Amendment to Foreign Trade Statistics Regulations: Provisions for Filing Shipper's Export Data Electronically Using the Automated Export System (AES)

SUMMARY: The Bureau of the Census (Census Bureau) proposes amending the

Foreign Trade Statistics Regulations (FTSR) to add provisions for

filing shipper's export data electronically using the Automated Export

System (AES). The AES is an export information gathering and processing

system developed through cooperative efforts between the U.S. Customs

Service (Customs), the Census Bureau, other Federal agencies, and the

export community. The AES is a completely voluntary system that

provides an alternative to filing the paper Shipper's Export

Declaration (SED) and will greatly streamline and improve the exporting

process. Export information is collected electronically and edited

immediately, and errors are detected and corrected at the time of

filing. AES is a nationwide system operational at all ports and for all

methods of transportation. Customs is also revising appropriate

sections of its Customs Regulations in a document published elsewhere

in this issue of the Federal Register. The Customs regulations will

conform to the electronic filing provisions and requirements contained

in this proposed rule.

DATES: Written comments must be submitted on or before April 13, 1999.

ADDRESSES: Address all written comments on this proposed rulemaking to

the Director, Bureau of the Census, Room 2049, Federal Building 3,

Washington, D.C. 20233.

FOR FURTHER INFORMATION CONTACT: C. Harvey Monk, Jr., Chief, Foreign

Trade Division, Bureau of the Census, Room 2104, Federal Building 3,

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

(301) 457-2645, or by E-mail at: [email protected].

SUPPLEMENTARY INFORMATION:

Background

On October 9, 1998, Customs and the Census Bureau published a joint

notice in the Federal Register (63 FR 54438) that informed the public

of the current status of the AES. The AES is an electronic reporting

system jointly developed by the Census Bureau and Customs that allows

exporters or their authorized forwarding agents to transmit commodity

SED information, and carriers to transmit transportation (outbound

manifest) information. That notice also informed the public of other

developments affecting the implementation of the AES and announced that

the Census Bureau and Customs would be developing regulations to

implement provisions and requirements for filing export information

electronically through the AES. Since the Background information

contained in that notice fully recounts the development of the AES to

date, it is incorporated here by reference. Customs is also revising

appropriate sections of its Customs Regulations, 19 CFR, Chapter 1, to

reference Census Bureau regulations that will provide for electronic

filing requirements using the AES to provide for certain procedural

safeguards regarding applicant's/participant's rights vis-a-vis Customs

actions, and to provide for a Sea Carriers Manifest Module for the

submission of manifest information in the ocean environment. (See

Customs' notice of proposed rulemaking published elsewhere in this

issue of the Federal Register.)

The AES is a joint venture between Customs, the Census Bureau, and

other Federal agencies that will provide a seamless Government export

information processing system to allow the trade community to report

export data electronically. The AES is also the cornerstone of Customs'

and the Census Bureau's reinvestment strategy to support and facilitate

the movement of exports. Automation will help remove the time consuming

paper processing barriers that now hinder the flow of trade. The AES

will greatly improve the accuracy of the export data provided to the

Census Bureau, and will allow the Census Bureau, in turn, to provide

more accurate export data and a wider range of export data needed by

businesses to stay competitive in the global trade market today. The

AES is in alignment with the long-term global shift to Electronic Data

Interchange (EDI), the North American Free Trade Agreement (NAFTA), and

the General Agreement on Tariff and Trade (GATT) making it easier to do

business in multiple countries.

The AES will result in the elimination of redundant reporting of

export data to multiple agencies. It brings savings in both human

resources and paper handling. It greatly increases the accuracy of

trade statistics, which will allow for improvement in national economic

policy making. Accurate trade information, policy decisions based on

sound balance of trade information, prohibition of illegal exports, and

effective enforcement of license requirements can be achieved while

facilitating the flow of trade. Although paper filing of the SED and

manifest documents will still be permitted, it is anticipated that

electronic filing through the AES will be the preferred method of

export reporting by the trade community in the near future.

This notice of proposed rulemaking includes provisions agreed upon

in the Interest Based Negotiations (IBN), between Customs, the Census

Bureau, and representatives of the trade community to create an

effective automated export reporting program. To ensure that the AES

meets current business practices and voluntary acceptance by the trade

community, Customs and the Census Bureau entered into IBN with members

of the trade community to discuss system enhancements and time frames

for the submission of commodity information. As a result of the IBN,

two significant improvements to the AES were agreed to: (1) the

creation of a filing option that requires no pre-departure information

(with the filing of full commodity information within ten (10) working

days from the date of exportation); and (2) creation of a two-stage

filing option that allows for transmissions where some basic export

information is filed prior to exportation with the remainder of the

information filed within five (5) working days from the date of

exportation.

General Description of the AES Process

The export process begins when the exporter decides to export

merchandise as specified in Sec. 30.1. Once the exporter makes this

decision, the exporter or his authorized forwarding agent makes

shipping arrangements with the carrier. The exporter or his authorized

forwarding agent transmits the shipper's export information using the

AES. This information can come directly from the exporter or his

authorized agent or indirectly from the aforementioned through a

service center or port authority. The shipper's export data are

transmitted in a timely manner in accordance with the provisions

[[Page 7413]]

contained in electronic filing Options 2, 3 and 4 (see Sec. 30.61,

Electronic Filing options). The AES validates the data against editing

tables and U.S. Government agency requirement files and generates

either a confirmation message or a fatal error message. The carrier or

an authorized forwarding agent transmits the export manifest data using

the AES. The AES validates the transportation data then generates

either a confirmation message or an error message. The exporter,

carrier, or an authorized forwarding agent must attend to any errors

generated by the AES. The AES allows the exporter, carrier, or an

authorized forwarding agent to transmit corrections.

