What is the most common Compliance Alert that affects your AES compliance rate?

By: Eric Gauthier

As a filer to the Automa480734119ted Export System (AES), it is important to review the information in your monthly AES Compliance Report that is emailed to the account administrator. Filers need to make sure that the company is maintaining a compliance rate as close to 100% as possible. So, what situations generate compliance alerts that go against a filer’s rate?

The most common compliance alert that filers receive is “Response Code 700 – Shipment Reported Late; Predeparture”. The alert is generated when a filer reports their shipment to the AES and receives an Internal Transaction Number (ITN) after the reported departure date. If you discover that your company has not filed a shipment, also referred to as Electronic Export Information (EEI), you are required to file it as soon as the discovery is made and you will receive a compliance alert.

Another common situation that generates this alert is when an incorrect date (or commonly an incorrect year) is entered for the departure date. We usually see an increase in compliance alerts at the beginning of a new year due to filers entering the previous year on the departure date. Make sure to be mindful of this common mistake at the beginning of each year.

If you are a postdeparture (Option 4) approved exporter or an authorized agent filing on behalf of an approved exporter, you may also receive the compliance alert “Response Code 701 – Shipment Reported Late; Postdeparture”. It is generated when a filer reports their shipment to the AES and receives an ITN after the allowable time frame for postdeparture shipments (currently 10 days but will be reduced to 5 days beginning October 2, 2014 per the recent update to the Foreign Trade Regulations (FTR) and FTR Letter No. 8).

Other information on AES compliance alerts can be found in the blog titled “Understanding Your Compliance Report – Part 2”. Please ensure that your company’s shipments are filed in compliance with the FTR so that your compliance rating is not adversely affected.

For more information about these compliance alerts and other response messages, please review Appendix A of the AES Trade Interface Requirements or contact the AES Branch at the Foreign Trade Division Call Center at 1-800-549-0595, Option 1.

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Happy 100th Anniversary Panama Canal!

By: Anna Owens

Hi Trade Community! Let me introduce myself… My name is Anna Owens, the latest addition to the Foreign Trade Division’s Regulations, Outreach and Education Branch. Our team focuses on reaching out to you, the trade community. Feel free to let me know if you have any questions. I am excited to get to know you.

Today is such an important day for me and other Panamanians as we celebrate the 100th Anniversary of the Panama Canal. The Panama Canal is not only a vital part of the global trade community but also my second home. I hope you take a small break today and enjoy our new infographic about Panama.

cb14-tps.60_panama-canal_graphic

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Watch our FREE Webinar on Sanctions and Embargoes

6-26-2014 2-17-15 PM

On August 5, we held our 5th webinar in The Basics of Export Compliance Summer Webinar Series, titled “Sanctions and Embargoes: What it means to you?

An expert from the Office of Foreign Asset Control (OFAC) presented on the following items:

  • What is the Office of Foreign Asset Control?
  • Case studies
  • OFAC licensing
  • Enforcement of sanctions, rules and regulations
  • Best practices for compliance

For more information on this webinar or view our previous recordings, visit our Basic of Export Compliance webpage.

Don’t miss our last webinar in the summer series on August 26th @ 2pm EST. We plan to focus on utilizing features in the Automated Export System. Be sure to access our training page 15 minutes prior to join us.

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June 2014, Second Month in a Row Trade Deficit Decreases

By: Henock Kebede

The trade deficit in goods and services decreased for the second month in a row as it went down $3.1 billion to $41.5 billion. The decrease was driven by an increase of exports and a decrease of imports of $0.3 billion (to $195.9 billion) and $2.9 billion (to $237.4 billion), respectively. One of the main drivers for the increase in exports is the record high exports of Total Services, driven by record exports in Other Business Services and Travel (for all purposes). Exports of both Automotive ($13.7 billion) and Consumer Goods ($17.2 billion) increased to record levels, while their imports decreased by $1.3 billion for Consumer Goods and by $1.1 billion for Automotive.

Did you know that the U.S. usually has a trade surplus in Civilian Aircraft, Engines, and Parts? Yes, products in this end-use category make up 11% of the exports in “Capital Goods” and typically, exports are about twice the size of imports. This year so far, the top five countries for U.S. exports in this category are China ($4.9B), United Kingdom ($3.5B), France ($3.4B), Canada ($2.7B) and Germany ($2.7B). Check out the “Graph of the Month” page for a visual representation of export and import trends for Civilian Aircraft, Engines, and Parts.

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Choosing the Ultimate Consignee Type

By: Heather Hrytsyshyn

You probably know that identifying the ultimate consignee in the Automated Export System (AES) is mandatory. However, did you realize that you need to select an ultimate consignee type? There are four types: direct consumer, government entity, reseller and other/unknown.

Let’s dive into the details of each type: woman questioning

  1. Direct Consumer is a non-government institution, enterprise, or company that will consume or use the exported good as a consumable, for its own internal processes, as an input to the production of another good or as machinery or equipment that is part of a manufacturing process or a provision of services and will not resell or distribute the good.
  2. Government Entity is a government-owned or government-controlled agency, institution, enterprise, or company.
  3. Reseller is a non-government reseller, retailer, wholesaler, distributor, distribution center or trading company.
  4. Other/Unknown is an entity that is not a Direct Consumer, Government Entity or Reseller, as defined above, or whose ultimate consignee type is not known at the time of export.

