirements--Shipper's Export
Information
10. Amend 30.60 to revise paragraph (a) to read as follows:
Sec. 30.60 General requirements for filing export and manifest data
electronically using the Automated Export System.
* * * * *
(a) Participation. Filing using the AES is mandatory for those
items identified on the Commerce Control List (CCL) of the EAR (15 CFR
Supplement No. 1 to part 774) or the U.S. Munitions List (USML) of the
ITAR (22 CFR, part 121). You are only required to file information via
AES for those items that require a Shipper's Export Declaration. All
other participation in the AES in voluntary. Information for items
[[Page 62916]]
identified on the CCL or the USML filed via AES must be filed by the
U.S. principal party in interest or the authorized agent. A Data Entry
Center, service center, or port authority may transmit an AES record
for CCL or USML items, completed by the U.S. principal party in
interest or the authorized agent, without obtaining a power of attorney
or written authorization. A Data Entry Center, service center, or port
authority must have a power of attorney or written authorization from
the U.S. principal party in interest or foreign principal party in
interest if it completes any export information in AES for CCL or USML
shipments. Companies may also buy a software package designed by an AES
certified software vendor. Certified trade participants (filing agents)
can transmit to and receive data from the AES pertaining to merchandise
being exported from the United States. Participants in the AES process,
who may apply for AES certification, includeU.S. principal parties in
interest or the authorized agents, carriers, non-vessel operating
common carriers (NVOCC), consolidators, port authorities, software
vendors, or service centers. Once becoming certified, an AES filer
(filing agent) must agree to stay in complete compliance with all
export rules and regulations.
* * * * *
11. Amend Sec. 30.61 to revise the introductory text, remove
paragraph (b), and redesignate paragraph (c) as paragraph (b) to read
as follows:
Sec. 30.61 Electronic filing options.
As an alternative to filing paper Shipper's Export Declaration
forms (Option 1), two electronic filing options (Option 2 and 4) for
transmitting shipper's export information are available to U.S.
principal parties or the authorized filing agent. The electronic filing
Option 4 takes into account that complete information concerning export
shipments is not always available prior to exportation. Information on
the export of items identified on the Commerce Control List of the EAR
(15 CFR Supplement No. 1 to part 774) or the U.S. Munitions List of the
ITAR (22 CFR, part 121) that require an SED can be filed using Options
2 or 4. Option 4 may only be used when the appropriate licensing agency
has granted the U.S. principal party in interest or the authorized
agent authorization to use this option. The available AES electronic
filing options are as follows:
* * * * *
12. Revise Sec. 30.62 to read as follows:
Sec. 30.62 AES/AESDirect Certification, qualification, and standards.
Certification for AES filing will apply to the U.S. principal party
in interest, authorized forwarding agent, carrier, non-vessel operating
common carriers (NVOCC), consolidator, port authority, software vendor,
or service center transmitting export information electronically using
the AES.
(a) AES Certification Process. Applicants interested in AES filing
must submit a Letter of Intent to the Census Bureau in accordance with
the provisions contained in Sec. 30.60. Customs and the Census Bureau
will assign client representatives to work with the applicant to
prepare them for AES certification. The AES applicant must perform an
initial two-part communication test to ascertain whether the
applicant's system is capable of both transmitting data to, and
receiving data from, the AES. The applicant must demonstrate specific
system application capabilities. The capability to correctly handle
these system applications is the prerequisite to certification for
participation in the AES. The applicant must successfully transmit the
AES certification test. The Customs' and Census Bureau's client
representatives provide assistance during certification testing. These
representatives make the sole determination as to whether or not the
applicant qualifies for certification. Upon successful completion of
certification testing, the applicant's status is moved from testing
mode to operational mode. Upon certification, the filer will be
required to maintain an acceptable level of performance in AES filings.
The certified AES filer may be required to repeat the certification
testing process at any time to ensure that operational standards for
quality and volume of data are maintained. The Census Bureau will
provide the certified AES filer with a certification letter after the
applicant has been approved for operational status. The certification
letter will include:
(1) The date that filers may begin transmitting ``live'' data
electronically using AES;
(2) Reporting instructions; and
(3) Examples of the required AES exemption legends.