Program requirements

In order to include provisions for the electronic filing of

shipper's export information, the Census Bureau will: (a) amend

existing sections of the Foreign Trade Statistics Regulations (FTSR),

15 CFR Part 30, and (b) add a new Subpart E to the FTSR to include

provisions for the electronic filing of shipper's export data.

The Census Bureau proposes amending appropriate sections of the

FTSR to include provisions for the electronic reporting of export data

using the AES.

The Census Bureau proposes amending Sec. 30.1, ``General statement

of requirements for Shipper's Export Declarations,'' to add a reference

that requirements for filing shipper's export data electronically can

be found in the new Subpart on electronic filing requirements.

The Census Bureau proposes amending the introductory text of

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

to specify that the information in this section only applies to the

paper SED and referring users to the new Subpart for information

required for electronic filing of shipper's export data.

The Census Bureau proposes revising Sec. 30.39, ``Authorization for

reporting statistical information other than by means of individual

Shipper's Export Declarations filed for each shipment,'' to replace

existing electronic filing programs with the AES and to reflect current

Census Bureau authority to authorize alternative methods of filing

shipper's export data.

The Census Bureau proposes amending Sec. 30.91, ``Confidential

information, Shipper's Export Declarations,'' item (a) ``Confidential

status'' to clarify that confidentiality provisions apply to all export

information supplied to the Census Bureau whether filed electronically

or in any other approved format.

To include new provisions and requirements for the electronic

filing of shipper's export information using the AES, the Census Bureau

proposes to add a new Subpart (Subpart E) in the current FTSR on

electronic filing requirements for submitting shipper's export

information. To accomplish this, the current Subpart E--General

Requirements-Importers--will be redesignated to read Subpart F, and

Subpart E will be renamed and reserved for ``Electronic Filing

Requirements-Shippers Export Information.'' The current Subpart F will

be redesignated Subpart G--Special Provisions for Particular Types of

Import Transactions. The current Subpart G will be redesignated Subpart

H--General Administrative Provisions.

The proposed new Subpart E--Electronic Filing Requirements-

Shipper's Export Information will--consist of Secs. 30.60 through 30.66

to include:

Sec. 30.60 General requirements for filing export and manifest data

electronically using the Automated Export System (AES)

Sec. 30.61 Electronic filing options

Sec. 30.62 Certification, qualifications and standards

Sec. 30.63 Information required to be reported electronically

through AES (data elements)

Sec. 30.64 Transmitting and correcting AES information

Sec. 30.65 Annotating the proper exemption legends for shipments

transmitted electronically

Sec. 30.66 Recordkeeping and documentation requirements

The revisions contained in this notice of proposed rulemaking are

consistent with the provisions of the Customs Regulations. The U.S.

Customs Service, Department of the Treasury, concurs with the

provisions contained in this notice of proposed rulemaking.

Rulemaking Requirements

This notice of proposed rulemaking is exempt from all requirements

of Section 553 of the Administrative Procedures Act because it deals

with a foreign affairs function (5 U.S.C. (A) (1)). However, this

notice of proposed rulemaking is being published with an opportunity

for public comment because of the importance of the issues raised by

this notice of proposed rulemaking to the trade community.

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 notice of proposed rulemaking has been determined to be not

significant for purposes of Executive Order 12866. This rule does not

contain policies with Federalism implications sufficient to warrant

preparation of the 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 notice of proposed rulemaking covers collections of

information subject to the provisions of the PRA, which were cleared by

OMB under OMB control number 0607-0152.

This notice of proposed rulemaking will have no impact on the

current reporting-hour burden requirements as approved under OMB

control number 0607-0152 under provisions of the PRA of 1995, Public

Law 104-13.

List of Subjects in 15 CFR Part 30

Economic statistics, Exports, Foreign trade, Reporting and

recordkeeping requirements.

Proposed Amendments to 15 CFR Part 30

For the reasons set out in the preamble, the Census Bureau proposes

to amend 15 CFR chapter I, part 30, 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 FR 42765.

Subpart A--General Requirements--Exporters

2. Section 30.1 is amended by adding paragraph (c) to read as

follows:

Sec. 30.1 General statement of requirements for Shipper's Export

Declarations.

* * * * *

(c) In lieu of filing paper Shipper's Export Declarations as

provided above, exporters or their authorized forwarding

[[Page 7414]]

agents have the option to file shipper's export information

electronically, as provided in Subpart E of this part. The Electronic

filing requirements for filing shipper's export declaration information

are contained in Subpart E of this part, Electronic Filing

Requirements--Shipper's Export Information.

3. Section 30.7 is amended by revising the introductory text to

read as follows:

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

The following information shall be furnished in the appropriate

spaces provided on the paper copy of the Shipper's Export Declaration

and shall conform to the requirements set forth in this section. (See

Sec. 30.92 for information as to the statistical classification

Schedules C and D referred to in this section. Also, see Sec. 30.8 for

information required on Form 7513 in addition to these requirements.)

For information required to be filed electronically see Sec. 30.63.

* * * * *

Subpart C--Special Provisions Applicable Under Particular

Circumstances

4. Section 30.39 is revised to read as follows:

Sec. 30.39 Authorization for reporting statistical information other

than by means of individual Shipper's Export Declarations filed for

each shipment.

(a) The Census Bureau, with the concurrence of appropriate

government agencies, may authorize exemptions from the requirement of

Sec. 30.6 that a separate shipper's export declaration be filed for

each shipment.

(b) Application for certification and approval to file shipper's

export data electronically using the Automated Export System (AES) can

be made directly to the Census Bureau in accordance with the provisions

specified in Sec. 30.60. Certification and approval procedures and

qualification standards for filing shipper's export data electronically

are contained in Sec. 30.62.

