E3u—U.S. Export Clearance—Requirements and Procedures (In Depth)

GISTnet

Table of Contents

Glossary

CFR

Exhibits

Referrals

Countries

My Page

Help

E3u—U.S. Export Clearance—Requirements and Procedures (In Depth)

Non-subscriber price: $400.00, Subscriber price: $310.00
Estimated total study time: 24 hours 28 minutes

---Note: Course temporarily suspended pending revision based on new FTR. Should be again available for assignment in August, 2008 ---

This course covers U.S. requirements which must be fulfilled at or just prior to the export of goods from the U.S., with emphasis on preparation and filing requirements for shipper's export declaration (and Advanced Electronic Information) using the Automated Export System (AES).

This course is designed for exporters and freight forwarders who are involved in collecting SED information, classifying products for export, and in preparing and transmitting AES records. It will also be of value for exporters and consignees responsible supervision of these tasks and for appointing freight forwarders and other agents to perform export declarations on their behalf.

In particular, this course addresses:

• Who must file an SED or provide SED information to an agent for filing, export authorization criteria
• Classification of commodities for statistical purposes (Schedule B)
• Information required for export declaration (e.g., transaction party information, export authorization citation, product and Schedule B line-item information, other information and processing required for certain exports)
• Declaration of goods subject to U.S. export licenses and other types of export controls
• Operation of the AES system
• Exceptions to the requirement for a formal SED using alternative means of declaration
• Conveyance of authority by an exporter or foreign consignee to an agent, such as freight forwarder, to make U.S. export declarations on its behalf. Special attention is paid to SED requirements for exports covered by U.S. export licenses.

Important: This course was suspended in mid-2005 following publication of new U.S. Foreign Trade Statistics Regulations (FTST) that would significantly change is taught herein, and which were expected to go into effect before year-end, 2005. Among other things these new regulations would have terminated all use of paper SEDs while adding the requirement to AES to transmit advanced export information pursuant to new port and border security requirements.

In a surprise move, the Department of Homeland Security (DHS) opposed the issuance of these new regulations because of pending Customs programs in which full manifest data is to be mutually exchanged with foreign customs agencies, which conflicts with the long-standing confidentiality provisions for Shipper's Export Declaration information in the revised FTSR. To date (Summer, 2007) this inter-agency controversy has not been resolved, and so the new FTSR have not gone into effect.

Based on customer request, GISTnet has re-opened the course for assignment. However, please be aware that there will be major changes to some of what is taught herein upon implementation of revised FTSR.

Introduction to U.S. Export Clearance Requirements

(Estimated study time: 1 hour 27 minutes)

• Introduction
• Introduction to Export Clearance
  • What is an "Export"?
  • Three Types of U.S. Export Declarations
  • USG Regulations Affecting U.S. Export Declaration
    • U.S. Foreign Trade Regulations (FTR)
    • Export Administration Regulations (EAR)
    • CBP (Customs) Regulations (CR)
    • International Traffic in Arms Regulations (ITAR)
  • Export Clearance by Export Carrier

Some SED Basics

(Estimated study time: 1 hour 13 minutes)

• Base Criteria for EEI (AES Filing)
• EEI (AES) Filing Procedures
• General

When an SED is Not Required

(Estimated study time: 1 hour 37 minutes)

• Exemptions to Requirement for EEI (AES Filing)

Electronic Export Information (EEI) Responsibilities

(Estimated study time: 49 minutes)

• Electronic Export Information (EEI) Responsibilities
  • Principal Party in Interest (U.S. or Foreign)
  • Definition of "Exporter"
  • A Party Physically in the U.S. Must File the AES Record (or "Sign" the SED form)
  • Authority to File an AES Record (or Prepare & Sign a Paper SED)
    • General
    • Exporter Officers and Employees
  • Exporter's Identification Number (EIN) on SED
    • Typical Situation—USPPI as Exporter
    • FPPI as Exporter
  • Responsibility of USPPI to Provide Information to an Agent
    • U.S. Exporter (USPPI) Engages Forwarder
    • Foreign Party (FPPI) Engages Forwarder (Routed Export Transactions)
  • Responsibility of USPPI to Maintain and Produce Records

Conveyance of SED Filing Authority to Freight Forwarder or Agent.

(Estimated study time: 45 minutes)

• Applicable Regulations
• What Is Required and Why Is This Important?
  • Applicable Regulations
  • Risks of Acting Without Proper Authority
• General

Conveyance of SED Filing Authority---Forms of Multi-Shipment Authorization

(Assessments available beginning: 2002-10-02)

(Estimated study time: 1 hour 13 minutes)

• Choosing an AES Filing Method (Interface)
• Corporation or Association—Signature by Non-Officer
• Revocation/Change
  • Changes in Information on Powers of Attorney

Other issues Concerning Conveyance of Agent Authority

(Estimated study time: 1 hour 2 minutes)

• Fictitious Business Names on Powers of Attorney
• Use of a Customs Power of Attorney Form as SED Authorization
• Authority vs. Evidence of Authority
• Company Authority vs. Individual Authority
  • Who Has Authority to Act Under a PPI's Power of Attorney or "Other Written Authorization"?
  • Employees of Freight Forwarders
• Delegation Documentation
  • Employees
  • Sub-Agents
• Record Keeping (Powers of Attorney, "Other Written Authorization")

Forwarder or Agent Filing of SED on Behalf of Foreign Principal

(Estimated study time: 57 minutes)

• Transaction Delivery Terms
  • EXW Terms
  • "F" Terms
  • "C" Terms
  • "D" Terms
  • Summary
• Foreign Party (FPPI) Engages Forwarder (Routed Export Transactions)

Export Declaration Preparation - Options & Requirements

(Estimated study time: 1 hour 14 minutes)

• Introduction
• Paper SED Forms
• The Person Signing/Filing the SED
• SED Preparation Instructions
  • General
• Gathering SED Source Information & Documents

HTS Commodity Classification - General

Correct classification of each article or commodity is an important SED or AES record requirement. This requires an understanding of the Harmonized Tariff System, on which the U.S. Schedule B is based.

