Clarification of Exporters' and Forwarding Agents' Responsibilities; Authorizing an Agent To Prepare and File a Shipper's Export Declaration on Behalf of a Principal Party in Interest

DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket No. 980716180-9171-02]

RIN 0607-AA20

Clarification of Exporters' and Forwarding Agents'

Responsibilities; Authorizing an Agent To Prepare and File a Shipper's

Export Declaration on Behalf of a Principal Party in Interest

AGENCY: Bureau of the Census, Commerce.

ACTION: Supplementary notice of proposed rulemaking.

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SUMMARY: The U.S. Census Bureau (Census Bureau) proposes amending the

Foreign Trade Statistics Regulations (FTSR), 15 CFR part 30, to clarify

the responsibilities of exporters and forwarding agents in completing

the Shipper's Export Declaration (SED) and to clarify provisions for

authorizing forwarding agents to prepare and file an SED or file the

export information electronically using the Automated Export System

(AES) on behalf of a principal party in interest.

DATES: Written comments must be submitted on or before December 3,

1999.

ADDRESSES: Direct all written comments on this proposed rulemaking to

the Director, U.S. Census Bureau, Room 2049, Federal Building 3,

Washington, D.C. 20233.

FOR FURTHER INFORMATION CONTACT: Requests for additional information

should be directed to C. Harvey Monk, Jr., Chief, Foreign Trade

Division, U.S. Census Bureau, Room 2104, Federal Building 3,

Washington, D.C. 20233-6700, by telephone on (301) 457-2255 or by fax

on (301) 457-2645.

SUPPLEMENTARY INFORMATION:

Background

The Census Bureau is responsible for collecting, compiling, and

publishing trade statistics for the United States. These data are used

by various Federal Government agencies and the private sector for

planning and policy development. In order to accomplish its mission,

the Census Bureau must receive accurate statistical information from

the trade community. The Shipper's Export Declaration (SED) and the

Automated Export System (AES) record are the primary vehicles used for

collecting such trade data, and the information contained therein is

used by the Census Bureau for statistical purposes only and is

confidential under the provisions of Title 13, United States Code

(U.S.C.), Section 301(g). The Census Bureau's primary objective in this

proposed rule is to ensure the accuracy of its trade statistics and to

clarify reporting responsibilities for all parties involved in export

transactions.

As such the Census Bureau proposes amending the FTSR to clarify

responsibilities of exporters and forwarding agents in completing the

SED and to clarify who should be listed in the ``Exporter'' box on the

SED and in the exporter field on the AES record. This proposed rule

defines new terms, including ``U.S. principal party in interest'' and

``routed export transaction,'' and clarifies existing ones (notably the

definition of ``exporter'') for purposes of completing the SED. The

proposed rule will also clarify provisions authorizing an agent to

prepare and file an SED or its AES electronic equivalent on behalf of a

principal party in interest.

The Census Bureau published a notice of proposed rulemaking on this

subject in the Federal Register on August 6, 1998 (63 FR 41979). As a

result of comments received on that proposed rulemaking and subsequent

discussions with the Bureau of Export Administration (BXA), the Census

Bureau has decided to issue a supplementary notice of proposed

rulemaking to address the issues raised during the comment period and

to further clarify provisions contained in that notice of proposed

rulemaking. The BXA is also revising appropriate sections of the Export

Administration Regulations (EAR) in a document published elsewhere in

this issue of the Federal Register. The EAR will conform to the

provisions of the FTSR in reference to clarifying the responsibilities

of exporters and forwarding agents in completing the SED, and BXA will

also propose changes to the EAR to simplify export clearance.

Comments

The Census Bureau received sixty-nine (69) comments on the notice

of proposed rulemaking published in the Federal Register on August 6,

1998 (63 FR 41979). Of the comments received, fifty-nine (59) were

opposed to some provisions of the proposed rule and ten supported the

proposed rulemaking. Of the fifty-nine comments opposed to the proposed

rule, twenty-four (24) had interpreted the rule to require that the

``manufacturer'' always be listed as the exporter of record on the SED

in all export transactions. This was a misinterpretation of the

proposed rule, and the revised proposed rulemaking will clearly

stipulate that only the ``U.S. seller or principal party in interest''

be listed as the exporter on the SED. Only when the manufacturer is the

actual ``seller of the merchandise for export'' should it be listed as

exporter on the SED or AES electronic record.

