Thursday, February 17, 2005

Part III

Department of Commerce Bureau of the Census

15 CFR Part 30 Foreign Trade Regulations: Mandatory Automated Export System Filing for All Shipments Requiring Shipper’s Export Declaration Information; Proposed Rule

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\17FEP3.SGM 17FEP3 8200 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

DEPARTMENT OF COMMERCE information contained therein is used customer service, compliance with and by the Census Bureau for statistical enforcement of export laws, and provide Bureau of the Census purposes only. Information reported in paperless reports of export information. the AES is referred to as Electronic On November 29, 1999, the President 15 CFR Part 30 Export Information (EEI). The SED and signed into law the Proliferation [Docket Number 031009254–4355–02] the EEI also are used for export control Prevention Enhancement Act of 1999, purposes under Title 50, U.S.C., Export which authorized the Secretary of RIN 0607–AA38 Administration Act, to detect and Commerce to require the mandatory prevent the export of certain items by filing of items on the Commerce Control Foreign Trade Regulations: Mandatory unauthorized parties or to unauthorized List (CCL) and the U.S. Munitions List Automated Export System Filing for All destinations or end users. Information (USML). Regulations implementing this Shipments Requiring Shipper’s Export collected through the SED or AES is requirement were effective October 2003 Declaration Information exempt from public disclosure unless (see 68 FR 42533–42543). On September AGENCY: Bureau of the Census, the Secretary of Commerce determines 30, 2002, the President signed into law Commerce Department. that such exemption would be contrary the Foreign Relations Authorization Act, to the national interest under the Public Law 107–228. This law ACTION: Notice of proposed rulemaking provisions of Title 13, U.S.C., Chapter 9, authorizes the Secretary of Commerce, and request for comments. Section 301(g). with the concurrence of the Secretary of SUMMARY: The U.S. Census Bureau Under current regulations, export State and the Secretary of Homeland (Census Bureau) proposes to amend the information is compiled from both Security, to publish regulations in the Foreign Trade Statistics Regulations paper and electronic transactions filed Federal Register mandating that all (FTSR) to implement provisions in the by the exporting community with the persons who are required to file export Foreign Relations Authorization Act. Bureau of Customs and Border information via the SED under Chapter Specifically, the Census Bureau Protection (CBP, formerly the U.S. 9 of Title 13, U.S.C. file such proposes to require mandatory filing of Customs Service) and the Census information through the AES. export information through the Bureau. The AES is an electronic The Foreign Relations Authorization Automated Export System (AES) or method for filing the paper SED Act further authorizes the Secretary of through the AESDirect for all shipments information directly with CBP and the Commerce to issue regulations regarding where a Shipper’s Export Declaration Census Bureau. The AESDirect is the imposition of penalties, both civil and (SED) is currently required. In addition Census Bureau’s free Internet-based criminal, for the delayed filing, failure to requiring mandatory AES filing, the system for filing SED information with to file, and false filing of export proposed rule makes other changes to the AES. Future references to the AES information and/or using the AES to further any illegal activity. The Act the FTSR. These additional changes are also shall apply to the AESDirect unless provides for administrative proceedings discussed in detail in the otherwise specified. A paper SED or the equivalent EEI is for imposition of a civil penalty for SUPPLEMENTARY INFORMATION section. currently required, with certain violation(s) of Public Law 107–228. DATES: Submit written comments on or exceptions, for exports of goods from Finally, the Act authorizes the Secretary before April 18, 2005. the United States, including Foreign of Commerce to designate employees of ADDRESSES: Please direct all written Trade Zones (FTZs) located therein, the Office of Export Enforcement of the comments on this proposed rule to the Puerto Rico, and the U.S. Virgin Islands Department of Commerce to perform the Director, U.S. Census Bureau, Room to foreign countries; for exports between enforcement functions in Title 13, 2049, Federal Building 3, Washington, the United States and Puerto Rico; and U.S.C., Chapter 9, and delegate to DC 20233. You may also submit for exports to the U.S. Virgin Islands customs officials in the U.S. Department comments, identified by RIN number from the United States or Puerto Rico. of Homeland Security authority to 0607–AA38, to the Federal e- The SED or the EEI also is required for enforce these same provisions. Rulemaking Portal: http:// all exports requiring a license from the On October 22, 2003, the Census www.regulations.gov. Please follow the Bureau of Industry and Security (BIS), a Bureau published an advanced notice of instructions at that site for submitting license or license exception from the proposed rulemaking (ANPR) in the comments. Department of State, or other Federal Register (68 FR 60301) FOR FURTHER INFORMATION CONTACT: C. government agency, regardless of value, announcing the Census Bureau’s intent Harvey Monk, Jr., Chief, Foreign Trade unless exempted from the requirement to propose a rule mandating electronic Division, U.S. Census Bureau, Room for a SED or EEI by the licensing filing through the AES of all information 2104, Federal Building 3, Washington, government agency. on export shipments where a SED is required and allowing the public to DC 20233–6700, by phone (301) 763– Electronic Filing 2255, by fax (301) 457–2645, or by e- comment on this subject. The Census Electronic filing strengthens the U.S. mail: [email protected]. Bureau received and responded to two Government’s ability to prevent the (2) non-substantive comments to the SUPPLEMENTARY INFORMATION: export of certain items by unauthorized ANPR. One commenter expressed Background parties to unauthorized destinations and continued support for postdeparture end users, because AES aids in targeting filing with mandatory AES filing. The Reporting Requirements and identifying suspicious shipments second commenter was concerned about The Census Bureau is responsible for prior to export and affords the the ability to file complete export collecting, compiling, and publishing government the ability to significantly information prior to exportation under export trade statistics for the United improve the quality, timeliness, and the mandatory filing system. States under the provisions of Title 13, coverage of export statistics. Since July Specifically, the commenter was United States Code (U.S.C.), Chapter 9, 1995, the AES has served as an concerned that accurate quantity data Section 301. The paper SED and the information gateway for the Census would not be available in the time AES are the primary media used for Bureau and CBP to improve the frames required by the revised collecting export trade data, and the reporting of export trade information, regulations. The Census Bureau did not

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8201

change the proposed rule in response to • In § 30.5, revise the postdeparture value of goods to the AES when inland these comments since post-departure (formerly Option 4) approval freight and insurance charges are not filing remains an option under the procedures. Certification and approval known at the time of exportation. When proposed rule to allow approved requirements for postdeparture filing of goods are sold at a point other than the exporters the option to file export EEI were strengthened to address U.S. port of export, freight, insurance, and information within ten working days national security concerns and interests. other charges required to move the from the date of exportation. Applications submitted by USPPIs for goods from their U.S. point of origin to postdeparture filing will be subjected to the carrier at the port of export must be Program Requirements closer scrutiny by the Census Bureau added to the selling price (or cost, if not To comply with the requirements of and other federal government sold) of the goods. Where the actual Public Law 107–228, the Census Bureau partnership agencies participating in the amount of freight, insurance, and other proposes amending in its entirety the AES postdeparture filing review domestic charges are not available, an FTSR to specify the requirements for the process. Under the proposed revised estimate of the domestic cost must be mandatory reporting of all export postdeparture filing requirements: (1) made and added to the cost or selling information through the AES when a authorized agents may no longer apply price of the goods to obtain the value to SED is required. All future references to for postdeparture filing status on behalf be reported to the AES. the SED shall be referred to as AES. of individual USPPIs. Only USPPIs may • In § 30.6, add requirements for The Census Bureau proposes apply; (2) USPPIs must demonstrate the transmitting a Routed Transaction amending the FTSR to include the ability to meet AES predeparture filing Indicator and a Vehicle Identification following changes: requirements by filing EEI to the AES Qualifier to the list of data elements • Rename the FTSR to ‘‘Part 30— before applying for approval for required to be reported to the AES. Both Foreign Trade Regulations’’ (FTR) to postdeparture filing; (3) USPPIs must the Routed Transaction Indicator and more accurately reflect the scope of the meet a minimum number of shipments the Vehicle Identification Qualifier revised regulations implementing full requirement before being authorized to indicate the conditions of other data mandatory AES filing, such as the file postdeparture; and (4) partnership elements reported to the AES. The inclusion of Department of State agencies of the U.S. Government shall Routed Transaction Indicator gives an requirements and the advanced filing determine whether or not a USPPI poses indication of whether or not the EEI requirement implemented by CBP. a significant threat to U.S. national reported represents a routed export • Remove requirements for filing a security before granting the applicant transaction. The Vehicle Identification paper SED (Option 1), Form 7525–V, postdeparture filing status. Qualifier, when reported, identifies the from Title 15, Code of Federal • In § 30.4, specify the time and type of used vehicle exported. Regulations (CFR), part 30, so that AES place-of-filing requirements for • Remove requirements for the Date will be the only mode for filing presenting proof of filing citations, of Arrival and the Waiver of Prior information currently required by the postdeparture filing citations, and/or Notice Indicator from the list of data SED. exemption legends. Specific time and elements required to be reported to the • Remove requirements for filing the place-of-filing requirements are AES. These data elements were intransit SED, Form 7513, from 15 CFR included in the FTR in accordance with previously required to overcome part 30. Responsibility for Form 7513 provisions of Section 341(a) of Public disparities in reporting requirements for was transferred to the U.S. Department Law 107–210, the Trade Act of 2002. certain export shipments sent between of the Army, U.S. Army Corps of With the exception of State Department the United States and Puerto Rico. With Engineers. USML shipments under the control of mandatory AES reporting, the Date of • In § 30.2, list types of export the International Traffic in Arms Arrival and Waiver of Prior Notice transactions outside the scope of 15 CFR Regulations and shipments approved for Indicator are no longer required, since part 30 and thus the FTR. The list of postdeparture filing, EEI with the shipments sent between the United out-of-scope transactions included in appropriate proof of filing citations and/ States and Puerto Rico will no longer be § 30.2 is not all-inclusive, but includes or exemption legends is required to be reported differently than other export those types of shipments about which transmitted to the exporting carrier shipments. the Census Bureau receives frequent within specified time frames depending • Reference in subpart B export inquiries on how to report export on the mode of transportation used. For control and export licensing issues information. These types of shipments example, transmissions for vessel cargo relevant to 15 CFR part 30. This subpart are to be excluded from EEI filing. shall be provided to the exporting proposes to add references to export • In § 30.2(a)(2), include language carrier no later than 24 hours prior to control and licensing requirements of specifying the four optional means for departure of the vessel from the U.S. the Department of State and other filing EEI of which two methods require port where cargo is laden. Time and Federal agencies in addition to the development of AES software using place-of-filing requirements for other expanding those of the Department of the Automated Export System Trade modes of transportation also are Commerce’s BIS. General guidelines for Interface Requirements (AESTIR). presented in § 30.4 of the proposed FTR. obtaining export control and licensing • In § 30.3, include language Currently, export information, with information also are presented for use specifying that in ‘‘routed’’ transactions, appropriate proof of filing citations and/ by preparers and filers of EEI. The the U.S. principal party in interest or exemption legends, is only required purpose of this subpart is to consolidate (USPPI) will compile and transmit to be presented to the exporting carrier references to export control issues. No export information on behalf of the prior to exportation. new requirements are introduced. foreign principal party in interest (FPPI) • In § 30.4(b)(1) and § 30.4(b)(3) • In § 30.29, revise the language that when authorized by the FPPI. This specify how to file EEI and acquire an describes the proper manner for language is consistent with the language ITN when AES, AESDirect or the reporting cost of repairs and/or of § 758.3 of the Export Administration participant’s AES is unavailable for alterations to goods, and the reporting of Regulations and permits the USPPI to filing. the value of replacement parts exported. act as an agent of the FPPI upon the • In § 30.6, add language specifying The previous version of the FTSR did written authorization by the FPPI. the specific procedure for reporting the not specifically describe the manner in

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8202 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

which these export transactions would FTSR, to clarify the intent of the Executive Orders be reported. Goods previously imported regulations. for repair and alteration only, and The Departments of State and This rule has been determined to be reexported, shall only include the value Homeland Security concur with the not significant for purposes of Executive for parts and labor. Goods exported as provisions contained in this notice of Order 12866. It has been determined replacement parts shall only include the proposed rulemaking. that this rule does not contain policies value of the replacement part. No new with federalism implications as that Rulemaking Requirements requirements are specified in § 30.29. term is defined under Executive Order • Reference in subpart E carrier and Regulatory Flexibility Act 13132. manifest issues pertaining to provisions The Chief Counsel for Regulation of Paperwork Reduction Act relevant to 15 CFR part 30. Carrier and the Department of Commerce certified manifest issues are consolidated in Notwithstanding any other provision to the Chief Counsel for Advocacy of the subpart E. Requirements for SEDs being of law, no person is required to respond Small Business Administration (SBA) attached to the manifest are replaced to, nor shall a person be subject to a that this rule will not have a significant with requirements for proof of filing penalty for failure to comply with, a impact on a substantial number of small citations and/or exemption legends to collection of information subject to the entities. This action would require that be shown on the bill of lading, air requirements of the Paperwork USPPIs or authorized agents in the waybill, or other commercial loading Reduction Act (PRA), unless that United States file export information documents attached to the manifest. collection of information displays a through the AES for all shipments Specific requirements for annotating the current, valid Office of Management and where a SED is required under the bill of lading, air waybill, or other Budget (OMB) control number. This rule current FTSR. commercial loading documents are contains a collection-of-information The SBA’s table of size standards included in § 30.7, subpart A of part 30. subject to the requirements of the PRA indicates that businesses that are the • Reference in subpart F reporting (44 U.S.C. 3501 et seq.) and that has USPPI or authorized agent and file requirements for import shipments been approved under OMB control export information are considered small relevant to 15 CFR part 30, including number 0607–0152. The estimated businesses if they employ less than 500 requirements for the electronic filing of burden hours for filing the SED people. Based on year 2001 data, the statistical data for shipments imported information through AES and related Census Bureau estimates that there are into FTZs. Currently, requirements for documents (e.g., the Letter of Intent 91,000 USPPIs that are considered small electronically reporting FTZ admissions (LOI) and AESDirect) are 752,000. In entities under the Small Business Act. are included in the Census Bureau’s addition, this rule contains a collection Over 90 percent of USPPIs use an ‘‘Automated Foreign Trade Zone of information that has been approved authorized agent to file export Reporting Program’’ manual. Added to under OMB control numbers: OMB No. documentation. An estimate of the subpart F are instructions to import 1651–0022 (Entry Summary—CBP– number of authorized agents is not filers on where to obtain information on 7501), OMB No. 1651–0027 (Record of reporting import data. Requirements for known. The Census Bureau anticipates that Vessel, Foreign Repair, or Equipment— information on imports of goods into CBP–226), and OMB No. 1651–0029 Guam are excluded from the FTR since the new requirement would not significantly affect the small businesses (Application for Foreign Trade Zone Guam collects its own information on Admission and Status Designation— goods entering and leaving the area. that must now file through the AES. It • is unlikely that the regulations requiring CBP–214). The public’s reporting Create a new subpart H to cover burden for the collection-of-information FTR penalty provisions formerly mandatory use of the AES to file export information would affect a substantial requirements includes the time for addressed in § 30.95 of the FTSR. New reviewing instructions, searching penalty provisions referenced in subpart number of small entities because more than 90 percent of USPPIs that are existing data sources, gathering and H of this part describe the increase in maintaining the data needed, and penalties imposed for violations from considered small entities use an authorized agent to file export completing and reviewing the $100 to $1,000 per each day of collection-of-information requirements. delinquency, to a maximum from $1,000 documentation. Also, while this to $10,000 per violation. In addition, the regulation would likely affect a List of Subjects in 15 CFR Part 30 penalty provisions provide for substantial number of agents that are situations when the filer knowingly fails small entities it is not likely that the Economic statistics, Foreign trade, to file, files false and/or misleading effect will be significant. The majority of Exports, Reporting and recordkeeping information and other violations of the agents require use of a computer to requirements. FTR where a civil penalty shall not perform required tasks. These agents are For the reasons stated in the exceed $10,000 per violation and a unlikely to be significantly affected by preamble, the Census Bureau proposes criminal penalty shall not exceed this new requirement, as they currently to revise 15 CFR part 30 to read as $10,000 or imprisonment for not more possess the technology and equipment follows: than five (5) years, or both, per to submit the information through the violation. Finally, subpart H provides AES. The Census Bureau has provided PART 30—FOREIGN TRADE for the enforcement of these penalty a free Internet-based system, AESDirect, STATISTICS especially for small businesses to provisions by the Bureau of Industry Subpart A—General Requirements and Security’s Office of Export submit their export information Enforcement (OEE) and the Department electronically. It would not be necessary Sec. for small businesses to purchase 30.1 Purpose and definitions. of Homeland Security’s CBP, 30.2 General requirements for filing Immigration and Customs Enforcement software for this task. For these reasons, Electronic Export Information. (ICE). if this proposed rule is adopted, this • 30.3 Electronic Export Information filer Make other non-substantive rule would not have a significant requirements, parties to export revisions including revisions to economic impact on a substantial transactions, and responsibilities of language incorporated from the current number of small entities. parties to export transactions.

