[Federal Register Volume 67, Number 196 (Wednesday, October 9, 2002)]
[Proposed Rules]
[Pages 62911-62918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25667]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 67, No. 196 / Wednesday, October 9, 2002 / 
Proposed Rules  

[[Page 62911]]



DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket Number 010622161-2029-02]
RIN 0607-AA34


Automated Export System Mandatory Filing for Items on the 
Commerce Control List (CCL) and the United States Munitions List (USML) 
That Currently Require a Shipper's Export Declaration (SED)

AGENCY: Bureau of the Census, Commerce.

ACTION: Notice for proposed rulemaking and request for comments.

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

SUMMARY: The U.S. Census Bureau (Census Bureau) is amending the Foreign 
Trade Statistics Regulations (FTSR) to incorporate requirements for the 
mandatory Automated Export System (AES)/AESDirect filing for items 
identified on the Department of Commerce's Commerce Control List (CCL) 
and the Department of State's United States Munitions List (USML). The 
AES is the electronic method to file the Shipper's Export Declaration 
(SED) and the ocean manifest information directly with the U.S. Customs 
Service (Customs). AESDirect is the Census Bureau's free Internet-based 
system for filing SED information with the Customs' AES. Further 
references to AES covers both AES and AESDirect. You are only required 
to file information via AES for those items that require a SED. This 
rule will, among other things, provide provisions for AES mandatory 
filing in the FTSR.

DATES: Submit written comments on or before December 9, 2002.

ADDRESSES: Please direct all written comments on this proposed rule to 
the Director, U.S. Census Bureau, Room 2049, Federal Building 3, 
Washington, DC 20233.

FOR FURTHER INFORMATION CONTACT: C. Harvey Monk, Jr., Chief, Foreign 
Trade Division, U.S. Census Bureau, Room 2104, Federal Building 3, 
Washington, D.C. 20233-6700, (301) 763-2255, by fax (301) 457-2645, or 
by e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

Background

    On July 26, 2001, the Census Bureau published a program notice in 
the Federal Register (66 FR 39006) announcing that we would be issuing 
rules, and allowing the public to comment, on this subject.
    The Census Bureau is responsible for collecting, compiling, and 
publishing trade statistics for the United States under the provisions 
of Title 13, United States Code (U.S.C.), Chapter 9, Section 301. The 
paper SED and the AES are the primary media used for collecting such 
trade data, and the information contained therein is used by the Census 
Bureau for statistical purposes only. This information is exempt from 
public disclosure under the provisions of Title 13, U.S.C., Chapter 9, 
Section 301(g). The SED and AES records also are used for export 
control purposes under Title 50, U.S.C., and Title 22, U.S.C., to 
detect and prevent the export of certain critical technology and 
commodities to unauthorized destinations or end users.
    Under the current rules and regulations, export information is 
compiled from both paper and electronic transactions filed by the 
export community with Customs and the Census Bureau. The AES is an 
electronic method by which the U.S. principal party in interest or the 
authorized agent can transmit the required export information. For 
purposes of completing the SED or AES record, the U.S. principal party 
in interest (USPPI) is the person in the United States that receives 
the primary benefit, monetary or otherwise, from the export 
transaction. The authorized agent is the person in the United States 
who is authorized by power of attorney or written authorization by the 
USPPI or the foreign principal party in interest to prepare and file 
the SED or AES record. A paper SED or the electronic equivalent AES 
record is required, with certain exceptions, for exports of merchandise 
valued at more than $2,500 from the United States, Puerto Rico, and the 
United States Virgin Islands to foreign countries or exports between 
U.S. Virgin Islands and Puerto Rico and the United States. The SED or 
AES record also is required for all exports under a Bureau of Industry 
and Security (BIS) or Department of State (State Department) export 
license or State Department license exemption, regardless of value, 
unless exempted from the requirement for an SED or AES record by the 
State Department (see 15 CFR, part 30, Sec.  30.55(h)(2) and 22 CFR 
parts 120-130).
    For export data filed via a paper SED, the USPPI or freight 
forwarder must present the SED to the exporting carrier when the cargo 
is tended to the carrier. The vessel, air or rail carrier must present 
the manifest and supporting documentation to the Customs Port Director 
at the port of export within four days after departure if a bond is 
posted with Customs. However, this rule does not apply to SEDs or AES 
shipments subject to BIS or State Department licenses or State 
Department license exemptions. If the information is filed in the AES, 
an exemption legend is included on the vessel, air, or rail manifest, 
or other commercial loading document indicating that no SED is 
attached, with a transaction identification number or unique identifier 
to identify the electronic AES record. If no manifest is required or 
the manifest is electronically filed, the paper SEDs or the 
electronically filed AES exemption legends are presented directly to 
Customs.
    Electronic filing strengthens the U.S. Government's ability to 
control the export of critical goods and technologies and weapons of 
mass destruction to prohibited and unauthorized end-users and affords 
the government the ability to significantly improve the quality, 
timeliness, and coverage of export statistics. Currently, fifty (50) 
percent of the paper SEDs submitted contain one or more errors in 
export reporting, accounting for a significant percentage of unreported 
exports. Reporting on the AES has demonstrated that, compared to paper 
filing, the error rate is reduced substantially and coverage is 
improved. Currently, the error rate for export transactions filed 
through the AES is approximately six (6) percent. At this time, the 
electronic AES filing of the required export information under Title 
13, U.S.C., Section 301, is strictly voluntary for the export of any 
item.
    On November 29, 1999, the President signed H.R. 3194, the 
Consolidated