The other major reason for opposition to the proposed rule

concerned identifying the U.S. seller or principal as the ``exporter of

record'' in EX WORKS (EXW) transactions. EXW is a ``term of sale''

whereby the foreign buyer takes possession of the merchandise in the

United States, and the foreign buyer takes responsibility for

facilitating the export of the merchandise out of the United States,

including export documentation responsibility. The major concern the

U.S. sellers presented, when required to be listed as the ``exporter of

record'' in these transactions, is that the U.S. seller does not have

effective control over the merchandise once it is turned over to the

foreign buyer's agent. The U.S. seller does not want to be held liable

for any export control violations that may occur in such a transaction.

The proposed Census Bureau export regulations do not intend to

interfere with the terms of sale between the

[[Page 53862]]

foreign buyer and the U.S. seller in the export transaction. However,

in order to collect accurate trade statistics, it is critical to have

the actual ``U.S. seller or principal party in interest'' listed as

exporter on the SED or the AES electronic record. BXA's proposed rule

addresses the liability concerns of exporters in such transactions.

The ten comments in support of the proposed rule indicated approval

for the clarification of duties and responsibilities of exporters and

forwarding agents and the clarification of the power of attorney

provisions contained in the proposed rule. Those comments supported the

clarification of the definition of exporter and felt it gave them more

control over the export transaction even in the EXW transaction. The

Census Bureau responded to all comments and informed the commentors

that a supplementary notice of proposed rulemaking would be issued to

address their concerns.

Response to Comments and Proposed Action

In response to the comments received from the trade community on

the notice of proposed rulemaking published in the Federal Register on

August 6, 1998 (63 FR 41979), the Census Bureau proposes amending 15

CFR Part 30 to: (a) define the term ``exporter,'' for purposes of the

FTSR and completing the SED or AES record, as the U.S. principal party

in interest in the export transaction; (b) clarify the reporting

responsibilities of the U.S. principal party in interest and forwarding

agent in completing the SED or AES record; (c) clarify provisions for

authorizing an agent to prepare and file an SED or file the information

electronically using the AES; and (d) clarify the documentation and

compliance responsibilities of parties involved in the export

transaction. For purposes of this rule all references to preparing and

filing the paper SED also pertain to preparing and filing the AES

electronic record.

This proposed rule will clarify the responsibilities of the U.S.

principal party in interest and the forwarding agent in preparing the

SED or AES record. For export shipments the Census Bureau recognizes

``routed export transactions'' as a subset of ``export transactions.''

A routed export transaction is where the foreign principal party in

interest authorizes a U.S. forwarding or other agent to facilitate

export of items from the United States.

For purposes of completing the SED or AES record, the Exporter is

the U.S. principal party in interest in the transaction. The U.S.

principal party in interest is the person in the United States that

receives the primary benefit, monetary or otherwise, of the export

transaction. Generally, that person would be the U.S. seller,

manufacturer, order party, or foreign entity, if in the United States

when signing the SED. In most cases, the forwarding agent is not a

principal party in interest. The Exporter box on the SED will be

revised to read ``Exporter (U.S. Principal Party in Interest).''

However, the EAR defines the exporter as the person in the United

States who has the authority of a principal party in interest to

determine and control the sending of items out of the United States

(see EAR 15 CFR Part 772). This definition permits the forwarding agent

to apply for a license and act as exporter in some transactions.

