[Federal Register Volume 64, Number 191 (Monday, October 4, 1999)]
[Proposed Rules]
[Pages 53861-53866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25651]
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DEPARTMENT OF COMMERCE
Bureau of the Census
15 CFR Part 30
[Docket No. 980716180-9171-02]
RIN 0607-AA20
Clarification of Exporters' and Forwarding Agents'
Responsibilities; Authorizing an Agent To Prepare and File a Shipper's
Export Declaration on Behalf of a Principal Party in Interest
AGENCY: Bureau of the Census, Commerce.
ACTION: Supplementary notice of proposed rulemaking.
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SUMMARY: The U.S. Census Bureau (Census Bureau) proposes amending the
Foreign Trade Statistics Regulations (FTSR), 15 CFR part 30, to clarify
the responsibilities of exporters and forwarding agents in completing
the Shipper's Export Declaration (SED) and to clarify provisions for
authorizing forwarding agents to prepare and file an SED or file the
export information electronically using the Automated Export System
(AES) on behalf of a principal party in interest.
DATES: Written comments must be submitted on or before December 3,
1999.
ADDRESSES: Direct all written comments on this proposed rulemaking to
the Director, U.S. Census Bureau, Room 2049, Federal Building 3,
Washington, D.C. 20233.
FOR FURTHER INFORMATION CONTACT: Requests for additional information
should be directed to C. Harvey Monk, Jr., Chief, Foreign Trade
Division, U.S. Census Bureau, Room 2104, Federal Building 3,
Washington, D.C. 20233-6700, by telephone on (301) 457-2255 or by fax
on (301) 457-2645.
SUPPLEMENTARY INFORMATION:
Background
The Census Bureau is responsible for collecting, compiling, and
publishing trade statistics for the United States. These data are used
by various Federal Government agencies and the private sector for
planning and policy development. In order to accomplish its mission,
the Census Bureau must receive accurate statistical information from
the trade community. The Shipper's Export Declaration (SED) and the
Automated Export System (AES) record are the primary vehicles used for
collecting such trade data, and the information contained therein is
used by the Census Bureau for statistical purposes only and is
confidential under the provisions of Title 13, United States Code
(U.S.C.), Section 301(g). The Census Bureau's primary objective in this
proposed rule is to ensure the accuracy of its trade statistics and to
clarify reporting responsibilities for all parties involved in export
transactions.
As such the Census Bureau proposes amending the FTSR to clarify
responsibilities of exporters and forwarding agents in completing the
SED and to clarify who should be listed in the ``Exporter'' box on the
SED and in the exporter field on the AES record. This proposed rule
defines new terms, including ``U.S. principal party in interest'' and
``routed export transaction,'' and clarifies existing ones (notably the
definition of ``exporter'') for purposes of completing the SED. The
proposed rule will also clarify provisions authorizing an agent to
prepare and file an SED or its AES electronic equivalent on behalf of a
principal party in interest.
The Census Bureau published a notice of proposed rulemaking on this
subject in the Federal Register on August 6, 1998 (63 FR 41979). As a
result of comments received on that proposed rulemaking and subsequent
discussions with the Bureau of Export Administration (BXA), the Census
Bureau has decided to issue a supplementary notice of proposed
rulemaking to address the issues raised during the comment period and
to further clarify provisions contained in that notice of proposed
rulemaking. The BXA is also revising appropriate sections of the Export
Administration Regulations (EAR) in a document published elsewhere in
this issue of the Federal Register. The EAR will conform to the
provisions of the FTSR in reference to clarifying the responsibilities
of exporters and forwarding agents in completing the SED, and BXA will
also propose changes to the EAR to simplify export clearance.
