common questions about the foreign trade regulations · 2018. 5. 1. · society for international...
TRANSCRIPT
Society for International Affairs
Common Questions about the Foreign Trade Regulations
Ken HughesU.S. Director Export
ComplianceDHL Global Forwarding
Maria MarshallCorporate Senior Manager,
L3 Customs/ Trade Compliance
Shannon BarleyU.S. Census BureauInternational Trade
Management Division
COMMON QUESTIONSFROM AGENT’S PERSPECTIVE
Presented by: Ken Hughes, U.S. Director Export Compliance, DHL Global Forwarding
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AGENT’S PERSPECTIVE
• Information Source
• Authorizations
• Changes to the Information
• Areas of Confusion
• Corrections
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INFORMATION SOURCE
• USPPI (U. S. Principal Party in Interest)• Data Elements for the EEI
• FPPI (Foreign Principal Party in Interest)• Authorization in a Routed Export Transaction
• Carrier//Forwarder (Transportation)• Transportation information
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USPPI INFORMATION
• (i) Name and address of the USPPI.
• (ii) USPPI's EIN or DUNS
• (iii) State of origin (State).
• (iv) FTZ if applicable.
• (v) Commercial description of commodities.
• (vi) Origin of goods indicator: Domestic (D) or Foreign (F).
• (vii) Schedule B or HTSUSA, Classification Commodity Code.
• (viii) Quantities/units of measure.
• (ix) Value. SIA Proprietary
USPPI INFORMATION CONT.
• (x) Export Control Classification Number (ECCN) or sufficient technical information to determine the ECCN.
• (xi) All licensing information necessary to file the EEI for commodities where the Department of State, the Department of Commerce, or other U.S. government agency issues a license for the commodities being exported, or the merchandise is being exported under a license exemption or license exception.
• (xii) Any information that it knows will affect the determination of license authorization (see Subpart B of this part for additional information on licensing requirements).
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FPPI INFORMATION
• Foreign Principal Party in Interest (FPPI). • The party abroad who purchases the goods for export or to whom final
delivery or end-use of the goods will be made.
• This party may be the Ultimate Consignee.
• Potential Triangle Trade• Shipment being made to the FPPI’s customer, outside the knowledge
of the USPPI
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ADDITIONAL INFORMATION NEEDED
• Additional data elements not covered in the USPPI responsibilities list• Related Parties (Y or N)
• Consignee Type (D, R, G, O)
• Routed Transaction (Y or N)
• License Exemption
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TIMING & AUTHORIZATIONS
• ITN = “Release”
• Timely filing a MUST
• Air//Rail = 2 hours prior to scheduled departure or border crossing
• Vessel = 24 hours prior to scheduled sailing
• Truck = 1 hour prior to crossing the border
• ITAR ----- 4 hour prior to scheduled departure or border crossing
• NO DOWNTIME RULES ALLOWED FOR ITAR
• MUST HAVE an Authorization to file the EEI via AES
• Regular Export
• USPPI provides
• Seller//Manufacturer//Order Party
• Routed Export
• FPPI provides SIA Proprietary
CHANGES TO THE INFORMATION
• Carrier Changes• Routings//Port of Export
• MOT (Method of Transportation)
• Forwarder Changes• Change Carriers
• Change Routings
• USPPI Changes• Data Elements incorrectly provided
• Clerical Errors
• Knowingly???SIA Proprietary
AREAS OF CONFUSION
• Value• Goods, plus inland transportation, insurance & costs to the POE
• License Value ---- NOT the same as AES Value
• Port of Export• The LAST U.S. Port before the goods leave the U.S.
• Note: Where the goods got on board the Int’l means of transportation
• MOT (Method of Transportation)• Rail & Truck to Canadian Ports of Departure
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CORRECTIONS
• FTR 30.9(a) says in part
• Corrections, cancellations, or amendments to that information shall be electronically identified and transmitted to the AES for all required fields as soon as possible.
• FTR 30.74(a) says in part
• General policy. The Census Bureau strongly encourages disclosure of any violation or suspected violation of the FTR. Voluntary self-disclosure is a mitigating factor in determining what administrative sanctions, if any, will be sought.
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COMMON QUESTIONS FROM USPPI PERSPECTIVE
Presented by: Maria Marshall, Corporate Senior Manager, L3 Customs/ Trade Compliance
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MANDATORY DATA ELEMENTS – 15 CFR § 30.6
• When exporting against a DDTC export license do I report the End-User, as the Ultimate Consignee, or the ship to party provided by the end-user in the contract taking physical custody of the goods at the destination?
• If I am shipping documents, which consist of technical data controlled by the ITAR do I need to file the Electronic Export Information because it is being shipped as cargo?
• I have multiple line items with individual HTSUS numbers, but only one line item exceeds the $2500 value threshold, do I have to file the EEI record for the total amount listed on the invoice?
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MANDATORY DATA ELEMENTS – 15 CFR § 30.8
• If I am exporting ITAR controlled technical data in a hard drive with a value of $1500 do I need to file the EEI?
• What PGAs are linked to the AES Direct module in ACE?
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ROUTED EXPORT TRANSACTIONS –15 CFR §30.3( E)(1)
• Why does the FPPI have to provide me, the USPPI, with a written authorization to act as their agent for the purposes of filing the Electronic Export Information in ACE when I am exporting as the USPPI and I applied for the export license?
