Understanding Your Compliance Report – Part 1

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By: Eric Gauthier

As I have written on this blog previously, the Automated Export System Branch (AESB) has various tools for companies to ensure that their filing practices are in compliance with the Foreign Trade Regulations (FTR). One of the most important tools is the compliance report.

The report is sent on a monthly basis via e-mail to your company’s account administrator. The e-mail includes a message explaining the purpose of the report and how you can analyze it. The specific shipments filed and the compliance rate for your company are detailed in the text attachment that’s included with the e-mail.

How is this information useful to your company? What steps should a company take after reading the report?

Below is an example of a compliance report.

Part of a Sample Compliance Report for July 2010

Let’s take a look at the information included in the report.

The first section includes three lines that indicate the number of shipments filed in the AES by your company for the last three statistical months. The last line of this section will indicate the percent of change in the number of shipments from the current to the previous statistical month.

The next section of the report includes three lines that indicate the number of compliance alerts for the last three statistical months.

The last line of this section will indicate the most important detail of the report: the compliance rate for the current statistical month. 

The Compliance Rate is calculated by:

Compliance Rate Formula

The AESB considers a 95% compliance rate or above as satisfactory. If your company has a compliance rate less than 95%, it’s considered unacceptable and the AESB will work with your company to achieve an acceptable compliance rate. The AESB will assist in determining what could be causing the low rates. For example, it’s possible that shipments are being filed with the incorrect departure dates. Compliance rates can also be affected if your company is adding commodity lines to a shipment after the departure date. Your organization needs to verify the information, take action in resolving the issues that generate a low compliance rate and work with the AESB on how to improve that rate.

The AESB has developed the AES Best Practice Manual. This manual provides a variety of best practices that have been compiled as a result of visits to companies with an acceptable compliance rate of over 95%. Utilizing some of the best practices found in this manual can assist and ensure that your company achieves and maintains a 95% compliance rate or above, as well as to maintain compliance with the FTR.

For the next time, we will take a look at the most common scenarios that result in compliance alerts and what your company can do to avoid receiving these alerts. Stay tuned!


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7 Responses to Understanding Your Compliance Report – Part 1

  1. Jerry Morgan says:

    Other than here I don’t know where I would’ve gotten this information. You’re a life saver .

  2. Lee Weil says:

    For as many years as AES has been in use, I have received these compliance records. I am happy to state that every single one of them for 2010 (and earlier) has been reported to me as 100% compliant. That is wonderful news. However, since the beginning of 2010, I have also received 2 warning letters from the USCBP that incorrect SED information was provided. The last letter was for invalid carrier information and that the same carrier does not provide international service from the airport I have chosen. I am just wondering why I would receive 100% compliant when I have received these 2 letters. I have since corrected both issues, but I still want to make sure that I am 100% compliant 100% of the time.

  3. Global Reach Eric says:

    Jerry – Thanks for your comment!
    Lee- Compliance alerts are generated based on how you file your Electronic Export Information (EEI). For example, if you file a date of export that’s after the date of filing (this happens pretty often when people forget what the date is), or if you change critical data after the date of export, then a compliance alert is generated based on the restrictions set in the Foreign Trade Regulations. The alerts are triggered when certain fields are filed incorrectly or changed after the date of export, such as the date of export, license fields, used vehicle information or information on the USPPI.
    Customs and Border Protection (CBP) makes sure the information is correct. For example, say you filed an EEI for a shipment leaving from the Los Angeles International Airport but, by mistake, you reported JFK International Airport as the port of export. The system doesn’t recognize the mistake. Once again, that’s why agents verify shipments against the EEI reported in AES before they depart the country.
    Hope this helps Lee. I’ll make sure to go more into details about the different compliance alerts on my next blog. If you have any additional questions or need more information, please let me know!

  4. Beth Ready says:

    I currently receive AES compliance report data from FTD for those our company files directly. We have freight forwarders with power of attorney who also file on our behalf. These forwarders send us excel versions of the AES compliance data. I would prefer to get the AES compliance/progress report direct from FTD for those filed by our forwarders. Can you advise? The FTD report is a great tool for a company to measure their compliance rate. Many thanks.

  5. Global Reach Eric says:

    Thanks for your question.
    The Compliance Report sent by FTD is based on your Filer ID number (usually your Employer Identification Number). Because of this, our systems can only prepare the report based on the Filer ID and not on the shipments filed on behalf of the USPPI. The freight forwarders receive their reports, but their reports includes the shipments filed on your behalf and those filed on behalf of other companies and uses them to calculate their compliance rate.
    If you want to request a report of all of the shipments filed for your company, with either you as the filer or those done forwarders on your behalf, you can contact our Regulations, Outreach and Education Branch at 1-800-549-0595 Option 3. They can prepare and send you a report with this information.
    Hope this helps Beth. As always, if you need more details or have other questions, please let us know!

  6. Karen Kehoe says:

    When we received our May compliance rating, it was 100%. However, when we received our June & July reports, for some reason May was showing at 98.59%. How could this have changed & how do I find out the shipment reference number for the shipments that were not filed correctly, since these were not originally listed on our May report?

  7. Global Reach Eric says:

    The changes in the May compliance rate after the original report could be for two reasons:
    1) The Compliance Report is prepared a couple of days before the end of the month. When next month’s report is sent, the Compliance Rate for the past month will be revised to include the Electronic Export Information (EEI) transmitted for the days that that were not included.
    2) Some critical elements of the EEI were updated after the departure. Although AES allows you to update most of the EEI data elements after the departure without generating a compliance alert, there are some critical elements that if changed, trigger compliance alertst. Among these critical data elements are: the USPPI ID Number, the number of commodity lines reported, and/or used vehicle information.
    To find out the Shipment Reference Number for shipments with compliance alerts, contact an AES representative at the FTD Call Center at 1-800-549-0595 Option 1. Please have ready your company’s Filer ID for the representative to be able to locate your Compliance Report.

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