Helpful tips to consider:

  • If the form of the good (commodity) exported is changed or consumed by the ultimate consignee, the type would be direct consumer.
  • If you chose other/unknown and later determine the ultimate consignee type changed, you may update the type in the AES.

So which type do you choose?

Identifying the proper ultimate consignee is pretty simple. Just remember to focus on the primary business function of the ultimate consignee. If more than one type applies, choose the type that applies most often. Let’s take a look at a couple of examples:

Example 1: If you export printers to a company in Scotland and they use the printers in their office, what ultimate consignee type do you choose?

Drum roll please… Direct Consumer.

The Reason: The ultimate consignee is using the printer for its own consumption.

Example 2: If you export paintings to an art distributor in France, what ultimate consignee type do you choose?

Drum roll please…Reseller

The Reason: The ultimate consignee is a distributor.

For more information on ultimate consignee type, refer to Section 30.6(a)(28) in the Foreign Trade Regulations. If you still have questions, contact the Regulations, Outreach and Education Branch at 1-800-549-0595, Option #3.

woman questioning

 

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Watch our FREE Webinar: International Traffic in Arms Regulations (ITAR)

summerwebinarseries2014On July 22, we held our 4th webinar in The Basics of Export Compliance Summer Webinar Series, which focused on the International Traffic in Arms Regulations (ITAR) and how to be compliant when exporting military items. If you missed it, you can still benefit from our new information packed webinar. Click here to watch the recording for free!

Experts from the Department of State presented on the following items:

  • US Munitions List (USML) items
  • Application Process for obtaining an ITAR controlled item license
  • Updates on the Export Control Reform
  • Filing ITAR controlled items in the Automated Export System (AES)

Don’t forget to Mark your calendar for August 5th @ 2pm EST. We will have the experts from the Office of Foreign Asset Control discussing sanctions and embargoes on foreign countries.

Go to our Basic of Export Compliance webpage for more information on this webinar and view our previous recordings.

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Discover Global Markets with TradeSource

By: Cesar Anchiraico

Are you looking to increase your export sales or expand into new international markets? With most of the world’s consumers outside of the United States, now is the opportunity to boost your bottom line by attending one of the DISCOVER conferences. Each DISCOVER conference features different regions for U.S. business, including key contacts, industry expertise and market opportunities with high U.S export potential.

For a quick preview of the DISCOVER GLOBAL MARKETS 2014 series schedule, please see below:

discover_global_mkts_business_forum

 

2014 Schedule:

Free Trade Agreements

Detroit, MI

September 9–10

Click here for the latest agenda and to register.

Greater China

New York, NY

October 7–8

Click here for the latest agenda and to register.

The Americas

Charlotte, NC

October 29–31

Click here for the latest agenda and to register.

Sub-Saharan Africa

Atlanta, GA

November 5–6

Click here for the latest agenda and to register.

Healthcare and Life Sciences

Minneapolis, MN

November 17–18

Click here for the latest agenda and to register.

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For specific details about the DISCOVER conferences and how to register, please refer to the July 2014 TradeSource edition.

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Watch our FREE Webinar: Learn more about the Export Administration Regulations

summerwebinarseries2014

On July 8, we held our third webinar in The Basics of Export Compliance Summer Webinar Series, which focused on Export Administration Regulations (EAR). If you missed our new information packed webinar, click here to watch the recording for free!

Experts from the Bureau of Industry and Security (BIS) presented on the following items:

  • Determining Export Control Requirements
  • AES Changes for Export Control Reform
  • Types of Commerce Exports
  • Types of screening lists
  • Export Control Classification Numbers
  • Commerce Control List (CCL)
  • Filing export information for Commerce controlled items in the Automated Export System (AES)
  • EAR Changes
  • 600 series items

We will be hosting our next free webinar on July 22, which focuses on Complying with the International Traffic in Arms Regulations.

View past and sign up for future webinars.

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U.S. International Trade Deficit Decreases in May

By: Carlann Unger

The trade deficit in goods and services decreased $2.6 billion to $44.4 billion in May. Exports increased $2.0 billion to a record high of $195.5 billion. Imports decreased $0.7 billion to $239.8 billion. Contributors to the record high exports include record exports of automotive vehicles, parts, and engines ($13.5 billion) and consumer goods ($16.8 billion). For more information on these and other records for this month, check out the “Monthly Trade Highlights” page.

In May, the state with the largest increase in exports was Texas ($842.3 million). So far this year, Texas has exported $120.3 billion worth of goods, more than any other state. Their current top export is Petroleum and Coal Products ($25.3 billion), followed by Chemical Products ($10.4 billion), and Oil and Gas Products ($7.6 billion). Where are these goods going? Mexico is the top importer of goods from Texas, importing $43.1 billion worth of products so far this year. Canada is the second highest importer at $12.9 billion followed by Brazil at $5.3 billion. Visit our “State Trade Data” page to find trade information on your state

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Watch our FREE Webinar: Classifying your Product

6-26-2014 2-17-15 PMOn June 24, we held our second webinar in The Basics of Export Compliance Summer Webinar Series, which focused on Classifying your Product. If you missed our exciting new webinar, click here to watch the recording for free!

Our classification expert reviewed the following items:

  • What are the Harmonized Tariff Schedule and Schedule B?
  • How to use the General Rules of Interpretation to determine the correct Schedule B for your commodity
  • How to use the Schedule B search engine
  • Where to find additional resources for commodity classification

If you have questions regarding classification, please contact the Commodity Analysis Branch at 1-800-549-0595, option 2.

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