Cargo Business News

October 2011

Issue link:

Contents of this Issue


Page 13 of 31

14 SUPPLY CHAINSupply Chain By Neil LENOK, American River Int'l, CORNER Changes to AES are on their way Earlier this year, the U.S. Census Bureau proposed significant changes to the manner in which export information is filed through the Automated Export System (AES). Any time a government agency proposes changes, it creates confusion and discomfort to the trade community, and this case is no exception. implemented for both import and export trade. There are many proposed changes to the AES system, such as dealing with routed shipments, USSPI (US Principal Party in Interest) and FPPI (Foreign Principal Party in Interest), export value, split shipments, end user, and written authorization; but the one proposed change that has caused the most uproar from the trade community concerns what is called Option 4. This option allows companies with pre-approval to file their EEI though AES "Any time a government agency proposes changes, it creates confusion and " discomfort to the trade community, and this case is no exception. Due to all the feedback Census has received from the trade community during the comment period, which was in effect from January – March of this year, any changes to the current system will not occur before spring of 2012. The Census Bureau is the agency responsible for collecting, compiling, and publishing export trade statistics for the United States. Exporters (or forwarders on behalf of the exporter) are required to submit this export data to Census via AES. This has been a requirement since September of 2008. Fines for not filing or filing incorrectly range from $1,000.00 -$10,000 per violation, with possible jail terms as well for criminal violations associated with AES. The Census Bureau collects Electronic Export Information (EEI) through the AES which is the electronic equivalent of the export data formerly collected on the Shipper's Export Declaration submitted on paper prior to AES going into effect. Some of the information that is included in the EEI is personal information on the exporter, such as their name, address and identifying number. Information on the details of the exported product is also included. Other federal agencies, such as Bureau of Industry and Security (BIS), may use the information in the EEI to ensure that exports of certain restricted items are not being shipped and also to prevent exports to unauthorized users. The most compelling reasons for making changes to the system were to enable the system to keep up with the ever-increasing compliance regulations that have come out of 9/11. While focusing on AES was given a priority by Congress through passage of The Security Assistance Act in 2002, it took years until it was mandatory. Now Census and U.S. Customs and Border Protection (CBP) officials believe that further policy changes must be implemented to keep up with tightened security measures being October 2011 up to 10 days after the export occurs. The proposed change to Option 4 will only allow post-departure reporting for up to five days instead of the original 10, and only for preapproved commodities. CBP's perspective is that once the shipment leaves, it's gone and they can't get their hands on it. While no one knows for sure what the AES system will look like once these changes are implemented, one thing is certain – it will be a different AES. Stand by. C COMPLIANCE

Articles in this issue

Links on this page

Archives of this issue

view archives of Cargo Business News - October 2011