| Exporters and freight forwarders do it every day, | | | | submissions for your internal audits. This |
| all day long. That is, submit their electronic export | | | | information is free for 12 months of data and can |
| information or EEI via the U.S. Census Bureau's | | | | be requested every year. |
| Automated Export System (AES) using | | | | What about the other data elements? Did you get |
| AESDirect, AESPcLink and other custom software | | | | the Schedule B number in writing from a reliable |
| programs. Do you know what you are signing up | | | | source (e.g. manufacturer, item database, |
| for when hitting "enter" and submitting your EEI? | | | | compliance department, etc.) or are you using the |
| All parties involved in export transactions, including | | | | number that you predecessor told you to use? Or |
| authorized agents or forwarders, should be aware | | | | worse, you weren't provided with a Schedule B |
| that commercial invoices and other commercial | | | | number so you are simply using the number that |
| documentation may not necessarily contain the | | | | worked for you last time? The same holds for |
| information necessary to prepare and submit the | | | | the ECCN and other data fields. Did this |
| EEI. Yet, the U.S. Principal Party In Interest | | | | information come from a documented source or |
| (USPPI), freight forwarder or agent is certifying | | | | "tribal knowledge". Simply entering EAR99-NLR (No |
| that the EEI information is true and correct. How | | | | License Required) without fully understanding the |
| do you know if it is true and correct? Who's | | | | classification of the product you are exporting |
| problem is it and what are the ramifications if it is | | | | puts you and your company at great risk of |
| incorrect? | | | | violation of the aforementioned laws and |
| You or your company signed up to seventeen | | | | regulations. While this may sound shocking to |
| separate AES Terms and Conditions when you | | | | some, it is happening every day and unsuspecting |
| registered your new AES account. For example, in | | | | exporters are often unaware of the violations |
| the 2nd item you have certified that, as a | | | | that are occurring under their watch. In fact, it |
| registered company, you are and will continue to | | | | has been reported that Customs and Border |
| be in compliance with all applicable laws and | | | | Protection (CBP) has issued over 1,200 penalty |
| regulations. In term #13, you have signed up to | | | | notices in the first half of this year! |
| the fact that filing EEIs for exports constitutes a | | | | The most important data element that an |
| representation by the USPPI that all statements | | | | exporter or their agent can certify is the License |
| and information are in accordance with the export | | | | Code / License Exemption Code. These codes |
| control regulations and that the commodity | | | | indicate the type of export license, export permit, |
| described on the declaration is authorized under | | | | license exception or license exemption or other |
| the particular license as identified on the | | | | export authorization. This could be a national |
| declaration and all conditions of the export control | | | | security concern as loose controls here could |
| regulations (presumably 15CFR parts 730-774) | | | | permit the inadvertent export of controlled U.S. |
| have been met. In the 14th term, you agree that | | | | items, software of technology. It is imperative |
| it is unlawful to knowingly make false or | | | | that the filer understand the "License Type" or |
| misleading representations for exportation and | | | | applicable exemption in the commodity information |
| that doing so constitutes a violation of the Export | | | | and not simply enter "C33: No License Required". |
| Administration Act, 50 U.S.C. App. 2410. Terms | | | | Furthermore, it is not advisable to use any license |
| 15-17 also address the world of pain that you will | | | | exception/exemption without fully understanding |
| endure for violations of 22 U.S.C., 18 U.S.C. and 13 | | | | their implications. Using a license exemption |
| U.S.C. Or did you just click the check box stating | | | | exception essentially empowers the exporter to |
| that "I have read and agree to the Terms and | | | | make the "go, no-go" decision of a U.S. |
| Conditions that govern the use of AESDirect? | | | | government licensing officer. It is a significant |
| Now that you remember what you signed up for, | | | | responsibility! |
| you should take a closer look at the information | | | | Exporters should be aware that they still have |
| that you are certifying. The EEI includes | | | | significant responsibilities as the USPPI even if their |
| information about the parties to the transaction | | | | forwarder or agent prepares the EEI on their |
| including name, address and contact information | | | | behalf (please contact us for our white paper on |
| about the USPPI, Ultimate Consignee and Carrier | | | | this subject). Part 30.71 of the Foreign Trade |
| Identification. Are you sure you know who the | | | | Regulations hold that any person, including USPPIs, |
| USPPI is for your transaction? While this may | | | | authorized agents or carriers, are subject to fines |
| appear obvious to USPPIs filing on their own | | | | and penalties not to exceed $10,000 (or |
| behalf, I recognize that, in many instances, | | | | imprisonment of up to 5 years if criminal violation) |
| forwarders and even other USPPIs are filing EEIs | | | | or both, for each violation of the regulations. |
| listing the wrong USPPI and those USPPIs are | | | | Submitting your EEI appears to be a simple |
| often unaware of the misuse of their company | | | | administrative task-and it is if you know what you |
| information! Exporters (USPPIs) are advised to | | | | are doing... Think before you hit "Submit EEI" in |
| request a validated record of their AES | | | | AES! |