[[Page 62912]]

Appropriations Act of 1999, into law (Pub. L. 106-113). Section 1252(a) 
of this law, amends Title 13, U.S.C., Chapter 9, section 301 to add 
subsection ``(h)'' authorizing the Secretary of Commerce to require by 
regulation, mandatory reporting requirements for filing export 
information through the AES for items identified on the CCL and USML 
that require the SED. The effective date of this amendment is 270 days 
after the Secretary of Commerce, the Secretary of the Treasury, and the 
Director of the National Institute of Standards and Technology jointly 
provide a certification to the Committee on Foreign Relations of the 
Senate and the Committee on International Relations of the U.S. House 
of Representatives that a secure AES mainframe computer system of 
Customs and the Internet-based AESDirect system of the Census Bureau is 
capable of handling the expected volume of information required to be 
filed, plus the anticipated volume from voluntary use of the AES has 
been successfully implemented and tested and is fully functional with 
respect to reporting all items on the USML, including quantities and 
destinations. The required certification report was submitted to 
Congress on June 2001. The certification report described the security 
measures in place to develop, implement, and maintain each system; 
summarized the information system assessment reports prepared by the 
General Services Administration (GSA), Office of Information Security, 
and Customs; and provided the Census Bureau's response to those 
security assessment reports listing the specific actions taken by both 
agencies to ensure the security and functionality of the system. In 
addition, the AES has received a security accreditation from Customs, 
and the AESDirect system has received a security accreditation from the 
Census Bureau. On July 26, 2001, the Census Bureau published a program 
notice in the Federal Register (66 FR 39006) announcing that the AES 
certification report was submitted to Congress.
    As authorized by Section 1252(b) of Pub. L. 106-113, the Census 
Bureau proposes to amend the FTSR to specify the mandatory provisions 
for electronically filing SEDs as well as the time and place 
requirements for filing. In addition, the Census Bureau proposes to 
amend the FTSR to specify: (1) The requirements for the filing of SEDs 
through the electronic AES and the provisions and responsibilities of 
parties exporting items identified on the CCL and USML via the AES; (2) 
the provision by the Department of Commerce for the establishment of 
on-line assistance services to be available for those individuals who 
must use the AES; (3) the provision by the Department of Commerce for 
ensuring that an individual required to use the AES is able to print 
out from the AES a validated record of the individual's submission, 
including the date of submission and a transaction number or unique 
identifier, where appropriate, for the export transaction; and (4) a 
requirement that the Department of Commerce print out and maintain on 
file a paper copy or other acceptable back-up record of the 
individual's submission at a location selected by the Secretary of 
Commerce. This rule defines the regulatory revisions that would be made 
to implement this legislation. The Census Bureau also proposes to amend 
the FTSR to specify how electronic export information is identified on 
the manifest by mode of transportation and define the carrier's 
responsibilities. In addition to proposing regulations on the 
provisions for the mandatory filing via the AES, this Notice of 
Proposed Rulemaking proposes to amend Sec. Sec.  30.63 (14)-(21) to 
collect additional data through the AES to meet the State Department's 
requirements. Finally, this notice proposes to add to the paper SED the 
requirement to enter the freight forwarder's Employer Identification 
Number (EIN) when required. This requirement applies to filers who are 
not required to file through AES and who choose to file a paper SED, 
rather than filing voluntarily through AES.
    One additional revision the Census Bureau proposes for the FTSR is 
the removal of AES Filing Option 3. Option 3 allows the filer to 
provide partial pre-departure information and complete information five 
(5) working days from the date of exportation. The Census Bureau 
identified four (4) specific reasons for making Option 3 inactive. 
Option 3 has shown to be underutilized by the AES filers. Option 3 
filers have frequently shown noncompliance with timely filing for both 
the pre-departure and post departure filings and, therefore, the data 
collected are often incomplete and inaccurate because of missing post 
departure filings. Lastly, Option 3 has shown to be a burden by 
requiring filers to transmit twice for one shipment. Of the 734,916 
total average AES shipment transactions collected per month, Option 3 
filings average only 28,739 or 3.9 percent. Additionally, of the 5,000 
plus AES filers, only 53 filers are using Option 3 and of those, only 7 
use Option 3 exclusively.
    The mandatory compliance date for these regulatory requirements 
would be 90 days after issuance of any final rule.