(b) AESDirect Certification process. Applicants interested in
AESDirect filing must complete the online AESDirect registration form.
After submitting the registration, an AESDirect filing account is
created for the filing company. The applicant will receive separate e-
mails providing an AESDirect user name, temporary administrator code,
and temporary password. The filer uses the temporary administrator code
to create a permanent administrator code that allows the user to create
a permanent password. The user name and new permanent password will
allow the filer to complete a certification quiz. Upon passing the
quiz, notification by e-mail will be sent when an account is fully
activated for filing via AESDirect. Print the page congratulating the
filer on passing the quiz for retention purposes. The activation notice
will specify which AES filing status the account has been authorized.
(c) Filing agent certification. Once an authorized filing agent has
successfully completed the certification process, the U.S. principal
party in interest using that agent does not need further AES
certification. The certified filing agent must have a properly executed
power of attorney, a written authorization from the U.S. principal
party in interest or foreign principal party in interest, or a SED
signed by the U.S. principal party in interest to transmit their data
electronically using the AES. The U.S. principal party in interest or
authorized agent that utilizes a service center or port authority must
complete certification testing, unless the service center or port
authority has a formal power of attorney or written authorization from
the U.S. principal party in interest to file the export information on
behalf of the U.S. principal party in interest.
(d) AES filing standards. The certified AES filer's data will be
monitored and reviewed for quality, timeliness, and coverage. The
Census Bureau will notify the AES filer if the filer fails to maintain
an acceptable level of quality, timeliness, and coverage in the
transmission of export data or fail to maintain compliance with Census
Bureau regulations contained in this Section. The Census Bureau, if
necessary, will take appropriate action to correct the specific
situation(s). In the case of AESDirect, when submitting a registration
form to AESDirect, the registering company is certifying that they will
be in compliance with all applicable laws and regulations. This
includes complying with the following security requirements:
(1) AESDirect user names and passwords are to be neither written
down nor disclosed to any unauthorized user or any persons outside of
the registered company. Filers must change passwords for security
purposes when prompted to do so.
(2) Registered companies are responsible for those persons having a
user name and password. If an employee with access to the user name
[[Page 62917]]
and password leaves the company or otherwise is no longer an authorized
user, the company must change the password and user name in the system
and must do so immediately in order to ensure the integrity and
confidentiality of Title 13 data.
(3) Antivirus software must be installed and set to run
automatically on all computers that access AESDirect. All AESDirect
registered companies will maintain subscriptions with their antivirus
software vendor to keep antivirus lists current. Registered companies
are responsible for performing full scans of these systems on a regular
basis and eliminating any virus contamination. If the registered
company's computer system is infected with a virus, the company should
refrain from using AESDirect until it is virus free. Failure to comply
with these requirements will result in immediate loss of privilege to
use AESDirect until the registered company can establish to the
satisfaction of the Census Bureau's Foreign Trade Division Computer
Security Officer that the company's computer systems accessing
AESDirect is virus free.
13. Amend Sec. 30.63 by revising paragraph (a)(1), (b)(11),
(b)(13), and (c), and by adding paragraphs (b)(14) through (b)(21) to
read as follows:
Sec. 30.63 Information required to be reported electronically through
AES (data elements).
(a) * * *
(1) U.S. Principal Party in Interest (USPPI)/USPPI
identification'(i) Name and address of the USPPI. For details on the
reporting responsibilities of USPPIs, see Sec. 30.4 and Sec. 30.7
(d)(1), (2), (3), and (e).
(ii) USPPI's profile. The USPPI's Employer Identification Number
(EIN) or Social Security Number (SSN) and the USPPI name, address,
contact, and telephone number must be reported with every shipment. If
neither EIN or SSN is available for the USPPI, as in the case of a
foreign entity being shown as the USPPI as defined in Sec. 30.7(d),
the border crossing number, passport number, or any other number
assigned by Customs is required to be reported. (See Sec. 30.7(d)(2)
for a detailed description of the EIN.)
(b) * * *
(11) Transportation Reference Number. Report the Transportation
Reference Number as follows:
(i) Vessel Shipments. Report the booking number for all sea
shipments. The booking number is the reservation number assigned by the
carrier to hold space on the vessel for cargo being exported.
