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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33 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?

  17. Anastasia Gozaly says:

    What is the difference between FPPI written confirmation and POA? Since they are very similar, why can’t we just use one form to give to customer of routed transaction or non-routed transaction?

    • Global Reach Shannon says:

      @Anastasia: A Power of Attorney (POA) and written authorization can be used for the same function, such as authorizing a US agent to file in the AES. We have samples of both of these documents on our webpage under the “Resources” box.

  18. Natalie says:

    Cars were bought in USA via on line (Not physically present in USA when he bought the cars) a buyer is from Overseas ( Switzerland) and buyer nominated a Forwarder to export/ship all cars overseas to Geneva, Switzerland. Question: Can the buyer be the USPPI in AES and his nominated Forwarder can use buyer’s Foreign passport# as USPPI ID ?

    • Global Reach Shannon says:

      @Natalie: If the foreign buyer will not be physically in the U.S. at the time the goods were purchased or obtained for export, then they cannot be the USPPI. The party/parties here in the U.S. that the vehicles were purchased from will need to be the USPPI(s). Since the foreign buyer is controlling the movement of the goods out of the U.S., the foreign buyer will need to provide a Power of Attorney or written authorization permitting a U.S. party to complete the AES filing. Please feel free to contact us with further regulatory questions at 800-549-0595, Option 3.

  19. Jeri Cliff says:

    I am a supplier. Occasionally we sell on an EXW or FAS basis but actually prefer to sell on a delivered basis. When selling a foreign entity who is using a US forwarder who is responsible for filing the AES? I know that we can as USPPI and usually do but we’ve had some of those forwarders wanting to do it so they’re asking for our Tax ID, which we don’t want to give them and will not give them our POA. We have our own forwarder who files on our behalf. Does the foreign entity have to have a US entity in order for their forwarder to file? What is our obligation as the supplier to this US forwarder? Thank you

    • Global Reach Shannon says:

      @Jeri: The foreign entity can only be the USPPI if they are physically in the United States when the items are purchased or obtained for export. If the export transaction is routed, per the Foreign Trade Regulations (FTR), the FPPI will need to authorize an agent to file their EEI, as they are not permitted to file in the Automated Export System (AES) on their own.

  20. Maytee says:

    How about when merchandise is imported into the US from Canada under a consumption entry, with the Canadian seller being the importer of record into the US under their non-resident importer (NRI) status… the material delivered to the FPPI’s freight forwarder in the US (who has a POA from the FPPI), for their on-forwarding to the FPPI. Would the Canadian seller be declared as the USPPI, with their US Business No.?

    • Global Reach Shannon says:

      @Maytee: If the Canadian seller is not physically in the United States at the time the goods are purchased or obtained for export than they cannot be the USPPI. Section 30.3(b)(2)(v) of the Foreign Trade Regulations states that if a foreign person is listed as the importer of record when entering goods into the United States for immediate consumption or warehousing entry, the customs broker who entered the goods, may be listed as the USPPI if the goods are subsequently exported without change or enhancement.

  21. Leonardo Pallone says:

    If a company based in Italy form a foreign entity non resident with regular EIN Number in USA and after buy goods from an american Seller and ship to our warehouse in Italy.
    Our foreign entity in USA can be listed as USPPI if we delegate an agent to fill EEI?

    • ITMD Global Reach says:

      @Leonardo: The foreign entity can only be the USPPI if they are physically in the United States at the time the items are purchased or obtained for export per Section 30.3(b)(2) of the Foreign Trade Regulations (FTR). If the foreign entity is not physically in the United States then the U.S. seller will be the USPPI.

  22. Sebastian says:

    Please advise how to file AES, if the Buyer is located overseas and US Supplier refuses to act as the Shipper (USPPI). Are there trading companies whom provide services to overseas buyers to act on their behalf to be shown as (USPPI) Shipper when buyers are not physically in the US?

    • ITMD Global Reach says:

      @Sebastian: The party here in the U.S. that is receiving the primary benefit from the export transaction is required to be the USPPI based on Section 30.3(b)(2) of the Foreign Trade Regulations (FTR). You can have the U.S. seller contact us to clarify their responsibility in an export transaction at 800-549-0595, Option 3 or at itmd.askregs@census.gov.

  23. Sebastian says:

    Please advise if a foreign company buys a product from a supplier located in the US, and the US Supplier refuses to act as the Shipper and does not provide TAX ID for export clearance who will be the Shipper in this Case. Foreign buyer is not in the US so are there any companies providing services to be the Shipper if a foreign buyer is not located in the US and actual supplier refuses to be involved in international Exports. as per Freight forwarders guidelines they cannot act as the Shipper on behalf of the foreign company since they are moving the cargo.

    Appreciate your soonest response. Thank you

    • ITMD Global Reach says:

      Answer: The United States Principal Party in Interest (USPPI) is the party that receives the primary benefit monetary or otherwise from the export shipment. As a result, the US Supplier that actually sold the goods is considered the USPPI for this export and must be listed as such in the AES record.

      The responsibilities of parties in an export transaction are described in section 30.3 of the Foreign Trade Regulations. Failure to comply with these regulations my result in penalties up to $10,000 per violation.

  24. Ken says:

    If a Canadian company sells $5,000 worth of product manaufactured by a US company to a company in the UAE, and the Incoterm in EXW Tulsa, would the Canadian company be considered the USPPI or would it be the US manufacturer? Who would fill out the SLI (Shippers Letter of Instruction) to the end user’s freight forwarder?

    • ITMD Global Reach says:

      Answer: If the goods are being exported from the U.S. to the counterparty in UAE, the U.S. manufacturer would be considered the USPPI and would need to be listed as such in the Automated Export System (AES) record. Please be aware that the value reported in AES should be the value at which the U.S. manufacturer sold the goods to the Canadian company. Also, the ultimate consignee would be the party in the UAE, and the country of destination would be UAE.

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