Program Requirements

    In order to comply with the requirements of Pub. L. 106-113, the 
Census Bureau proposes amending the appropriate sections of the FTSR to 
specify the requirements for the AES mandatory filing and the revision 
to the paper SED. For purposes of this rule, all references to filing 
mandatory AES shipments do not apply to the paper SED.
    The Census Bureau proposes revising the following sections of the 
FTSR: (a) Section 30.1 to specify the general requirements for filing 
items identified on the CCL and USML, that require the SED, via the 
AES; (b) Section 30.7 to add instructions for filing the address of the 
USPPI, the freight forwarder's EIN on the paper SED, the transportation 
reference number, instructions for filing the gross shipping weight for 
air, vessel, truck and rail modes of transportation via paper and the 
AES and delete references to ``marks and numbers''; (c) Section 30.12 
to specify the instructions regarding the time and place for presenting 
SED information; (d) Section 30.21 to specify the departing carrier's 
responsibility for filing export and manifest data via paper and the 
AES; (e) Section 30.22 to specify the responsibilities of the departing 
carrier to deliver to the Customs Port Director at the time of 
exportation, the required documentation for electronically filed items; 
(f) Section 30.23 to amend the requirements for the pipeline carrier 
when the item is identified on the CCL or USML; (g) Section 30.60 is 
amended to specify participation requirements in the AES; (h) Section 
30.61 to specify the electronic filing options required for mandatory 
filing and to delete references to Option 3; (i) Section 30.62 is 
amended to update the specifications for certification, qualification 
and standards for AES and AESDirect; (j) Section 30.63 to revise the 
requirements for entering a USPPI's profile in AES and to add data 
elements required in the AES to validate State Department's Office of 
Defense Trade Controls (ODTC) licensed or license-exempt shipments and 
to delete references to Option 3; (k) Section 30.65 to specify the 
requirements for annotating the proper exemption legends when exports 
are filed through the AES; (l) Section 30.66 to specify requirements as 
stated in Section 1252(b)(2) of Pub. L. 106-113, which pertains to 
record keeping and documentation requirements; (m) revise Appendix A to 
amend the instructions for the Letter of Intent; (n)