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00004 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8203

30.4 Electronic Export Information filing 30.47 Clearance or departure of carriers issue regulations regarding imposition procedures, deadlines, and certification under bond on incomplete manifests. of civil and criminal penalties for statements. 30.48–30.49 [Reserved] violations of the provisions of these 30.5 Electronic Export Information filing Subpart F—Import Requirements regulations. application and certification processes (b) Electronic filing through the AES and standards. 30.50 General requirements for filing 30.6 Electronic Export Information data import entries. strengthens the U.S. Government’s elements. 30.51 Statistical information required for ability to prevent the export of certain 30.7 Annotating the bill of lading, air import entries. items by unauthorized parties to waybill, and other commercial loading 30.52 Foreign Trade Zones. unauthorized destinations and end documents with the proper proof of 30.53 Import of goods returned for repair. users because AES aids in targeting, 30.54 Special provisions for imports from filing citations, approved postdeparture Canada. identifying, and when necessary filing citations, downtime filing citation, 30.55 Confidential information, import confiscating suspicious or illegal and exemption legends. entries, and withdrawals. shipments prior to exportation. 30.8 Time and place for presenting proof of 30.56–30.59 [Reserved] (c) Definitions used with Electronic filing citations, postdeparture filing citations, downtime filing citation, and Subpart G—General Administrative Export Information. As used in this part, exemption legends. Provisions the following definitions apply: 30.9 Transmitting and correcting 30.60 Confidentiality of Electronic Export AES Applicant. The USPPI or Automated Export System information. Information. authorized agent who applies to the 30.10 Authority to require production of 30.61 Statistical classification schedules. Census Bureau for authorization to documents and retaining electronic data. 30.62 Emergency exceptions. report information electronically to the 30.11–30.14 [Reserved] 30.63 Office of Management and Budget AES, or through AESDirect or its related Subpart B—Export Control and Licensing control numbers assigned pursuant to applications. Requirements the Paperwork Reduction Act. AESDirect. A free Internet application 30.64–30.69 [Reserved] 30.15 Introduction. supported by the Census Bureau that 30.16 Export Administration Regulations. Subpart H—Penalties allows USPPIs or their agents to 30.17 Customs and Border Protection 30.70 Violation of the Clean Diamond Trade transmit EEI to the AES via the Internet, Regulations. Act. at http://www.aesdirect.gov. 30.18 Department of State regulations. 30.71 False or fraudulent reporting on or AES Downtime Filing Citation. A 30.19 Other federal agency regulations. misuse of the Automated Export System. statement used in place of a proof of 30.20–30.24 [Reserved] 30.72 Civil penalty procedures. filing citation when the AES or the AES 30.73 Enforcement. Subpart C—Special Provisions and participant’s computer system 30.74–30.99 [Reserved] Specific-Type Transactions experiences a major failure. The 30.25 Values for certain types of Appendix A To Part 30—Format for the downtime filing citation must appear on transactions. Letter of Intent, Automated Export the bill of lading, air waybill, or other 30.26 Reporting of vessels, aircraft, cargo System commercial loading documentation. vans, and other carriers and containers. Appendix B To Part 30—Sample for Air Waybill. The shipping document 30.27 Return of exported cargo to the used for the transportation of air freight: United States prior to reaching its final Power of Attorney and Written Authorization Includes conditions, limitations of destination. liability, shipping instructions, 30.28 ‘‘Split shipments’’ by air. 30.29 Reporting of repairs and Authority: 5 U.S.C. 301; 13 U.S.C. 301– description of commodity, and replacements. 307; Reorganization plan No. 5 of 1990 (3 applicable transportation charges. It is 30.30–30.34 [Reserved] CFR 1949–1953 Comp., 1004); Department of generally similar to a straight non- Commerce Organization Order No. 35–2A, negotiable bill of lading and is used for Subpart D—Exemptions from the July 22, 1987, as amended; Pub. L. 107–228, similar purposes. Requirements for the Filing of Electronic September 30, 2002. Export Information Alongside. A phrase referring to the Subpart A—General Requirements side of a ship. Goods to be delivered 30.35 Procedure for shipments exempt from ‘‘alongside’’ are to be placed on the dock filing requirements. § 30.1 Purpose and definitions. 30.36 Exemption for shipments destined to within reach of a transport ship’s tackle Canada. (a) This part sets forth the Foreign so that they can be loaded aboard the 30.37 Miscellaneous exemptions. Trade Regulations (FTR) as required ship. 30.38 Exemption from the requirements for under provisions of Title 13, United Annotation. An explanatory note (e.g., reporting complete commodity States Code (U.S.C.), Chapter 9, Section proof of filing citation, postdeparture information. 301. These regulations are revised filing citation, AES downtime filing 30.39 Special exemptions for shipments to pursuant to provisions of the Foreign citation, or exemption legend) placed on the U.S. armed services. Relations Authorization Act, Public Law the bill of lading, air waybill, or other 30.40 Special exemptions for certain loading document. shipments to U.S. Government agencies 107–228. This Act authorizes the and employees. Secretary of Commerce, with the Authorized Agent. An individual or 30.41–30.44 [Reserved] concurrence of the Secretary of State legal entity domiciled in or otherwise and the Secretary of Homeland Security, under the jurisdiction of the United Subpart E—General Carrier and Manifest to publish regulations mandating that States that has obtained power of Requirements all persons who are required to file attorney or written authorization from a 30.45 General statement of requirement for export information under Chapter 9 of USPPI or FPPI to act on its behalf, and the filing of carrier manifests with proof Title 13, U.S.C., file such information for purposes of this part, to complete of filing citations for the electronic submission of export information or through the Automated Export System and file the EEI. exemption legends when Automated (AES) for all shipments where a Automated Broker Interface (ABI). A Export System filing is not required. Shipper’s Export Declaration (SED) was CBP system through which an importer 30.46 Requirements for the filing of export previously required. The law further or licensed customs broker can information by pipeline carriers. authorizes the Secretary of Commerce to electronically file entry and entry

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00005 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8204 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

summary data on goods imported into Civil Penalty. A monetary penalty activity. The criminal penalty includes the United States. imposed on a USPPI or authorized agent fines, imprisonment, and/or forfeiture. Automated Export System (AES). The for failing to file export information, Customs Broker. An individual or electronic system, including AESDirect, filing false or misleading information, entity licensed to enter and clear for collecting Shipper’s Export filing information late, and/or using the imported goods through CBP for another Declaration information (or any AES to further any illegal activity. individual or entity. successor document) from persons Commerce Control List (CCL). A list of Destination. The foreign place to exporting goods from the United States, all items—commodities, software, and which a shipment is consigned. Puerto Rico, or the U.S. Virgin Islands; technical data—that are subject to BIS Distributor. An agent who sells between Puerto Rico and the United export controls. It incorporates not only directly for a supplier and maintains an States; and to the U.S. Virgin Islands the national security controlled items inventory of the supplier’s products. from the United States or Puerto Rico. agreed to by the Coordinating Domestic Exports. Commodities that Automated Export System Trade Committee on Multilateral Export are grown, produced, or manufactured Interface Requirements (AESTIR). The Controls, but also items controlled for in the United States, and commodities document that describes the operational foreign policy and other reasons. of foreign origin that have been changed requirements of the AES. The AESTIR Commodity. Articles exchanged in in the United States, including changes presents record formats and other trade, and commonly used to refer to made in a U.S. FTZ, from the form in reference materials used in the AES. raw materials and bulk-produced which they were imported, or that have Automated Foreign Trade Zone agriculture products. been enhanced in value by further Reporting Program (AFTZRP). The Compliance Alert. A notice sent to the manufacture in the United States. electronic reporting program used to filer by the AES when the shipment was Domicile. A place of permanent transmit statistical data on goods not reported in accordance with this residence or business. admitted into a FTZ directly to the part (e.g., late filing). The filer is Drayage. The charge made for hauling Census Bureau. required to review filing practices and freight, carts, drays or trucks. Dun & Bradstreet Number (DUNS). Bill of Lading (BL). A document that take steps to conform with export The DUNS Number is a unique 9-digit establishes the terms of a contract reporting requirements. identification sequence that provides between a shipper and a transportation Consignee. The person or entity identifiers to single business entities company under which freight is to be named in a freight contract to whom while linking corporate family moved between specified points for a goods have been consigned and that has structures together. specified charge. Usually prepared by the legal right to claim the goods at the Dunnage. Materials placed around the authorized agent on forms issued by destination. Consignment. Delivery of goods from cargo to prevent shifting or damage the carrier, it serves as a document of an exporter (the consignor) to an agent while in transit. title, a contract of carriage, and a receipt (consignee) under agreement that the Duty. A charge imposed on the import for goods. agent sells the goods for the account of of goods. Duties are generally based on Bond. An instrument used by CBP as the exporter. The consignor retains title the value of the goods (ad valorem a security to ensure the performance of to the goods until sold. The consignee duties), some other factor such as specific acts, such as the payment of sells the goods for commission and weight or quantity (specific duties), or a duties and taxes or the provision of remits the net proceeds to the consignor. combination of value and other factors manifest information. Container. A uniform, sealed, (compound duties). Bonded Warehouse. An approved reusable metal ‘‘box’’ in which goods Electronic Export Information (EEI). private warehouse used for the storage are shipped by vessel, truck, or rail. The electronic equivalent of the export of goods until duties or taxes are paid Controlling Agency. The agency data formerly collected on the Shipper’s and the goods are properly released by responsible for the license Export Declaration (SED) now mandated CBP. Bonds must be posted by the determination on specified goods to be filed through the AES or warehouse proprietor and by the exported from the United States. AESDirect. importer to indemnify the government if Country of Origin. The country where Employer Identification Number the goods are released improperly. the goods were mined, grown, or (EIN). The USPPI’s Internal Revenue Booking. A reservation made with a manufactured or where each foreign Service Employer Identification Number carrier for a shipment on a specific material used or incorporated in a good is the 9-digit numerical code as reported voyage or flight. underwent a change in tariff on the Employer’s Quarterly Federal Buyer. The entity who has entered classification under the applicable rule Tax Return, Treasury Form 941. into the export transaction to purchase of origin for the good. The country of End-User. The person abroad that the commodities for delivery to the origin for U.S. imports shall be reported receives and ultimately uses the ultimate consignee. in terms of the International Standards exported or reexported items. The end- Cargo. Goods being transported. Organization (ISO) codes designated in user is not an authorized agent or Carnet. An international customs the Schedule C, Classification of intermediary, but may be the purchaser document permitting the holder to carry Country and Territory Designations. or ultimate consignee. or send goods temporarily into certain Country of Ultimate Destination. The Enhancement. A change or foreign countries without paying duties country where the goods are to be modification to goods that increases or posting bonds. consumed, further processed, or their value. Carrier. An individual or legal entity manufactured, as known to the shipper Entry Number. Consists of a three- in the business of transporting at the time of exportation. position entry filer code and a seven- passengers or goods. Airlines, trucking Criminal Penalty. For the purpose of position transaction code, plus a check companies, railroad companies, this part, a penalty imposed for digit assigned by the entry filer as a shipping lines, pipeline companies, knowingly failing to file export tracking number for goods entered into non-vessel operating common carriers, information, filing false or misleading the United States. and slot charterers are all examples of information, filing information late, Equipment Number. The carriers. and/or using the AES to further illegal identification number for shipping

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00006 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8205

equipment, such as container or igloo FTZ, and which, at the time of by the carrier) from the gateway seaport number, truck license number or rail car exportation, are in substantially the or airport and remains ‘‘in bond’’ until number. same condition as when imported. CBP releases the cargo at the inland Exception. A determination by BIS Foreign Principal Party in Interest Customs point or at the port of export. that releases the USPPI or the (FPPI). The party shown on the Inland Freight. The cost to ship authorized agent from the necessity to transportation document to whom final commodities between domestic ports apply for a license from the agency. delivery or end-use of the goods will be and points inland by rail, air, road, or Exemption. A specific reason as cited made. If the FPPI is in the United States water, other than baggage, express mail, within this part that eliminates the when the goods are purchased or or regular mail. requirement for filing EEI. obtained for export, it must be shown as Intermediate Consignee. The person Exemption Legend. A notation placed the USPPI. If an individual representing or entity in the foreign country who acts on the bill of lading, air waybill, or the foreign entity does not possess an as an agent for a principal party in other commercial loading document EIN or SSN, their passport number, interest with the purpose of effecting that describes the basis for not filing EEI border crossing card number, or other delivery of items to the ultimate for an export transaction. The official document number must be consignee. The intermediate consignee exemption legend shall reference the shown in the USPPI field of the EEI. may be a bank, forwarding agent, or number of the section or provision in Foreign Trade Zone (FTZ). Special other person who acts as an agent for a this part where the particular exemption commercial and industrial areas in or principal party in interest. is provided (for example, § 30.38). near ports of entry where foreign and Internal Transaction Number (ITN). Export. To send or transport goods out domestic goods, including raw The system generated number assigned of a country for consumption in another materials, components, and finished to a shipment confirming that the AES country. goods, may be brought in without being transmission was accepted and is on file Export Control. The establishment of subject to payment of customs duties. in AES. procedures for the governmental control Goods brought into these zones may be Interplant Correspondence. Records of exports for statistical or strategic stored, sold, exhibited, repacked, or documents from a U.S. firm to its purposes. assembled, sorted, graded, cleaned, or subsidiary or affiliate, whether in the Export Control Classification Number otherwise manipulated prior to reexport United States or overseas. (ECCN). Formerly Export Commodity or entry into the country’s customs Intransit. Goods shipped through the Classification Number within the CCL. territory. United States, Puerto Rico, or the U.S. Every product on the CCL has an ECCN Forwarding Agent. The person in the Virgin Islands from one foreign country consisting of a five-character number United States who is authorized by the or area to another foreign country or that identifies categories, product principal party in interest to move the area without entering the consumption groups, strategic level of control, and cargo from the United States to the channels of the United States. country groups. foreign destination and/or prepare and ISO Country Codes. The 2-position Export License. A controlling agency file the required documentation. alphabetic International Standards document authorizing export of Goods. Merchandise, supplies, raw Organization code for countries. particular goods in specific quantities or materials, and products. Letter of Intent (LOI). A written values to a particular destination. Harmonized System. A method of statement of an individual or a Issuing agencies include but are not classifying goods in international trade company’s desire to participate in the limited to: The U.S. State Department, developed by the Customs Cooperation AES. It sets forth a commitment to Bureau of Industry and Security, and Council (now the World Customs develop, maintain, and adhere to CBP Bureau of Alcohol, Tobacco, and Organization). and Census Bureau performance Firearms. Harmonized Tariff Schedule (HTS). requirements and operational standards. Export Statistics. Export statistics An organized listing of goods and their License Applicant. The person who measure the quantity or value of goods duty rates, developed by the U.S. applies for an export or reexport license (except for shipments to U.S. military International Trade Commission, that is for agency-controlled commodities. (For forces overseas) moving out of the used by CBP as the basis for classifying example, obtaining a license for goods United States to foreign countries, imported products, including that are listed on the CCL.) whether such goods are exported from establishing the duty to be charged and Loading Document. A document that within the Customs territory of the providing statistical information about establishes the terms of a contract United States, a CBP bonded warehouse, imports and exports. between a shipper and a transportation or a U.S. FTZ. Imports. All goods physically moving company under which freight is to be Export Value. The estimated worth of into the United States, including: moved between points for a specific goods at the port of export; for example, (1) Commodities of foreign origin and charge. It is usually prepared by the the selling price or the cost (if the goods (2) Goods of domestic origin returned shipper and actuated by the carrier and are not sold) including inland or to the United States with no change in serves as a document of title, a contract domestic freight, insurance, and other condition, or after having been of carriage, and a receipt for goods. For charges to the U.S. port of export. processed and/or assembled in other example, the air waybill, inland bill of Fatal Error Message. A notice sent to countries. lading, ocean bill of lading, and through the filer by the AES when invalid data Inbond. A procedure established by bill of lading are all loading documents. or a critical condition has been CBP under which goods are transported Manifest. A document listing and encountered and the EEI has been or warehoused under CBP supervision describing the cargo contents of a rejected. The filer is required to until the goods are either formally carrier, container, or warehouse. immediately address the problem, entered into the customs territory of the Carriers required to file manifests with correct the data, and retransmit the EEI. United States and duties paid, or until the CBP Port Director must include a Foreign Exports. Commodities of they are exported from the United proof of filing citation, AES downtime foreign origin that have entered the States. The procedure is so named filing citation, postdeparture filing United States for consumption, for entry because the cargo moves under the citation, or exemption legend for all into a CBP bonded warehouse or U.S. carrier’s bond (financial liability assured cargo being transported.

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00007 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8206 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

Merchandise. See commodity or states that the EEI will be filed after products to computers and airplanes. It goods. departure of the carrier. should also be noted that all import and Mode of Transportation. The method Power of Attorney. A legal export codes used by the United States by which goods arrive in or are exported authorization from a USPPI or FPPI are based on the Harmonized Tariff from the United States by way of stating that the agent has authority to act System. (See HTS.) seaports, airports, or land border as its true and lawful agent for purposes Schedule C. The Classification of crossing points. Modes of transportation of preparing and filing the EEI in Country and Territory Designations. The include vessel, air, truck, rail, or other. accordance with the laws and Schedule C provides a list of country of When goods are transshipped across regulations of the United States. origin codes. The country of origin is land borders, the mode of transportation Primary Benefit. Receiving the reported in terms of International to be reported is that by which the greatest satisfaction from an export trade Standards Organization codes. goods enter or depart from the United negotiation; usually monetary. Schedule D. The classification of CBP States. Principal Parties in Interest. Those ports. The Schedule D provides a list of North American Free Trade persons in a transaction that receive the CBP ports and the corresponding Agreement (NAFTA). A formal primary benefit, monetary or otherwise, numeric codes used in compiling U.S. agreement, or treaty, between Canada, from the transaction. Generally, the foreign trade statistics. Mexico, and the United States to principals in a transaction are the seller Schedule K. The Classification of promote trade amongst the three and the buyer. In most cases, the Foreign Ports by Geographic Trade Area countries. It includes measures for the forwarding or other agent is not a and Country. The Schedule K lists the elimination of tariffs and non-tariff principal party in interest. major seaports of the world that directly barriers to trade, as well as numerous Proof of Filing Citation. A notation handle waterborne shipments in the specific provisions concerning the placed on the bill of lading, air waybill, foreign trade of the United States, and conduct of trade and investment. or other commercial loading document, includes numeric codes to identify these Order Party. The person in the United usually for carrier use, that provides ports. This schedule is maintained by States that conducts the direct evidence that export information has the Army Corps of Engineers. negotiations or correspondence with the been filed and accepted as transmitted Seller. The party, usually the foreign purchaser or ultimate consignee through the AES. manufacturer, producer, wholesaler, or Reexport. For statistical purposes: and who, as a result of these distributor of the goods, that receives exports of foreign-origin goods that have negotiations, receives the order from the the monetary benefit of the export previously entered the United States or foreign purchaser or ultimate consignee. transaction (price) or other Puerto Rico for consumption, entry into If a U.S. order party directly arranges for consideration for the exported goods. a CBP bonded warehouse, or a U.S. FTZ, the sale and export of goods to a foreign Shipment. Unless as otherwise and at the time of exportation, have entity, the U.S. order party shall be provided, all goods being sent from one undergone no change in form or listed as the USPPI in the EEI. exporter to one consignee in a single condition or enhancement in value by country of destination on a single Packing List. A list showing the further manufacture in the United conveyance. number and kinds of items being States, Puerto Rico, the U.S. Virgin Shipment Reference Number. A shipped as well as other information Islands, or U.S. FTZs. For the purpose unique identification number assigned needed for transportation purposes. of goods subject to export controls (e.g., by the EEI filer for reference purposes. Partnership Agencies. U.S. U.S. Munitions List (USML) articles): This number must remain unique for a Government agencies that have the shipment of U.S.-origin products period of five years. statistical and analytical reporting from one foreign destination to another. Shipping Weight. The total weight of and/or monitoring and enforcement Related Party Transaction. A a shipment in kilograms including responsibilities related to AES transaction involving trade between a goods and packaging. postdeparture filing privileges. USPPI and ultimate consignee in which Split Shipment. A shipment booked Party Type. Identifies whether the one exercises at least 10 percent of for export on one aircraft but split by the Party ID is an EIN, SSN, DUNS, or interest or more (voting securities) in carrier and sent on two or more aircraft Foreign Entity reported to the AES, for both. of the same carrier. example, E=EIN, S=SSN, D=DUNS, Remission. The cancellation or release Subzone. A special purpose foreign T=Foreign Entity. from a penalty, including fines, trade zone established as part of a Person. In legal usage, any natural imprisonment, and/or forfeiture, under foreign trade zone project with a limited person, corporation or other entity, this part. purpose that cannot be accommodated domestic or foreign. Retention. The necessary act of within an existing zone. Subzones are Port of Export. The seaport of CBP keeping all documentation pertaining to often established to serve the needs of airport where the goods are loaded on an export transaction for a period of at a specific company and may be located the exporting carrier that is taking the least five years for an EEI filing, or a within an existing facility of the goods out of the United States, or the time frame designated by the controlling company. port where exports by overland agency for licensed shipments. Tariff Schedule. A comprehensive list transportation cross the U.S. border into Routed Export Transaction. A or schedule of goods with applicable foreign territory. In the case of an export transaction where the FPPI authorizes a duty rates to be paid or charged for each by mail, it includes the place of mailing. U.S. agent to facilitate export of items listed article as it enters or leaves a Postdeparture Filing. The privilege from the United States on its behalf. country. granted to approved USPPIs to file Schedule B. The Statistical Transportation Reference Number. A commodity data up to 10 calendar days Classification of Domestic and Foreign reservation number assigned by the after the date of export. Commodities Exported from the United carrier to hold space on the carrier for Postdeparture Filing Citation. A States. These 10-digit commodity cargo being shipped. It is the booking notation placed on the bill of lading, air classification numbers are administered number for vessel shipments and the waybill, or other commercial loading by the Census Bureau and cover master air waybill number for air document from an approved USPPI that everything from live animals and food shipments.

