[Federal Register Volume 64, Number 29 (Friday, February 12, 1999)]
[Proposed Rules]
[Pages 7412-7420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3309]



[[Page 7411]]

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Part VII





Department of Commerce





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Bureau of the Census



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15 CFR Part 30



Amendment to Foreign Trade Statistics



Regulations: Provisions for Filing Shipper's Export Data Electronically 
Using the Automated Export System, (AES); Proposed Rule

  Federal Register / Vol. 64, No. 29 / Friday, February 12, 1999 / 
Proposed Rules  

[[Page 7412]]



DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket No. 980929251-8329-02]
RIN 0607-AA19


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

AGENCY: Bureau of the Census, Commerce.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

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