[[Page 62913]]

revise Appendix B to delete references to Option 3 filing and to 
reserve it for future use; and (o) revise Appendix C, Part II--Export 
Information Codes and Part III--License Codes, Bureau of Industry and 
Security Codes and Department of State Codes to specify additional 
license codes required and reference as to where to locate the 
International Traffic in Arms Regulations (ITAR) license exemption 
citations. Revise Part IV--In-Bond Code to delete codes that pertain 
only to import shipments. The collection of additional data items 
listed in Appendix C has been approved by the Office of Management and 
Budget (OMB).
    The State Department and the Department of Treasury concur with the 
provisions contained in this notice of proposed rulemaking.

Rulemaking Requirements

Administrative Procedure Act

    This proposed rule is exempt from all requirements of Section 553 
of the Administrative Procedure Act, because it deals with a foreign 
affairs function of the United States (5 U.S.C. 553(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

    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration that this rule will not have a significant impact on a 
substantial number of small entities. This action requires that 
exporters file export information through the AES for items identified 
on the CCL and USML that currently require the SED. Currently, 85 
percent of all export transactions are voluntarily filed electronically 
and the remaining 15 percent are filed on paper SEDs.
    Based on year 2000 data, the Census Bureau estimates there were 
128,000 exporters who were considered small entities under the Small 
Business Act--because they had less than 500 employees--and that filed 
one or more export shipments. Of these 128,000 exporters, 90 percent 
used a forwarding agent to file export documentation, the SED, on their 
behalf. Although, it is not possible to determine how many of the 
128,000 small businesses exported merchandise identified on the CCL or 
the USML and that are currently required to file an SED, the Census 
Bureau anticipates that the new requirement would not significantly 
affect the small businesses who must now file through AES. It is 
unlikely that the regulations that require mandatory use of AES to file 
export information would affect a substantial number of small entities 
because 90 percent of all exporters who are considered small entities 
already use a forwarding agent to file export documentation.
    In addition, those small exporters that do not currently use a 
forwarding agent to file export documentation will not be significantly 
impacted by this regulation. We can safely assume that small businesses 
involved in exporting items on the CCL and USML are electronically 
sophisticated, and would have access to a computer and the Internet. 
The Census Bureau has provided a free Internet-based system, AESDirect, 
especially for small businesses to submit their export information 
electronically. The implementation of AESDirect was the primary 
criteria required in order for Section 1252 of Pub. L. 106-113 to 
become effective. Therefore, it is not necessary for small businesses 
to purchase software for this task. Small businesses currently filing 
paper and who will now be required to file electronically will be able 
to continue to use their current forwarding agent who will be required 
to file the export information electronically on their behalf or the 
exporters can use AESDirect and file directly for themselves.

Executive Orders

    This rule has been determined to be not significant for purposes of 
Executive Order 12866. It has been determined that this rule does not 
contain policies with Federalism implications as that term is defined 
under Executive Order 13132.

Paperwork Reduction Act

    Notwithstanding any other provision 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 current, valid Office of Management and Budget 
(OMB) control number. In accordance with the PRA, 44 U.S.C., Chapter 
35, OMB approved on April 26, 2002, with control number 0607-0512, the 
collection of all information associated with the AES and SED under 
this rule. We estimate that each electronic SED will take approximately 
3 minutes to complete; we estimate that each paper SED will take 
approximately 11 minutes to complete.

List of Subjects in 15 CFR Part 30

    Economic statistics, Foreign trade, Exports, Reporting and record 
keeping 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. Revise the authority citation for part 30 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); and Department of 
Commerce Organization Order No. 35-2A, July 22, 1987, as amended.