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00008 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8207

U.S. Principal Party In Interest unless otherwise specified. For Controls (DDTC) export license under (USPPI). The person or legal entity in purposes of the regulations in this part, the International Traffic in Arms the United States that receives the SED information shall be referred to as Regulations (ITAR) (22 CFR parts 120 primary benefit, monetary or otherwise, Electronic Export Information (EEI). through 130). of the export transaction. Generally, that Electronic Export Information shall be (D) Subject to the ITAR but exempt person or entity is the U.S. seller, filed through the AES by the U.S. from license requirements. manufacturer, or order party, or the principal party in interest (USPPI), the (E) Requiring a Department of Justice, foreign entity while in the United States USPPI’s authorized agent, or the Drug Enforcement Administration when purchasing or obtaining the goods authorized U.S. agent of the foreign (DEA) export permit (21 CFR part 1312). for export. principal party in interest (FPPI) for (F) Requiring an export license issued Ultimate Consignee. The person exports of physical goods, including by any other federal government agency. located abroad who is the true principal shipments moving pursuant to orders (G) Classified as rough diamonds party in interest, receiving the export or received over the Internet. Exceptions, under 6-digit Harmonized System reexport for the designated end use. (See exclusions, and exemptions to this subheadings 7102.10, 7102.21, and also End-User.) requirement are provided for in 7102.31. Unlading. The physical removal of paragraphs (a)(1)(iv) and (d) of this (2) Filing methods. The USPPI has cargo from an aircraft, truck or vessel. section and subpart D of this part. Filing four optional means for filing EEI: use Vehicle Identification Number (VIN). through the AES shall be done in AESDirect; develop AES software using A number used for the identification of accordance with the definitions, the AESTIR; purchase software a self-propelled vehicle. specifications, and requirements of the developed by certified vendors using Verify Message. A notice sent to the regulations in this part for all export the AESTIR; or use an authorized agent. filer by the AES when an unlikely shipments, except as specifically (b) General requirements—(1) condition is found. The data may or excluded in § 30.2(d) or exempted in Electronic Export Information shall be may not be correct, and the filer is subpart D, when shipped as follows: filed prior to exportation unless the required to transmit a correction, if (i) To foreign countries or areas, USPPI has been authorized to submit warranted, within four calendar days. including free (foreign trade) zones export data on a postdeparture basis Warning Message. A notice sent to the located therein (see § 30.36 for (See § 30.5(c)). Shipments requiring a filer by the AES when certain exemptions for shipments from the license or license exemption may be incomplete and conflicting data United States to Canada), from any of filed postdeparture only when the reporting conditions are encountered. the following: appropriate licensing agency has AES accepts the information filed to (A) The United States, including the granted the USPPI authorization. facilitate the trade. The filer is required 50 states and the District of Columbia. (2) Specific data elements required for to transmit a correction to the (B) Puerto Rico. EEI filing are contained in § 30.6. commodity data within four calendar (C) FTZs located in the United States (3) The AES downtime procedures days. If left uncorrected, AES will or Puerto Rico. provide uniform instructions for periodically generate and transmit a (D) The U.S. Virgin Islands. processing export transactions when the ‘‘warning reminder’’ message back to (ii) Between any of the following non- AES, AESDirect or the computer system the filer until the data have been foreign areas: of an AES participant is unavailable for corrected. (A) To Puerto Rico from the United transmission. (See § 30.4(b)(1) and Wholesaler/Distributor. An agent who States. § 30.4(b)(3).) sells directly for a supplier and (B) To the United States from Puerto (4) Instructions for particular types of maintains an inventory of the supplier’s Rico. transactions and exemptions from these products. (C) To the U.S. Virgin Islands from the Written Authorization. A written United States or Puerto Rico. requirements are found in subparts C consent by the USPPI or FPPI stating (iii) Electronic export information and D of this part. that the agent has authority to act as its shall be filed for goods moving as (5) Electronic Export Information is true and lawful agent for purposes of described in paragraphs (a)(1)(i) and (ii) required to be presented to CBP prior to preparing and filing the EEI in of this section by any mode of export for commodities being exported accordance with the laws and transportation. (Instructions for filing by vessel going directly to the countries regulations of the United States. EEI for vessels, aircraft, railway cars, identified in 19 CFR 4.75(c) and by Zone Admission Number. A unique and other carriers when sold while aircraft going directly or indirectly to and sequential number assigned by a outside the areas described in those countries (See 19 CFR FTZ operator or user to shipments paragraphs (a)(1)(i) and (ii) are covered 122.74(b)(2)). admitted to a zone. in § 30.26.) (c) Certification and filing (iv) Notwithstanding exemptions in requirements. Filers of EEI shall be § 30.2 General requirements for filing subpart D, EEI shall be filed for the required to meet application, Electronic Export Information. following types of export shipments, certification, and filing requirements (a) Filing requirements—(1) The AES regardless of value: before being approved to submit export is the electronic system for collecting (A) Destined for countries subject to data through the AES or AESDirect. SED (or any successor document) the Department of Treasury export Steps leading toward approval for the information from persons exporting licensing under the Office of Foreign AES or the AESDirect filing include the goods from the United States, Puerto Assets Control (OFAC) regulations (31 following processes: (See § 30.5 for Rico, Foreign Trade Zones (FTZs) CFR parts 500 through 599). specific application, certification, and located in the United States or Puerto (B) Requiring a Department of filing standards applicable to AES and Rico, the U.S. Virgin Islands, between Commerce, Bureau of Industry and AESDirect submissions.) Puerto Rico and the United States, and Security (BIS) license (15 CFR parts 730 (1) Submission of a Letter of Intent for to the U.S. Virgin Islands from the through 774). AES filing or submission of an online United States or Puerto Rico. References (C) Requiring a Department of State, registration for filing through to the AES also shall apply to AESDirect Directorate of Defense Trade AESDirect.

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00009 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8208 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

(2) Successful completion of filer shall be physically located in the customs broker may be listed as the certification testing for AES or for United States at the time of filing, have USPPI in the EEI if the goods are AESDirect filing. an Employer Identification Number subsequently exported without change (d) Exclusions from filing EEI. The (EIN) or social security number (SSN), or enhancement. following types of transactions are and be certified to report in the AES. (3) Authorized agent. The agent shall outside the scope of this part and shall The filer is responsible for the truth, be authorized by the USPPI or, in the be excluded from EEI filing: accuracy, and completeness of the EEI, case of a routed export transaction, the (1) Goods shipped under CBP bond except insofar as that party can FPPI to prepare and file the EEI. In a through the United States, Puerto Rico, demonstrate that he or she reasonably routed export transaction, the or the U.S. Virgin Islands from one relied on information furnished by other authorized agent can be the ‘‘exporter’’ foreign country or area to another where responsible persons participating in the for export control purposes as defined such goods do not enter the transaction. All parties involved in in 15 CFR 772.1 of the U.S. Department consumption channels of the United export transactions, including U.S. of Commerce Export Administration States. Shipments under CBP bond authorized agents, should be aware that Regulations (EAR). However, the leaving the United States by vessel may invoices and other commercial authorized agent shall not be shown as require the filing of Form 7513, documents may not necessarily contain the USPPI in the EEI unless the agent Shipper’s Export Declaration for In- all the information needed to prepare acts as a USPPI in the export transaction transit Goods. the EEI. The parties shall ensure that all as defined in paragraphs (b)(2)(iii), (iv), (2) Goods shipped from the U.S. information needed for reporting to the and (v) of this section. possessions of Guam Island, American AES, including correct export licensing (c) General responsibilities of parties Samoa, Wake Island, Midway Island, information, is provided to the in export transactions—(1) USPPI Northern Mariana Islands, and Canton authorized agent for the purpose of responsibilities. (i) The USPPI can and Enderbury Islands to foreign correctly preparing the EEI. prepare and file the EEI itself, or it can countries or areas, and goods shipped (b) Parties to the export transaction— authorize an agent to prepare and file between the United States and these (1) Principal parties in interest. Those the EEI on its behalf. If the USPPI possessions when an export license or persons in a transaction that receive the prepares the EEI itself, the USPPI is license exemption is not required. As primary benefit, monetary or otherwise, responsible for the accuracy and timely per this section, EEI is required for are considered principal parties to the transmission of all the export shipments between the United States transaction. Generally, the principals in information reported to the AES. and Puerto Rico, or from the United a transaction are the seller and buyer. (ii) When the USPPI authorizes an States or Puerto Rico to the U.S. Virgin (2) USPPI. For purposes of filing EEI, agent to file the EEI on its behalf, the Islands. (See subpart B of this part for the USPPI is the person or legal entity USPPI is responsible for: filing requirements for export control in the United States that receives the (A) Providing the authorized agent purposes.) primary benefit, monetary or otherwise, with accurate export information (3) Electronic transmissions and from the transaction. Generally, that necessary to file the EEI. intangible transfers. (See subpart B for person or entity is the U.S. seller, (B) Providing the authorized agent export control requirements for these manufacturer, order party, or foreign with a power of attorney or written types of transactions.) entity purchasing or obtaining goods for authorization to file the EEI (see (4) Goods shipped to Guantanamo Bay export. The foreign entity shall be listed paragraph (f) of this section for written Naval Base in Cuba from the United as the USPPI if it is in the United States authorization requirements for agents). States, Puerto Rico, or the U.S. Virgin when the items are purchased or (C) Maintaining documentation to Islands and from Guantanamo Bay obtained for export. The foreign entity support the information provided to the Naval Base to the United States, Puerto shall then follow the provisions for authorized agent for filing the EEI, as Rico, or the U.S. Virgin Islands. (See filing the EEI specified in § 30.3 and specified in § 30.10. § 30.39 for filing requirements for § 30.6 pertaining to the USPPI. (2) Authorized agent responsibilities. shipments exported by the U.S. armed (i) If a U.S. manufacturer sells goods The agent, when authorized by a USPPI services.) directly to an entity in a foreign area, to prepare and file the EEI for an export (e) Penalties. Failure of the USPPI, the the U.S. manufacturer shall be listed as transaction, is responsible for authorized agent of either the USPPI or the USPPI in the EEI. performing the following activities: the FPPI, the exporting carrier, or any (ii) If a U.S. manufacturer sells goods, (i) Accurately preparing and filing the other person subject thereto to comply as a domestic sale, to a U.S. buyer EEI based on information received from with any of the requirements of the (wholesaler/distributor) and that U.S. the USPPI and other parties involved in regulations in this part renders such buyer sells the goods for export to a the transaction. persons subject to the penalties FPPI, the U.S. buyer (wholesaler/ (ii) Obtaining a power of attorney or provided for in subpart H of this part. distributor) shall be listed as the USPPI written authorization to complete the in the EEI. EEI. § 30.3 Electronic Export Information filer (iii) If a U.S. order party directly (iii) Maintaining documentation to requirements, parties to export arranges for the sale and export of goods support the information reported to the transactions, and responsibilities of parties to a foreign entity, the U.S. order party AES, as specified in § 30.10. to export transactions. shall be listed as the USPPI in the EEI. (iv) Upon request, providing the (a) General requirements. The filer of (iv) If goods are temporarily imported USPPI with a copy of the export EEI for export transactions is either the into the United States for reexport information filed in the manner USPPI, its authorized agent, or the within one year (e.g., carnets), the prescribed by the USPPI. authorized U.S. agent of the FPPI. authorized agent entering the goods may (d) Filer responsibilities. Export data provided to the AES shall be listed as the USPPI in the EEI. Responsibilities of USPPIs and be complete, correct, and based on (v) If a customs broker is listed as the authorized agents filing EEI are as personal knowledge of the facts stated importer of record when entering goods follows: or on information furnished by the into the United States for immediate (1) Transmitting complete and parties to the export transaction. The consumption or warehousing entry, the accurate information (see § 30.4 for a

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00010 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8209

delineation of filing responsibilities of State, the Department of Commerce, or § 30.4 Electronic Export Information filing USPPIs and authorized agents). other U.S. Government agency issues a procedures, deadlines, and certification (2) Transmitting information in a license for the commodities being statements. timely manner in accordance with the exported, or the merchandise is being Two electronic filing options provisions and requirements contained exported under a license exemption. (predeparture and postdeparture) for in this part. (xi) Any information that it knows transmitting EEI are available to the (3) Responding to fatal errors, will affect the determination of license USPPI or authorized agent. The warning, verify and reminder messages, authorization (see subpart B of this part electronic postdeparture filing takes into and compliance alerts generated by the for additional information on licensing account that complete information AES in accordance with provisions and requirements). concerning export shipments may not requirements contained in this part. (2) Authorized agent responsibilities. always be available prior to exportation (4) Providing the exporting carrier In a routed export transaction, the and accommodates these circumstances with the required proof of filing authorized agent is responsible for by providing, when authorized, for citations or exemption legends in obtaining a power of attorney or written filing of EEI after departure. For accordance with provisions contained authorization from the FPPI to prepare example, for exports of seasonal and in this part. and file the EEI on its behalf; preparing agricultural commodities, only (5) Promptly transmitting corrections and filing the EEI based on information estimated quantities, values, and or cancellations to EEI in accordance obtained from the USPPI or other parties consignees may be known prior to with provisions contained in § 30.9. involved in the transaction; maintaining exportation. The procedures for (6) Maintaining all necessary and documentation to support the EEI obtaining certification as an AES filer proper documentation related to EEI reported to the AES; and upon request and for applying for authorization to file transactions in accordance with by the USPPI, verifying that the on a postdeparture basis are described provisions contained in this part (see information provided by the USPPI was in § 30.5. § 30.10 for specific requirements for accurately reported to the AES. The (a) EEI transmitted predeparture. The maintaining and producing authorized agent also shall provide the EEI shall always be transmitted prior to documentation for export shipments). following export information to the departure to AES for the following types (e) Responsibilities of parties in a AES: of shipments: routed export transaction. The Census (1) Used self-propelled vehicles (i) Date of export. Bureau recognizes ‘‘routed export (except those shipped between the transactions’’ as a subset of export (ii) Transportation Reference Number. United States and Puerto Rico) as transactions. A routed export (iii) Ultimate consignee. defined in 19 CFR 192.1; transaction is one in which the FPPI (iv) Intermediate consignee, if (2) Essential and precursor chemicals authorizes a U.S. agent to facilitate the applicable. requiring a permit from the DEA; export of items from the United States (v) Authorized agent name and (3) Shipments defined as ‘‘sensitive’’ and to prepare and file EEI. address. by Executive Order; (1) USPPI responsibilities. In a routed (vi) EIN, SSN or DUNS number of the (4) Shipments where a U.S. export transaction, the FPPI may authorized agent. Government agency requires authorize or agree to allow the USPPI to (vii) Country of ultimate destination. predeparture filing; prepare and file the EEI or authorize an (viii) Mode of transportation. (5) Shipments defined as ‘‘routed agent to file the EEI on its behalf. If the (ix) Carrier identification and export transactions’’ (see § 30.1(c) for a USPPI prepares and files the EEI, it shall conveyance name. list of definitions that apply to this maintain documentation to support the (x) Port of export. part); (6) Shipments to countries where EEI filed. If the FPPI authorizes an agent (xi) Foreign port of unloading. complete outbound manifests are to prepare and file the EEI, the USPPI (xii) Shipping weight. required prior to clearing vessels or shall maintain documentation to (xiii) ECCN. support the information provided to the aircraft for export (see 19 CFR 4.75(c) (xiv) License or license exemption agent for preparing the EEI as specified and 122.74(b)(2) for a listing of these information. in § 30.10 and provide the agent with countries); the following information to assist in (f) Authorizing an agent. In a power (7) Items identified on the U.S. preparing the EEI: of attorney or other written Munitions List (USML) of the ITAR (22 (i) Name and address of the USPPI. authorization, authority is conferred CFR part 121); (ii) USPPI’s EIN or SSN. upon an agent to perform certain (8) Exports that require a license from (iii) Point of origin (State or FTZ). specified acts or kinds of acts on behalf the BIS, unless the BIS has approved (iv) Commercial description of of a principal (see 15 CFR 758.1(h)). In postdeparture filing privileges for the commodities. cases where an authorized agent is filing USPPI; (v) Origin of goods indicator: EEI to the AES, the agent shall obtain a (9) Shipments of rough diamonds Domestic (D) or foreign (F). power of attorney or written classified under Harmonized System (vi) Schedule B/Harmonized Tariff authorization from a principal party in subheadings 7102.10, 7102.21, and Schedule (HTS) Classification interest to file the information on its 7102.31 and exported (reexported) in Commodity Code. behalf. A power of attorney or written accordance with the Kimberley Process; (vii) Quantity/unit of measure. authorization should specify the and (viii) Value. responsibilities of the parties with (10) Shipments for which the USPPI (ix) Upon request from the FPPI or its particularity and should state that the has not been approved for postdeparture agent, the Export Control Classification agent has authority to act on behalf of filing. Number (ECCN) or sufficient technical a principal party in interest as its true (b) Filing deadlines for EEI information to determine the ECCN. and lawful agent for purposes of transmitted predeparture. The USPPI or (x) All licensing information creating and filing EEI in accordance the authorized agent shall file the necessary to file the EEI for with the laws and regulations of the required EEI and have received the AES commodities where the Department of United States. Internal Transaction Number (ITN) no

