The New Foreign Trade Regulations (FTR) Export Requirements

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Today we have published new export reporting requirements in the Federal Register. The new requirements will be effective on April 5, 2014. The publication of the final rule amends the regulations published in 2008 that govern how exporters must file electronic export information with the Census Bureau. An “informed compliance” period regarding the new regulations will be in place until October 2, 2014.

***Please Note: This was updated as of September 25, 2014***

Highlights of the changes to the FTR include:

  1. Postdeparture filing (§30.5)
    1. Postdeparture filing timeframe has changed from 10 calendar days to 5 calendar days.
    2. A moratorium on accepting new applications for postdeparture filing is still in place.

  2. Household Goods
    1. Change in Definition-Usual and reasonable kinds and quantities of personal property necessary and appropriate for use by the USPPI in the USPPI’s dwelling in a foreign country that are shipped under a bill of lading or an air waybill and are not intended for sale.
    2. The household goods export code can only be used for shipments where the USPPI is the ultimate consignee.

  3. Used Self-Propelled Vehicles
    1. Must be filed in the AES regardless of value or country of destination 30.2(a)(1)(iv)(H)).
    2. Must be filed 72 hours prior to export (§30.4(b)(5)).

  4. Port of export (§30.6(a)(9))
    1. Specifies that the port of export for shipments by overland transportation is where the goods cross the U.S. border into Canada or Mexico, including transshipments through Canada or Mexico to other countries.
    2. The language for port of export was revised in §30.6(a)(9) to include previous FTR §30.6(a)(9)(i) and (ii).

  5. Split Shipments (§30.28)
    1. Applies to all modes of transportation, not just air.
    2. Change in definition- a shipment booked for export that is divided by the carrier into more than one conveyance and sent on two or more conveyances of the same carrier from the same port within 24 hours for vessel shipments and 7 days by air, truck, or rail.
      **The updated definition can be found in FTR Letter No. 6 (Revised)**

  6. Exclusions
    1. AES filing is not required for licensed goods where the country of ultimate destination is the United States or for goods destined to international waters where the person(s) or entity assuming control of the item(s) is a U.S. citizen or permanent resident alien of the United States (§30.2(d)(5)).
    2. The Exclusion legend is required to be reported on the bill of lading, air waybill, export shipping instructions, or other commercial loading documents.

  7. Exemptions (§30.37)
    1. The following exemptions were added:
        1. Exports of technical data and defense service exemptions as defined in 22 CFR 123.22 (b)(3)(iii) are exempt from the Electronic Export Information (EEI) filing requirements (§30.37(u)).
        2. Reporting vessels, aircraft, cargo vans, and other carriers and containers when shipping as tools of international trade (§30.37(v)).
        3. Shipments to Army Post Office, Diplomatic Post Office, Fleet Post Office (§30.37(w)).
        4. Shipments exported under License Exception BAG (§30.37(x)).
        5. Specific types of shipments destined for a country listed in Country Group E:1 (§30.37(y)). Country Group E:1 are Cuba, Iran, North Korea, Sudan, and Syria. These countries support acts of international terrorism.
  8. International waters
    1. Change in definition- waters located outside the U.S. territorial sea, which extends 12 nautical miles measured from the baselines of the United States, and outside the territory of any foreign country, including the territorial water thereof. Note that vessels, platforms, buoys, undersea systems, and other similar structures that are located in international waters, but are attached permanently or temporarily to a country’s continental shelf, are considered to be within the territory of that country.
    2. For licensed shipments to international waters, it will be required that the person designated on the export license must be reported as the ultimate consignee (§30.6).
    3. For Bureau of Industry and Security license exceptions and non-licensed shipments to international waters the filer will be required to report the nationality of the person(s) or entity assuming control of the item(s) subject to the EAR (§30.6(a)(5)(i)).

  9. Data elements (§30.6)
    Two data elements were added:

    1. License value – Report the value indicated on the license.
    2. Ultimate consignee –There are four types: Direct Consumer, Government Entity, Reseller, and Other/Unknown. Other/Unknown is an entity that does not fall under one of the other three ultimate consignee types or whose type is not know at the time of export.