The person who signs the SED must be in the United States at the

time of signing. If a U.S. manufacturer sells merchandise directly to a

foreign buyer for export, the U.S. manufacturer must be listed as the

U.S. principal party in interest on the SED. If a U.S. manufacturer

sells merchandise, as a domestic sale, to a U.S. buyer (wholesaler/

distributor) and that U.S. buyer sells the merchandise to a foreign

principal for export, the U.S. seller (wholesaler/distributor) must be

listed as the U.S. principal party in interest on the SED. If a U.S.

order party, as defined in Sec. 30.4(a)(1) of this rule, arranges for

the sale and export of merchandise to a foreign principal directly, the

U.S. order party must be listed as the U.S. principal party in interest

on the SED.

For purposes of completing the SED or AES record, the forwarding

agent is the person in the United States who is authorized by the U.S.

principal party in interest or, in a routed transaction, the foreign

principal, to prepare and file the SED or its AES electronic

equivalent. In routed export transactions, the forwarding agent and the

exporter may be the same for compliance purposes under the EAR, but the

forwarding agent is rarely the ``exporter'' in box 1a of the SED or in

the ``exporter'' field of the AES record. For example, only when a

forwarding agent acts as an ``order party'' can they be listed as

``exporter'' in box 1a on the SED or in the ``exporter'' field of the

AES record.

The U.S. principal party in interest can prepare and file the SED

or AES record, or it can authorize a forwarding agent to prepare and

file the SED or AES record on its behalf. If the U.S. principal party

in interest authorizes a forwarding agent to complete the SED or AES

record on its behalf, the U.S. principal party in interest is

responsible for: (A) Providing the forwarding agent with the

information necessary to complete the SED or AES record; (B) Providing

the forwarding agent with authorization to complete the SED or AES

record, in the form of a power of attorney or written authorization, or

signing the authorization box printed on the paper SED (box 23 on Form

7525-V or box 29 on Form 7525-V-ALT); and (C) Maintaining the

documentation to support the information provided to the forwarding

agent for completing the SED or AES record.

The forwarding agent, if authorized by a principal party in

interest, is responsible for: (A) Preparing the SED or AES record,

based on instructions received from the U.S. principal party in

interest or other parties in the transaction; (B) Providing the U.S.

principal party in interest with a copy of the export information filed

in the form of a completed SED, an electronic facsimile, or in any

other manner prescribed by the exporter; and (C) Maintaining the

documentation to support the information reported on the SED or AES

record.

In a routed export transaction, where a foreign principal

designates a U.S. forwarding agent to act on its behalf to prepare and

file the SED or AES record, the U.S. principal party in interest must

provide the forwarding agent with the following information to assist

them in preparing the SED or AES record: (1) Name and address of the

exporter (U.S. principal party in interest); (2) Exporter's (U.S.

principal party in interest) Internal Revenue Service (IRS) Employer

Identification Number (EIN); (3) point of origin (State or Foreign

Trade Zone (FTZ)); (4) schedule B description of commodities; (5)

domestic (D), foreign (F), or Foreign Military Sale (FMS) (M) code; (6)

Schedule B Number; (7) quantity; (8) Upon request by the foreign

principal or its agent, the Export Control Classification Number (ECCN)

or with sufficient technical information to determine classification;

(9) Any information that it knows will affect the determination of

license authority.

(Note: For Items 8 and 9, where the foreign principal party in

interest has assumed responsibility for determining and obtaining

license authority, the EAR sets forth the information sharing

requirements that apply at 15 CFR 758.2(d)).

In a routed export transaction, the forwarding agent is responsible

for preparing the SED or AES record based on instructions received from

the U.S. principal party in interest and other parties involved in the

transaction. In addition to reporting the information

[[Page 53863]]

provided by the U.S. principal party in interest on the SED or AES

record, the forwarding agent must provide the following export

information on the SED or AES record: (1) Date of exportation; (2) bill

of lading/airway bill number; (3) ultimate consignee; (4) intermediate

consignee; (5) forwarding agent name and address; (6) country of

ultimate destination; (7) loading pier; (8) method of transportation;

(9) exporting carrier; (10) port of export; (11) port of unloading;

(12) containerized; (13) weight; (14) value; (15) ECCN; (16) License

Authority;

(Note: For items 15 and 16 where the foreign principal party in

interest has assumed responsibility for determining and obtaining

license authority, the EAR sets forth the information sharing

requirements that apply at 15 Sec. 758.2(d));

and

(17) signing the certification statement on the paper SED (box 24

on Form 7525-V and box 36 on Form 7525-V-ALT). In a routed export

transaction, the U.S. principal party in interest must be listed as

exporter (U.S. principal party in interest) on the SED or on the AES

record.