Comments
The Census Bureau received sixty-nine (69) comments on the notice
of proposed rulemaking published in the Federal Register on August 6,
1998 (63 FR 41979). Of the comments received, fifty-nine (59) were
opposed to some provisions of the proposed rule and ten supported the
proposed rulemaking. Of the fifty-nine comments opposed to the proposed
rule, twenty-four (24) had interpreted the rule to require that the
``manufacturer'' always be listed as the exporter of record on the SED
in all export transactions. This was a misinterpretation of the
proposed rule, and the revised proposed rulemaking will clearly
stipulate that only the ``U.S. seller or principal party in interest''
be listed as the exporter on the SED. Only when the manufacturer is the
actual ``seller of the merchandise for export'' should it be listed as
exporter on the SED or AES electronic record.
The other major reason for opposition to the proposed rule
concerned identifying the U.S. seller or principal as the ``exporter of
record'' in EX WORKS (EXW) transactions. EXW is a ``term of sale''
whereby the foreign buyer takes possession of the merchandise in the
United States, and the foreign buyer takes responsibility for
facilitating the export of the merchandise out of the United States,
including export documentation responsibility. The major concern the
U.S. sellers presented, when required to be listed as the ``exporter of
record'' in these transactions, is that the U.S. seller does not have
effective control over the merchandise once it is turned over to the
foreign buyer's agent. The U.S. seller does not want to be held liable
for any export control violations that may occur in such a transaction.
The proposed Census Bureau export regulations do not intend to
interfere with the terms of sale between the
[[Page 53862]]
foreign buyer and the U.S. seller in the export transaction. However,
in order to collect accurate trade statistics, it is critical to have
the actual ``U.S. seller or principal party in interest'' listed as
exporter on the SED or the AES electronic record. BXA's proposed rule
addresses the liability concerns of exporters in such transactions.
The ten comments in support of the proposed rule indicated approval
for the clarification of duties and responsibilities of exporters and
forwarding agents and the clarification of the power of attorney
provisions contained in the proposed rule. Those comments supported the
clarification of the definition of exporter and felt it gave them more
control over the export transaction even in the EXW transaction. The
Census Bureau responded to all comments and informed the commentors
that a supplementary notice of proposed rulemaking would be issued to
address their concerns.
Response to Comments and Proposed Action
In response to the comments received from the trade community on
the notice of proposed rulemaking published in the Federal Register on
August 6, 1998 (63 FR 41979), the Census Bureau proposes amending 15
CFR Part 30 to: (a) define the term ``exporter,'' for purposes of the
FTSR and completing the SED or AES record, as the U.S. principal party
in interest in the export transaction; (b) clarify the reporting
responsibilities of the U.S. principal party in interest and forwarding
agent in completing the SED or AES record; (c) clarify provisions for
authorizing an agent to prepare and file an SED or file the information
electronically using the AES; and (d) clarify the documentation and
compliance responsibilities of parties involved in the export
transaction. For purposes of this rule all references to preparing and
filing the paper SED also pertain to preparing and filing the AES
electronic record.
This proposed rule will clarify the responsibilities of the U.S.
principal party in interest and the forwarding agent in preparing the
SED or AES record. For export shipments the Census Bureau recognizes
``routed export transactions'' as a subset of ``export transactions.''
A routed export transaction is where the foreign principal party in
interest authorizes a U.S. forwarding or other agent to facilitate
export of items from the United States.
For purposes of completing the SED or AES record, the Exporter is
the U.S. principal party in interest in the transaction. The U.S.
principal party in interest is the person in the United States that
receives the primary benefit, monetary or otherwise, of the export
transaction. Generally, that person would be the U.S. seller,
manufacturer, order party, or foreign entity, if in the United States
when signing the SED. In most cases, the forwarding agent is not a
principal party in interest. The Exporter box on the SED will be
revised to read ``Exporter (U.S. Principal Party in Interest).''
However, the EAR defines the exporter as the person in the United
States who has the authority of a principal party in interest to
determine and control the sending of items out of the United States
(see EAR 15 CFR Part 772). This definition permits the forwarding agent
to apply for a license and act as exporter in some transactions.