(c) Authorization for other alternative methods of filing shipper's

export information will be issued only when, in the judgment of the

Census Bureau, complete and accurate information will be available on a

prescribed basis from the records of the applicant, and where the

alternate filing method for shipments represents a reduction of

reporting cost or burden. Where export control is a consideration, such

authorizations will be granted only when, in the judgment of the

appropriate controlling government agency, the applicant has

demonstrated that it has established adequate internal operating

procedures and has taken other satisfactory safeguards to assure

compliance with export control regulations of the appropriate

government agency or agencies.

Subparts E through G [Redesignated as Subparts F Through H]

5. Subparts E through G are redesignated as Subparts F through H,

respectively.

6. A new Subpart E, consisting of Secs. 30.60 through 30.66, is

added to read as follows:

Subpart E--Electronic Filing Requirements--Shipper's Export Information

Sec.

30.60 General requirements for filing export and manifest data

electronically using the Automated Export System (AES).

30.61 Electronic filing options.

30.62 AES Certification, qualifications, and standards.

30.63 Information required to be reported electronically through

AES (data elements).

30.64 Transmitting and correcting AES information.

30.65 Annotating the proper exemption legends for shipments

transmitted electronically.

30.66 Recordkeeping and documentation requirements.

Subpart E--Electronic Filing Requirements--Shipper's Export

Information

Sec. 30.60 General requirements for filing export and manifest data

electronically using the Automated Export System (AES).

Automated Export System (AES) transmissions by exporters or their

authorized agents that meet the requirements of this Subpart constitute

the Shipper's Export Declaration (SED) for purposes of 15 CFR Part 30.

This section outlines the general requirements for participating in the

AES. Several filing options are available for transmitting shipper's

export data. The first option is the standard paper filing of the SED.

The AES will also provide AES participants with three electronic filing

options for submission of shipper's export data.

(a) Participation. Participation in the AES is voluntary and is

designed to use technology available to both large and small

businesses. Companies that are not automated can submit data through a

service center or port authority that provides the capability to

communicate with the Customs Data Center in the same way as automated

companies. Companies may also buy a software package designed by an AES

certified software vendor. Certified trade participants can transmit to

and receive data from the AES pertaining to merchandise being exported

from the United States. Participants in the AES process, who may apply

for AES certification, include exporters or their authorized forwarding

agents, carriers, non-vessel operating common carriers (NVOCC), port

authorities, software vendors, or service centers. Once becoming

certified an AES filer must agree to stay in complete compliance with

all export rules and regulations.

(b) Letter of Intent. The first requirement for all participation

in AES, including approval for Option 4 filing privileges, is to submit

a complete and accurate Letter of Intent to the Census Bureau. The

Letter of Intent is a written statement of a company's desire to

participate in AES. It must set forth a commitment to develop,

maintain, and adhere to Customs and Census Bureau performance

requirements and operations standards. Once the Letter of Intent is

received, a U.S. Customs Client Representative and a Census Bureau

Client Representative will be assigned to work with the company. The

Census Bureau will forward additional information to prepare the

company for filing export data using the AES. The format and content

for preparing the Letter of Intent is provided in Appendix A of this

part.

(c) General filing and transmission requirements. The data elements

required for filing shipper's export data electronically are contained

in Sec. 30.63. For AES, the difference is that the certified filer must

transmit the shipper's export information electronically using the AES,

rather than delivering the paper SED to the carrier. When transmitting

export information electronically, the AES filers must comply with the

data transmission procedures determined by Customs and the Census

Bureau (See Sec. 30.62 for AES certification, qualifications, and

standards).

(d) General responsibilities of exporters, forwarding agents, and

sea carriers. (1) Exporter and authorized forwarding agent

responsibilities. The exporter and/or their authorized forwarding

agents, certified for AES filing, are responsible for:

(i) Transmitting complete and accurate information to the AES (see

Sec. 30.4(a) and Sec. 30.7(d) (1), (2), and (e) for a delineation of

responsibilities of exporters and authorized forwarding agents);

(ii) Transmitting information to the AES in a timely manner in

accordance with the provisions and requirements contained in this

Subpart;

[[Page 7415]]

(iii) Responding to messages identified as fatal error, warning,

verify, or reminder generated by AES in accordance with the provisions

contained in this Subpart;

(iv) Providing the exporting carrier with the required exemption

statements or citations when an item or shipment is exempt from SED

filing requirements in accordance with provisions contained in this

Subpart;

(v) Transmitting corrections or cancellations to information

transmitted to the AES as soon as the need for such changes is

determined in accordance with provisions contained in this Subpart; and

(vi) Maintaining all necessary and proper documentation related to

the AES export transaction in accordance with provisions contained in

this Subpart.

(2) Sea carrier responsibilities. The exporting sea carrier is

responsible for transmitting timely, accurate, and complete manifests

and bills of lading information to AES for all cargo being shipped. The

exporting sea carrier is also responsible for transmitting booking,

receipt of booking, and manifest messages to AES. Customs and Census

Bureau officials, with written agreement of the exporting sea carrier,

can provide for alternative methods of filing manifest and SED

information to that found in this Subpart. For exporting carrier

responsibilities see Subpart B, of this part, General Requirements--

Exporting Carriers. For electronic filing of manifest information using

the AES, see 19 CFR 4.76, Procedures and responsibilities for

electronic filing of sea manifests through AES.

Sec. 30.61 Electronic filing options.

As an alternative to filing paper Shipper's Export Declaration

forms (Option 1), three electronic filing options for transmitting

shipper's export information are available to exporters or their

authorized forwarding agents. Two of the electronic filing options

(Options 3 & 4) take into account that complete information concerning

export shipments is not always available at the time of shipment. The

available AES electronic filing options are as follows:

(a) AES with full information transmitted prior to exportation

(Option 2). Option 2 provides for the electronic filing of all

information required for exports to AES prior to exportation (see

Sec. 30.63 for information required to be reported electronically).