In a routed export transaction, the forwarding agent is responsible

for: (A) Obtaining a power of attorney or written authorization from

the foreign principal to act on its behalf; (B) Upon request, providing

the U.S. principal party in interest with appropriate documentation

verifying that the information provided by the U.S. principal party in

interest was accurately reported on the SED or AES record; and (C)

Maintaining the documentation to support the information reported on

the SED or AES record.

The FTSR places primary responsibility for compliance of the SED

and AES requirements on the U.S. principal party in interest in an

export transaction and on the forwarding agent in a routed export

transaction. However, the FTSR also considers all parties involved in

the transaction responsible for the truth, accuracy, and completeness

of the information reported on the SED. The parties to the transaction

must provide the forwarding agent with the information necessary to

correctly prepare the paper SED or to file the data electronically

using the AES. As always, documentation must be maintained by all

parties involved in the transaction to support the information reported

on the SED or the AES record.

All parties that participate in transactions subject to the FTSR

are responsible for compliance with the FTSR. In all cases where a

violation of the FTSR occurs, the documentation of all parties involved

in the transaction must be made available to the proper enforcement

officials to determine the liability and responsibility for the export

violation pursuant to FTSR Sec. 30.11. Acting through a forwarding or

other agent or delegating or redelegating authority does not in and of

itself relieve anyone of their compliance responsibility.

This notice further clarifies provisions for using a power of

attorney or written authorization when a principal party in interest

authorizes a forwarding agent to prepare and file the SED on its behalf

and when the SED information is filed electronically, using the AES.

Suggested formats for a power of attorney and a written authorization

for executing a SED are available upon request from the U.S. Census

Bureau, Foreign Trade Division (FTD).

This amendment will further specify in Sec. 30.4(f) the requirement

that the SED be prepared in English. This provision is already included

in the Census Bureau's instructions for completing the SED and this

amendment will simply include that requirement in the Code of Federal

Regulations (CFR).

In addition, this amendment clarifies the provision in

Sec. 30.7(d)(2) that a foreign principal, if operating in the U.S. at

the time of export, must be listed as exporter (U.S. principal party in

interest) on the SED, but does not need to report an IRS EIN or a

Social Security Number (SSN) on the SED. Using an EIN or SSN that is

not your own is prohibited. However, if no EIN or SSN is available, the

Dunn and Bradstreet (DUNS) number, border crossing number, passport

number, or any number assigned by U.S. Customs is required to be

reported.

The revisions contained in this supplementary notice of proposed

rulemaking are consistent with the provisions of the BXA's proposed

revisions to the EAR regarding the export control responsibilities of

exporters and forwarding agents. The Department of the Treasury concurs

with the provisions contained in this proposed rule.

Program Requirements

In order to comply with the requests from the trade community to

update the provisions of the FTSR and to clarify the items discussed

above, the Census Bureau proposes amending appropriate sections of the

FTSR.

The Census Bureau proposes revising Section 30.4 to: (A) Define the

term ``exporter,'' for purposes of the FTSR and completing the SED or

AES electronic record, as the U.S. principal party in interest in the

export transaction; (B) Clarify the reporting responsibilities of the

U.S. principal party in interest and forwarding agent in completing the

SED or AES record; (C) Clarify provisions for obtaining authorization

for preparing and filing the SED or the AES electronic record; and (D)

Clarify the documentation and compliance responsibilities of parties

involved in the export transaction.

The Census Bureau proposes redesignating Section 30.4(b) to Section

30.4(f) and include the provision that the SED be prepared in English

to be consistent with the current instructions for preparing the SED.