The person who signs the SED must be in the United States at the
time of signing. If a U.S. manufacturer sells merchandise directly to a
foreign buyer for export, the U.S. manufacturer must be listed as the
U.S. principal party in interest on the SED. If a U.S. manufacturer
sells merchandise, as a domestic sale, to a U.S. buyer (wholesaler/
distributor) and that U.S. buyer sells the merchandise to a foreign
principal for export, the U.S. seller (wholesaler/distributor) must be
listed as the U.S. principal party in interest on the SED. If a U.S.
order party, as defined in Sec. 30.4(a)(1) of this rule, arranges for
the sale and export of merchandise to a foreign principal directly, the
U.S. order party must be listed as the U.S. principal party in interest
on the SED.
For purposes of completing the SED or AES record, the forwarding
agent is the person in the United States who is authorized by the U.S.
principal party in interest or, in a routed transaction, the foreign
principal, to prepare and file the SED or its AES electronic
equivalent. In routed export transactions, the forwarding agent and the
exporter may be the same for compliance purposes under the EAR, but the
forwarding agent is rarely the ``exporter'' in box 1a of the SED or in
the ``exporter'' field of the AES record. For example, only when a
forwarding agent acts as an ``order party'' can they be listed as
``exporter'' in box 1a on the SED or in the ``exporter'' field of the
AES record.
The U.S. principal party in interest can prepare and file the SED
or AES record, or it can authorize a forwarding agent to prepare and
file the SED or AES record on its behalf. If the U.S. principal party
in interest authorizes a forwarding agent to complete the SED or AES
record on its behalf, the U.S. principal party in interest is
responsible for: (A) Providing the forwarding agent with the
information necessary to complete the SED or AES record; (B) Providing
the forwarding agent with authorization to complete the SED or AES
record, in the form of a power of attorney or written authorization, or
signing the authorization box printed on the paper SED (box 23 on Form
7525-V or box 29 on Form 7525-V-ALT); and (C) Maintaining the
documentation to support the information provided to the forwarding
agent for completing the SED or AES record.
The forwarding agent, if authorized by a principal party in
interest, is responsible for: (A) Preparing the SED or AES record,
based on instructions received from the U.S. principal party in
interest or other parties in the transaction; (B) Providing the U.S.
principal party in interest with a copy of the export information filed
in the form of a completed SED, an electronic facsimile, or in any
other manner prescribed by the exporter; and (C) Maintaining the
documentation to support the information reported on the SED or AES
record.
In a routed export transaction, where a foreign principal
designates a U.S. forwarding agent to act on its behalf to prepare and
file the SED or AES record, the U.S. principal party in interest must
provide the forwarding agent with the following information to assist
them in preparing the SED or AES record: (1) Name and address of the
exporter (U.S. principal party in interest); (2) Exporter's (U.S.
principal party in interest) Internal Revenue Service (IRS) Employer
Identification Number (EIN); (3) point of origin (State or Foreign
Trade Zone (FTZ)); (4) schedule B description of commodities; (5)
domestic (D), foreign (F), or Foreign Military Sale (FMS) (M) code; (6)
Schedule B Number; (7) quantity; (8) Upon request by the foreign
principal or its agent, the Export Control Classification Number (ECCN)
or with sufficient technical information to determine classification;
(9) Any information that it knows will affect the determination of
license authority.
(Note: For Items 8 and 9, where the foreign principal party in
interest has assumed responsibility for determining and obtaining
license authority, the EAR sets forth the information sharing
requirements that apply at 15 CFR 758.2(d)).
In a routed export transaction, the forwarding agent is responsible
for preparing the SED or AES record based on instructions received from
the U.S. principal party in interest and other parties involved in the
transaction. In addition to reporting the information
[[Page 53863]]
provided by the U.S. principal party in interest on the SED or AES
record, the forwarding agent must provide the following export
information on the SED or AES record: (1) Date of exportation; (2) bill
of lading/airway bill number; (3) ultimate consignee; (4) intermediate
consignee; (5) forwarding agent name and address; (6) country of
ultimate destination; (7) loading pier; (8) method of transportation;
(9) exporting carrier; (10) port of export; (11) port of unloading;
(12) containerized; (13) weight; (14) value; (15) ECCN; (16) License
Authority;
(Note: For items 15 and 16 where the foreign principal party in
interest has assumed responsibility for determining and obtaining
license authority, the EAR sets forth the information sharing
requirements that apply at 15 Sec. 758.2(d));
and
(17) signing the certification statement on the paper SED (box 24
on Form 7525-V and box 36 on Form 7525-V-ALT). In a routed export
transaction, the U.S. principal party in interest must be listed as
exporter (U.S. principal party in interest) on the SED or on the AES
record.