Full predeparture information is always required to be transmitted to

AES for the following specific types of shipments:

(1) Used self-propelled vehicles as defined in 19 CFR 192.1;

(2) Essential and precursor chemicals requiring a permit from the

Drug Enforcement Administration;

(3) Shipments defined as ``sensitive'' by Executive Order; and

(4) Shipments where full export information is required prior to

exportation by a Federal Government agency.

(b) AES with partial information transmitted prior to exportation

(Option 3). Option 3 provides for the electronic filing of specified

data elements to the AES prior to exportation (see Appendix B of this

part for a list of specified data elements). Filing Option 3 is

available for all methods of transportation. Option 3 is designed for

those shipments for which full data are not available prior to

exportation. No prior approval from the Census Bureau or Customs is

required for certified AES filers to use Option 3. However, full

predeparture information must be transmitted to the AES for certain

specified transactions (as specified in Option 2). For shipments that

require an export license, the exporter must file using Option 2 or 3,

unless the licensing agency specifically approves the exporter for

Option 4 filing for the licensed shipment under its jurisdiction. Where

partial information is provided under Option 3, complete export

information must be transmitted as soon as it is known, but not later

than five (5) working days from the date of exportation. The exporter,

their authorized forwarding agent, or other certified AES filer

authorized by the exporter, must provide the exporting carrier with a

unique shipment reference number prior to exportation.

(c) AES with no information transmitted prior to exportation

(Option 4). Option 4 is only available for approved exporters and

requires no export information to be transmitted electronically using

AES prior to exportation. For approved Option 4 filers, all shipments

(other than those requiring an export license, unless specifically

approved by the licensing agency for Option 4 filing, and those

specifically required under electronic filing Options 2 or 3) by all

methods of transportation may be exported with no information

transmitted prior to exportation. Certified AES authorized forwarding

agents or service centers may transmit information post-departure on

behalf of approved Option 4 exporters. All exporters filing a Letter of

Intent for Option 4 filing privileges will be cleared through a formal

review process by Customs, the Census Bureau, and other federal

government agencies participating in the AES (partnership agencies) in

accordance with provisions contained in Sec. 30.62. Where exportation

is made with no prior AES filing, complete export information should be

transmitted as soon as it is known, but no later than ten (10) working

days from the date of exportation. The exporter or their authorized

forwarding agent must provide the exporting carrier with the exporter's

Option 4 AES identification number prior to exportation.

Sec. 30.62 AES certification, qualifications, and standards.

(a) AES certification process. Certification for AES filing will

apply to any exporter, authorized forwarding agent, carrier,

consolidator, service center, port authority, or software vendor

transmitting export information electronically using the AES.

Applicants interested in AES filing must submit a Letter of Intent to

the Census Bureau in accordance with the provisions contained in

Sec. 30.60. Customs and the Census Bureau will assign client

representatives to work with the applicant to prepare them for AES

certification. The AES applicant must perform an initial two-part

communication test to ascertain whether the applicant's system is

capable of both transmitting data to and receiving data from the AES.

The applicant must demonstrate specific system application

capabilities. The capability to correctly handle these system

applications is the prerequisite to certification for participation in

the AES. The applicant must successfully transmit the AES certification

test. Assistance is provided by the Customs' and Census Bureau's client

representatives during certification testing. These representatives

make the sole determination as to whether or not the applicant

qualifies for certification. Upon successful completion of

certification testing, the applicant's status is moved from testing

mode to operational mode. Upon certification, the filer will be

required to maintain an acceptable level of performance in AES filings.

The certified AES filer may be subject to repeat the certification

testing process at any time to ensure that operational standards for

quality and volume of data are maintained.

(1) Forwarding agent certification. Once an authorized forwarding

agent has successfully completed the certification process, the

exporter(s) using that forwarding agent need no further AES

certification of their own. The certified forwarding agent must have a

properly executed power of attorney, a written authorization from the

exporter, or an SED signed by the exporter to transmit the exporter's

data electronically using the AES. The

[[Page 7416]]

exporter or authorized forwarding agent that utilizes a service center

or port authority must complete certification testing unless the

service center or port authority has a formal power of attorney or

written authorization from the exporter to submit the export

information on behalf of the exporter.

(2) AES certification letter. The Census Bureau will provide the

certified AES filer with a certification letter after the applicant has

been approved for operational status. The certification letter will

include:

(i) The date that filers may begin transmitting ``live'' data

electronically using AES;

(ii) Reporting instructions; and

(iii) Examples of the required AES exemption legends.

(3) AES filing standards. The certified AES filer's data will be

monitored and reviewed for quality, timeliness, and coverage. The

Census Bureau will notify the AES filer in writing if they fail to

maintain an acceptable level of quality, timeliness, and coverage in

the transmission of export data or fail to maintain compliance with

Census Bureau regulations contained in this chapter. The Census Bureau

will direct that appropriate action to correct the specific

situation(s) be taken.

(b) Criteria for denial of applications requesting Option 4 filing

status; appeal procedure. Approval for Option 4 filing privileges will

apply only to exporters. However, forwarding agents may apply for

Option 4 filing privileges on behalf of an individual exporter. Option

4 applicants must submit a Letter of Intent to the Census Bureau in

accordance with the provisions contained in Sec. 30.60.

(1) Option 4 approval process. The Census Bureau will distribute

the Letter's of Intent for Option 4 filing privileges to Customs and

the other partnership agencies participating in the AES Option 4

approval process. Failure to meet the standards of the Census Bureau,

Customs, or one of the partnership agencies is reason for nonselection

or denial of the application for Option 4 filing privileges. Each

partnership agency will develop its own internal Option 4 acceptance

standards and each agency will notify the Census Bureau of the

applicant's failure to meet that agency's acceptance standards. If the

Census Bureau does not receive either notification of denial, or a

request for extension from the partnership agency within thirty (30)

calendar days after the date of referral of the Letter of Intent to the

partnership agency, the applicant is deemed to be approved by that

agency. The Census Bureau will provide the Option 4 applicant with an

approval or denial letter. If a denial letter is issued, the Census

Bureau will indicate the partnership agency that denied the

application. The applicant must contact the denying partnership agency

for the specific reason(s) for denial.