The Census Bureau proposes redesignating Section 30.4(C) to Section

30.4 (g) with minor wording revisions.

The Census Bureau proposes amending Section 30.7(d)(1), ``Name of

exporter and exporter's Employer Identification Number,'' to clarify

the designation of ``exporter'' named on the SED by reference to

Sec. 30.4.

The Census Bureau proposes amending Section 30.7(d)(2), ``Exporters

Employer Identification Number,'' to clarify the requirement that a

foreign principal, if in the United States when signing the SED, must

be listed as ``exporter'' on the SED or AES record. However, if no EIN

or SSN is available, the DUNS number, border crossing number, passport

number, or any number assigned by U.S. Customs is required to be

reported.

The Census Bureau further proposes amending section 30.7(e),

``Agent of exporter (forwarding agent),'' to specify the

responsibilities of the forwarding agent in preparing the SED by

reference to Sec. 30.4.

Rulemaking Requirements

This proposed rule is exempt from all requirements of Section 553

of the Administrative Procedure Act because it deals with a foreign

affairs function (5 U.S.C. (A) (1)). However, this rule is being

published as a proposed rule with an opportunity for public comment

because of the importance of the issues raised by this rulemaking.

Regulatory Flexibility Act

Because a notice of proposed rulemaking is not required by 5 U.S.C.

553 or any other law, a Regulatory Flexibility Analysis is not required

and has not been prepared (5 U.S.C. 603(a)).

Executive Orders

This proposed rule has been determined to be significant for

purposes of Executive Order 12866. This proposed rule does not contain

policies with Federalism implications

[[Page 53864]]

sufficient to warrant preparation of a Federalism assessment under

Executive Order 12612.

Paperwork Reduction Act

Notwithstanding any other provisions of law, no person is required

to respond to, nor shall a person be subject to, a penalty for failure

to comply with a collection of information subject to the requirements

of the Paperwork Reduction Act (PRA) unless that collection of

information displays a currently valid Office of Management and Budget

(OMB) control number.

This proposed rule covers collections of information subject to the

provisions of the PRA, which are cleared by the OMB under OMB Control

Number 0607-0152.

This proposed rule will not impact the current reporting-hour

burden requirements as approved under OMB Control Number 0607-0152

under provisions of the PRA, Public Law 104-13.

List of Subjects in 15 CFR Part 30

Economic statistics, Foreign trade, Exports, Reporting and

recordkeeping requirements.

For the reasons set out in the preamble, it is proposed that part

30 be amended as follows:

PART 30--FOREIGN TRADE STATISTICS

1. The authority citation for 15 CFR Part 30 continues to read as

follows:

Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization Plan

No. 5 of 1950 (3 CFR 1949-1953 Comp., 1004); Department of Commerce

Organization Order No. 35-2A. August 4, 1975, 40 CFR 42765.

Subpart A--General Requirements--Exporter

2. In part 30, footnotes 4, 5, 6 and 9 are proposed to be

redesignated as footnotes 5, 6, 7 and 8, respectively, and Sec. 30.4 is

proposed to be revised to read as follows:

Sec. 30.4 Preparation and signature of Shipper's Export Declarations.

(a) General requirements (SED). For purposes of this section, all

references to preparing and filing the paper SED also pertain to

preparing and filing the AES electronic record. The Shipper's Export

Declaration (SED) or the AES electronic equivalent must be prepared and

signed by a principal party in interest or by a forwarding agent

authorized by a principal party in interest. The person who signs the

SED must be in the United States at the time of signing. That person,

whether the U.S. principal party in interest or agent, is responsible

for the truth, accuracy, and completeness of the SED or AES electronic

equivalent, except insofar as that person can demonstrate that he or

she reasonably relied on information furnished by others. The Census

Bureau recognizes ``routed export transactions'' as a subset of export

transactions. A routed export transaction is where the foreign

principal party in interest authorizes a U.S. forwarding or other agent

to facilitate export of items from the United States. See paragraph (c)

of this section for responsibilities of parties in a routed export

transaction.