• Are we violating the FTR if we forgot to select “Y” under the Routed Export Transaction indicator?
• In the case when the FPPI’s agent files the EEI in ACE, how can we obtain a copy of all the data elements, which include the reported export license information to ensure the accuracy of the export license value, when shipping against our export licenses?
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VALUATION – 15 CFR §§ 30.25- 30.29
• Why does the FTR require us to report the inland freight to the U.S. Port of export?
• When exporting against a DDTC export license do we report the approved value for the line item we are exporting, or the total license value approved for all line items?
• What value do I report for goods being repaired under a warranty?
• What value do I report if we are billing the customer for the repair work?
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CORRECTING EEI RECORDS – 15 CFR § 30.9
• What can I do when the forwarding agent tells me they cannot amend the EEI in the system, but an error is discovered?
• When conducting a comprehensive review of the transactions for the previous five years, can the filer return to the record to make corrections?
• What is considered a timely correction of the EEI data?
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VOLUNTARY DISCLOSURES – 15 CFR § 30.74
• Does my company need to report a VSD directly to the Foreign Trade Division of the U.S. Census Bureau, separate from the agency which controls the commodity, if we discover errors with the EEI filings we submitted in ACE?
• Does my company have to file the VSD when the error is made by the Authorized Agent appointed by the FPPI?
• If we discover a wrong HTSUS number referenced in the EEI on five transactions do we amend and file a VSD?
• What constitutes the need to submit a VSD vs. a simple correction in ACE?
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USE OF FILING EXEMPTIONS –15 CFR § 30, SUBPART D
• Do I have to file the EEI when I ship export controlled technical data as cargo through a U.S. Port?
• How do I qualify for the ITAR Technical Data filing exemption under 15 CFR 30.37(u)?
• Do I have to file the EEI if I am shipping against an ATA Carnet?
• Am I eligible to use the filing exemption under Tools Of Trade 15 CFR 30.37(b) if I am exporting under EAR TMP license exception?
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Maria Marshall
L3 Technologies, Inc.
201 12th Street S.
Arlington, VA 22202
Tel: 703-236-7443
CONTACT INFORMATION
COMMON QUESTIONSFROM CENSUS BUREAU’S PERSPECTIVE
Presented by: Shannon Barley, U.S. Census Bureau
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GOVERNMENT PERSPECTIVE
• Filing accurate Electronic Export Information (EEI)
• Amending an export filing
• Disclosing potential filing issues to Census
• Violations of the Foreign Trade Regulations (FTR)
• Best Practices
• Routed Rule updates
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FILING ACCURATE AND TIMELY EXPORT INFORMATION (FTR 30.3)
• The filer (either the USPPI or the Authorized Agent) is responsible to file accurate and timely Electronic Export Information (EEI).
• Data elements are provided by the appropriate party, based on the type of transaction – standard or routed
• All US parties to the export transaction have responsibilities (USPPI, Authorized Agent and the Carrier)
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AMENDING AN EXPORT FILING (FTR 30.9)
• The filer is responsible to transmitting any changes to the EEI as soon as they are known.
• If corrections, or late filings, are not made as soon as they are known, the filer is subject to the penalties outlined in Subpart H of the FTR.
• Split shipments and sold in transit shipments included in this requirement• Original ITN field
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DISCLOSING POTENTIAL VIOLATIONS TO THE CENSUS
BUREAU (FTR 30.74)
• Voluntary Self-Disclosure (VSD)• Any US party involved in the export transaction may submit a VSD
• USPPI
• Authorized Agent
• Carrier
• Specific information required is outlined in §30.74• Sample VSD submission on our website
• Recent webinar regarding the entire process of how our office processes the VSD
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VIOLATIONS OF THE FTR (FTR 30.71 AND 30.72)
• Census is strictly a statistical agency
• Enforcement of the FTR is delegated to Customs and Border Protection (CBP) and the Bureau of Industry and Security (BIS)
• Criminal penalties: “knowingly” submitting false or misleading export information
• Civil penalties: Submitting false or misleading export information• Can be mitigated
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BEST PRACTICES
• Document!!! Document!!! Document!!!• All parties must retain documentation.
• Companies may use the Automated Commercial Environment reports to view their filings or request copies of their export data.• AES 201 – Filers can view transactions
• AES 202 – Transactions where your USPPI ID is used
• AES 203 – USPPI receives the data elements provided in a routed transaction along with the Internal Transaction Number, date of export, and filer name.
• Attend Webinars & Seminars
• Export Compliance Flippers
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ROUTED RULE ANPRM UPDATES
• Foreign Trade Regulations: Request for Public Comments Regarding Standard and Routed Export Transactions -Requested comments to perform a review of the requirements governing routed export transactions.
• Publication date: October 6, 2017
• Comment period ended: December 5, 2017
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ROUTED RULE ANPRM UPDATES
• Collaborate with the Bureau of Industry and Security and Trade Associations to discuss revisions.
• Draft the NPRM.
• Obtain concurrence from U.S. Customs and Border Protection and the Department of State.
• Publish the NPRM.
• Respond to formal comments.
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Shannon BarleyU.S. Census Bureau
International Trade Management Division301-769-9703
CONTACT INFORMATION