In a routed export transaction, the forwarding agent is responsible
for: (A) Obtaining a power of attorney or written authorization from
the foreign principal to act on its behalf; (B) Upon request, providing
the U.S. principal party in interest with appropriate documentation
verifying that the information provided by the U.S. principal party in
interest was accurately reported on the SED or AES record; and (C)
Maintaining the documentation to support the information reported on
the SED or AES record.
The FTSR places primary responsibility for compliance of the SED
and AES requirements on the U.S. principal party in interest in an
export transaction and on the forwarding agent in a routed export
transaction. However, the FTSR also considers all parties involved in
the transaction responsible for the truth, accuracy, and completeness
of the information reported on the SED. The parties to the transaction
must provide the forwarding agent with the information necessary to
correctly prepare the paper SED or to file the data electronically
using the AES. As always, documentation must be maintained by all
parties involved in the transaction to support the information reported
on the SED or the AES record.
All parties that participate in transactions subject to the FTSR
are responsible for compliance with the FTSR. In all cases where a
violation of the FTSR occurs, the documentation of all parties involved
in the transaction must be made available to the proper enforcement
officials to determine the liability and responsibility for the export
violation pursuant to FTSR Sec. 30.11. Acting through a forwarding or
other agent or delegating or redelegating authority does not in and of
itself relieve anyone of their compliance responsibility.
This notice further clarifies provisions for using a power of
attorney or written authorization when a principal party in interest
authorizes a forwarding agent to prepare and file the SED on its behalf
and when the SED information is filed electronically, using the AES.
Suggested formats for a power of attorney and a written authorization
for executing a SED are available upon request from the U.S. Census
Bureau, Foreign Trade Division (FTD).
This amendment will further specify in Sec. 30.4(f) the requirement
that the SED be prepared in English. This provision is already included
in the Census Bureau's instructions for completing the SED and this
amendment will simply include that requirement in the Code of Federal
Regulations (CFR).
In addition, this amendment clarifies the provision in
Sec. 30.7(d)(2) that a foreign principal, if operating in the U.S. at
the time of export, must be listed as exporter (U.S. principal party in
interest) on the SED, but does not need to report an IRS EIN or a
Social Security Number (SSN) on the SED. Using an EIN or SSN that is
not your own is prohibited. However, if no EIN or SSN is available, the
Dunn and Bradstreet (DUNS) number, border crossing number, passport
number, or any number assigned by U.S. Customs is required to be
reported.
The revisions contained in this supplementary notice of proposed
rulemaking are consistent with the provisions of the BXA's proposed
revisions to the EAR regarding the export control responsibilities of
exporters and forwarding agents. The Department of the Treasury concurs
with the provisions contained in this proposed rule.
Program Requirements
In order to comply with the requests from the trade community to
update the provisions of the FTSR and to clarify the items discussed
above, the Census Bureau proposes amending appropriate sections of the
FTSR.
The Census Bureau proposes revising Section 30.4 to: (A) Define the
term ``exporter,'' for purposes of the FTSR and completing the SED or
AES electronic record, as the U.S. principal party in interest in the
export transaction; (B) Clarify the reporting responsibilities of the
U.S. principal party in interest and forwarding agent in completing the
SED or AES record; (C) Clarify provisions for obtaining authorization
for preparing and filing the SED or the AES electronic record; and (D)
Clarify the documentation and compliance responsibilities of parties
involved in the export transaction.
The Census Bureau proposes redesignating Section 30.4(b) to Section
30.4(f) and include the provision that the SED be prepared in English
to be consistent with the current instructions for preparing the SED.