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00011 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8210 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

later than the time period specified as (B) Report the EEI at the first form of a power of attorney or written follows: opportunity AES is available. authorization, thus making them (1) For State Department USML (c) EEI transmitted postdeparture. authorized agents. The USPPI seeking shipments, refer to the ITAR (22 CFR Postdeparture filing is only available for approval for postdeparture filing parts 120 through 130) for specific approved USPPIs and provides for the privileges shall be approved before they requirements concerning predeparture electronic filing of the data elements or their authorized agent may file on a filing time frames. In addition, if a filer required by § 30.6 no later than ten (10) postdeparture basis. is unable to acquire an ITN because AES calendar days from the date of (a) AES application process—(1) AES is not operating, the filer shall not exportation. For USPPIs approved for Letter of Intent. The first requirement for export until AES is operating and an postdeparture filing, all shipments all participation in AES, including ITN is acquired. (other than those for which approval for postdeparture filing (2) For non-USML shipments, file the predeparture filing is specifically privileges, is to submit a complete and EEI and transmit the ITN as follows: required), by all methods of accurate Letter of Intent to the Census (i) For vessel cargo, the USPPI or the transportation, may be exported with Bureau. The Letter of Intent is a written authorized agent shall file the EEI the filing of EEI made postdeparture. statement of a company’s desire to required by § 30.6 and provide the AES Certified AES authorized agents or participate in AES. It shall set forth a ITN to the exporting carrier no later service centers may transmit commitment to develop, maintain, and than 24 hours prior to the departure of information postdeparture on behalf of adhere to CBP and Census Bureau the vessel from the U.S. port where the USPPIs approved for postdeparture performance requirements and cargo is laden. filing, or the approved USPPI may operations standards. The format and (ii) For air cargo, including cargo transmit the data postdeparture itself. content for the Letter of Intent are being transported by Air Express However, authorized agents or service provided in Appendix A of this part. Couriers, the USPPI or the authorized centers will not be approved for (2) AESDirect registration. U.S. agent shall file the EEI required by postdeparture filing. principal parties in interest desiring to § 30.6 and provide the AES ITN to the (d) Pipeline. The operator of a file though AESDirect shall complete exporting carrier no later than two (2) pipeline may transport goods to a the online AESDirect registration form hours prior to the scheduled departure foreign country without the prior filing in lieu of the AES Letter of Intent. After time of the aircraft. of the proof of filing citation, on the submitting the registration, an (iii) For truck cargo, including cargo condition that within four (4) days AESDirect filing account is created for departing by Express Consignment following the end of each calendar the filing company. The person Couriers, the USPPI or the authorized month the operator shall file on the AES designated as the account administrator agent shall file the EEI required by and will deliver to the CBP Port Director is responsible for activating the account § 30.6 and provide the AES ITN to the the proof of filing citation covering all and completing the certification process exporting carrier no later than one (1) exportations through the pipeline to as discussed in paragraph (b)(2) of this hour prior to the arrival of the truck at each consignee during the month. section. the United States border to go foreign. (e) Proof of filing citation or (b) Certification process—(1) AES (iv) For rail cargo, the USPPI or the exemption legend. The USPPI or the certification process. The USPPI shall authorized agent shall file the EEI authorized agent shall provide the perform an initial two-part required by § 30.6 and provide the AES exporting carrier with the AES proof of communication test to ascertain ITN to the exporting carrier no later filing citation or exemption legend as whether its system is capable of both than two (2) hours prior to the time the described in § 30.7. transmitting data to, and receiving data train arrives at the U.S. border to go from, the AES. The USPPI shall foreign. § 30.5 Electronic Export Information filing (v) For mail and cargo shipped by application and certification processes and demonstrate specific system application other methods, except pipeline, the standards. capabilities. The capability to correctly USPPI or the authorized agent shall file Prior to filing EEI, the USPPI or the handle these system applications is the the EEI required by § 30.6 and provide authorized agent shall be certified to file prerequisite to certification for the AES ITN to the exporting carrier no on the AES. A service center shall be participation in the AES. The USPPI later than two (2) hours prior to certified to transmit electronically to the shall successfully transmit the AES exportation. (See § 30.4(d) for filing AES. The USPPI, authorized agent, or certification test. The CBP’s and/or deadlines for shipments sent by service center may use a software Census Bureau’s client representatives pipeline.) package designed by a certified vendor provide assistance during certification (vi) For all other modes, the USPPI or to file EEI to the AES. Once an testing. These representatives make the the authorized agent shall file the authorized agent has successfully sole determination as to whether or not required EEI no later than two (2) hours completed the certification process, any the USPPI qualifies for certification. prior to exportation. USPPI using that agent does not have to Upon successful completion of (3) For non-USML shipments when be certified. The certified authorized certification testing, the USPPI’s status the AES is unavailable, use the agent shall have a properly executed is moved from testing mode to following instructions: power of attorney, a written operational status. Automated Export (i) If the participant’s AES is authorization from the USPPI or FPPI, System filers may be required to repeat unavailable, the filer must delay the and be domiciled in the United States the certification testing process at any export of the goods or find an to file EEI to the AES. The USPPI or time. The Census Bureau will provide alternative filing method; authorized agent that utilizes a certified the AES filer with a certification notice (ii) If AES or AESDirect is software vender or service center shall after the USPPI has been approved for unavailable, the goods may be exported complete certification testing. Service operational status. The certification and the filer must: centers may only transmit export notice will include: (A) Provide the appropriate proof of information; they may not prepare and (i) The date that filers may begin filing citation as described in file export information unless they have transmitting data; § 30.7(b)(4); and authorization from the USPPI in the (ii) Reporting instructions; and

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00012 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8211

(iii) Examples of the required AES (iii) The USPPI is not an established or is currently under investigation for a proof of filing citations, postdeparture USPPI with regular operations. felony involving a violation of federal filing citations, AES downtime filing (iv) The USPPI has consistently failed export laws or regulations and the citation, and exemption legends. to submit EEI to the AES in a timely and Census Bureau has evidence of probable (2) AESDirect certification process. To accurate manner. cause supporting such violation, or the become certified for AESDirect, filers (v) The USPPI has a history of applicant is in violation of Census shall demonstrate knowledge of this noncompliance with Census Bureau Bureau export rules and regulations part and the ability to successfully export regulations contained in this contained in this part; transmit EEI. Upon successful part. (E) The USPPI has failed to comply completion of the certification testing, (vi) The USPPI has been indicted, with existing Census Bureau or other notification by e-mail will be sent to the convicted, or is currently under agency export regulations or has failed account administrator when an account investigation for a felony involving a to pay any outstanding penalties is fully activated for filing via violation of federal export laws or assessed in connection with such AESDirect. Certified filers should print regulations and the Census Bureau has noncompliance; or and retain the page congratulating the evidence of probable cause supporting (F) The USPPI would pose a filer on passing the test. such violation, or the USPPI is in significant threat to national security (c) Postdeparture filing approval violation of Census Bureau export interests such that its continued process. The USPPI may apply for regulations contained in this part. participation in postdeparture filing postdeparture filing privileges by (vii) The USPPI has made or caused should be terminated. (ii) Revocation by other agencies. Any submitting a Letter of Intent to the to be made in the Letter of Intent a false of the other agencies may revoke a Census Bureau in accordance with the or misleading statement or omission USPPI’s postdeparture filing privileges provisions contained in § 30.4 (see with respect to any material fact. with respect to transactions subject to Appendix A of this part for the content (viii) The USPPI would pose a the jurisdiction of that agency. When and format of the Letter of Intent). An significant threat to national security doing so, the agency shall notify both authorized agent may not apply on interests such that its participation in the Census Bureau and the USPPI behalf of a USPPI. The Census Bureau postdeparture filing should be denied. (ix) The USPPI has multiple whose authorization is being revoked. will distribute the Letter of Intent for violations of either the Export (4) Notice of revocation. Approved postdeparture filing privileges to CBP Administration Regulations (EAR) (15 postdeparture filing USPPIs whose and the other Federal Government CFR parts 730 through 774) or the postdeparture filing privileges have partnership agencies participating in the International Traffic in Arms been revoked by other agencies shall AES postdeparture filing review Regulations (ITAR)(22 CFR parts 120 contact those agencies for their specific process. Failure to meet the standards of through 130) within the last three (3) revocation and appeal procedures. the Census Bureau, CBP or any of the years. When the Census Bureau makes a partnership agencies is reason for denial (2) Notice of denial. A USPPI denied determination to revoke an approved of the applicant for postdeparture filing postdeparture filing privileges by other USPPI’s postdeparture filing privileges, privileges. Each partnership agency will agencies shall contact those agencies the USPPI will be notified electronically develop its own internal postdeparture regarding the specific reason(s) for non- of the reason(s) for the decision. In most filing acceptance standards, and each selection and for their appeal cases, the revocation shall become agency will notify the Census Bureau of procedures. A USPPI denied effective when the USPPI has either the USPPI’s success or failure to meet postdeparture filing status by the exhausted all appeal procedures, or that agency’s acceptance standards. Any Census Bureau will be provided with a thirty (30) calendar days after receipt of partnership agency may require specific reason for non-selection and a the notice of revocation, if no appeal is additional information from USPPIs that Census Bureau point of contact in an filed. However, in cases judged to affect are applying for postdeparture filing. electronic notification letter. A USPPI national security, revocations shall The Census Bureau will notify the may appeal the Census Bureau’s non- become effective immediately upon USPPI of the decision to either deny or selection decision by following the notification. approve their application for appeal procedure and re-application (5) Appeal procedure. Any USPPI postdeparture filing privileges within procedure provided in paragraph (c)(5) whose request for postdeparture filing thirty (30) calendar days of receipt of of this section. privileges has been denied by the the Letter of Intent by the Census (3) Revocation of postdeparture filing Census Bureau or whose postdeparture Bureau, or if a decision cannot be privileges—(i) Revocation by the Census filing privileges have been revoked by reached at that time, the USPPI will be Bureau. The Census Bureau may revoke the Census Bureau may appeal the notified of an extension for a final postdeparture filing privileges of an decision by filing an appeal within decision as soon as possible after the approved USPPI for the following thirty (30) calendar days of receipt of thirty (30) calendar days. reasons: the notice of decision. Appeals should (1) Grounds for denial of (A) The USPPI’s volume of EEI be addressed to the Chief, Foreign Trade postdeparture filing status. The Census reported in the AES does not warrant Division, U.S. Census Bureau, Bureau may deny a USPPI’s application continued participation in Washington, DC 20233. The Census for postdeparture filing privileges for postdeparture filing. Bureau will issue a written decision to any of the following reasons: (B) The USPPI or its authorized agent the USPPI within thirty (30) calendar (i) The USPPI has not demonstrated has failed to submit EEI to the AES in days from the date of receipt of the experience in filing or authorizing the a timely and accurate manner; appeal by the Census Bureau. If a filing of information electronically (C) The USPPI has made or caused to written decision is not issued within through the AES. be made in the Letter of Intent a false thirty (30) calendar days, the Census (ii) The USPPI’s volume of EEI or misleading statement or omission Bureau will forward to the USPPI a reported through the AES does not with respect to material fact; notice of extension within that time warrant participation in postdeparture (D) The USPPI submitting the Letter period. The USPPI will be provided filing. of Intent has been indicted, convicted, with the reasons for the extension of

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00013 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8212 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

this time period and an expected date of is infected with a virus, the company (ii) Address of the USPPI. In all EEI decision. Approved postdeparture filing shall contact the Census Bureau’s filings, the USPPI shall report the USPPIs who have had their Foreign Trade Division Computer address or location (no post office box postdeparture filing status revoked may Security Officer and refrain from using number) from which the goods actually not reapply for this privilege for one AESDirect until it is virus free. Failure begin the journey to the port of export. year following written notification of to comply with these requirements will For example, EEI covering goods laden the revocation. result in immediate loss of privilege to aboard a truck at a warehouse in Georgia (d) Electronic Export Information use AESDirect until the registered for transport to Florida for loading onto filing standards. The data elements company can establish to the a vessel for export to a foreign country required for filing EEI are contained in satisfaction of the Census Bureau’s shall show the address of the warehouse § 30.6. When filing EEI, the USPPI or Foreign Trade Division Computer in Georgia. If the USPPI does not have authorized agent shall comply with the Security Officer that the company’s a facility (processing plant, warehouse, data transmission procedures computer systems accessing AESDirect distribution center, or retail outlet, etc., determined by CBP and the Census are virus free. whether owned or leased) at the Bureau and shall agree to stay in (e) Monitoring the filing of EEI. The location from which the goods began complete compliance with all export USPPI’s or the authorized agent’s AES their export journey, report the USPPI rules and regulations in this part. filings will be monitored and reviewed address from which the export was Failure of the USPPI or the authorized for quality, timeliness, and coverage. directed. For shipments with multiple agent of either the USPPI or FPPI to The Census Bureau will provide origins, report the address from which comply with these requirements performance reports to USPPIs and the commodity with the greatest value constitutes a violation of the regulations authorized agents who file EEI. The begins its export journey or, if such in this part, and renders such principal Census Bureau will take appropriate information is not known at the time of party or the authorized agent subject to action to correct specific situations filing, the address from which the the penalties provided for in subpart H where the USPPI or authorized agent export is directed. of this part. In the case of AESDirect, fails to maintain acceptable levels of (iii) USPPI identification number. The when submitting a registration form to data quality, timeliness, or coverage. USPPI’s EIN or SSN. The USPPI shall AESDirect, the registering company is report its own Internal Revenue Service (f) Support. The Census Bureau certifying that it will be in compliance (IRS) EIN in the USPPI field of the EEI. provides online services that allow the with all applicable export rules and If the USPPI has only one EIN, report USPPI and the authorized agent to seek regulations. This includes complying that EIN. If the USPPI has more than one assistance pertaining to AES and this with the following security EIN, report an EIN that the USPPI also requirements: part. For AES assistance, filers may send uses to report employee wages and (1) AESDirect user names, an e-mail to [email protected], and withholdings, not an EIN used to report administrator codes, and passwords are for regulatory assistance, filers may send only company earnings or receipts. If, to be kept secure by the account an e-mail to [email protected]. and only if, no IRS EIN has been administrator and not disclosed to any AESDirect is supported by a help desk assigned to the USPPI, the USPPI’s own unauthorized user or any persons available twelve (12) hours a day from SSN shall be reported to the AES. Use outside the registered company. Filers 7 a.m. to 7 p.m. EST, seven (7) days a of another company’s EIN or another shall change administrator codes or week. Filers can obtain contact individual’s SSN is prohibited. The passwords for security purposes when information from the Web site http:// appropriate Party ID Type code shall be employees leave the company. The www.aesdirect.gov. reported to the AES. When a foreign administrator shall change the password § 30.6 Electronic Export Information data entity is in the United States when the when any person with access leaves the elements. items are purchased or obtained for company. export, the foreign entity is the USPPI The information specified in this (2) Registered companies are for filing purposes. In such situations, section is required for shipments responsible for those persons having when the foreign entity does not have transmitted to the AES. The data access to the user name, administrator an EIN or SSN, it shall report in the EEI elements identified as ‘‘mandatory’’ code, and password. If an employee a DUNS number, border crossing shall be reported for each transaction. with access to the user name, number, passport number, or any The data elements identified as administrator code, and password number assigned by CBP. leaves the company or otherwise is no ‘‘conditional’’ shall be reported if they (iv) Contact information. Show longer an authorized user, the company are required for or apply to the specific contact name and telephone number. shall immediately change the password, shipment. The data elements identified (2) Date of export. The date of export administrator code, and user name in as ‘‘optional’’ may be reported at the is the date when goods are scheduled to the system to ensure the integrity and discretion of the USPPI or the leave the port of export on the exporting confidentiality of Title 13 data. authorized agent. carrier that is taking the goods out of the (3) Antivirus software shall be (a) Mandatory data elements are as United States. installed and set to run automatically on follows: (3) Ultimate consignee. The ultimate all computers that access AESDirect. All (1) USPPI and USPPI identification. consignee is the person, party, or AESDirect registered companies will The name, address, identification, and designee that is located abroad and maintain subscriptions with their contact information of the USPPI shall actually receives the export shipment. antivirus software vendor to keep be reported to the AES as follows: The name and address of the ultimate antivirus lists current. Registered (i) Name of the USPPI. In all export consignee, whether by sale in the companies are responsible for transactions, the name listed in the United States or abroad or by performing full scans of these systems USPPI field in the EEI shall be the consignment, shall be reported in the on a regular basis, but not less than USPPI in the transaction. (See § 30.1 for EEI. The ultimate consignee as known at every 30 days, to ensure the elimination the definition of the USPPI and § 30.3 the time of export shall be reported. For of any virus contamination. If the for details on the USPPI’s reporting shipments requiring an export license, registered company’s computer system responsibilities.) the ultimate consignee shall be the