(1) Exporter (U.S. principal party in interest). For purposes of

completing the SED, in all export transactions, the exporter required

to be listed in box 1a of the SED or in the ``Exporter'' field of the

AES record is the U.S. principal party in interest. The U.S. principal

party in interest is the person in the United States that receives the

primary benefit, monetary or otherwise, of the transaction. Generally

that person is the U.S. seller, manufacturer, order party 4,

or foreign entity, if in the U.S. when signing the SED. In most cases,

the forwarding or other agent is not a principal party in interest.

Note: The Export Administration Regulations (EAR) (15 CFR parts 730

through 799) defines the ``exporter'' as the person in the United

States who has the authority of a principal party in interest to

determine and control the sending of items out of the United States

(see 15 CFR part 772 of the EAR).

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\4\ The Order Party is that person in the United States who

conducted the direct negotiations or correspondence with the foreign

principal or ultimate consignee and who, as a result of these

negotiations, received the order from the foreign principal or

ultimate consignee.

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(i) If a U.S. manufacturer directly sells merchandise for export to

a foreign principal, the U.S. manufacturer must be listed as the

exporter (U.S. principal party in interest) on the SED.

(ii) If a U.S. manufacturer sells merchandise, as a domestic sale,

to a U.S. buyer (wholesaler/distributor) and that U.S. buyer sells the

merchandise for export to a foreign principal, the U.S. seller

(wholesaler/distributor) must be listed as the exporter (U.S. principal

party in interest) on the SED.

(iii) If a U.S. order party directly arranges for the sale and

export of merchandise to a foreign buyer, the U.S. order party must be

listed as the exporter (U.S. principal party in interest) on the SED or

AES record.

(2) Forwarding agent. The forwarding agent is the person in the

United States who is authorized by the U.S. principal party in interest

or, in the case of a routed transaction, the foreign principal party in

interest to prepare and file the SED or its AES electronic equivalent,

and/or perform the services required to facilitate the export of items

from the United States. In routed export transactions, the forwarding

agent and the exporter may be the same for compliance purposes under

the EAR, but the forwarding agent is rarely the ``exporter'' in box 1a

of the SED or in the ``exporter'' field of the AES record.

(3) Principal parties in interest. Those persons in a transaction

that receive the primary benefit, monetary or otherwise, of the

transaction. Generally, the principals in a transaction are the seller

and the buyer. In most cases a forwarding or other agent is not a

principal party in interest.

(b) U.S. principal party in interest and forwarding agent

responsibilities in preparing the SED (except in routed export

transactions).--(1) Designating the forwarding agent. The U.S.

principal party in interest can prepare and file the SED or AES record,

or it can authorize a forwarding agent to prepare and file the SED or

AES record on its behalf. If the U.S. principal party in interest

designates a forwarding agent to act on its behalf in completing the

SED or AES record it must be in the form of a power of attorney or

written authorization, or by signing the authorization box printed on

the paper SED (box 23 on Form 7525-V and box 29 on Form 7525-V-ALT).

(2) U.S. principal party in interest responsibilities in preparing

the SED. (i) If the U.S. principal party in interest prepares the SED

or AES record themselves they are responsible for the accuracy of all

the export information reported on the SED or AES record, for signing

the paper SED, filing the paper SED with U.S. Customs, or transmitting

the AES record to Customs.

(ii) If the U.S. principal party in interest authorizes a

forwarding agent to complete the SED or AES record on its behalf the

U.S. principal party in interest is responsible for:

(A) Providing the forwarding agent with the export information

necessary to complete the SED or AES record;

(B) Providing the forwarding agent with a power of attorney or

written authorizatIon to complete the SED or AES record, or sign the

authorization box printed on the paper SED (box 23 on Form 7525-V and

box 29 on Form 7525-V-ALT); and

(C) Maintaining the documentation to support the information

provided to the forwarding agent for completion of the SED or AES

record, as specified in Sec. 30.11.