(ii) Air Shipments. Report the master air way bill number for all
air shipments. The air waybill number is the reservation number
assigned by the carrier to hold space on the airplane for cargo being
exported.
(iii) Rail Shipments. Report the bill of lading (BOL) number for
all rail shipments. The BOL number is the reservation number assigned
by the carrier to hold space on the rail car for cargo being exported.
(iv) Truck Shipments. Report the Freight or Pro Bill number for all
truck shipments. The Freight or Pro Bill number is the number assigned
by the carrier to hold space on the truck for cargo being exported. The
Freight or Pro Bill number correlates to a bill of lading number, air
waybill number or Trip number for multi-modal shipments.
* * * * *
(13) Filing option indicator. Report the 1-character filing option
that indicates Option 2 or 4 filing.
(14) Office of Defense Trade Controls (ODTC) Registration Number.
The number assigned by ODTC to persons who are required to register per
Part 122 of the International Traffic in Arms Regulations (ITAR) (22
CFR parts 120-130), that has an authorization from ODTC (license or
exemption) to export the article.
(15) ODTC Significant Military Equipment (SME) Indicator. A term
used to designate articles on the United States Munitions List for
which special export controls are warranted because of their capacity
for substantial military utility or capability. See section 120.7 of
the International Traffic in Arms Regulations (ITAR) 22 CFR parts 120-
130, for a definition of SME and Section 121.1 for items designated as
SME articles.
(16) ODTC Eligible Party Certification Indicator. Certification by
the U.S. exporter that the exporter is an eligible party to participate
in defense trade. See ITAR 22 CFR, Sec. 120.1(c). This certification
is required only when an exemption is claimed.
(17) ODTC USML Category Code. The United States Munitions List
category of the article being exported (22 CFR part 121).
(18) ODTC Unit of Measure (ULM). This unit of measure is the ULM
covering the article being shipped as described on the export
authorization or declared under an ITAR exemption.
(19) ODTC Quantity. This quantity is for the article being shipped.
The quantity is the total number of units that corresponds to the ODTC
Unit of Measure Code.
(20) ODTC Exemption Number. The exemption number is the specific
citation from the Code of Federal Regulations (22 CFR parts 120--130)
that exempts the shipment from the requirements for a license or other
written authorization from ODTC.
(21) ODTC Export License Line Number. The line number of the State
Department export license that corresponds to the article being
exported.
(c) Seal Number. Optional. Report the security seal number of the
seal placed on the equipment.
14. Revise Sec. 30.65 to read as follows:
Sec. 30.65 Annotating the proper exemption legends for shipments
transmitted electronically.
(a) Items identified on the U.S. Munitions List (USML), must meet
the predeparture reporting requirements identified in the ITAR (22 CFR
Parts 120-130) for the State Department requirements concerning AES
exemption legends and time and place of filing.
(b) For shipments other than USML, the U.S. principal party in
interest or the authorized agent is responsible for annotating the
proper exemption legend on the bill of lading, air waybill, or other
commercial loading document for presentation to the carrier prior to
export. The carrier is responsible for providing the proper exemption
legend to the Customs Port Director at the port of exportation as
stated in Sec. 30.21 of this Part. The exemption legend will identify
that the shipment information has been accepted as transmitted and
electronically filed using the AES. The exemption legend must appear on
the bill of lading, air waybill, or other commercial loading
documentation and the manifest and must be clearly visible and include
either of the following:
(1) For shipments other than USML, the exemption legend will
include the statement, ``NO SED REQUIRED--AES,'' followed by the
filer's identification number and a unique shipment reference number
referred to as the ``XTN'' or the returned confirmation number provided
by AES when the transmission is accepted, referred to as the ``ITN.''
Items on the USML must meet the pre-departure reporting requirements in
the ITAR (22 CFR parts 102-130).
(2) For U.S. principal parties in interest who have been approved
to participate in Filing Option 4, the exemption statement, ``NO SED
REQUIRED--AES4,'' followed by the U.S. principal party's in interest
employer identification number followed by the filer's identification
number if other than the U.S. principal party in interest files the
data.
[[Page 62918]]
15. Revise Sec. 30.66 to read as follows:
Sec. 30.66 Support, documentation and record keeping requirements.