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00014 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8213

person so designated on the export through which goods from the United Alpha Code (SCAC) for vessel, rail, and license or authorized to be the ultimate States are frequently transshipped. If the truck shipments or the International Air consignee under the applicable license USPPI does not know the ultimate Transport Association (IATA) code for exemption in conformance with the destination of the goods, the country of air shipments. For other valid modes of EAR or ITAR, as applicable. For goods destination to be shown is the last transportation, including mail and fixed sold en route, report the appropriate country, as known to the USPPI at the modes (pipeline), the carrier ‘‘To be Sold En Route’’ indicator in the time of shipment from the United identification is not required. The EEI, and report corrected information as States, to which the goods are to be National Motor Freight Traffic soon as it is known (see § 30.9 for shipped in their present form. (For Association (NMFTA) issues and procedures on correcting AES instructions as to the reporting of maintains the SCAC. (See http:// information). country of destination for vessels sold or www.nmfta.org.) The IATA issues and (4) U.S. state of origin. The U.S. state transferred from the United States to maintains the IATA codes. (See http:// of origin is the 2-character postal code foreign ownership, see § 30.26.) www.census.gov/trade for a list of IATA for the state in which the goods begin (iii) For goods to be sold en route, codes.) their journey to the port of export. For report the country of the first port of call (9) Port of export. The port of export example, a shipment covering goods and then report corrected information as is the seaport or airport where the goods laden aboard a truck at a warehouse in soon as it is known. are loaded on the exporting carrier that Georgia for transport to Florida for (6) Mode of transportation. The mode is taking the goods out of the United loading onto a vessel for export to a of transportation is the means by which States, or the port where exports by foreign country shall show Georgia as the goods are exported from the United overland transportation cross the U.S. the state of origin. The U.S. state of States. border into foreign territory. The port of origin may be different from the U.S. (i) Conveyances exported under their export shall be reported in terms of state where the goods were produced, own power. The mode of transportation Schedule D, ‘‘Classification of CBP mined, or grown, or where the USPPI is for aircraft, vessels, or locomotives Districts and Ports.’’ Use port code 8000 located. For shipments of multi-state (railroad stock) transferring ownership for shipments by mail. origin, reported as a single shipment, or title and moving out of the United (i) Vessel and air exports involving report the U.S. state of the commodity States under its own power is the mode several ports of exportation. For goods with the greatest value. If such of transportation by which the loaded aboard a carrier in a port of information is not known, report the conveyance moves out of the United lading, where the carrier stops at several state in which the commodities are States. ports before clearing to the foreign consolidated for export. (ii) Exports through Canada, Mexico, country, the port of export is the first (5) Country of ultimate destination. or other foreign countries for port where the goods were loaded on The country of ultimate destination is transshipment to another destination. the exporting carrier. For goods off- the country in which the goods are to For transshipments through Canada, loaded from the original conveyance to be consumed or further processed or Mexico, or another foreign country, the another conveyance (even if the aircraft manufactured. The country of ultimate mode of transportation is the mode of or vessel belongs to the same carrier) at destination is the code issued by the the carrier transporting the goods out of any of the ports, the port where the International Standards Organization the United States. goods were loaded on the last (ISO). (7) Conveyance name/carrier name. conveyance before going foreign is the (i) Shipments under an export license The conveyance name/carrier name is port of export. or license exemption. For shipments the name of the conveyance/carrier (ii) Exports through Canada, Mexico, under an export license or license transporting the goods out of the United or other foreign countries for exemption issued by the Department of States as known at the time of transshipment to another destination. State, DDTC, or the Department of exportation. For exports by sea, the For transshipments through Canada, Commerce, BIS, the country of ultimate conveyance name is the vessel name. Mexico, or another foreign country to a destination shall conform to the country For exports by air, rail, or truck, the third country, the port of export is the of ultimate destination as shown on the carrier name is that which corresponds location where the goods are loaded on license. In the case of a Department of to the carrier identification as specified the carrier that is taking the goods out State license, the country of ultimate in paragraph (a)(8) of this section. Terms of the United States. destination is the country specified with such as airplane, train, rail, truck, (10) Related company indicator. The respect to the end user. vessel, barge, or international footbridge related company indicator shows if the (ii) Shipments not moving under an are not acceptable. For shipments by USPPI and the ultimate consignee are export license. The country of ultimate other modes of transportation, including related. A related party transaction destination is the country known to the mail or fixed modes (pipeline), the involves trade between an affiliated USPPI at the time of exportation. The conveyance/carrier name is not USPPI and ultimate consignee in which country to which the goods are being required. one person or business exercises at least shipped is not the country of ultimate (8) Carrier identification. The carrier a 10 percent interest (voting securities) destination if the USPPI has knowledge identification specifies the carrier that in both parties. Shipments to at the time the goods leave the United transports the goods out of the United independent distributors are considered States that they are intended for States. The carrier transporting the non-related unless there is at least 10 reexport or transshipment in their goods to the port of export and the percent control. present form to another known country. carrier transporting the goods out of the (11) Domestic or foreign indicator. For goods shipped to Canada, Mexico, United States may be different. For Indicate if the goods exported are of Panama, Hong Kong, Belgium, United transshipments through Canada, domestic or foreign origin. Show foreign Arab Emirates, The Netherlands, or Mexico, or another foreign country, the goods separately from goods of domestic Singapore, for example, special care carrier identification is that of the production even if the commodity should be exercised before reporting carrier that transports the goods out of classification number is the same. these countries as the ultimate the United States. The carrier (i) Domestic. Exports of domestic destination, since these are countries identification is the Standard Carrier goods include those commodities that

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00015 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8214 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

are the growth, produce, or manufacture sufficient to ensure compliance with reported. The total of these estimated of the United States, including goods that license exemption. However, where weights equals the actual shipping exported from U.S. FTZs, Puerto Rico, the description on the license does not weight of the entire container or or the U.S. Virgin Islands (including state all of the characteristics of the containers. commodities incorporating foreign commodity that are needed to (17) Value. In general, the value to be components), and those articles of completely verify the commodity reported in the EEI shall be the value of foreign origin that have been enhanced classification number, as described in the goods at the U.S. port of export. The in value or changed from the form in this paragraph, report the missing value shall be the selling price as which they were originally imported by characteristics, as well as the defined in this paragraph (or the cost if further manufacture or processing in the description shown on the license, in the the goods are not sold), including inland United States, including goods exported commodity description field of the EEI. or domestic freight, insurance, and other from U.S. FTZs, Puerto Rico, or the U.S. (14) Primary unit of measure. The charges to the U.S. seaport, airport, or Virgin Islands. Identify domestic goods unit of measure shall correspond to the land border port of export. Report value by the designation ‘‘D’’ in the EEI. primary quantity as prescribed in the to the nearest dollar; omit cents figures. (ii) Foreign. Exports of foreign goods Schedule B or HTS. If neither Schedule Fractions of a dollar less than 50 cents include those commodities that are the B or HTS specifies a unit of measure for should be ignored, and fractions of 50 growth, produce, or manufacture of the item, an ‘‘X’’ is required in the unit cents or more should be rounded foreign countries that entered the of measure field. upward to the next dollar. United States, including goods admitted (15) Primary quantity. The quantity is (i) Selling price. The selling price for to U.S. FTZs as imports and that, at the the total number of units that goods exported pursuant to sale, and the time of exportation, have undergone no correspond to the first unit of measure value to be reported in the EEI, is the change in form or condition or specified in the Schedule B or HTS. USPPI’s price to the FPPI (the foreign enhancement in value by further Where the unit of measure is in terms buyer). Deduct from the selling price manufacture in the United States, in of weight (grams, kilograms, metric tons, any unconditional discounts, but do not U.S. FTZs, in Puerto Rico, or in the U.S. etc.), the quantity reflects the net deduct discounts that are conditional Virgin Islands. Identify foreign goods by weight, not including the weight of upon a particular act or performance on the designation ‘‘F’’ in the EEI. barrels, boxes, or other bulky coverings, the part of the foreign buyer. For goods (12) Commodity classification and not including salt or pickle in the shipped on consignment without a sale number. Report the 10-digit commodity case of salted or pickled fish or meats. actually having been made at the time classification number as provided in For a few commodities where ‘‘content of export, the selling price to be Schedule B, Statistical Classification of grams’’ or ‘‘content kilograms’’ or some reported in the EEI is the market value Domestic and Foreign Commodities similar weight unit is specified in at the time of export at the U.S. port. Exported from the United States in the Schedule B or HTS, the quantity may be (ii) Adjustments. When necessary, EEI. The 10-digit commodity less than the net weight. The quantity is make the following adjustments to classification number provided in the reported as a whole unit only, without obtain the value. HTS may be reported in lieu of the commas or decimals. If the quantity (A) Where goods are sold at a point Schedule B commodity classification contains a fraction of a whole unit, other than the port of export, freight, number except as noted in the round fractions of one-half unit or more insurance, and other charges required in headnotes of the HTS. The HTS is a and fractions of less than one-half unit moving the goods from their U.S. point global classification system used to up or down to the nearest whole unit, of origin to alongside the exporting describe most world trade in goods. respectively. (For example, where the carrier at the port of export shall be Furnishing the correct Schedule B or unit for a given commodity is in terms added to the selling price (as defined in HTS number does not relieve the USPPI of ‘‘tons,’’ a net quantity of 8.4 tons paragraph (a)(17)(i) of this section) for or the authorized agent of furnishing, in would be reported as 8 for the quantity. purposes of reporting the value in the addition, a complete and accurate If the quantity is less than one unit, the EEI. commodity description. When reporting quantity is 1. (B) Where the actual amount of the Schedule B number or HTS number, (16) Shipping weight. The shipping freight, insurance, and other domestic the decimals shall be omitted. (See weight is the weight in kilograms, costs are not available, an estimate of http://www.census.gov/trade for a list of which includes the weight of the the domestic costs shall be made and Schedule B Classification Numbers). commodity as well as the weight of added to the cost of the goods or selling (13) Commodity description. Report normal packaging, such as boxes, crates, price to derive the value to be reported the description of the goods shipped in barrels, etc. The shipping weight is in the EEI. Add the estimated domestic sufficient detail to permit verification of required for exports by air, vessel, rail, costs to the cost or selling price of the the Schedule B or HTS number. Clearly and truck, and required for exports of goods to obtain the value to be reported and fully state the name of the household goods transported by all in the EEI. commodity in terms that can be modes. For exports (except household (C) Where goods are sold at a identified or associated with the goods) by mail, fixed transport ‘‘delivered’’ price to the foreign language used in Schedule B or HTS (pipeline), or other valid modes, the destination, the cost of loading the (usually the commercial name of the shipping weight is not required and goods on the exporting carrier, if any, commodity), and any and all shall be reported as zero. For and freight, insurance, and other costs characteristics of the commodity that containerized cargo in lift vans, cargo beyond the port of export shall be distinguish it from commodities of the vans, or similar substantial outer subtracted from the selling price for same name covered by other Schedule containers, the weight of such purposes of reporting value in the EEI. B or HTS classifications. If the shipment containers is not included in the If the actual amount of such costs is not requires a license, the description shipping weight. If the shipping weight available, an estimate of the costs reported in the EEI shall conform with is not available for each Schedule B or should be subtracted from the selling that shown on the license. If the HTS item included in one or more price. shipment qualifies for a license containers, the approximate shipping (D) Costs added to or subtracted from exemption, the description shall be weight for each item is estimated and the selling price in accordance with the

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00016 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8215

instructions in this paragraph (a)(17)(ii) filer to add, change, replace, or cancel (3) Foreign Trade Zone (FTZ) should not be shown separately in the an export shipment transaction. identifier. If goods are removed from the EEI, but the value reported should be (26) Line item filing action request FTZ and not entered for consumption, the value after making such indicator. An indicator that allows the report the FTZ identifier. This is the adjustments, where required, to arrive at filer to add, change, or delete a unique 5-digit identifier assigned by the the value of the goods at the U.S. port commodity line within an export Foreign Trade Zone Board that of export. shipment transaction. identifies the FTZ, sub-zone or site from (iii) Exclusions. Exclude the following (27) Filing option indicator. An which goods are withdrawn for export. from the selling price of goods exported. indicator of whether the filer is (4) Foreign port of unlading. The (A) Commissions to be paid by the reporting export information foreign port of unlading is the port and USPPI to its agent abroad or predeparture or postdeparture. Only country where the goods are removed commissions to be deducted from the approved USPPIs may file from the exporting carrier. The foreign selling price by the USPPI’s agent postdeparture. See § 30.4 for more port does not have to be located in the abroad. information on EEI filing options. country of destination. For exports by (B) The cost of loading goods on the (b) Conditional data elements are as sea to foreign countries, not including exporting carrier at the port of export. follows: Puerto Rico, the foreign port of unlading (C) Freight, insurance, and any other (1) Authorized agent and authorized is the code in terms of Schedule K, charges or transportation costs beyond agent identification. If an authorized ‘‘Classification of Foreign Ports by the port of export. agent is used to prepare and file the EEI, Geographic Trade Area and Country.’’ (D) Any duties, taxes, or other the following information shall be For exports by sea or air between the assessments imposed by foreign provided to the AES. United States and Puerto Rico, the countries. (i) Name of the authorized agent. foreign port of unlading is the code in (iv) For definitions of the value to be Report the name of the authorized agent. terms of Schedule D, ‘‘Classification of reported in the EEI for special types of The authorized agent is that person or CBP Districts and Ports.’’ The foreign transactions where goods are not being entity in the United States that is port of unlading is not required for exported pursuant to commercial sales, authorized by the USPPI or the FPPI to exports by other modes of or where subsidies, government transportation, including rail, truck, prepare and file the EEI or the person or financing or participation, or other mail, fixed (pipeline), or air (unless entity, if any, named on the export unusual conditions are involved, see between the U.S. and Puerto Rico). license. (See § 30.3 for details on the subpart C of this part. (5) Export license number/CFR specific reporting responsibilities of (18) Export information code. A code citation/authorization symbol. License authorized agents and subpart B of this that identifies the type of export number, permit number, citation, or part for export control licensing shipment or condition of the exported authorization symbol assigned by the requirements for authorized agents.) items (e.g., goods donated for relief or Department of Commerce, BIS; charity, impelled shipments, shipments (ii) Address of the authorized agent. Department of State, DDTC; Department under the Foreign Military Sales Report the address or location (no post of Treasury, OFAC; Department of program, household goods, shipments office box number) of the authorized Justice, Drug Enforcement under carnet, and all other shipments). agent. The authorized agent’s address Administration (DEA); Nuclear (19) Shipment reference number. A shall be reported with the initial Regulatory Commission (NRC); or any unique identification number assigned shipment. Subsequent shipments may other federal government agency. by the filer that allows for the be identified by the agent’s (6) Export Control Classification identification of the shipment in the identification number (see paragraph Number (ECCN). The number used to filer’s system. The number must be (b)(1)(iii) of this section). identify items on the Commerce Control unique for five (5) years. (iii) Authorized agent’s identification List (CCL), Supplement No. 1 to Part (20) Line number. A number that number. Report the authorized agent’s 774 of the EAR. The five (5) position identifies the specific commodity line own EIN, SSN, or DUNS in the EEI for ECCN consists of a set of digits and a item within a shipment. the first shipment and for each letter or EAR99. Section 738.2 of the (21) Hazardous material (HAZMAT) subsequent shipment. Use of another EAR describes the ECCN format. indicator. An indicator identifying the company’s or individual’s EIN or other (7) Secondary unit of measure. The shipment as hazardous as defined by the identification number is prohibited. The unit of measure is a code that Department of Transportation. type of agent identification (E=EIN, corresponds to the secondary quantity (22) Inbond code. The code indicating S=SSN, etc.) shall be indicated. as prescribed in the Schedule B or HTS. whether the shipment is being (iv) Contact information. Show If neither Schedule B nor HTS specifies transported under bond. contact name and telephone number. a secondary unit of measure for the (23) License code/license exemption (2) Intermediate consignee. The name item, the unit of measure is not code. The code identifies the and address of the intermediate required. commodity as having a Federal consignee (if any) shall be reported. The (8) Secondary quantity. The quantity Government agency requirement for a intermediate consignee acts in a foreign is the total number of units that license, permit, license exception or country as an agent for the principal correspond to the secondary unit of exemption or that no license is required. party in interest or the ultimate measure, if any, specified in the (24) Routed export transaction consignee for the purpose of effecting Schedule B or HTS. See the definition indicator. An indicator that the FPPI has delivery of the export shipment to the of the primary quantity for specific authorized, through a power of attorney ultimate consignee. The intermediate instructions on reporting the quantity as or written authorization, an agent to consignee is the person named as such a weight and whole unit, and rounding prepare and file the EEI. See § 30.3 for on the export license or authorized to fractions. responsibilities of the parties to the act as such under the applicable general (9) Vehicle Identification Number routed export transaction. license and in conformity with the (VIN)/Product ID. The identification (25) Shipment filing action request Export Administration Regulations found on the reported used vehicle. For indicator. An indicator that allows the (EAR) (15 CFR parts 730 through 774). used self-propelled vehicles that do not