(2) Grounds for denial of Option 4 filing status. The Census Bureau

may deny an exporter's application for Option 4 filing privileges for

any of the following reasons:

(i) Applicant is not an established exporter, as defined in this

chapter, with regular operations;

(ii) Applicant has failed to submit SED's to the Census Bureau for

processing in a timely and accurate manner;

(iii) Applicant has a history of noncompliance with Census Bureau

export laws and regulations contained in this chapter;

(iv) Applicant has been indicted, convicted, or is currently under

investigation for a felony involving a violation of Federal export laws

or regulations and the Census Bureau has evidence of probable cause

supporting such violation, or the applicant is in violation of Census

Bureau laws or regulations contained in this chapter; and

(v) Applicant has made or caused to be made in the Letter of Intent

a false or misleading statement or omission with respect to any

material fact.

(3) Notice of nonselection and appeal procedures for Option 4

filing. The Census Bureau will notify applicants in writing of the

decision to either deny or approve the applicant for Option 4 filing

privileges within thirty (30) days of receipt of the Letter of Intent

by the Census Bureau, or if a decision cannot be reached at that time

the applicant will be notified of an expected date for a final decision

as soon as possible after the thirty (30) calendar days. Applicants for

Option 4 filing privileges denied Option 4 status by other partnership

agencies must contact those agencies regarding the specific reason(s)

for nonselection and for their appeal procedures. Applicants denied

Option 4 status by the Census Bureau will be provided with a specific

reason for nonselection and a Census Bureau point of contact in the

notification letter. Option 4 applicants may appeal the Census Bureau's

nonselection decision by following the appeal procedure provided in

paragraph (b)(5) of this section.

(4) Revocation of Option 4 filing privileges. The Census Bureau may

revoke Option 4 filing privileges of approved Option 4 exporters for

the following reasons:

(i) The exporter has made or caused to be made in the Letter of

Intent a false or misleading statement or omission with respect to

material fact;

(ii) The exporter submitting the Letter of Intent is indicted,

convicted, or is currently under investigation for a felony involving a

violation of Federal export laws or regulations and the Census Bureau

has evidence of probable cause supporting such violation, or the

applicant is in violation of Census Bureau laws or regulations

contained in this chapter;

(iii) The exporter has failed to substantially comply with existing

Census Bureau or other agency export regulations; or

(iv) The Census Bureau determines that continued participation in

Option 4 by an exporter would pose a significant threat to national

security interests such that their continued participation in Option 4

should be terminated.

(5) Notice of revocation; appeal procedure. Approved Option 4

filers whose Option 4 filing privileges have been revoked by other

agencies must contact those agencies for their specific revocation and

appeal procedures. When the Census Bureau makes a determination to

revoke an approved Option 4 filer's AES Option 4 filing privileges, the

exporter will be notified in writing of the reason(s) for the decision.

The exporter may challenge the Census Bureau's decision by filing an

appeal within thirty (30) calendar days of receipt of the notice of

decision. In most cases, the revocation shall become effective when the

exporter has either exhausted all appeal proceedings, or thirty (30)

calendar days after receipt of the notice of revocation, if no appeal

is filed. However, in cases when required by national security

interests, revocations will become effective immediately upon

notification. Appeals should be addressed to the Chief, Foreign Trade

Division, Bureau of the Census, Washington, D.C. 20233. The Census

Bureau will issue a written decision to the exporter within thirty (30)

calendar days from the date of receipt of the appeal by the Census

Bureau. If a written decision is not issued within thirty (30) calendar

days, a notice of extension will be forwarded within that time period.

The exporter will be provided with the reasons for the extension of

this time period and an expected date of decision. Approved Option 4

exporters who have had their Option 4 filing status revoked may not

reapply for this status for one year following written notification of

the revocation. Such applications will not be considered before the

one-year time period.

[[Page 7417]]

Sec. 30.63 Information required to be reported electronically through

AES (data elements).

The information (data elements) listed in this section is required

for shipments transmitted electronically through AES. The data elements

as they pertain to electronic reporting are defined as paragraphs (a),

(b), and (c) of this section. Those data elements that are defined in

more detail in other sections of the FTSR are so noted. The data

elements identified as ``mandatory'' must be reported for each

transmission. The data elements identified as ``conditional'' must be

reported if they are required for or apply to the specific shipment.

The data elements identified as ``optional'' may be reported at the

discretion of the exporter.

(a) Mandatory data elements are as follows:

(1) Exporter/exporter identification. (i) Name and address of the

exporter. The exporter is any person in the United States who is the

principal or seller in the export transaction. Generally the exporter

is the U.S. manufacturer (if selling the merchandise for export), the

U.S. seller, order party, or licensee on an export license. A

forwarding agent may be reported as exporter when named as applicant

and licensee on an export license. A foreign entity, not located in the

United States at the time of export, must not be reported as exporter.

(See Sec. 30.4(a) and Sec. 30.7(d) (1), (2), and (e) for details).

(ii) Exporter's profile. The exporter's Employer Identification

Number (EIN) or Social Security Number (SSN) and exporter name,

address, contact, and telephone number must be reported with the

initial shipment. Subsequent shipments may be identified by either EIN,

SSN, or DUNS (Dunn and Bradstreet) number. If no EIN, SSN, or DUNS

number is available for the exporter, as in the case of a foreign

entity being shown as exporter as defined in Sec. 30.7(d), the border

crossing number, passport number, or any other number assigned by U.S.