(a) Support. [email protected] is an online service that allows
electronic filers to seek assistance pertaining to AES. AESDirect is
supported by a help desk available twelve (12) hours a day, seven (7)
days a week.
(b) Documentation. Filers using the AESDirect are able to print out
from the AESDirect a validated record of the filer's submission. Filers
using AES are able to print records containing date of submission and a
unique identification number for each AES record submitted. The Census
Bureau will maintain an electronic file of data sent through AES to
ensure that an individual is able to receive from the system, a
validated record of the submission. The U.S. principal party in
interest or the authorized agent of the U.S. principal party in
interest or foreign principal party in interest may request a copy of
the electronic record submitted as provided for in Sec. 30.91 of this
part.
(c) Recordkeeping. All parties to the export transaction (owners
and operators of the exporting carriers and U.S. principal party and/or
the authorized agents) must retain documents or records pertaining to
the shipment for five (5) years from the date of export. Customs, the
Census Bureau, and other participating agencies may require that these
documents be produced at any time within the 5-year time period for
inspection or copying. These records may be retained in an elected
format, including electronic or hard copy as provided in the applicable
agency's regulations. Acceptance of the documents by Customs or the
Census Bureau does not relieve the U.S. principal party in interest or
the authorized agent from providing complete and accurate information
after the fact. The Department of State or other regulatory agencies
may have additional record keeping requirements for exports.
16. Amend Appendix A as follows:
a. Add an introductory paragraph;
b. Revise items A.5, A.6, and A.10;
c. Remove item A.6(i) and redesignate items A.6(ii) and A.6(iii) as
A.6(i) and A.6(ii), respectively;
d. Revise paragraphs B and C;
e. Add paragraph D.
The additions and revisions read as follows:
Appendix A to Part 30-Format For Letter of Intent, Automated Export
System (AES)
The first requirement for participation in AES is a Letter of
Intent. The Letter of Intent is a written statement of a company's
desire to participate in AES. It must set forth a commitment to
develop, maintain, and adhere to Customs and Census performance
requirements and operations standards. Once the letter of intent is
received, a U.S. Customs Client Representative and U.S. Census
Bureau Client Representative will be assigned to the company. Census
will forward additional information to prepare the company for
participation in AES.
A. Letters of Intent should be on company letterhead and must
include:
* * * * *
5. Computer Site Location Address, City, State, Postal Code
(Where transmissions will be initiated)
6. Type of Business--U.S. Principal Party in Interest, Freight
Forwarder/Broker, Carrier, NVOCC, Port Authority, Software Vendor,
Service Center, etc. (Indicate all that apply)
(i) Freight Forwarders/Brokers, indicate the number of U.S.
principal parties in interest for whom you file export information
(SEDs)
(ii) U.S. Principal Parties in Interest, indicate whether you
are applying for AES Option 2 or Option 4
* * *
10. Filer Code--EIN, SSN or SCAC (Indicate all that apply)
* * * * *
B. The following self-certification statement, signed by an
officer of the company, must be included in your letter of intent:
``We (COMPANY NAME) certify that all statements made and all
information provided herein are true and correct. I understand that
civil and criminal penalties, including forfeiture and sale, may be
imposed for making false or fraudulent statements herein, failing to
provide the requested information or for violation of U.S. laws on
exportation (13 U.S.C. Sec. 305; 22 U.S.C. Sec. 401; 18 U.S.C. Sec.
1001; 50 U.S.C. App. 2410.''
C. The AES Option 4 privilege allows a U.S. principal party in
interest to send no data prior to exportation and complete data
within 10 working days after exportation. Participants will be
reviewed by several government agencies prior to acceptance into the
Option 4 program.
D. Send AES or Option 4 Letter of Intent to : Chief, Foreign
Trade Division, U.S. Census Bureau, Washington, DC 20233. Or, the
copy can be faxed to : 301-457-1159.
Appendix B To Part 30--Required Pre-Departure Data Elements For Filing
Option 3
17. [Removed] Remove and reserve Appendix B.
Dated: October 4, 2002.
Charles Louis Kincannon,
Director, Bureau of the Census.
[FR Doc. 02-25667 Filed 10-8-02; 8:45 am]
BILLING CODE 3510-07-P