(Estimated study time: 57 minutes)

• General

Step-by-Step Schedule B Classification Process

(Estimated study time: 52 minutes)

• Limitations on Use of the Schedule B Commodity Index

Net Quantity, Value and Origin of Goods Information

(Estimated study time: 57 minutes)

• Export Value
  • General
  • Adjustments to SED Value for Delivery Terms other than FAS/FCA, Port of Export
  • Practicality
  • Values for Certain Types of Transactions

Export Authorization Information

(Estimated study time: 43 minutes)

• General Rule—Export Authorization Always Required
• Commerce Control List (CCL) & ECCNs
• SED Procedures—Goods Subject to an Export License
  • General
  • DOC Export Licenses
  • DOS Export Licenses
  • Exports Subject to Authorizations by Agencies Other Than DOC or DOS

Export Authorization Information, cont.

(Estimated study time: 46 minutes)

• SED Procedures—Goods Subject to a License Exception
  • Use of License Exception for Shipments Exempt from Electronic Export Information (EEI) Filing
    • SED Exemption vs. License Exception
    • Declaration Documentation
• SED Procedures—No License Required (NLR & EAR99)
• General

Export Clearance for Goods Subject to an Export License

(Estimated study time: 1 hour 18 minutes)

• Principal Party in Interest (U.S. or Foreign)
• Information Which Must Be the Same vs. Merely Consistent
• SED Cargo Description

Export Clearance for Goods Subject to an Export License, cont.

(Estimated study time: 58 minutes)

• General
• General
• License Validity Period

Additional SED Requirements/Information Based on Situation

(Estimated study time: 1 hour 43 minutes)

• Destination Control Statement (DCS)
  • DCS for Items Subject to the EAR
    • When Required
    • Statement Language
  • Destination Control Statement for Defense Articles
  • Responsibility for Entering Destination Control Statement (DCS)
• SED Types and Methods—General
  • Paper SED Forms
  • Other Non-Electronic Means of Declaration
  • Electronic SEDs (AES)
• Cargo Exported under Bond and from FTZs
  • General
  • SED for Goods Exported Under Bond from a Bonded Warehouse or FTZ
• Routed Export Transactions
• Related Parties
• Rules Concerning Separate SEDs
  • General
  • Split Shipments
    • SED Requirements for In-Transit Cargo

SED File Time and Disposition Requirements

Edits Needed? -- This lesson begins with "the requirement for authentication of paper SEDs prior to export of Defense Articles"

(Estimated study time: 57 minutes)

• SED Action/Disposition Requirements
  • Authentication of the SED for State Department Licenses
    • Pre-Shipment Presentation of License & Paper SED to Customs
    • SED Authentication
  • Paper SED Disposition—General
    • Current Requirement
  • Time Allowed for Filing SED Form or AES Record
    • General
    • Incomplete Manifest Provisions
    • Deadline for Export under an Export License
  • Consequences of Late SED Filing
    • Shipper Consequences
    • Export Carrier Loading Policies
    • Customs Enforcement Actions
      • Fines Against the Carrier
      • Return of Cargo to U.S. Departure Point
      • Loss of AES Filing Options
      • Summary
  • Corrections to an SED
    • Paper SED Correction
    • Correction of AES Record

AES - Automated Export System - General

For Kevin: Under the heading "Using an AES Filing Agent" there is a link to "Conveyance of Authority by PPI to Freight Forwarder or Agent." This is an outline which offers much more than is really needed at this point and may be confusing. Possible change?

(Estimated study time: 47 minutes)

• SED Notation/AES Data for Certain Special Status Exports
  • Temporary Exports
  • Return of Goods Temporarily Imported
  • Export of Previously Imported Goods when U.S. Importer Is a Foreign Party
• Cargo Exported under Bond and from FTZs
  • General
  • SED for Goods Exported Under Bond from a Bonded Warehouse or FTZ

AES Interface Options & Getting Started

(Estimated study time: 1 hour 9 minutes)

• Choosing an AES Filing Method (Interface)

AES Filing Options and Filer Responsibilities

The questions should be re-worked following the revision of the text in this lesson. -- Alec

(Estimated study time: 54 minutes)

**AES Operational requirements and Concerns

There are "pending" portions missing in this lesson. -- Alec

(Estimated study time: 46 minutes)

• Authentication of the SED for State Department Licenses
  • Pre-Shipment Presentation of License & Paper SED to Customs
  • SED Authentication
• AES System Information
• Advance Filing of Export Cargo Information
  • The Advanced Filing Requirement
  • Operational Concerns with Advanced Filing
    • General
    • Cargo Exported by Aircraft
    • Cargo Exported by Vessel
    • Cargo Exported by Truck
    • Cargo Exported by Rail
• General AES Operational Management Issues (Exporter & Forwarder)
  • Work Flow Considerations
  • Who's in Charge?
  • Preparing & Supporting an AES Lead Filer
• AES Records Corrections

AES Operational Requirements, cont.

This lesson also mentions the paper SED for Customs authentication.

(Estimated study time: 1 hour 13 minutes)

• Three Types of Messages
• AES Exemption Legend on Transport Document
• AES Downtime Procedures
• Carrier Export Clearance Requirements—General