[[Page 53865]]

(3) Forwarding agent responsibilities in preparing the SED. The

forwarding agent, when authorized by a U.S. principal party in interest

to prepare and sign the SED or prepare and file the AES record, is

responsible for:

(i) Accurately preparing the SED or AES record based on information

received from the U.S. principal party in interest;

(ii) Obtaining a power of attorney or written authorization to

complete the SED or AES record, or obtaining a paper SED with a signed

authorization;

(iii) Maintaining the documentation to support the information

reported on the SED or AES record, as specified in Sec. 30.11; and

(iv) Providing the U.S. principal party in interest with a copy of

the export information filed in the form of a completed SED, an

electronic facsimile, or in any other manner prescribed by the

exporter.

(c) U.S. principal party in interest and forwarding agent

responsibilities in preparing the SED in ``routed export

transactions.''

(1) Designating the forwarding agent. In a routed export

transaction, the forwarding agent must obtain a power of attorney or

written authorization from the foreign principal party in interest to

act on their behalf. If the foreign principal party in interest

designates a U.S. forwarding agent to complete the SED or AES record,

the U.S. principal party in interest must provide certain export

information to such agent (see paragraph (c)(2) of this section). If

the U.S. principal party in interest authorizes its own forwarding

agent to complete the SED or AES record, it must follow the procedures

specified in paragraph (b) of this section.

(2) U.S. principal party in interest responsibilities in a ``routed

export transaction.'' In a routed export transaction where the foreign

principal party in interest designates a U.S. forwarding agent to

prepare and file the SED or AES record, the U.S. principal party in

interest must provide such forwarding agent with the following

information to assist in preparing the SED or AES record:

(i) Name and address of the exporter (U.S. principal party in

interest);

(ii) Exporter EIN (IRS) Number.;

(iii) Point of origin (State or FTZ);

(iv) Schedule B description of commodities;

(v) Domestic (D), foreign (F), or FMS (M) code;

(vi) Schedule B Number;

(vii) Quantity;

(viii) Upon request from the foreign principal party in interest or

its agent, the Export Control Classification Number (ECCN) or with

sufficient technical information to determine classification; and

(ix) Any information that it knows will affect the determination of

license authority.

Note to paragraph (c)(2): For Items (c)(2)(viii) and (ix), where

the foreign principal party in interest has assumed responsibility

for determining and obtaining license authority, the EAR sets forth

the information sharing requirements that apply, at 15 CFR 758.2(d).

(3) Forwarding agent responsibilities in a ``routed export

transaction.'' In a routed export transaction, the forwarding agent who

is responsible for preparing the SED or AES record must provide the

following export information on the SED or AES record:

(i) Date of exportation;

(ii) Bill of lading/airway bill number;

(iii) Ultimate consignee;

(iv) Intermediate consignee;

(v) Forwarding agent name and address;

(vi) Country of ultimate destination;

(vii) Loading pier;

(viii) Method of transportation;

(ix) Exporting carrier;

(x) Port of export;

(xi) Port of unloading;

(xii) Containerized;

(xiii) Weight;

(xiv) Value;

(xv) ECCN;

(xvi) License authority; and

(xvii) Signing the certification box on the paper SED (box 24 on

Form 7525-V and box 36 on Form 7525-V-ALT). In a routed export

transaction the U.S. principal party in interest must be listed as

exporter (U.S. principal party in interest) on the SED or on the AES

record.

Note to paragraph (c)(3): For Items (c)(3)(xv) and (xvi), where

the foreign prinicipal party in interest has assumed responsibility

for determining and obtaining license authority, the EAR sets forth

the information sharing requirements that apply, at 15 CFR 758.2(a).

(d) Information on the Shipper's Export Declaration (SED). The data

provided on the SED or AES electronic record shall be complete,

correct, and based on personal knowledge of the facts stated or on

information furnished by the parties involved in the export

transaction. All parties involved in export transactions, including

U.S. forwarding agents, should be aware that invoices and other

commercial documents may not necessarily contain all the information

needed to prepare the SED or AES record. The parties must ensure that

all the information needed for completing the SED or AES record,

including correct export licensing information, is provided to the

forwarding agent for the purpose of correctly preparing the SED or AES

record.

