Can Foreign Entities be Reported as the USPPI and Report Electronic Export Information (EEI) in the AES?

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By: Omari Wooden

We receive numerous questions regarding foreign entities exporting products from the United States. Can foreign entities be reported in the Automated Export System (AES)?

Companies and individuals that export physical goods from the United States to foreign countries are required to report the export information to the AES. The Foreign Trade Regulations (FTR) 30.3(b)(2) state that the foreign entity “shall be listed as the U.S. Principal Party in Interest (USPPI) if it is in the United States when the items are purchased or obtained for export.” If the foreign entity is the USPPI, can they file the EEI in the AES? If not, how does the shipment get reported in the AES?

Man looking at TVLet’s take an example of a foreign entity being the USPPI based on FTR 30.3(b)(2):
A gentleman from Brazil comes into the United States. He goes to an electronic retailer in Texas to purchase five flat screen televisions valued at $5,000 and instructs a local forwarder to ship the televisions to his home in Brazil. Based on the regulations (FTR 30.3(b)(2)), the Brazilian will be the USPPI on the AES record.

The next question is how will this shipment be reported?

FTR 30.3(a) states that “the filer of the EEI for the export transaction is either the USPPI, authorized agent, or the authorized U.S. agent of the Foreign Principal Party in Interest (FPPI)… The filer shall be physically located in the United States at the time of filing, have an Employer Identification Number (EIN) or DUNS number and be certified to report in the AES.” While the Brazilian native is identified as the USPPI, he does not have authority to file the EEI on his own behalf. He would have to authorize a U.S. agent who is certified to file the EEI. The gentleman from Brazil must be listed as the USPPI and the authorized U.S. agent would be the filer of the EEI in the AES.

The authorized U.S. agent filing the EEI must receive a power of attorney or written authorization to act on behalf of the gentleman from Brazil. The passport, border crossing number or any other number assigned by Customs & Border Protection, can be used as the USPPI ID Number for the gentleman from Brazil. The address to be reported Brazilian Passportwill be the address from where the goods are beginning its journey to the port of export. In this case, the electronic retailer’s location in Texas would be the correct address. The value shall be the selling price or the cost if the goods are not sold, including inland or domestic freight, insurance, and other charges to the port of export per FTR 30.6(a)(17).

Even though the foreign entity can be listed as the USPPI on the AES record, this individual or company can not directly file the EEI in the AES; an authorized U.S. agent must file on their behalf to adhere to the FTR reporting requirements.

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17 Responses to Can Foreign Entities be Reported as the USPPI and Report Electronic Export Information (EEI) in the AES?

  1. Danielle says:

    In the case of the Brazilean, he would then be the USPPI and the Ultimate Consignee? If he is shipping the TVs to his home in Brazil?

  2. Vox Studio Videochat says:

    so if we want to ship in another country we have to find an authorized US agent?

  3. Global Reach Omari says:

    @ Danielle, you are correct… The Brazilian would be the USPPI, since he was in the United States at the time the goods were obtained for export. Furthermore, he would also be the Ultimate Consignee, because he is receiving the goods abroad.

  4. Vox Studio Videochat says:

    I agree with u global. He should have been.. Wondering why they had to do that.

  5. Omari Wooden says:

    Let me clarify your question… “so if we want to ship in another country we have to find an authorized US agent?” If you want to ” ship in another country” you will have to adhere to the export and import laws and requirements on that particular country. If you meant to say “ship to another country,” yes, a foreign entity would have to select and authorize a U.S. agent to file the electronic export information in the Automated Export System on its behalf.

  6. Toronto Renovation says:

    Where do we find us agents tho?

  7. Idirectloanservicing says:

    I have been looking in and reading the commentary and only wanted to voice my many thanks for giving me some pretty exciting reading material. I look forward to reading more, and getting a more active part in the talks here, whilst picking up some knowledge as well..

  8. James Brand says:

    I’m wondering how USPPI is going to effect my business here in Spain. Do I also have to find an authorised agent?

  9. Bryce Larkin says:

    It sounds like this will change the way I export my products overseas. One question I have is how to find US Agents in another country?

  10. Global Reach Omari says:

    There are several sources to find forwarders and U.S. agents. One place to start is export.gov. Once on their site, type “finding a forwarder” in the search box. The search will provide you with different options to finding a forwarder. Another option is to contact the National Customs Brokers and Forwarders Association of America (NCFBFAA). Their website is http://www.ncbfaa.org. NCBFAA has a membership directory that could help you find a forwarder or agent in your area.

  11. Global Reach Omari says:

    @ Bryce, there are many US agents that have locations abroad. One recomendation is to find a US agent that has an office in the country where your products are being exported. One place to start is export.gov. Once on their site, type “finding a forwarder” in the search box. The search will provide you with different options to finding a forwarder. Another option is to contact the National Customs Brokers and Forwarders Association of America (NCFBFAA). Their website is http://www.ncbfaa.org. NCBFAA has a membership directory that could help you find a forwarder or agent that has locations abroad.

  12. Global Reach Omari says:

    @ James, let me clarify your question… “I’m wondering how USPPI is going to effect my business here in Spain. Do I also have to find an authorised agent?” I’m assuming you are located in Spain. The requirements I’m discussing are related to U.S. export requirements, not import requirements into Spain. If you are coming into the US, from Spain, and purchasing products or obtaining products for export, yes, you would need a U.S. agent to file on your behalf. I responded to another question (@ Bryce) related to finding U.S. agents that have overseas locations. Hopefully that will help…

  13. Tom says:

    Suppose I order some products from Supplier A, B and C. A forwarder than consolidates it into a 20ft container. Who would be the USPPI then? Thanks for your help.

    • Global Reach Omari says:

      @ Tom. Let me clarify your scenario… You state “I order products from…”. Are you a US company or entity? If so, then is the foreign party paying you for these products that you’ve purchased from Supplier A, B and C? If you answered yes to both of these questions, then you are the USPPI. For more guidance, I recommend that you review our previous blog titled “Who is the USPPI Anyway” at http://globalreach.blogs.census.gov/2010/10/13/who-is-the-usppi-anyway/

  14. Slavic says:

    What if I don’t want to spend my money on a forwarder and I want to import from US directly buying products from US supplier on FAS basis and using a carrier to ship from US port ? If using a US authorized agent is mandatory shouldn’t they (forwarders) provide this service for free in order not to create US export barriers? Can carriers provide this service too?

  15. Nina Hruska says:

    A very specific question about foreign entities. They being a cash and carry customer for more then $2500.00 worth of goods at the manufacturing level, not a retail store.
    Is the seller required to ask if the merchandise is leaving the US and is the seller responsible to file for an ITN if that is the intent?

  16. Vickie Cheng says:

    If the foreign entity is a company not individual, let’s say if the foreign entity is in Hong Kong. The HK company purchases goods from USA and need to ship to ultimate consignee in Bangkok, Thailand. The HK company doesn’t want the USA company to know their buyer nor the Bangkok buyer to know the USA company.

    In this case, will the HK company be the USPPI for AES filing? Or the USA company who sold the goods to HK company will be the USPPI? If HK company is the USPPI, they do not have USA IRS# or TIN#, how can they get an ID# for AES filing?

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