Customs is required to be reported. (See Sec. 30.7(d)(2) for a detailed

description of the EIN.)

(2) Date of exportation/date of arrival. The exporter or the

authorized forwarding agent in the export transaction must report the

date the merchandise is scheduled to leave the United States for all

modes of transportation. If the actual date is not known, report the

best estimate of departure. The estimated date of arrival must be

reported for shipments to Puerto Rico. (See Sec. 30.7(r) for additional

information.)

(3) Ultimate consignee. The ultimate consignee is the person, party

or designee on the export license who is located abroad and actually

receives the export shipment. The ultimate consignee known at the time

of export must be reported. For goods sold en route, report ``SOLD EN

ROUTE'' and report corrected information as soon as it is known. (See

Sec. 30.7(f) for more information.)

(4) U.S. state of origin. Report the 2-character postal

abbreviation for the state in which the merchandise begins its journey

to the port of export. (See Sec. 30.7(t) (1) and (2) for more

information.)

(5) Country of ultimate destination. Report the 2-character

International Standards Organization (ISO) code for the country of

ultimate destination. The country of ultimate destination, as shown on

the export license, or the country as known to the exporter or

principal party in interest in the export transaction at the time of

export is the country in which the merchandise is to be consumed or

further processed or manufactured. For goods sold en route, report the

country of the first port of call and then report corrected information

as soon as it is known. (See Sec. 30.7(i) for more information.)

(6) Method of transportation. The method of transportation is

defined as that by which the goods are exported or shipped. Report one

of the codes listed in Part I of Appendix C of this part. (See

Sec. 30.7(b) for detailed information on method of transportation.)

(7) Conveyance name. The name of the carrier (sea--vessel name;

others--carrier name) must be reported by the exporter or the

exporter's agent as known at the time of shipment for all shipments

leaving the country by sea, air, truck or rail. Terms such as

``airplane,'' ``train,'' ``truck,'' or ``international footbridge'' are

not acceptable and will generate an error message. (See Sec. 30.7(c)

for more information.)

(8) Carrier identification. Report the 4-character Standard Carrier

Alpha Code (SCAC) for vessel, rail, and truck shipments and the 2- or

3-character International Air Transport Association (IATA) Code for air

shipments to identify the carrier actually transporting the merchandise

out of the United States. (See Sec. 30.7(c) for more information.)

(9) Port of export. Report the code of the U.S. Customs port of

export in terms of Schedule D, ``Classification of Customs Districts

and Ports.'' (See Secs. 30.7(a) and 30.20(c) and (d) for more

information on port of export.)

(10) Related/nonrelated indicator. Indicate if the shipment is

between related parties. Report the information as defined in

Sec. 30.7(v).

(11) Domestic or foreign indicator. Indicate if the commodities are

of domestic or foreign production. Report the information as defined in

Sec. 30.7(p).

(12) Commodity classification number. Report the 10-digit commodity

classification number as provided in Schedule B, ``Statistical

Classification of Domestic and Foreign Commodities Exported from the

United States'' (Schedule B). The 10-digit commodity classification

number provided in the Harmonized Tariff Schedule (HTS) may be reported

in lieu of the Schedule B Commodity classification number except as

noted in the headnotes of the HTS. (See Sec. 30.7(l) for detailed

information.)

(13) Commodity description. Report the commercial description in

sufficient detail to permit the verification of the commodity

classification number. (See Sec. 30.7(l) for more information regarding

reporting the description.)

(14) First net quantity/unit of measure. Report the primary net

quantity in the specified unit of measure and the unit of measure as

prescribed in the Schedule B or HTS or as specified on the export

license.

(15) Gross shipping weight. Report the gross shipping weight in

kilograms for vessel, air, truck, and rail shipments. Include the

weight of containers but exclude the weight of carrier equipment. (See

Sec. 30.7(o) for more information.)

(16) Value. The value shall be the selling price or cost if not

sold, including inland freight, insurance, and other charges to the

U.S. port of export. Report the value in U.S. currency. (See

Sec. 30.7(q) for more information.)

(17) Export information code. Report the appropriate 2-character

export information code as provided in Part II of Appendix C of this

part.

(18) Filer reference number. The filer of the export transaction

provides a unique reference number that allows for identification of

the transaction in their system. This reference number must be unique

for five years.

(19) Line item number. Report a line number for each commodity for

a unique identification of the commodity.

(20) Hazardous material indicator. This is a ``Yes'' or ``No''

indicator identifying the shipment as hazardous as defined by the

Department of Transportation.

(21) In-bond code. Report one of the 2-character in-bond codes

listed in Part IV of Appendix C of this part to indicate the type of

In-Bond or Not In-Bond shipment.

(b) Conditional data elements are as follows:

(1) Forwarding agent/forwarding agent identification. (i) Name and

[[Page 7418]]

address of the forwarding agent. The forwarding agent is any person in

the United States or under jurisdiction of the United States who is

authorized by the exporter to perform the services required to

facilitate the export of merchandise out of the United States or the

person named in the validated export license. (See Secs. 30.4(a) and

30.7(e) for details.)

(ii) Forwarding agent's profile. The forwarding agent's

identification number, EIN, DUNS, or SSN and name and address must be

reported with the initial shipment. Subsequent shipments may be

identified by the identification number.

(2) Intermediate consignee. The intermediate consignee is the

intermediary (if any) who acts in a foreign country as an agent for the

exporter or the principal party in interest or the ultimate consignee

for the purpose of effecting delivery of the export shipment to the

ultimate consignee or the person named on the export license. (See

Sec. 30.7(g) for more information.)

(3) Foreign Trade Zone number. Report the unique 5-character code

assigned by the Foreign Trade Board that identifies the Foreign Trade

Zone from which merchandise is withdrawn for export. (See

Sec. 30.7(t)(3) for more information.)