(e) Authorizing a forwarding agent. In a power of attorney or other

written authorization, authority is conferred upon an agent to perform

certain specified acts or kinds of acts on behalf of a principal (see

15 CFR 758.1(i) of the EAR). In cases where a forwarding agent is

filing the export information on the SED or electronically using the

AES, the forwarding agent must obtain a power of attorney or written

authorization from a principal party in interest to file the

information on their behalf. A power of attorney or written

authorization should specify the responsibilities of the parties with

particularity, and should state that the forwarding agent has authority

to act on behalf of a principal party in interest as its true and

lawful agent for purposes of the export transaction and in accordance

with the laws and regulations of the United States.

(f) The SED shall be prepared in English and shall be typewritten

or prepared in ink or other permanent medium (except indelible pencil).

The use of duplicating processes, as well as the overprinting of

selected items of information, is acceptable.

(g) All copies of the SEDs must contain all of the information

called for in the signature space as to name of firm, address, name of

signer, and capacity of signer. The original SED must be signed in ink,

but signature on other copies is not required. The use of signature

stamps is acceptable. A signed legible carbon or other copy of the

export declaration is acceptable as an ``original'' of the SED.

3. Section 30.7 is proposed to be amended by revising paragraphs

(d) and (e) to read as follows:

Sec. 30.7 Information required on Shipper's Export Declarations.

* * * * *

(d) Name of exporter (U.S. principal party in interest) and

exporter's Employer Identification Number (EIN). The name and address

(number, street, city, state, zip code) of the exporter (U.S. principal

party in interest) and the exporter's (U.S. principal party in

interest) EIN shall be entered where requested on the SED or AES

electronic record. The EIN shall be the exporter's (U.S. principal

party in interest) own and not another's EIN.

(1) Name of exporter (U.S. principal party in interest). The

exporter (U.S. principal party in interest) named on the SED and in the

exporter field on the AES record must be the U.S. principal

[[Page 53866]]

party in interest in the transaction. The exporter (U.S. principal

party in interest) is the person in the United States that receives the

primary benefit, monetary or otherwise, of the export transaction.

Generally that person is the U.S. seller, manufacturer, order party, or

foreign entity, if in the United States when signing the SED. In all

export transactions, the U.S. principal party in interest must be

listed in the ``Exporter (U.S. principal party in interest)'' block on

the paper SED or in the ``exporter field'' in the AES record. (See

Sec. 30.4 for details on the specific reporting responsibilities of

exporters (U.S. principal party in interest)).

(2) Exporter's (U.S. principal party in interest) Employer

Identification Number (EIN). An exporter (U.S. principal party in

interest) shall report its own IRS EIN on the SED or AES record. If,

and only if, no Internal Revenue Service EIN has been assigned to the

exporter (U.S. principal party in interest), the exporter's (U.S.

principal party in interest) own Social Security Number (SSN), preceded

by the symbol ``SS'' must be reported. In situations when a foreign

principal party in interest who does not possess an EIN or SSN operates

from within the U.S. to facilitate its own export, no EIN or SSN

reporting requirement applies. Using another's EIN or SSN is

prohibited. However, if no EIN or SSN is available, the DUNS (Dunn and

Bradstreet) number, border crossing number, passport number, or any

number assigned by U.S. Customs is required to be reported on the SED

or the AES record.

(e) Forwarding agent. The name and address of the duly authorized

forwarding agent (if any) of a principal party in interest or the

foreign principal party in interest shall be recorded where requested

on the SED or AES record. (See Sec. 30.4 for details on the specific

reporting responsibilities of forwarding agents).

* * * * *

Dated: September 21, 1999.

Kenneth Prewitt,

Director, Census Bureau.

[FR Doc. 99-25651 Filed 10-1-99; 8:45 am]

BILLING CODE 3510-07-P