Export Compliance - AES Filing

Automated Export System (AES) is the system used for collecting Electronic Export Information (EEI) from persons exporting goods from the United States. The U. S. Principal Party in Interest (USPPI) or his authorized agent is the party responsible for preparing and filing the AES report. (15 CFR 30.3(c)(1))

The USPPI is the person or legal entity in the U.S. that receives the ‘primary benefit, monetary or otherwise, from the export transaction’. Generally, that person or entity is the U.S. seller, manufacturer, or order party, or the foreign entity while in the United States when purchasing or obtaining the goods for export.

An exception to the usual situation where the USSPI is responsible for filing the AES submission is a transaction that is referred to as a ‘routed export‘transaction. Under Bureau of Census regulations an export transaction is referred to as a ‘routed export’ if Foreign Principal Party in Interest (FPPI) authorizes a U.S. agent to facilitate the export of items from the United States and to prepare and file EEI." Routed export transactions usually involve "ex works" terms of sale whereby the seller's responsibility for the goods ends when the goods are placed at the disposal of the buyer at the named place of delivery.

Controlling Regulations

15 CFR 30.3(c)(1) and (2) list the responsibilities of the exporter (principal party in interest) and the forwarder in routed export transactions.

Responsibilities of U.S. Principal Party in Interest/Exporter - [15 CFR 30.3(c)(1)]

USPPI responsibilities. In a routed export transaction, the FPPI may authorize or agree to allow the USPPI to prepare and file the EEI. If the FPPI agrees to allow the USPPI to file the EEI, the FPPI must provide a written authorization to the USPPI assuming the responsibility for filing. The USPPI may authorize an agent to file the EEI on its behalf. If the USPPI or its agent prepares and files the EEI, it shall retain documentation to support the EEI filed. If the FPPI agrees to allow the USPPI to file EEI, the filing of the export transaction shall be treated as a routed export transaction. If the FPPI authorizes an agent (e.g. forwarder) to prepare and file the EEI, the USPPI shall retain documentation to support the information provided to the agent for preparing the EEI and provide the agent with the following information to assist in preparing the EEI:

1. Name and address of the USPPI.
2. USPPI's EIN or DUNS.
3. State of origin (State).
4. FTZ if applicable.
5. (Commercial description of commodities.
6. Origin of goods indicator: Domestic (D) or Foreign (F).
7. Schedule B or HTSUSA, Classification Commodity Code.
8. Quantities/units of measure.
9. Value.
10. Export Control Classification Number (ECCN) or sufficient technical information to determine the ECCN.
11. 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.
12. Any information that it knows will affect the determination of license authorization

For items in part (ix), (x),(xi) and (xii) above, where the FPPI has assumed responsibility for determining and obtaining license authority there may be additional BIS requirements.

Responsibilities of the Authorized Agent in a Routed Export Transaction - [15 CFR 30.3(c)(2)]

In a routed export transaction, if an authorized agent (e.g. forwarder) is preparing and filing the EEI on behalf of the FPPI he must obtain a power of attorney or written authorization from the FPPI (but not from the USPPI) and prepare and file the EEI based on information obtained from the USPPI or other parties involved in the transaction. A sample power of attorney for a FPPI is enclosed for your information.

The forwarder is responsible for filing the EEI accurately and timely in accordance with the Foreign Trade Regulations. Upon request, the forwarder will provide the USPPI with a copy of the power of attorney or written authorization obtained from the FPPI.

The forwarder will also retain documentation to support the EEI reported through the AES. Upon request the forwarder will provide the USPPI with the data elements in sections (i) through (xii) identified below.

The authorized agent shall provide the following export information through the AES:

1. Date of export.
2. Transportation Reference Number.
3. Ultimate consignee.
4. Intermediate consignee, if applicable.
5. Authorized agent name and address.
6. EIN or DUNS number of the authorized agent.
7. Country of ultimate destination.
8. Method of transportation.
9. Carrier identification and conveyance name.
10. Port of export.
11. Foreign port of unloading.
12. Shipping weight.
13. ECCN.
14. License or license exemption information.

Note: Even in a routed export transaction the USPPI is the party who legally is responsible for determine whether an export license is required and, if so, to obtain the necessary export license. In order to shift the responsibility for determining whether an export license is required and then obtaining a license if one is deemed necessary the USPPI must request that the FPPI sign a statement agreeing to accept this responsibility.

Similar responsibility for licensing of re-exports attaches to the USPPI unless the FPPI has agreed to accept this responsibility.