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