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00017 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8216 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

have a VIN, the Product ID is reported. (15) Department of State number, truck license number, or rail ‘‘Used’’ vehicle refers to any self- requirements. car number. propelled vehicle the equitable or legal (i) DDTC registration number. The § 30.7 Annotating the bill of lading, title to which has been transferred by a number assigned by DDTC to persons air waybill, and other commercial manufacturer, distributor, or dealer to who are required to register per part 122 loading documents with the proper an ultimate purchaser. See 19 CFR 192.1 of the ITAR (22 CFR parts 120 through proof of filing citations, approved for more information on exports of used 130), that has an authorization (license postdeparture filing citations, downtime vehicles. or exemption) from DDTC to export the filing citation, and exemption legends. (10) Vehicle ID qualifier. The qualifier article. (a) Items identified on the U.S that identifies the type of used vehicle (ii) DDTC Significant Military Munitions List (USML) (22 CFR part reported. The valid codes are V for VIN Equipment (SME) indicator. A term 121) shall meet the predeparture and P for Product ID. used to designate articles on the U.S. reporting requirements identified in the (11) Vehicle title number. The number Munitions List (USML) (22 CFR part ITAR (22 CFR parts 120 through 130) for issued by the Motor Vehicle 121) for which special export controls the State Department requirements Administration. are warranted because of their capacity concerning AES proof of filing citations, (12) Vehicle title state code. The 2- for substantial military utility or and time and place of filing. character postal abbreviation code for capability. See § 120.7 of the ITAR (22 (b) For shipments other than USML, the state or territory that issued the CFR parts 120 through 130), for a the USPPI or the authorized agent is vehicle title. definition of SME and § 121.1 for items responsible for annotating the proper (13) Entry number. The entry number designated as SME articles. proof of filing citation or exemption is the import entry number for a (iii) DDTC eligible party certification legend on the first page of the bill of shipment transported under bond or if indicator. Certification by the U.S. lading, air waybill, or other commercial a FTZ or North American Free Trade exporter that the exporter is an eligible loading document. The USPPI or the Agreement (NAFTA) deferred duty party to participate in defense trade. See authorized agent must provide the proof claim is made. For goods imported into 22 CFR 120.1(c). This certification is of filing citation or exemption legend to the United States for export to a third required only when an exemption is the exporting carrier. The carrier must country of ultimate destination, where claimed. annotate the proof of filing citation or the importer of record on the entry is a (iv) DDTC USML category code. The exemption legend on the carrier’s foreign entity, the USPPI will be the USML category of the article being outbound manifest when required. The authorized agent designated by the exported (22 CFR part 121). carrier is responsible for presenting the foreign importer for service of process. (v) DDTC Unit of Measure (UOM). appropriate exemption legend or the The USPPI, in this circumstance, is This unit of measure is the UOM proof of filing citation to the CBP Port required to report the import entry covering the article being shipped as Director at the port of export as stated number. This number shall not contain described on the export authorization or in subpart E of this part. Such any imbedded slashes or dashes. declared under an ITAR exemption. presentation shall be without material (14) Transportation reference number. (vi) DDTC quantity. This quantity is change or amendment of the proof of The transportation reference number for the article being shipped. The filing citation, postdeparture filing (TRN) is as follows: quantity is the total number of units that citation, AES downtime filing citation, (i) Vessel shipments. Report the corresponds to the DDTC UOM code. or exemption legend as provided to the booking number for vessel shipments. (vii) DDTC exemption number. The carrier by the USPPI or the authorized The booking number is the reservation exemption number is the specific agent. The proof of filing citation will number assigned by the carrier to hold citation from the ITAR (22 CFR parts identify that the export information has space on the vessel for cargo being 120 through 130) that exempts the been accepted as transmitted. The exported. The TRN is required for all shipment from the requirements for a postdeparture filing citation, AES vessel shipments. license or other written authorization downtime filing citation, or exemption (ii) Air shipments. Report the master from DDTC. legend will identify that no filing is air waybill number for air shipments. (viii) DDTC export license line required prior to export. The proof of The air waybill number is the number. The line number of the State filing citations, postdeparture filing reservation number assigned by the Department export license that citations, or exemption legends shall carrier to hold space on the aircraft for corresponds to the article being appear on the bill of lading, air waybill, cargo being exported. The TRN is exported. manifest or other commercial loading optional for air shipments. (16) Kimberley Process Certificate documentation and shall be clearly (iii) Rail shipments. Report the bill of (KPC) number and authorization visible and include either of the lading (BL) number for rail shipments. symbol. The unique identifying number following: The BL number is the reservation of the KPC issued by the United States (1) For shipments other than USML, number assigned by the carrier to hold KPC authority that must accompany any the proof of filing citation shall include space on the rail car for cargo being export shipment of rough diamonds. the statement ‘‘AES,’’ followed by the exported. The TRN is optional for rail Rough diamonds are classified under 6- returned confirmation number provided shipments. digit Harmonized System subheadings by the AES when the transmission is (iv) Truck shipments. Report the 7102.10, 7102.21, and 7102.31. Enter the accepted, referred to as the ITN (for freight or pro bill number for truck KPC number in the license number field example, AES ITN). Items on the USML shipments. The freight or pro bill excluding the 2-digit U.S. ISO country shall meet the predeparture reporting number is the number assigned by the code. requirements in the ITAR (22 CFR parts carrier to hold space on the truck for (c) Optional data elements. (1) Seal 120 through 130). cargo being exported. The freight or pro number. The security seal number (2) Requirements for shipments filed bill number correlates to a bill of lading placed on the equipment or container. postdeparture for approved USPPIs. number, air waybill number or trip (2) Equipment number. Report the (i) If the USPPI files the EEI number for multimodal shipments. The identification number for the shipping postdeparture, only the USPPI’s EIN and TRN is optional for truck shipments. equipment, such as container or igloo the date of export are required in the

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00018 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8217

postdeparture filing citation (e.g., (c) Exports by other methods of operators of the exporting carriers, AESPOST EIN (USPPI) mm/dd/yyyy). transportation. For exports sent other USPPIs, FPPIs, and/or authorized (ii) If the authorized agent files the than by mail or pipeline, the USPPI or agents) shall retain documents or EEI postdeparture on behalf of an the authorized agent is required to records pertaining to the shipment for approved USPPI, the filing citation will deliver the proof of filing citations, five (5) years from the date of export. include the statement ‘‘AESPOST,’’ postdeparture filing citations, AES The Department of State or other followed by the USPPI’s EIN, followed downtime filing citation, and/or regulatory agencies may have record by the filer’s identification number and exemption legends prior to exportation. keeping requirements for exports that the date of export (e.g., AESPOST EIN exceed the retention period specified in (USPPI)–EIN (Authorized agent) mm/ § 30.9 Transmitting and correcting Automated Export System information. the regulations in this part, and those dd/yyyy). requirements prevail. The CBP, (3) Exports of rough diamonds (a) The USPPI or the authorized filing Immigration and Customs Enforcement classified under Harmonized System agent is responsible for electronically subheadings 7102.10, 7102.21, and transmitting accurate export information (ICE), the Census Bureau, the BIS, and 7102.31, in accordance with the Clean as known at the time of filing in the AES other participating agencies may require Diamond Act, will require the proof of and transmitting any changes to that that EEI, shipping documents, invoices, filing citation, as stated in paragraph information as soon as they are known. orders, packing lists, and (b)(2) of this section, to be annotated on Corrections, cancellations, or correspondence, as well as any other the Kimberley Process Certificate. amendments to that information shall be relevant documents and any other (4) For goods shipped pursuant to electronically identified and transmitted information bearing upon a particular § 30.4(b)(3)(ii), the filer must provide to the AES for all required fields as soon exportation be produced at any time the following downtime filing citation: as possible after exportation. The within the 5-year time period for ‘‘AESDOWN’’ followed by the filers provisions of this paragraph relating to inspection or copying. These records EIN, shipment reference number, and the reporting of corrections, may be retained in an elected format, date of export (e.g., AESDOWN EIN cancellations, or amendments to EEI, including electronic or hard copy as (filer) shipment reference number mm/ shall not be construed as a relaxation of provided for in the applicable agency’s dd/yyyy). the requirements of the rules and regulations. Acceptance of the regulations pertaining to the preparation documents by CBP, the Census Bureau, § 30.8 Time and place for presenting proof and filing of EEI. Failure to correct the or the BIS does not relieve the USPPI or of filing citations, postdeparture filing EEI is a violation of the provisions of its authorized agent from providing citations, AES downtime filing citation, and this part. exemption legends. (b) For shipments where the USPPI or complete and accurate information at a The following conditions govern the the authorized agent has received an later time, if all requirements have not time and place to present proof of filing error message from AES, the corrections in fact been properly met. citations, postdeparture filing citations, shall take place as required. Failure to (b) Retaining Electronic Export AES downtime filing citation, and/or respond to error messages or otherwise Information. Automated Export System exemption legends. The USPPI or the transmit corrections to the AES filers shall retain a copy of their letter authorized agent is required to deliver constitutes a violation of the regulations of intent to participate in AES and a the proof of filing citations, in this part and renders such principal copy of the electronic certification postdeparture filing citations, AES party or authorized agent subject to the notice from the Census Bureau that the downtime filing citation, and/or penalties provided for in subpart H of filer’s AES account has been approved exemption legends required in § 30.4(a). this part. A fatal error message will for operational status. The Letter of See § 30.7 for instructions for properly cause the EEI to be rejected. This error formatting the proof of filing citations, Intent and certification notice shall be shall be corrected prior to exportation of retained for as long as the filer submits postdeparture filing citation, and AES goods. For EEI that generates a warning downtime filing citation. See subpart D EEI through AES. Filers using AES are message, the correction shall be made able to retrieve their AES filings. of this part for instructions on properly within four (4) calendar days of receipt AESDirect and/or AESPcLink filers shall formatting exemption legends. Failure of the original transmission. For EEI that retain a copy of the electronic of the USPPI or the authorized agent of generates a verify message, the either the USPPI or FPPI to comply with correction, when warranted, shall be certification notice and print the notice these requirements constitutes a made within four (4) calendar days. A indicating the filer has attained violation of the the regulations in this compliance alert indicates that the certification on AESDirect and/or part and renders such principal party or shipment was not reported in AESPcLink. Filers using the AESDirect the authorized agent subject to the accordance with regulation. The USPPI and/or AESPcLink are able to retrieve a penalties provided for in subpart H of or the authorized agent is required to copy of their submissions. The Census this part. review filing practices and take Bureau will maintain a database of EEI (a) Postal exports. The proof of filing whatever corrective actions are required filed in AES to ensure that all filers can citations, postdeparture filing citations, to conform with export reporting retrieve a validated record of their AES downtime filing citation, and/or requirements. submissions. The USPPI or the exemption legends for items being sent authorized agent of the USPPI or FPPI by mail, as required in § 30.2, shall be § 30.10 Authority to require production of also may request a copy of the electronic documents and retaining electronic data. presented to the postmaster with the record, or submission from the Census packages at the time of mailing. The (a) Authority to require production of Bureau, as provided for in subpart G of documents. For purposes of verifying postmaster is required to deliver the this part. proof of filing citations and/or the completeness and accuracy of the exemption legends prior to exportation. information reported as required under (b) Pipeline exports. See subpart E of § 30.6, and for other purposes under the this part for the proof of filing citation regulations in this part, all parties to the and/or exemption legend requirements. export transaction (owners and

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00019 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8218 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

§§ 30.11–30.14 [Reserved] § 30.17 Customs and Border Protection which the property was transferred to regulations. GSA by the holding agency. These Subpart B—Export Control and Refer to the U.S. Department of charges include packing, rehabilitation, Licensing Requirements Homeland Security’s CBP regulations, inland freight, or drayage. The estimated § 30.15 Introduction. 19 CFR part 192, for information ‘‘fair market value’’ may be zero, or it referencing the advanced electronic may be a percentage of the original or (a) For export shipments to foreign submission of cargo information on estimated acquisition costs. (Bill of countries, the EEI is used both for exports for targeting and inspection lading, air waybill, and other statistical and for export control purposes pursuant to the Trade Act of commercial loading documents for such purposes. All parties to an export 2002. The regulations also prohibit shipments will bear the notation transaction must comply with all postdeparture filing of export ‘‘Excess Personal Property, GSA relevant export control regulations, information for certain shipments, and Regulations 1–III, 303.03.’’) including the requirements of the contain other regulatory provisions statistical regulations of this part. For affecting the reporting of EEI. The CBP’s § 30.26 Reporting of vessels, aircraft, convenience, references to provisions of regulations can be obtained from the cargo vans, and other carriers and containers. the EAR, ITAR, CBP, and OFAC U.S. Government Printing Office’s Web regulations that affect the statistical site at: http://www.gpoaccess.gov. (a) Vessels, locomotives, aircraft, rail reporting requirements of this part have cars, ferries, trucks, other vehicles, been incorporated into this part. For § 30.18 Department of State regulations. trailers, pallets, cargo vans, lift vans, or regulations and information concerning (a) The USPPI or the authorized agent similar shipping containers are not other agencies that exercise export shall file export information, when considered ‘‘shipped’’ in terms of the control and licensing authority for required, for items on the U.S. regulations in this part, when they are particular types of commodity Munitions List (USML) of the ITAR (22 moving, either loaded or empty, without shipments, a USPPI or the authorized CFR part 121). Information for items transfer of ownership or title, in their agent shall consult the appropriate identified on the USML, including those capacity as carriers of goods or as agency regulations. exported under an export license instruments of such carriers, and EEI is (b) In addition to the reporting exemption, shall be filed prior to export. not required. requirements set forth in § 30.6, further (b) Refer to the ITAR (22 CFR parts information may be required for export 120 through 130) for requirements (b) However, EEI shall be filed for control purposes by the regulations of regarding information required for such items, when moving as goods CBP, BIS, State Department, or the U.S. electronically reporting export pursuant to sale or other transfer from Postal Service under particular information for USML shipments, proof ownership in the United States to circumstances. of filing citations, and filing time ownership abroad. If a vessel, car, (c) This part requires the retention of requirements. aircraft, locomotive, rail car, vehicle, or documents or records pertaining to a (c) Department of State regulations container, whether in service or newly shipment for five (5) years from the date can be found at: http://www.state.gov. built or manufactured, is sold or of export. All records concerning license transferred to foreign ownership while exceptions or license exemptions shall § 30.19 Other Federal agency regulations. in the Customs territory of the United be retained in the format (including Other Federal agencies have States or at a port in such area, EEI shall electronic or hard copy) required by the requirements regarding the reporting of be reported in accordance with the controlling agency’s regulations. For certain types of export transactions. general requirements of the regulations information on recordkeeping retention USPPIs and/or authorized agents are in this part, identifying the port through requirements exceeding the responsible for adhering to these or from which the vessel, aircraft, requirements of this part, refer to the requirements. locomotive, rail car, car, vehicle, or container first leaves the United States regulations of the agency exercising §§ 30.20–30.24 [Reserved] export control authority for the specific after sale or transfer. If the vessel, shipment. Subpart: C—Special Provisions and aircraft, locomotive, rail car, car, (d) In accordance with the provisions Specific-Type Transactions vehicle, or shipping container is outside of subpart G of this part, information the Customs territory of the United from the EEI is used solely for official § 30.25 Values for certain types of States at the time of sale or transfer to purposes, as authorized by the Secretary transactions. foreign ownership, EEI shall be reported of Commerce, and any unauthorized use The following special procedures identifying the last port of clearance or is not permitted. govern the values to be reported for departure from the United States prior shipments of the following unusual to sale or transfer. The country of § 30.16 Export Administration Regulations types: destination to be shown in the EEI for (EAR). (a) Subsidized exports of agricultural vessels sold foreign is the country of The EAR issued by the U.S. products. Where provision is made for new ownership. The country for which Department of Commerce, BIS, also the payment to the USPPI for the the vessel clears, or the country of contain some additional reporting exportation of agricultural commodities registry of the vessel, should not be requirements pertaining to EEI (see 15 under a program of the Department of reported as the country of destination in CFR parts 730 through 774). Agriculture, the value required to be the EEI unless such country is the (a) The EAR require that export reported for EEI is the selling price paid country of new ownership. information be filed for shipments from by the foreign buyer minus the subsidy. U.S. Possessions to foreign countries or (b) General Services Administration § 30.27 Return of exported cargo to the areas. (See 15 CFR 758.1(b) and 772.1, (GSA) exports of excess personal United States prior to reaching its final destination. definition of the United States.) property. For exports of GSA excess (b) Requirements to place certain personal property, the value to be When goods reported as exported export control information in the EEI are shown in the EEI will be ‘‘fair market from the United States are not exported found in the EAR. value,’’ plus charges when applicable, at or returned without having been entered

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00020 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8219

into a foreign destination, the filer shall value reported in the EEI shall include (4) Requiring a Department of correct or cancel the EEI. parts and labor. The value of the Commerce, BIS export license under original product shall not be included. EAR 15 CFR parts 730 through 774. § 30.28 ‘‘Split shipments’’ by air. (b) Goods that are covered under (5) Subject to the ITAR, but exempt When a shipment by air covered by a warranty. from license requirements. single EEI submission is divided by the (6) Classified as rough diamonds (1) Goods that are reexported after exporting carrier at the port of export under 6-digit Harmonized System repair under warranty shall follow the where the manifest is filed, and part of subheadings 7102.10, 7102.21, and procedures in paragraph (a) of this the shipment is exported on one aircraft 7102.31. and part on another aircraft of the same section. It is recommended that the bill carrier, the following procedures shall of lading, air waybill, or other loading § 30.37 Miscellaneous exemptions. apply: documents include the statement, ‘‘This Electronic Export Information is not (a) The carrier shall deliver the product was repaired under warranty.’’ required for the following kinds of manifest to the CBP Port Director with (2) Goods that are replaced under shipments. However, the Census Bureau the manifest covering the flight on warranty at no charge to the customer has the authority to periodically require which the first part of the split shipment shall include the statement, ‘‘Product the reporting of shipments that are is exported and shall make no changes replaced under warranty, value for EEI normally exempt from filing. to the EEI. However, the manifest shall purposes’’ on the bill of lading, air (a) Except as noted in § 30.2(a)(1)(iv), show in the ‘‘number of packages’’ waybill, or other commercial-loading exports of commodities where the value column the actual portion of the documents. Place the notation below the of the commodities shipped from one declared total quantity being carried and proof of filing citation or exemption USPPI to one consignee on a single shall carry a notation to indicate ‘‘Split legend on the commercial document. exporting carrier, classified under an Shipment.’’ All manifests with the Report the value of the replacement part individual Schedule B or HTS notation ‘‘Split Shipment’’ will have only. commodity classification code, is $2,500 or less. This exemption applies to identical ITNs. §§ 30.30–30.34 [Reserved] (b) On each subsequent manifest individual Schedule B or HTS covering a flight on which any part of Subpart D—Exemptions From the commodity classification codes a split shipment is exported, a Requirements for the Filing of regardless of the total shipment value. prominent notation ‘‘SPLIT Electronic Export Information In instances where a shipment contains SHIPMENT’’ shall be made on the a mixture of individual Schedule B or manifest for identification. On the last § 30.35 Procedure for shipments exempt HTS commodity codes valued $2,500 or shipment, the notation shall read from filing requirements. less and individual Schedule B or HTS ‘‘SPLIT SHIPMENT, FINAL.’’ Each Where an exemption from the commodity classification codes valued subsequent manifest covering a part of requirement for filing is provided in this over $2,500, only those commodity a split shipment shall also show in the subpart, a legend describing the basis classification codes valued over $2,500 ‘‘number of packages’’ column only the for the exemption shall be made on the need be reported. If the filer reports goods carried on that particular flight first page of the bill of lading, air multiple items of the same Schedule B and a reference to the total amount waybill, or other commercial loading or HTS code, this exception only originally declared for export (for document for carrier use, or on the applies if the total value of exports for example, 5 of 11, or 5/11). Immediately carrier’s outbound manifest. The the Schedule B/HTS code is $2,500 or following the line showing the portion exemption legend shall reference the less. This exemption does not apply to of the split shipment carried on that number of the section or provision in shipments requiring a license from flight, a notation will be made showing this part where the particular exemption either the Department of Commerce or the air waybill number shown in the is provided (for example, § 30.36). the Department of State or a license original EEI and the portions of the exemption for commodities controlled originally declared total carried on each § 30.36 Exemption for shipments destined under the USML. previous flight, together with the to Canada. (b) Tools of trade and their containers number and date of each such previous (a) Except as noted in § 30.2(a)(1)(iv), that are usual and reasonable kinds and flight (for example, air waybill 123; 1 of and in paragraph (b) of this section, quantities of commodities and software 2 flight 36A, June 6 SPLIT SHIPMENT; shipments originating in the United intended for use by individual USPPIs 2 of 2, flight 40X, June 6 SPLIT States where the country of ultimate or by employees or representatives of SHIPMENT, FINAL). destination is Canada are exempt from the exporting company in furthering the (c) Since the complete EEI was filed the EEI reporting requirements of this enterprises and undertakings of the for the entire shipment initially, part. USPPI abroad. Commodities and additional electronic reporting will not (b) This exemption does not apply to software eligible for this exemption are be required for these subsequent the following types of export shipments: those that do not require an export license or that are exported as tools of shipments. (1) Sent for storage in Canada, but the trade under a license exception of ultimately destined for third countries. § 30.29 Reporting of repairs and the EAR (15 CFR 740.9(a)(2)(i) and replacements. (2) Exports moving from the United 740.14(b)(4)), and are subject to the These guidelines will govern the States through Canada to a third following provisions: reporting of the following: destination shall be reported in the (1) Are owned by the individual (a) The return of goods previously same manner as for all other exports. USPPI or exporting company. imported for repair and alteration only The USPPI or authorized agent shall (2) Accompany the individual USPPI, and other returns to the foreign shipper follow the instructions as contained in employee, or representative of the of temporary imported goods (declared this part for preparing and filing the EEI. exporting company. as such on importation) shall have (3) Requiring a Department of State, (3) Are necessary and appropriate and Schedule B or HTS classification DDTC, export license under the ITAR intended for the personal and/or commodity number 9801.10.0000. The (22 CFR parts 120 through 130). business use of the individual USPPI,