The U. S. Census Bureau will continue its outreach and education efforts through the AES Compliance Seminars and Workshops throughout the United States, as well as Webinars and other presentations. For further information on our outreach and education efforts or for assistance with filing EEI, contact the Regulations staff at 1-800-549-0595, option 3 or via email at ftdregs@census.gov.

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12 Responses to The New Foreign Trade Regulations (FTR) Export Requirements

  1. Naomi LaBonte says:

    What will the filing requirements be for a shipment that is moving from the U.S. to a drilling platform flagged and owned by a U.S. company when the goods are barged from the U.S. to the boundary of its territorial waters, transloaded onto a foreign flag vessel and then moved to the U.S. owned/flagged vessel or platform that is operating in international waters. Under the new regulations if the goods are moved all the way to the destination vessel/platform with the U.S. carrier then an EEI would not need to be submitted via AES. Is this the same if the goods are transloaded on a foreign flag carrier in this sceanrio?

  2. Steven says:

    The ultimate consignee type requirement raises two important compliance questions. First, what is the definition of “government-controlled”? Is it 50% or more government ownership, or is control defined in a more broad sense, such as strong minority representation plus other indicia of control (e.g., board memberships). Second, to what extent are filers expected to inquire whether the ultimate consignee is a government-owned or -controlled entity? There are many entities that appear commercial but that government-owned/controlled, and many exporters do not have procedures to make that determination on arms-length export transactions.

    • Global Reach Daniel says:

      @Steven, The ultimate consignee type is a BIS requirement. I recommended that you contact them directly to get information on what is considered “government-controlled” and also to obtain guidance on which type to use. You can reach them at (202) 482-4811.

  3. Cole Koeppen says:

    In the example of transfering US goods to the EU, retaining ownership of the goods, paying storage until sold by an agent in the EU – is the consigee agent a re-seller or direct consumer? I sell to the agent at the same time the agent sells to the end user.

    • Global Reach Daniel says:

      @Cole,
      A good question to ask yourself when identifying the ultimate consignee type is “what do I know about this shipment at the time the goods are exported.” If you are aware that the ultimate consignee is going to resell the items at the you export your items, I would suggest selecting “reseller.” The same logic applies to the other ultimate consignee types as well.

  4. Steve Langone says:

    What are the filing requirements for satellite launches from US sites(Cape Canaveral) to Geosynchronous orbit, some 40,000km above the surface of the earth. The satellite will transfer title at a particular point after arrival on orbit.

  5. Ronnie says:

    I have been told by my freight forwarder that it is now required that I list the end user letter code on my commercial invoices. Ultimate consignee –There are four types: Direct Consumer, Government Entity, Reseller, and Other/Unknown. Other/Unknown is an entity that does not fall under one of the other three ultimate consignee types or whose type is not know at the time of export. Is this correct?

    • Global Reach Daniel says:

      @Ronnie,
      The foreign trade regulations do not regulate commercial invoices. However, it is a requirement [Section 30.7(b)] to provide the internal transaction number OR the proper exemption or exclusion on the bill of lading or other commercial loading documents. Additionally, ultimate consignee type “other/unknown” may be chosen if direct consumer, government entity or reseller do not apply or if the ultimate consignee type is not known at the time of export.

  6. JACKIE says:

    I am filimg an SED for fabric going to NICARAGUA I get a message back stating
    “Imporbable ISCO X” i have been trying to figure excatly what I need and I canno figute it out . Please help me firgure this out

    • josefina.hicho says:

      @Jackie: If you are using AESdirect or PClINK you can contact the AES Branch at the Foreign Trade Division Call Center at 1-800-549-0595, Option 1.
      However,if you are using a third party vendor I suggest you contact them.
      Furthermore, you can use the AESTIR to reference compliance alerts and other response messages. I recommend you read our blog which highlights the information within the AESTIR.

  7. Ken says:

    I am shipping empty, plastic, re-usable containers to my vendor in Mexico from the USA. In turn, my vendor places parts in the containers and sends them back to me. I have been classifying these containers as an instrument of international trade when I export them to Mexico. Under the new filing arrangements, do I need to add any information?

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