(4) Foreign port of unloading. For sea shipments only, the code of

the foreign port of unloading should be reported in terms of the 5-

digit codes designated in Schedule K, ``Classification of Foreign Ports

by Geographic Trade Area and Country.'' (See Sec. 30.7(h) for detailed

definitions of port of unloading.)

(5) License number/CFR citation/license code. For licensable

commodities, report the license number of the license issued for the

merchandise. If no license is required, report the regulatory citation

exempting the merchandise from licensing or the conditions under which

the merchandise is being shipped that make it exempt from licensing.

Report one of the 3-character codes listed in Part III of Appendix C of

this part to indicate the type of license, permit, License Exception,

or no license required.

(6) Export Control Classification Number. Report the Export Control

Classification Number for merchandise as required by the Bureau of

Export Administration Regulations (15 CFR Parts 730 through 774).

(7) Second net quantity/unit of measure. When Schedule B requires

two units of quantity be reported, report the second net quantity in

the specified unit of measure and the unit of measure as prescribed in

the Schedule B or HTS. (See Sec. 30.7(n) for more information.)

(8) Used self-propelled vehicles. Report the following items of

information for used self-propelled vehicles as defined in 19 CFR

192.1:

(i) Vehicle Identification Number. Report the unique Vehicle

Identification Number (VIN) in the proper format;

(ii) Product Identification Number. Report the Product

Identification Number (PIN) for those used self-propelled vehicles for

which there are no VINs;

(iii) Vehicle title number. Report the unique title number issued

by the Motor Vehicle Administration; and

(iv) Vehicle title state. Report the 2-character postal

abbreviation for the state or territory of the vehicle title.

(9) Entry number. Report the Import Entry Number when the export

transaction is to be used as proof of export for import transactions

such as In-Bond, Temporary Import Bond, Drawback, and so forth.

(10) Wavier of prior notice. This is a ``Yes'' or ``No'' indicator

to determine if the person claiming drawback received a waiver of prior

notice for the exported merchandise.

(11) Booking number. Report the booking number for all sea

shipments.

(c) Optional data elements are as follows:

(1) Marks and numbers. The exporter or the authorized forwarding

agent in the export transaction may opt to report any special marks or

numbers that appear on the physical merchandise or its packaging that

can identify the shipment or a portion thereof. (See Sec. 30.7(j) for

more information.)

(2) Equipment number. Report the container number for containerized

shipments. This number may be reported in conjunction with the booking

number.

(3) Seal number. Report the security seal number of the seal placed

on the equipment.

Sec. 30.64 Transmitting and correcting AES information.

(a) The exporter or their authorized forwarding agent is

responsible for electronically transmitting corrections, cancellations,

or amendments to shipment information previously transmitted using the

AES. Corrections, cancellations, or amendments should be made as soon

as possible after exportation when the error or omission is discovered.

(b) For shipments where the exporter or their authorized forwarding

agent has received an error message from AES, the corrections must take

place immediately. A fatal error message will cause the shipment to be

rejected. This error must be corrected prior to exportation of the

merchandise. For shipments where a warning message is received, the

correction must be made within four (4) working days of receipt of the

transmission, otherwise AES will generate a reminder message to the

filer. For shipments with a verify message, corrections when warranted

should be made as soon as possible after notification of the error by

the AES.

Sec. 30.65 Annotating the proper exemption legends for shipments

transmitted electronically.

The exporter or their authorized forwarding agent is responsible

for annotating the proper exemption legend on the bill of lading,

airway bill, or other commercial loading document for presentation to

the carrier, either on paper or electronically prior to export. The

exemption legend will identify that the shipment information has been

transmitted electronically using the AES. The exemption legend will

include the statement ``NO SED REQUIRED-AES'' followed by the filers

identification number and a unique shipment reference number or the

returned confirmation number. For exporters who have been approved to

participate in Filing Option 4, the exemption statement will include

the exporter's identification number and the filers identification

number if other than the exporter. The exemption legend must appear on

the first page of the bill of lading, airway bill, or other commercial

loading document and must be clearly visible.

Sec. 30.66 Recordkeeping and documentation requirements.

All parties to the export transaction (owners and operators of the

exporting carriers and exporters and their authorized forwarding

agents) must retain documents or records verifying the shipment for

five (5) years from the date of export. Customs, the Census Bureau, and

other participating agencies may require that these documents be

produced at any time within the 5-year time period for inspection or

copying. These records may be retained in an elected format including

electronic or hard copy. Acceptance of the documents by Customs or the

Census Bureau does not relieve the exporter or their authorized

forwarding agent from providing complete and accurate information after

the fact.

Subpart H--General Administrative Provisions

7. Section 30.91 is amended by revising paragraph (a) to read as

follows:

[[Page 7419]]

Sec. 30.91 Confidential information, Shipper's Export Declarations.

(a) Confidential status. The Shipper's Export Declaration is an

official Department of Commerce form, prescribed jointly by the Bureau

of the Census and the Bureau of Export Administration. Information

required thereon is confidential, whether filed electronically or in

any other approved format, for use solely for official purposes

authorized by the Secretary of Commerce. Use for unauthorized purposes

is not permitted. Information required on the Shipper's Export

Declarations may not be disclosed to anyone except the exporter or his

agent by those having possession of or access to any copy for official

purposes, except as provided in paragraph (e) of this section.

* * * * *

8. Appendices A, B, and C are added to part 30 to read as follows:

Appendix A to Part 30--Format for Letter of Intent, Automated

Export System (AES)

A. Letters of Intent should be on company letterhead and must

include:

1. Company Name, Address (no P.O. Boxes), City, State, Postal Code

2. Company Contact Person, Phone Number, Fax Number

3. Technical Contact Person, Phone Number, Fax Number

4. Corporate Office Address, City, State, Postal Code

5. Computer Site Location Address, City, State, Postal Code

6. Type of Business--Exporter, Freight Forwarder/Broker, Carrier,

NVOCC, Port Authority, Software Vendor, Service Center, etc.