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00021 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8220 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

employee, or representative of the of company business records from a § 30.38 Exemption from the requirements company or business. U.S. firm to its subsidiary or affiliate. for reporting complete commodity (4) Are not for sale. This excludes highly technical plans, information. (5) Are returned to the United States correspondence, etc. that could be The following type of shipments will no later than one year from the date of licensed. require limited reporting of EEI when export. goods are shipped under a bill of lading (6) Are not shipped under a bill of (m) Shipments of pets as baggage, or an air waybill. In such cases, lading or an air waybill. accompanied or unaccompanied, of Schedule B or HTS commodity (c) Shipments from one point in the persons leaving the United States, classification codes, unit of measure, United States to another point in the including members of crews on vessels and domestic/foreign indicator shall not United States by routes passing through and aircraft. be required. Canada or Mexico. (n) Carriers’ stores, not shipped under (a) Usual and reasonable kinds and (d) Shipments from one point in a bill of lading or an air waybill quantities of wearing apparel, articles of Canada or Mexico to another point in (including goods carried in ships aboard personal adornment, toilet articles, the same country by routes through the carriers for sale to passengers), supplies, medicinal supplies, food, souvenirs, United States. and equipment for departing vessels, games, and similar personal effects and (e) Shipments, other than by vessel, of planes, or other carriers, including usual their containers. goods for which no export licenses or and reasonable kinds and quantities of (b) Usual and reasonable kinds and ITAR exemptions are required, bunker fuel, deck engine and steward quantities of furniture, household transported in bond through the United effects, household furnishings, and their department stores, provisions and States, and exported from another U.S. containers. supplies, medicinal and surgical port, or transshipped and exported (c) Usual and reasonable kinds and directly from the port of arrival. supplies, food stores, slop chest articles, quantities of vehicles, such as passenger (However, where goods are shipped and saloon stores or supplies for use or cars, station wagons, trucks, trailers, through the United States for export to consumption on board and not intended motorcycles, bicycles, tricycles, baby a third country of ultimate destination, for unlading in a foreign country, and carriages, strollers, and their containers but are first entered for consumption or including usual and reasonable kinds provided that the above-indicated for warehousing in the United States, and quantities of equipment and spare baggage, personal effects, and vehicular EEI shall be filed when the goods are parts for permanent use on the carrier property: (see 19 CFR part 192 for exported from the United States.) when necessary for proper operation of separate CBP requirements for the (f) Exports of technology and software such carrier and not intended for exportation of used self-propelled as defined in 15 CFR part 772 of the unlading in a foreign country. Hay, vehicles.) EAR that do not require an export straw, feed, and other appurtenances (1) Shall include only such articles as license are exempt from filing necessary to the care and feeding of are owned by such person or members requirements. However, EEI is required livestock while en route to a foreign of his/her immediate family; for mass-market software. For purposes destination are considered part of (2) Shall be in his possession at the of this part, mass-market software is carriers’ stores of carrying vessels, time of or prior to his/her departure defined as software that is generally trains, planes, etc. from the United States for the foreign country; available to the public by being sold at (o) Dunnage, not shipped under a bill retail selling points, or directly from the (3) Are necessary and appropriate for of lading or an air waybill, of usual and the use of such person or his/her software developer or supplier, by reasonable kinds and quantities means of over-the-counter transactions, immediate family; necessary and appropriate to stow or mail-order transactions, telephone (4) Are intended for his use or the use secure cargo on the outgoing or any transactions, or electronic mail-order of his/her immediate family; and immediate return voyage of an exporting transactions, and designed for (5) Are not intended for sale. installation by the user without further carrier, when exported solely for use as dunnage and not intended for unlading § 30.39 Special exemptions for shipments substantial technical support by the to the U.S. armed services. in a foreign country. developer or supplier. Electronic Export Information is not (g) Intangible exports of software and (p) Shipments of aircraft parts and required for any and all commodities, technology, such as downloaded equipment; food, saloon, slop chest, and whether shipped commercially or software and technical data, regardless related stores; and provisions and through government channels, of whether an export license is required, supplies for use on aircraft by a U.S. consigned to the U.S. Armed Services and mass-market software exported airline to its own installations, aircraft, for their exclusive use, including electronically. and agents abroad, under EAR license shipments to armed services exchange (h) Shipments to foreign libraries, exception (AVS) for aircraft and vessels systems. This exemption does not apply government establishments, or similar (see 15 CFR 740.15(c)). to articles that are on the USML or institutions, as provided in § 30.40(d). controlled by the ITAR and shipments (i) Shipments as authorized under (q) Electronic Export Information is not required for the following types of that are not consigned to the U.S. armed License Exception GFT for gift parcels services but are for their ultimate use. and humanitarian donations (see 15 commodities when they are not shipped CFR 740.12 of the EAR). as cargo under a bill of lading or an air § 30.40 Special exemptions for certain (j) Diplomatic pouches and their waybill and do not require an export shipments to U.S. Government agencies contents. license, but the USPPI shall be prepared and employees. (k) Human remains and to make an oral declaration to the CBP Electronic Export Information is not accompanying appropriate receptacles Port Director, when required: baggage required for the following types of and flowers. and personal effects, accompanied or shipments to U.S. Government agencies (l) Shipments of interplant unaccompanied, of persons leaving the and employees: correspondence, executed invoices and United States, including members of (a) Office furniture, office equipment, other documents, and other shipments crews on vessels and aircraft. and office supplies shipped to and for

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00022 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8221

the exclusive use of U.S. Government bunker fuel taken aboard at that port for filing citation or exemption legend to offices. fueling use of the vessel, apart from the CBP Port Director. (b) Household goods and personal such quantities as may have been laden (d) Attachment of commercial property shipped to and for the on vessels as cargo. documents. The manifest shall carry a exclusive and personal use of U.S. (ii) Coal and fuel oil. The quantity of notation that values stated are as Government employees. coal shall be reported in metric tons presented on the bills of lading, cargo (c) Food, medicines, and related items (2240 pounds), and the quantity of fuel lists, or other commercial documents. and other commissary supplies shipped oil shall be reported in barrels of 158.98 The bills of lading, cargo lists, or other to U.S. Government offices or liters (42 gallons). Fuel oil shall be commercial forms shall be securely employees for the exclusive use of such described in such manner as to identify attached to the manifest in such manner employees, or to U.S. Government diesel oil as distinguished from other as to constitute one document. The employee cooperatives or other types of fuel oil. manifest shall reference the statement associations for subsequent sale or other (2) Aircraft. Aircraft transporting ‘‘Cargo as per bills of lading attached’’ distribution to such employees. goods shall file a complete manifest as or ‘‘Cargo as per commercial forms (d) Books, maps, charts, pamphlets, required in CBP Regulations 19 CFR attached.’’ Also required on the face of and similar articles shipped by U.S. 122.72 through 122.76. The manifest each bill of lading shall be the Government offices to U.S. or foreign shall be filed with the CBP Port Director information required by the manifest for libraries, government establishments, or at the port where the goods are laden. cargo covered by that document. similar institutions. For shipments from the United States to (e) Exempt items. For any item for §§ 30.41–30.44 [Reserved] Puerto Rico, the manifests shall be filed which EEI need not be reported by the with the CBP Port Director at the port regulations in this part, a notation on Subpart E—General Carrier and where the goods are unladed in Puerto the manifest, or an oral declaration to Manifest Requirements Rico. the CBP Port Director, shall be made by (3) Rail carriers. Rail carriers the carrier as to the basis for the § 30.45 General statement of requirement transporting goods shall file a car exemption. for the filing of carrier manifests with proof manifest with the CBP Port Director at (f) Proof of filing citations and of filing citations for the electronic exemption legends. submission of export information or the border port of export in accordance exemption legends when Automated Export with 19 CFR Part 123. (1) The exporting carrier shall not System filing is not required. (4) Carriers not required to file accept paper SEDs under any (a) Requirement for filing carrier manifests. Carriers exempted from filing circumstances nor load cargo that does manifest. Carriers transporting goods manifests under applicable CBP not have an appropriate proof of filing from the United States, Puerto Rico, or regulations are required, upon request, citation or exemption legend. (2) The exporting carrier is subject to U.S. Possessions to foreign countries; to present to the CBP Port Director, the the penalties provided for in subpart H from the United States or Puerto Rico to proof of filing citation or exemption of this part if the exporting carrier the U.S. Virgin Islands; or between the legend for each shipment. (i) Accepts paper SEDs for cargo or United States and Puerto Rico; shall not (5) Penalties. Failure of the carrier to (ii) Loads cargo without appropriate be granted clearance and shall not file a manifest as required constitutes a AES proof of filing citations or depart until complete manifests (for violation of the regulations in this part exemption legends. vessels, aircraft, and rail carriers) have and renders such carrier subject to the been delivered to the CBP Port Director penalties provided for in subpart H of § 30.46 Requirements for the filing of in accordance with all applicable this part. export information by pipeline carriers. requirements under CBP regulations. (b) Partially exported shipments. The operator of a pipeline may Each bill of lading, air waybill, or other Except as provided in paragraph (c) of transport goods to a foreign country commercial loading document shall this section, when a carrier identifies, without the prior filing of the proof of contain the appropriate AES proof of prior to filing the manifest, that a filing citation or exemption legend, on filing citations, covering all cargo for portion of the goods covered by a single the condition that within four (4) which EEI is required, or exemption EEI transaction has not been exported calendar days following the end of each legends, covering cargo for which EEI on the intended carrier, it shall be noted calendar month the operator will deliver need not be filed by the regulations of on the manifest submitted to CBP. The to the CBP Port Director the proof of this part. Such annotation shall be carrier shall notify the USPPI or the filing citations covering all exports without material change or amendment authorized agent of changes to the through the pipeline to each consignee of AES proof of filing citations or commodity data, and the USPPI or the during the month. exemption legends as provided to the authorized agent shall electronically carrier by the USPPI or its authorized transmit the corrections, cancellations, § 30.47 Clearance or departure of carriers agent. or amendments as soon as they are under bond on incomplete manifests. (1) Vessels. Vessels transporting goods known in accordance with § 30.9. (a) Except when carriers are as specified (except vessels exempted by Failure by the carrier to correct the transporting goods from the United paragraph (a)(4) of this section) shall file manifest constitutes a violation of the States to Puerto Rico, clearance or a complete manifest. Manifests may be regulations in this part, and renders the permission to depart may be granted to filed via paper or electronically through carrier subject to the penalties provided any carrier by the CBP Port Director the AES Vessel Transportation Module for in subpart H of this part. prior to the filing of a complete as provided in CBP Regulations, 19 CFR (c) ‘‘Split shipments’’ by air. When a manifest, to the extent authorized, per 4.63 and 4.76. shipment by air covered by a single EEI the bond provisions as contained in 19 (i) Bunker fuel. The manifest transmission is exported in more than CFR 4.75, 4.76, and 122.74. (including vessels taking bunker fuel to one aircraft of the carrier, the ‘‘split (b) Except as provided in 19 CFR 4.75, be laden aboard vessels on the high shipment’’ procedure provided in 4.76 and 122.74 as applicable, on the seas) clearing for foreign countries shall § 30.28 shall be followed by the carrier bond, or on a separate listing as part of show the quantities and values of in delivering manifests with the proof of the bond, a pro forma list of AES proof

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00023 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8222 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

of filing citations and exemption 7501,’’ for completing the paper entry (m) Date of Importation. legends shall be shown by the departing summary documentation (CBP–7501). (n) Special Program Indicator Field. carrier. This listing may be waived by Refer to the Customs and Trade (o) Unit of Quantity. the CBP Port Director if such waiver Automated Interface Requirements for (p) CBP (dutiable) Value. does not interfere with the ability of the instructions on submitting an ABI (q) Gross (shipping) Weight. CBP Port Director to check on electronic record, or instructions for (r) Charges. performance under the bond or with completing the CBP–226 for declaring (s) U.S. Value. identifying shipments for which any equipment, repair parts, materials (t) FTZ/Subzone Number. statistical data are required. purchased, or expense for repairs (u) Zone Admission Number. incurred outside of the United States. (v) Vessel Name. §§ 30.48—30.49 [Reserved] (w) Serial number. § 30.52 Foreign Trade Zones. (x) Trade Identification. Subpart F–Import Requirements Foreign goods entering FTZs shall be (y) Admission Date. § 30.50 General requirements for filing reported as a general import. When § 30.53 Import of goods returned for import entries. goods are withdrawn from a FTZ for repair. Electronic entry filing Automated export to a foreign country, the export Import entries covering U.S. goods Broker Interface (ABI), paper import shall be reported in accordance with imported temporarily for repair or entry summaries (CBP–7501), or paper § 30.2. When goods are drawn for alteration and reexport are required to record of vessel foreign repair or domestic consumption or entry into a show the following statement: equipment purchase (CBP–226) shall be bonded warehouse, the withdrawal ‘‘Imported for Repair and Reexport’’ on completed by the importer or its shall be reported on CBP–7501 or the CBP–7501 or in the ABI entry. licensed import broker and filed directly through the ABI in accordance with CBP Whenever goods are returned to the with CBP in accordance with 19 CFR. regulations. (This section emphasizes United States after undergoing either Information on all mail and informal the reporting requirements contained in repair, alteration, or assembly under entries required for statistical and CBP CBP regulations 19 CFR part 146, HTS heading 9802, the country of origin purposes shall be reported, including ‘‘Foreign Trade Zones.’’) When foreign shall be shown as the country in which value not subject to duty. Upon request, goods enter a FTZ, the zone operator is the repair, alteration, or assembly is the importer or import broker shall required to file CBP–214, ‘‘Application performed. When the goods are for provide the Census Bureau with for Foreign Trade Zone Admission reexport and if they meet all of the information or documentation necessary and/or Status Designation.’’ Refer to the requirements for filing EEI, file to verify the accuracy of the reported CBP Web site for instructions on according to the instructions provided information, or to resolve problems completing the CBP–214. Per 19 CFR in § 30.2, except for the following data regarding the reported import 146.32(a), the applicant for admission items: transaction received by the Census shall present the CBP–214 to the Port (a) Value. Report the value of the Bureau. Director and shall include the statistical repairs, including parts and labor. Do (a) Import information for statistical (pink) copy, CBP–214(A), for transmittal not report the value of the original purposes shall be filed for goods to the Census Bureau, unless the product. If goods are repaired under shipped as follows: applicant makes arrangements for the (1) Entering the United States from electronic transmission of statistical warranty, at no charge to the customer, foreign countries. information to the Census Bureau report the cost to repair as if the (2) Admitted to U.S. FTZs. through the AFTZRP. Companies customer is being charged. (3) From the U.S. Virgin Islands. operating in FTZs interested in (b) HTS Classification Code. Report (4) From other non-foreign areas reporting CBP–214 statistical HTS commodity classification code, (except Puerto Rico). information electronically on a monthly 9801.10.0000 for goods re-exported after (b) Sources for collecting import basis shall apply directly to the Census repair. statistics include the following: Bureau. Monthly electronic reports shall § 30.54 Special provisions for imports (1) CBP’s ABI Program (see 19 CFR, be filed with the Census Bureau no later from Canada. subpart A, part 143). than the tenth calendar day of the (a) When certain softwood lumber (2) CBP–7501 paper entry summaries month following the report month. products described under Harmonized required for individual transactions (see Participation in the Census Bureau Tariff Schedule of the United States 19 CFR, subpart B, part 142). program does not relieve companies of (HTSUS) subheadings 4407.1000, (3) CBP–226, Record of Vessel Foreign the responsibility to file the CBP–214 4409.1010, 4409.1090, and 4409.1020 Repair or Equipment Purchase (see 19 with CBP. The following data items are are imported from Canada, import entry CFR 4.7 and 4.14). required to be filed, in the AFTZRP, for records are required to show a valid (4) CBP–214, Application for Foreign statistical purposes (Use the instructions Canadian Province of Manufacture Trade Zone Admission and definitions provided in 19 CFR part Code. The Canadian Province of and/or Status Designation (Statistical 146 for completing these fields.): Manufacture is determined on a first copy). (a) HTS Classification Code. (5) Automated Foreign Trade Zone (b) Country of Origin. mill basis (the point at which the item Reporting Program (AFTZRP). (c) Country Sub-code. was first manufactured into a covered (d) U.S. Port of Entry. lumber product). For purposes of § 30.51 Statistical information required for (e) U.S. Port of Unlading. determination, Province of Manufacture import entries. (f) Transaction Type. is the first province where the subject The information required for (g) Statistical Month. goods underwent a change in tariff statistical purposes is, in most cases, (h) Mode of Transportation. classification to the tariff classes cited in also required by CBP regulations for (i) Company Authorization Symbol. this paragraph. The Province of other purposes. Refer to CBP Web site (j) Carrier Code. Manufacture Code should replace the at http://www.cbp.gov to download (k) Foreign Port of Lading. Country of Origin code on the CBP– ‘‘Instructions for Preparation of CBP– (l) Date of Exportation. 7501, Entry Summary form. For