The Census Bureau proposes redesignating Section 30.4(C) to Section
30.4 (g) with minor wording revisions.
The Census Bureau proposes amending Section 30.7(d)(1), ``Name of
exporter and exporter's Employer Identification Number,'' to clarify
the designation of ``exporter'' named on the SED by reference to
Sec. 30.4.
The Census Bureau proposes amending Section 30.7(d)(2), ``Exporters
Employer Identification Number,'' to clarify the requirement that a
foreign principal, if in the United States when signing the SED, must
be listed as ``exporter'' on the SED or AES record. However, if no EIN
or SSN is available, the DUNS number, border crossing number, passport
number, or any number assigned by U.S. Customs is required to be
reported.
The Census Bureau further proposes amending section 30.7(e),
``Agent of exporter (forwarding agent),'' to specify the
responsibilities of the forwarding agent in preparing the SED by
reference to Sec. 30.4.
Rulemaking Requirements
This proposed rule is exempt from all requirements of Section 553
of the Administrative Procedure Act because it deals with a foreign
affairs function (5 U.S.C. (A) (1)). However, this rule is being
published as a proposed rule with an opportunity for public comment
because of the importance of the issues raised by this rulemaking.
Regulatory Flexibility Act
Because a notice of proposed rulemaking is not required by 5 U.S.C.
553 or any other law, a Regulatory Flexibility Analysis is not required
and has not been prepared (5 U.S.C. 603(a)).
Executive Orders
This proposed rule has been determined to be significant for
purposes of Executive Order 12866. This proposed rule does not contain
policies with Federalism implications
[[Page 53864]]
sufficient to warrant preparation of a Federalism assessment under
Executive Order 12612.
Paperwork Reduction Act
Notwithstanding any other provisions of law, no person is required
to respond to, nor shall a person be subject to, a penalty for failure
to comply with a collection of information subject to the requirements
of the Paperwork Reduction Act (PRA) unless that collection of
information displays a currently valid Office of Management and Budget
(OMB) control number.
This proposed rule covers collections of information subject to the
provisions of the PRA, which are cleared by the OMB under OMB Control
Number 0607-0152.
This proposed rule will not impact the current reporting-hour
burden requirements as approved under OMB Control Number 0607-0152
under provisions of the PRA, Public Law 104-13.
List of Subjects in 15 CFR Part 30
Economic statistics, Foreign trade, Exports, Reporting and
recordkeeping requirements.
For the reasons set out in the preamble, it is proposed that part
30 be amended as follows:
PART 30--FOREIGN TRADE STATISTICS
1. The authority citation for 15 CFR Part 30 continues to read as
follows:
Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization Plan
No. 5 of 1950 (3 CFR 1949-1953 Comp., 1004); Department of Commerce
Organization Order No. 35-2A. August 4, 1975, 40 CFR 42765.
Subpart A--General Requirements--Exporter
2. In part 30, footnotes 4, 5, 6 and 9 are proposed to be
redesignated as footnotes 5, 6, 7 and 8, respectively, and Sec. 30.4 is
proposed to be revised to read as follows:
Sec. 30.4 Preparation and signature of Shipper's Export Declarations.
(a) General requirements (SED). For purposes of this section, all
references to preparing and filing the paper SED also pertain to
preparing and filing the AES electronic record. The Shipper's Export
Declaration (SED) or the AES electronic equivalent must be prepared and
signed by a principal party in interest or by a forwarding agent
authorized by a principal party in interest. The person who signs the
SED must be in the United States at the time of signing. That person,
whether the U.S. principal party in interest or agent, is responsible
for the truth, accuracy, and completeness of the SED or AES electronic
equivalent, except insofar as that person can demonstrate that he or
she reasonably relied on information furnished by others. The Census
Bureau recognizes ``routed export transactions'' as a subset of export
transactions. A routed export transaction is where the foreign
principal party in interest authorizes a U.S. forwarding or other agent
to facilitate export of items from the United States. See paragraph (c)
of this section for responsibilities of parties in a routed export
transaction.
