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