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00024 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8223

electronic ABI entry summaries, the file with the Census Bureau are treated or the FPPI, or the transporting carrier Canadian Province Code should be as confidential and will not be released (the parties). Such disclosure shall be transmitted in positions 6–7 of the A40 without authorization by CBP, in limited to that information provided to records. These requirements apply only accordance with 19 CFR 103.5 relating the AES by each party. for imports of certain soft lumber to the copies on file in CBP offices. The (b) Penalties. Disclosure of products for which the Country of importer or import broker must provide confidentiality of EEI by any officer, Origin is Canada. the Census Bureau with information or employee, contractor, or agent of the (b) All other imports from Canada, documentation necessary to verify the Federal Government except as provided including certain softwood lumber accuracy or resolve problems regarding for in paragraphs (a) and (f) of this products not covered in paragraph (a) of the reported import transaction. section renders such persons subject to this section, will require the two-letter (a) The basic responsibility for the penalties provided for in subpart H designation of the Canadian Province of obtaining and providing the information of this part. Origin to be reported on U.S. entry required by the general statistical (c) Supplying EEI for official summary records. This information is headnotes of the HTS rests with the purposes. The EEI may be supplied to required only for U.S. imports that person filing the import entry. This is federal agencies for official purposes, under applicable CBP rules of origin are provided for in section 484(a) of the defined to include, but not limited to: determined to originate in Canada. For Tariff Act, 19 CFR 141.61(e) of CBP (1) Verification of export shipments nonmanufactured goods determined to regulations, and § 30.50 of this subpart. for export control and compliance be of Canadian origin, the Province of Authority can also be found in CBP purposes; Origin is defined as the Province where Regulations 19 CFR 141.61(a) which (2) Providing proof of export; and the exported goods were originally require that the entry summary data (3) Compliance and audit purposes by grown, mined, or otherwise produced. clearly set forth all information the USPPI, FPPI, agents of USPPI and For goods of Canadian origin that are required. FPPI, and carriers. Such disclosure shall manufactured or assembled in Canada, (b) 19 CFR 141.61(e) of the CBP be limited to that information provided with the exception of the certain regulations provides that penalty to the AES by each party. Official softwood lumber products described in procedures relating to erroneous purposes shall also include those paragraph (a) of this section, the statistical information shall not be determined to be in the national interest Province of Origin is that in which the invoked against any person who pursuant to Title 13 U.S.C., Section final manufacture or assembly is attempts to comply with the statistical 301(g) and paragraph (e) of this section. performed prior to exporting that good requirements of the General Statistical (d) Supplying EEI for non-official to the United States. In cases where the Notes of the HTS. However, in those purposes. The EEI shall not be disclosed province in which the goods were instances where there is evidence that by the USPPI or the authorized agent or manufactured, assembled, grown, statistical suffixes are misstated to avoid representative of the USPPI or mined, or otherwise produced is quota action, or a misstatement of facts authorized agent for non-official unknown, the province in which the is made to avoid import controls or purposes, defined to include, but not Canadian vendor is located can be restrictions related to specific limited to: reported. For those reporting on paper commodities, the importer or its (1) Claims for exemption from Federal forms the Province of Origin code licensed broker should be aware that the internal revenue tax or state taxes; (2) Use by the IRS for purposes not replaces the country of origin code on appropriate actions will be taken under related to export control or compliance; the CBP–7501, Entry Summary form. 19 U.S.C. 1592, as amended. (3) Use by state and local government (c) All electronic ABI entry §§ 30.56–30.59 [Reserved] agencies, and non-governmental summaries for imports originating in entities; and Canada also required the new Canadian Subpart G—General Administrative (4) Use by foreign governments. Provisions Province of Origin code to be (e) Copying of information to transmitted for each entry summary line § 30.60 Confidentiality of Electronic Export manifests. Because the ocean manifest item in the A40 record positions 6–7. Information. can be made public under provision of (d) The Province of Origin code CBP regulations, no information from replaces the Country of Origin code only (a) Confidential status. The EEI the EEI, except the ITN, proof of filing for imports that have been determined, contained in the AES is confidential, to citation or exemption legend, shall be under applicable CBP rules, to originate be used solely for official purposes as copied to the outward manifest of ocean in Canada. Valid Canadian Province/ authorized by the Secretary of carriers. Territory codes are: Commerce. The collection of EEI by the Department of Commerce has been (f) Determination by the Secretary of XA—Alberta approved by the Office of Management Commerce. Under Title 13, U.S.C., XB—New Brunswick Chapter 9, Section 301(g), the EEI is XC—British Columbia and Budget. The information collected XM—Manitoba is used by the Census Bureau for exempt from public disclosure unless XN—Nova Scotia statistical purposes only and by the BIS the Secretary or delegate determines XO—Ontario of the Department of Commerce for that such exemption would be contrary XP—Prince Edward Island export control purposes. In addition, to the national interest. The Secretary or XQ—Quebec EEI is used by other Federal agencies his or her delegate may make such XS—Saskatchewan such as the Department of State and information available, if he or she XT—Northwest Territories CBP for export control. Except as determines it is in the national interest, XV—Nunavut taking such safeguards and precautions XW—Newfoundland provided for in paragraph (f) of this XY—Yukon section, information reported through to limit dissemination as deemed the AES shall not be disclosed to appropriate under the circumstances. In § 30.55 Confidential information, import anyone by any officer, employee, recommendations or decisions regarding entries, and withdrawals. contractor, or agent of the federal such actions, it shall be presumed to be The contents of the statistical copies government other than to the USPPI, contrary to the national interest to of import entries and withdrawals on FPPI, the authorized agent of the USPPI provide EEI for purposes set forth in

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00025 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 8224 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

paragraph (d) of this section. In requirements also are involved, the USPPIs, authorized agents or carriers, determining whether, under a particular concurrence of the regulatory agency who knowingly fails to file or set of circumstances, it is contrary to the and CBP also will be obtained. knowingly submits, directly or national interest to apply the indirectly, to the U.S. Government, false exemption, the maintenance of § 30.63 Office of Management and Budget or misleading export information control numbers assigned pursuant to the confidentiality and national security Paperwork Reduction Act. through the AES, shall be subject to a shall be considered as important fine not to exceed $10,000 or elements of national interest. (a) Purpose. This subpart will comply imprisonment for not more than five (5) with the requirements of the Paperwork years, or both, for each violation. § 30.61 Statistical classification schedules. Reduction Act (PRA), 44 U.S.C. 3507(f), (2) Furtherance of illegal activities. which requires that agencies display a The following statistical classification Any person, including USPPIs, current control number assigned by the schedules are referenced in this part. authorized agents or carriers, who Director of OMB for each agency These schedules, except as noted, may knowingly reports, directly or information collection requirement. be accessed through the Census indirectly, to the U.S. Government any (b) Display. Bureau’s Web site at: http:// information through or otherwise uses www.census.gov/trade. the AES to further any illegal activity (a) Schedule B: Statistical 15 CFR section where Current OMB identified and described control no. shall be subject to a fine not to exceed Classification for Domestic and Foreign $10,000 or imprisonment for not more Commodities Exported from the United 30.1 through 30.99 ...... 0607–0152 than five (5) years or both for each States shows the detailed commodity violation. classification requirements and 10-digit §§ 30.64–30.69 [Reserved] (3) Forfeiture penalties. Any person statistical reporting numbers to be used who is convicted under this subpart in preparing EEI, as required by the Subpart H—Penalties shall, in addition to any other penalty, regulations in this part. be subject to forfeiting to the United (b) Harmonized Tariff Schedules of § 30.70 Violation of the Clean Diamond Trade Act. States: the United States Annotated for (i) Any of that person’s interest in, Public Law 108–19, the Clean Statistical Reporting shows the 10-digit security of, claim against, or property or Diamond Trade Act (the Act), section statistical reporting number to be used contractual rights of any kind in the 8(c), authorizes CBP and the Bureau of in preparing import entries and goods or tangible items that were the Immigration and Customs Enforcement withdrawal forms. (Note: This site is subject of the violation. (ICE), as appropriate, to enforce the laws maintained by the United States (ii) Any of that person’s interest in, and regulations governing exports of International Trade Commission security of, claim against, or property or rough diamonds, including those with (USITC) at http://www.usitc.gov.) contractual rights of any kind in (c) Schedule C—Classification of respect to the validation of the tangible property that was used in the Country and Territory Designations for Kimberley Process Certificate by the export or attempt to export that was the U.S. Foreign Trade Statistics. exporting authority. The Treasury subject of the violation. (d) Schedule D—Classification of CBP Department’s OFAC also has (iii) Any of that person’s property Districts and Ports for U.S. Foreign enforcement authority pursuant to constituting, or derived from, any Trade Statistics. section 5(a) of the Clean Diamond Trade proceeds obtained directly or indirectly (e) Schedule K—Classification of Act (the Act), Executive Order 13312, as a result of this violation. Foreign Ports by Geographic Trade Area and Rough Diamonds Control (4) Exemption. The criminal fines and Country. (Note: This site is Regulations (31 CFR part 592). CBP, ICE, provided for in this subpart are exempt maintained by the Army Corps of and OFAC, pursuant to section 5(a) of from the provisions of section 3571 of Engineers.) the Act, are further authorized to Title 18, U.S.C. (f) International Air Transport enforce provisions of section 8(a) of the Association (IATA)—Code of the carrier Act, that provide for the following civil (b) Civil penalties. (1) Filing false/ for air shipments. These are the 2-digit and criminal penalties: misleading information, failure to file, or 3-digit air carrier codes to be used in (a) Civil penalties. A civil penalty not furtherance of illegal activities, delayed reporting EEI, as required by the to exceed $10,000 may be imposed on filing violations. A civil penalty not to regulations in this part. any person who violates, or attempts to exceed $1,000 for each day’s (g) Standard Carrier Alpha Code violate, any order or regulation issued delinquency beyond the applicable (SCAC)—Classification of the carrier for under the Act. period prescribed in § 30.4, but not vessel, rail and truck shipments, (b) Criminal penalties. For the willful more than $10,000 per violation, may be showing the 4-character code necessary violation or attempted violation of any imposed for failure to file information or to prepare EEI, as required by the license, order, or regulation issued reports in connection with the regulations in this part. (Note: This site under the Act, a fine not to exceed exportation or transportation of cargo. is maintained by the National Motor $50,000, shall be imposed upon (2) Penalties for other violations. A Freight Traffic Association at http:// conviction, or; civil penalty not to exceed $10,000 per www.nmfta.org.) (1) If a natural person, imprisoned for violation may be imposed for each not more than ten (10) years, or both; violation of provisions of this part other § 30.62 Emergency exceptions. (2) If an officer, director, or agent of than any violation encompassed by The Census Bureau and CBP may any corporation, imprisoned for not paragraph (b)(1) of this section. Such jointly authorize the postponement of or more than 10 years, or both. penalty may be in addition to any other exceptions to the requirements of the penalty imposed by law. regulations in this part as warranted by § 30.71 False or fraudulent reporting on or (3) Forfeiture penalties. In addition to the circumstances in individual cases of misuse of the Automated Export System. any other civil penalties specified in emergency where strict enforcement of (a) Criminal penalties. (1) Failure to this section, any property involved in a the regulations would create a hardship. file; submission of false or misleading violation may be subject to forfeiture In cases where export control information. Any person, including under applicable law.

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00026 Fmt 4701 Sfmt 4702 E:\FR\FM\17FEP3.SGM 17FEP3 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8225

§ 30.72 Civil penalty procedures. § 30.73 Enforcement. 2. Company Contact Person, Phone Number, Fax Number, E-mail Address. (a) General. Whenever a civil penalty (a) Department of Commerce. The BIS’s Office of Export Enforcement 3. Technical Contact Person, Phone is sought for a violation of this part, the Number, Fax Number, E-mail Address. charged party is entitled to receive a (OEE) may conduct investigations 4. Corporate Office Address, City, State, formal complaint specifying the charges pursuant to this part. In conducting Postal Code. and, at his or her request, to contest the investigations, OEE may, to the extent 5. Type of Business—USPPI, Authorized charges in a hearing before an necessary or appropriate to the Agent/Broker, Ocean Carrier, Software administrative law judge. Any such enforcement of this part, exercise such Vendor, Service Center, etc. (Indicate all that hearing shall be conducted in authorities as are conferred upon OEE apply). accordance with sections 556 and 557 of by other laws of the United States, (i) Authorized Agents/Brokers, indicate the number of USPPIs for which export Title 5, U.S.C. subject to policies and procedures approved by the Attorney General. information is filed. (b) Commencement of civil actions. If (ii) USPPIs, indicate whether you applied any person fails to pay a civil penalty (b) Department of Homeland Security. for AES predeparture and/or postdeparture imposed under this subpart, the The ICE and CBP may enforce the filing (only USPPIs can apply for Secretary may request the Attorney provisions of this part or conduct postdeparture filing). General to commence a civil action in investigations under this part. 6. Identify the filing type sought: Predeparture, Postdeparture filing, or BOTH an appropriate district court of the §§ 30.74–30.99 [Reserved] United States to recover the amount (Note: Only USPPIs can apply for postdeparture filing). imposed (plus interest at currently Appendix A to Part 30—Format for the Letter of Intent, Automated Export If applying for postdeparture filing, state/ prevailing rates from the date of the identify the reason for the request. final order). No such action may be System 7. Filer Code—EIN, SSN, or DUNS commenced more than five (5) years The first requirement for approval/ (Indicate all that apply). after the date the order imposing the certification to file in the AES is to submit 8. Description of products exported and 6- civil penalty becomes final. In such an electronic Letter of Intent (LOI). The LOI digit Schedule B/HTS number(s). Only the 6- action, the validity, amount, and is a statement of a company’s desire to digit Schedule B/HTS number(s) identified appropriateness of such penalty shall participate in the AES. It shall set forth a will be approved for use in postdeparture not be subject to review. commitment to develop, maintain, and filing. adhere to CBP and Census performance (i) Indicate seasonal product(s). (c) Remission and mitigation. Any requirements and operations standards. Once (ii) Identify why the product is seasonal. penalties imposed under § 30.71(b)(1) the LOI is received, a CBP Client 9. Types of Licenses or Permits. and (b)(2) may be remitted or mitigated, Representative and a U.S. Census Bureau 10. U.S. Ports of Export Expected to be if: Client Representative will be assigned to the Utilized. (1) The penalties were incurred company. Census will forward additional 11. Average Monthly Number of Export Shipments requiring the filing of EEI. without willful negligence or fraud; or information to prepare the company for participation in the AES. 12. Average Monthly Value of Export (2) Other circumstances exist that The AES postdeparture filing privilege Shipments requiring the filing of EEI. justify a remission or mitigation. allows a USPPI approved to file 13. Software Vendor Name, Contact, and (d) Applicable law for delegated postdeparture (an approved USPPI) or an Phone Number (if using vendor provided function. If, pursuant to Title 13, U.S.C., authorized agent filing on behalf of an software). section 306, the Secretary delegates approved USPPI to submit complete export 14. Modes of Transportation used for export shipments (Air, Vessel, Truck, Rail, functions addressed in this part to data at any time prior to or within ten (10) calendar days after the date of exportation. etc.). another agency, the provisions of law of Applicants will be reviewed by several 15. The following self-certification that agency relating to penalty government agencies prior to acceptance for statement, signed by an officer of the assessment, remission or mitigation of the postdeparture filing. Failure to provide company: ‘‘I, lll representing or on behalf such penalties, collection of such complete and accurate information will be of, (COMPANY NAME) certify that all penalties, and limitations of action and grounds for rejecting the LOI for the statements made and all information compromise of claims shall apply. postdeparture filing option. Incomplete or provided herein are true and correct. I understand that civil and criminal penalties (e) Deposit of payments in General inaccurate information on the LOI for the predeparture filing status will be returned may be imposed for making false or Fund of the Treasury. Any amount paid without action to the organization filing the fraudulent statements herein, failing to in satisfaction of a civil penalty imposed application. provide the requested information or for under this subpart shall be deposited The LOIs shall include all of the following: violation of U.S. laws on exportation (13 into the general fund of the Treasury, 1. Company Name, Address (no P.O. U.S.C. 305; 18 U.S.C. 1001).’’ and credited as miscellaneous receipts. boxes), City, State, Postal Code. BILLING CODE 3510–07–P

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00027 Fmt 4701 Sfmt 4700 E:\FR\FM\17FEP3.SGM 17FEP3 8226 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00028 Fmt 4701 Sfmt 4725 E:\FR\FM\17FEP3.SGM 17FEP3 EP17FE05.000 Federal Register / Vol. 70, No. 32 / Thursday, February 17, 2005 / Proposed Rules 8227

Dated: February 10, 2005. Charles Louis Kincannon, Director, Bureau of the Census. [FR Doc. 05–2926 Filed 2–16–05; 8:45 am] BILLING CODE 3510–07–C

VerDate jul<14>2003 14:51 Feb 16, 2005 Jkt 205001 PO 00000 Frm 00029 Fmt 4701 Sfmt 4700 E:\FR\FM\17FEP3.SGM 17FEP3 EP17FE05.001