(1) Exporter (U.S. principal party in interest). For purposes of
completing the SED, in all export transactions, the exporter required
to be listed in box 1a of the SED or in the ``Exporter'' field of the
AES record is the U.S. principal party in interest. The U.S. principal
party in interest is the person in the United States that receives the
primary benefit, monetary or otherwise, of the transaction. Generally
that person is the U.S. seller, manufacturer, order party 4,
or foreign entity, if in the U.S. when signing the SED. In most cases,
the forwarding or other agent is not a principal party in interest.
Note: The Export Administration Regulations (EAR) (15 CFR parts 730
through 799) defines the ``exporter'' as the person in the United
States who has the authority of a principal party in interest to
determine and control the sending of items out of the United States
(see 15 CFR part 772 of the EAR).
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\4\ The Order Party is that person in the United States who
conducted the direct negotiations or correspondence with the foreign
principal or ultimate consignee and who, as a result of these
negotiations, received the order from the foreign principal or
ultimate consignee.
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(i) If a U.S. manufacturer directly sells merchandise for export to
a foreign principal, the U.S. manufacturer must be listed as the
exporter (U.S. principal party in interest) on the SED.
(ii) If a U.S. manufacturer sells merchandise, as a domestic sale,
to a U.S. buyer (wholesaler/distributor) and that U.S. buyer sells the
merchandise for export to a foreign principal, the U.S. seller
(wholesaler/distributor) must be listed as the exporter (U.S. principal
party in interest) on the SED.
(iii) If a U.S. order party directly arranges for the sale and
export of merchandise to a foreign buyer, the U.S. order party must be
listed as the exporter (U.S. principal party in interest) on the SED or
AES record.
(2) Forwarding agent. The forwarding agent is the person in the
United States who is authorized by the U.S. principal party in interest
or, in the case of a routed transaction, the foreign principal party in
interest to prepare and file the SED or its AES electronic equivalent,
and/or perform the services required to facilitate the export of items
from the United States. In routed export transactions, the forwarding
agent and the exporter may be the same for compliance purposes under
the EAR, but the forwarding agent is rarely the ``exporter'' in box 1a
of the SED or in the ``exporter'' field of the AES record.
(3) Principal parties in interest. Those persons in a transaction
that receive the primary benefit, monetary or otherwise, of the
transaction. Generally, the principals in a transaction are the seller
and the buyer. In most cases a forwarding or other agent is not a
principal party in interest.
(b) U.S. principal party in interest and forwarding agent
responsibilities in preparing the SED (except in routed export
transactions).--(1) Designating the forwarding agent. The U.S.
principal party in interest can prepare and file the SED or AES record,
or it can authorize a forwarding agent to prepare and file the SED or
AES record on its behalf. If the U.S. principal party in interest
designates a forwarding agent to act on its behalf in completing the
SED or AES record it must be in the form of a power of attorney or
written authorization, or by signing the authorization box printed on
the paper SED (box 23 on Form 7525-V and box 29 on Form 7525-V-ALT).
(2) U.S. principal party in interest responsibilities in preparing
the SED. (i) If the U.S. principal party in interest prepares the SED
or AES record themselves they are responsible for the accuracy of all
the export information reported on the SED or AES record, for signing
the paper SED, filing the paper SED with U.S. Customs, or transmitting
the AES record to Customs.
(ii) If the U.S. principal party in interest authorizes a
forwarding agent to complete the SED or AES record on its behalf the
U.S. principal party in interest is responsible for:
(A) Providing the forwarding agent with the export information
necessary to complete the SED or AES record;
(B) Providing the forwarding agent with a power of attorney or
written authorizatIon to complete the SED or AES record, or sign the
authorization box printed on the paper SED (box 23 on Form 7525-V and
box 29 on Form 7525-V-ALT); and
(C) Maintaining the documentation to support the information
provided to the forwarding agent for completion of the SED or AES
record, as specified in Sec. 30.11.