(Indicate all that apply)

(i) Are you currently an AERP Participant? What is the AERP

symbol?

(ii) Freight Forwarder/Brokers indicate the number of exporters

for whom you file export information (AERP and SEDs).

(iii) Exporters indicate whether you are applying for AES,

Option 4 filing, or both.

7. U.S. Ports of Export Currently Utilized

8. Average Monthly Volume of Export Shipments

9. Average Monthly Value of Export Shipments

10. Filer Code--EIN, DUNS, SSN, or SCAC (Indicate all that apply)

11. Software Vendor Name, Contact, and Phone Number (if using vendor

provided software)

12. Look-a-Like Remote to Copy (as provided by vendor)

13. Modes of Transportation used for export shipments (Air, Vessel,

Truck, Rail, etc.)

14. Types of Merchandise exported

15. Types of Licenses or Permits

16. Anticipated Implementation Date

B. The following self-certification statement, signed by an

officer of the company, must be included in your letter of intent:

``I hereby certify that Company Name is, and will continue to be, in

compliance with all applicable laws and regulations.''

C. Send AES Letter of Intent to: Chief, Foreign Trade Division,

Bureau of the Census, Washington, DC 20233. Or, the copy can be

faxed to: 301-457-1159.

Appendix B to Part 30--Required Pre-Departure Data Elements for

Filing Option 3

(1) Identifier of Exporter--EIN, etc.

(2) Forwarding Agent I.D.--EIN, etc.

(3) Carrier I.D. (SCAC or IATA).

(4) Country of Ultimate Destination--ISO code.

(5) Name of Ultimate Consignee.

(6) (a) Commodity description or (b) Optional--Schedule B No. or HTS

code

(7) Unique Identifying Number--shipment reference number (17

characters or less), e.g., airway bill number. (The unique

identifying number/shipment reference number must appear in the

shipper's reference number field on the ocean bill of lading).

(8) Intended U.S. Port of Export

(9) Estimated Date of Export.

(10) Transportation Reference Number, e.g., vessel booking number,

airway bill number.

(11) Method of Transportation (MOT) code.

(12) HAZMAT--Y/N

(13) License code.

(14) Export License Number.

Appendix C to Part 30--Electronic (AES) Filing Codes

Part I--Method of Transportation Codes

10 Sea

11 Sea Containerized

12 Sea (Barge)

20 Rail

30 Truck

32 Auto

33 Pedestrian

34 Road, Other

50 Mail

40 Air

60 Passenger, Hand Carried

70 Fixed Transport (Pipeline and Powerhouse)

Part II--Export Information Codes

LC Shipments valued $2,500 or less per classification number that

are required to be reported

TP Temporary exports of domestic merchandise

IP Shipments of merchandise imported under a Temporary Import Bond

for further manufacturing or processing

IR Shipments of merchandise imported under a Temporary Import Bond

for repair

DB Drawback

CH Shipments of goods donated for charity

FS Foreign Military Sales

OS All other exports

HV Shipments of personally owned vehicles

HH Household and personal effects

SR Ship's stores

TE Temporary exports to be returned to the United States

TL Merchandise leased for less than a year

IS Shipments of merchandise imported under a Temporary Import Bond

for return in the same condition

CR Shipments moving under a carnet

GP U.S. government shipments

LV Shipments valued $2,500 or less that are not required to be

reported

SS Carriers' stores for use on the carrier

MS Shipments consigned to the U.S. armed forces

GS Shipments to U.S. government agencies for their use

DP Diplomatic pouches

HR Human remains

UG Gift parcels under Bureau of Export Administration License

Exception GFT

IC Interplant correspondence

SC Instruments of international trade

DD Other exemptions:

Currency

Airline tickets

Bank notes

Internal revenue stamps

State liquor stamps

Advertising literature

Shipments of temporary imports by foreign entities for their use

RJ Inadmissible merchandise

(See Secs. 30.50 through 30.58 for information on filing

exemptions.)

Part III--License Codes

Department of Commerce, Bureau of Export Administration (BXA) Licenses

C30 BXA Licenses

C31 SCL

C32 NLR (CCL/NS Column 2)

C33 NLR (All Others)

C34 Future Use

C35 LVS

C36 GBS

C37 CIV

C38 TSR

C39 CTP

C40 TMP

C41 RPL

C42 GOV

C43 GFT

C44 TSU

C45 BAG

C46 AVS

C47 APR

C48 KMI

C49 TAPS

C50 ENC

Nuclear Regulatory Commission (NRC) Codes

N01 NRC Form 250/250A

N02 NRC General License

Department of State, Office of Defense Trade Controls (ODTC) Codes

SAG Agreements

S00 License Exemption Citation

S05 DSP-5

S61 DSP-61

S73 DSP-73

S85 DSP-85

Department of Treasury, Office of Foreign Assets Control (OFAC) Codes

T10 OFAC Specific License

T11 OFAC General License

[[Page 7420]]

Other License Types

OPA Other Partnership Agency Licenses not listed above

Part IV--In-Bond Codes

70 Not-In-Bond

36 Warehouse Withdrawal for Immediate Exportation

37 Warehouse Withdrawal for Transportation and Exportation

62 Transportation and Exportation

63 Immediate Exportation

67 Immediate Exportation from a Foreign Trade Zone

68 Transportation and Exportation from a Foreign Trade Zone

Dated: January 19, 1999.

Kenneth Prewitt,

Director, Bureau of the Census.

[FR Doc. 99-3309 Filed 2-11-99; 8:45 am]

BILLING CODE 3510-07-P