By: Melannie Belton
Exporters often ask: “How should I report a shipment for goods with the same schedule B, but composed of domestic and foreign origin?”
You want to be sure that you are accurately identifying the origin of your goods in order to properly file. So, if you are unsure as to whether your item should be reported as domestic or foreign, keep the following in mind:
- Domestic goods include commodities that are grown, produced, or manufactured in the United States, including goods exported from U.S. FTZs, Puerto Rico, or the U.S. Virgin Islands. Shipments of foreign origin that were previously imported and are further manufactured or processed in the United States, or have been enhanced in value or changed from its original form will be reported as domestic.
- Foreign goods include commodities that are grown, produced, or manufactured in foreign countries and have not undergone changes in form or condition or enhancement in value by further manufacturing in the United States, in U.S. FTZs, in Puerto Rico, or in the U.S. Virgin Islands. This includes merchandise that has entered the United States and is being re-exported in the same condition as when imported.
After properly identifying the origin of your goods, you need to determine how the information should be filed in the AES. In Section 30.6 (a)(11) of the Foreign Trade Regulations, it states that items of domestic or foreign origin under the same Schedule B number should be reported separately.
If your items of domestic or foreign origin are valued less than $2,500 separately, those items do not require an AES filing and the low value exemption citation, NOEEI 30.37(a), can be used. However, when either the domestic and/or foreign component of the shipment is valued over $2,500 an AES filing is required. Report ‘D’ for domestic and ‘F’ for items that are foreign.
For additional regulatory clarification or assistance on this or other regulatory issues, contact Regulations at 1-800-549-0595 Opt. 3.