[[Page 53865]]
(3) Forwarding agent responsibilities in preparing the SED. The
forwarding agent, when authorized by a U.S. principal party in interest
to prepare and sign the SED or prepare and file the AES record, is
responsible for:
(i) Accurately preparing the SED or AES record based on information
received from the U.S. principal party in interest;
(ii) Obtaining a power of attorney or written authorization to
complete the SED or AES record, or obtaining a paper SED with a signed
authorization;
(iii) Maintaining the documentation to support the information
reported on the SED or AES record, as specified in Sec. 30.11; and
(iv) Providing the U.S. principal party in interest with a copy of
the export information filed in the form of a completed SED, an
electronic facsimile, or in any other manner prescribed by the
exporter.
(c) U.S. principal party in interest and forwarding agent
responsibilities in preparing the SED in ``routed export
transactions.''
(1) Designating the forwarding agent. In a routed export
transaction, the forwarding agent must obtain a power of attorney or
written authorization from the foreign principal party in interest to
act on their behalf. If the foreign principal party in interest
designates a U.S. forwarding agent to complete the SED or AES record,
the U.S. principal party in interest must provide certain export
information to such agent (see paragraph (c)(2) of this section). If
the U.S. principal party in interest authorizes its own forwarding
agent to complete the SED or AES record, it must follow the procedures
specified in paragraph (b) of this section.
(2) U.S. principal party in interest responsibilities in a ``routed
export transaction.'' In a routed export transaction where the foreign
principal party in interest designates a U.S. forwarding agent to
prepare and file the SED or AES record, the U.S. principal party in
interest must provide such forwarding agent with the following
information to assist in preparing the SED or AES record:
(i) Name and address of the exporter (U.S. principal party in
interest);
(ii) Exporter EIN (IRS) Number.;
(iii) Point of origin (State or FTZ);
(iv) Schedule B description of commodities;
(v) Domestic (D), foreign (F), or FMS (M) code;
(vi) Schedule B Number;
(vii) Quantity;
(viii) Upon request from the foreign principal party in interest or
its agent, the Export Control Classification Number (ECCN) or with
sufficient technical information to determine classification; and
(ix) Any information that it knows will affect the determination of
license authority.
Note to paragraph (c)(2): For Items (c)(2)(viii) and (ix), where
the foreign principal party in interest has assumed responsibility
for determining and obtaining license authority, the EAR sets forth
the information sharing requirements that apply, at 15 CFR 758.2(d).
(3) Forwarding agent responsibilities in a ``routed export
transaction.'' In a routed export transaction, the forwarding agent who
is responsible for preparing the SED or AES record must provide the
following export information on the SED or AES record:
(i) Date of exportation;
(ii) Bill of lading/airway bill number;
(iii) Ultimate consignee;
(iv) Intermediate consignee;
(v) Forwarding agent name and address;
(vi) Country of ultimate destination;
(vii) Loading pier;
(viii) Method of transportation;
(ix) Exporting carrier;
(x) Port of export;
(xi) Port of unloading;
(xii) Containerized;
(xiii) Weight;
(xiv) Value;
(xv) ECCN;
(xvi) License authority; and
(xvii) Signing the certification box on the paper SED (box 24 on
Form 7525-V and box 36 on Form 7525-V-ALT). In a routed export
transaction the U.S. principal party in interest must be listed as
exporter (U.S. principal party in interest) on the SED or on the AES
record.
Note to paragraph (c)(3): For Items (c)(3)(xv) and (xvi), where
the foreign prinicipal party in interest has assumed responsibility
for determining and obtaining license authority, the EAR sets forth
the information sharing requirements that apply, at 15 CFR 758.2(a).
(d) Information on the Shipper's Export Declaration (SED). The data
provided on the SED or AES electronic record shall be complete,
correct, and based on personal knowledge of the facts stated or on
information furnished by the parties involved in the export
transaction. All parties involved in export transactions, including
U.S. forwarding agents, should be aware that invoices and other
commercial documents may not necessarily contain all the information
needed to prepare the SED or AES record. The parties must ensure that
all the information needed for completing the SED or AES record,
including correct export licensing information, is provided to the
forwarding agent for the purpose of correctly preparing the SED or AES
record.
