EXPORT INDUSTRY CONCERNED ABOUT SOME DETAILS OF MANDATORY AES
U.S. exporters and freight forwarders generally support the federal government’s move toward mandatory electronic filing of data for shipments controlled by the State and Commerce departments but with some modifications.
The Census Bureau’s Foreign Trade Division proposed regulations in the Federal Register on Oct. 9 calling for mandatory filing of U.S. Munitions List and Commerce Control List shipment data in the Automated Export System. The industry had until Dec. 9 to comment.
“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,” Census said.
The 1999 Proliferation Prevention Enhancement Act calls for mandatory AES for exporters with items regulated by the U.S. Munitions List and Commerce Control List (CCL). The Census Bureau has assured Congress that AES is able to securely handle this sensitive data.
To accommodate mandatory filing of CCL shipments, Census and Customs have programmed tighter edits for the Export Control Classification Number (ECCN) data field in AES. The agencies also added several data fields to meet the State Department’s obligations under the International Traffic in Arms Regulations.
The National Customs Brokers and Forwarders Association of America said that to avoid disrupting intermodal cargo moving under a through master bill of lading issued by an ocean carrier or airline, the rule should be revised so that the AES exemption legends need only be presented to the exporting carrier before loading for the actual export move, rather than when the goods are first tendered to the exporting carrier.
To accomplish this, the NCBFAA suggested that the words “or loading” be added immediately prior to the phrase 'to the exporting carrier.”
The National Council on International Trade Development said it is “very concerned” about a new provision that would require the U.S. Principal Party in Interest (USPPI) to report the address location from which the shipment actually starts its move to the port of export.
“This change would create an unnecessary administrative burden on the USPPI who is already the responsible compliance party, and providing the domestic product origin by specific location address does nothing to strengthen or enhance that responsibility, or provide any additional layer of security to the supply chain,” the NCITD said.
In the proposed rules, Census also calls for ending Option 3 filing in AES, because it’s underused by the industry. This option allows approved AES filers to file minimal shipment data prior to export, followed five days later with complete information.
Option 4 filing in AES also faces possible termination. This option allows certain approved exporters to file their data electronically 10 days post-departure. The recently enacted 2002 Trade Act calls for complete export data for all water-borne cargo filed to the government prior to exportation.
The NCBFAA said it would be “very helpful to the industry” if Census would emphasize retaining Option 4 in AES. Option 4 has about 2,500 approved filers and covers about 20 percent of annual AES filings.
“Census will review all the comments and respond to each letter individually before the final rule is issued,” said C. Harvey Monk Jr., chief of Census’ Foreign Trade Division, based in Suitland, Md. “Our goal is to have the final rule issued in time for it to go into effect by June 2003.”