(e) Authorizing a forwarding agent. In a power of attorney or other
written authorization, authority is conferred upon an agent to perform
certain specified acts or kinds of acts on behalf of a principal (see
15 CFR 758.1(i) of the EAR). In cases where a forwarding agent is
filing the export information on the SED or electronically using the
AES, the forwarding agent must obtain a power of attorney or written
authorization from a principal party in interest to file the
information on their behalf. A power of attorney or written
authorization should specify the responsibilities of the parties with
particularity, and should state that the forwarding agent has authority
to act on behalf of a principal party in interest as its true and
lawful agent for purposes of the export transaction and in accordance
with the laws and regulations of the United States.
(f) The SED shall be prepared in English and shall be typewritten
or prepared in ink or other permanent medium (except indelible pencil).
The use of duplicating processes, as well as the overprinting of
selected items of information, is acceptable.
(g) All copies of the SEDs must contain all of the information
called for in the signature space as to name of firm, address, name of
signer, and capacity of signer. The original SED must be signed in ink,
but signature on other copies is not required. The use of signature
stamps is acceptable. A signed legible carbon or other copy of the
export declaration is acceptable as an ``original'' of the SED.
3. Section 30.7 is proposed to be amended by revising paragraphs
(d) and (e) to read as follows:
Sec. 30.7 Information required on Shipper's Export Declarations.
* * * * *
(d) Name of exporter (U.S. principal party in interest) and
exporter's Employer Identification Number (EIN). The name and address
(number, street, city, state, zip code) of the exporter (U.S. principal
party in interest) and the exporter's (U.S. principal party in
interest) EIN shall be entered where requested on the SED or AES
electronic record. The EIN shall be the exporter's (U.S. principal
party in interest) own and not another's EIN.
(1) Name of exporter (U.S. principal party in interest). The
exporter (U.S. principal party in interest) named on the SED and in the
exporter field on the AES record must be the U.S. principal
[[Page 53866]]
party in interest in the transaction. The exporter (U.S. principal
party in interest) is the person in the United States that receives the
primary benefit, monetary or otherwise, of the export transaction.
Generally that person is the U.S. seller, manufacturer, order party, or
foreign entity, if in the United States when signing the SED. In all
export transactions, the U.S. principal party in interest must be
listed in the ``Exporter (U.S. principal party in interest)'' block on
the paper SED or in the ``exporter field'' in the AES record. (See
Sec. 30.4 for details on the specific reporting responsibilities of
exporters (U.S. principal party in interest)).
(2) Exporter's (U.S. principal party in interest) Employer
Identification Number (EIN). An exporter (U.S. principal party in
interest) shall report its own IRS EIN on the SED or AES record. If,
and only if, no Internal Revenue Service EIN has been assigned to the
exporter (U.S. principal party in interest), the exporter's (U.S.
principal party in interest) own Social Security Number (SSN), preceded
by the symbol ``SS'' must be reported. In situations when a foreign
principal party in interest who does not possess an EIN or SSN operates
from within the U.S. to facilitate its own export, no EIN or SSN
reporting requirement applies. Using another's EIN or SSN is
prohibited. However, if no EIN or SSN is available, the DUNS (Dunn and
Bradstreet) number, border crossing number, passport number, or any
number assigned by U.S. Customs is required to be reported on the SED
or the AES record.
(e) Forwarding agent. The name and address of the duly authorized
forwarding agent (if any) of a principal party in interest or the
foreign principal party in interest shall be recorded where requested
on the SED or AES record. (See Sec. 30.4 for details on the specific
reporting responsibilities of forwarding agents).
* * * * *
Dated: September 21, 1999.
Kenneth Prewitt,
Director, Census Bureau.
[FR Doc. 99-25651 Filed 10-1-99; 8:45 am]
BILLING CODE 3510-07-P