PART 30--[AMENDED]

    2. In Part 30, revise all references to the ``Bureau of Export 
Administration'' to read the ``Bureau of Industry and Security'' and 
revise all reference to ``BXA'' to read ``BIS.''
    3. Revise the heading of Subpart A to read as follows:

Subpart A--General Requirements--U.S. Principal Party In Interest

    4. Amend Sec.  30.1 to revise all references to ``exporters or 
their authorized agents'' to read ``U.S. principal party in interest or 
the authorized agent,'' in paragraph (a), revise paragraph (b) and 
paragraph (c) to read as follows:


Sec.  30.1  General statement of requirement for Shipper's Export 
Declarations.

* * * * *
    (b) Export information that is required to be filed for items 
identified on the Commerce Control List (CCL) of the Export 
Administration Regulations (EAR) (15 CFR Supplement No. 1 to Part 774) 
or the U.S. Munitions List (USML) of the International Traffic in Arms 
Regulations (ITAR) (22 CFR, part 121) is to be filed electronically 
through AES. This requirement to file information via AES applies to 
those items that require a Shipper's Export Declaration. Exemptions 
from these requirements and exceptions to some of the provisions of 
these regulations for particular types of transactions are found in 
subparts C and D of this part.
    (c) In lieu of filing paper SEDs as provided elsewhere in this 
Section, the U.S. principal party in interest or the authorized agent 
is required to file shippers' export information, when required, 
electronically through the AES for the export of items identified on 
the CCL of the EAR (15 CFR Supp. No. 1 to part 774) or the USML of the 
ITAR (22 CFR, part 121) as provided for in

[[Page 62914]]

subpart E of this part, Electronic Filing Requirement-Shipper's Export 
Information. Information for items identified on the USML, including 
those exported under an export license exemption, must be filed 
electronically prior to export, unless exempted from the SED filing 
requirement by the State Department. For State Department USML 
shipments, refer to the International Traffic in Arms Regulations (22 
CFR, parts 120-130) for State Department requirements concerning the 
AES exemption legend and filing time requirements. The U.S. principal 
party in interest or the authorized agent filing SEDs for the export of 
items not on the CCL or the USML have the option of filing this 
information electronically as provided for in subpart E of this part.
    5. Amend Sec.  30.7 as follows:
    a. Add paragraph (d)(3).
    b. Revise the first sentence of paragraph (e).
    c. Remove and reserve paragraph (k).
    d. Revise paragraphs (j) and (o).
    e. Add a sentence after the second sentence in paragraph (l).
    The additions and revisions read as follows:


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

* * * * *
    (d) * * *
    (3) Address (number, street, city, state, Zip Code) of the USPPI. 
In all export transactions, the USPPI shall report the address location 
from which the merchandise actually starts its journey to the port of 
export. For example, a Shipper's Export Declaration covering 
merchandise laden aboard a truck at a warehouse in Georgia for 
transport to Florida for loading onto a vessel for export to a foreign 
country shall show the address of the warehouse in Georgia. If the 
USPPI does not have a facility (processing plant, warehouse or 
distribution center, retail outlet, etc.) at the location from which 
the goods began their export journey, report the USPPI address from 
which the export was directed. For shipments of multiple origins 
reported on a single SED, report the address from which the greatest 
value begins its export journey or, if such information is not known at 
the time of export, the address from which the export is directed.
    (e) Forwarding or other agent. The name, address, and Employer 
Identification Number (EIN) or Social Security Number (SSN) of the duly 
authorized forwarding or other agent (if any) of a principal party in 
interest must be recorded where required on the SED or AES record. * * 
*
    (j) Transportation Reference Number. Enter the Transportation 
Reference Number as follows:
    (1) Vessel Shipments. Report the booking number for all sea 
shipments. The booking number is the reservation number assigned by the 
carrier to hold space on the vessel for cargo being exported.
    (2) Air Shipments. Report the master air waybill number for all air 
shipments. The air waybill number is the reservation number assigned by 
the carrier to hold space on the airplane for cargo being exported.
    (3) Rail Shipments. Report the bill of lading (BOL) number for all 
rail shipments. The BOL number is the reservation number assigned by 
the carrier to hold space on the rail car for cargo being exported.
    (4) Truck Shipments. Report the Freight or Pro Bill number for all 
truck shipments. The Freight or Pro Bill number is the number assigned 
by the carrier to hold space on the truck for cargo being exported. The 
Freight or Pro Bill number correlates to a bill of lading number, air 
waybill number or Trip number for multi-modal shipments.
    (k) [Reserved]
    (l) * * * Include marks, numbers or other identification shown on 
packages and the number and kinds of packages (i.e., boxes, barrels, 
baskets, bales, etc.). * * *
    (o) Gross (shipping) weight. Enter the gross shipping weight in 
kilograms on the SED or the AES record, including the weight of 
containers, for air, vessel, truck, and rail methods of transportation. 
However, for containerized cargo in lift vans, cargo vans, or similar 
substantial outer containers, the weight of such containers should not 
be included in the gross weight of the commodities. If the gross 
shipping weight information is not available for individual Schedule B 
items because commodities covered by more than one Schedule B number 
are contained in the same shipping container, approximate shipping 
weights should be used for each Schedule B item in the container. The 
total estimated weights must equal the actual shipping weight of the 
entire container or containers and contents.
* * * * *
    6. Revise Sec.  30.12 to read as follows:


Sec.  30.12  Time and place for presenting the SED or Exemption 
Legends.

    The following conditions govern the time and place to present paper 
SEDs or the AES transaction identification number that identifies the 
electronic record. It is the duty of the principal party in interest or 
the authorized agent to deliver the required number of copies of the 
SED or the exemption legends when the cargo is tendered to the 
exporting carrier. Information on items identified on the Commerce 
Control List (CCL) of the EAR (15 CFR Supp. No. 1 to part 774) or the 
U.S. Munitions List (USML) of the International Traffic in Arms 
Regulations (ITAR) (22 CFR, Part 121) that require an SED, must be 
filed through the AES. Information for items identified on the USML, 
including those exported under an export license exemption, must be 
filed electronically prior to export, unless exempted from the SED 
filing requirements by the State Department. For State Department USML 
shipments, refer to the ITAR (22 CFR, Parts 120-130) for more specific 
requirements concerning the AES exemption legend and filing time 
requirements. Failure of the U.S. principal party in interest or the 
authorized agent of either the U.S. principal party in interest or 
foreign principal party in interest to comply with these requirements 
constitutes a violation of the provisions of these regulations, and 
renders such principal party or the authorized agent subject to the 
penalties provided for in Sec.  30.95 of this part.
    (a) Postal Exports. SEDs for exports of items being sent by mail, 
as required in Sec.  30.1 of this part, shall be presented to the 
postmaster with the packages at the time of mailing.
    (b) Pipeline Exports. SEDs for exports being sent by pipeline are 
not required to be presented prior to exportation; however, they are 
required to be filed within four (4) working days after the end of each 
calendar month. These SEDs must be filed with the Customs Port Director 
having jurisdiction for the pipeline, and the filer must deliver the 
SED in the number of copies specified in Sec.  30.5 of this part to 
cover exports to each consignee during the calendar month.
    (c) Exports by other methods of transportation. For exports sent 
other than by mail or pipeline, the required number of copies of SEDs 
as prescribed in Sec.  30.5 of this part shall be delivered to the 
exporting carrier when the cargo is tendered to the exporting carrier.
    (d) Exports Filed Via AES. For exports filed through the AES, it is 
the duty of the U.S. principal party in interest or the authorized 
agent to deliver to the exporting carrier, the AES exemption legends as 
provided for in Sec.  30.65 of this part or 22 CFR (parts 120-130) of 
the ITAR when the cargo is tendered to the exporting carrier.

[[Page 62915]]

Subpart B--General Requirements--Exporting Carriers

    7. Revise Sec.  30.21 to read as follows:


Sec.  30.21  Requirements for the filing of manifests.

    Carriers transporting merchandise via vessel, aircraft, or rail are 
required to file an outbound manifest (along with the required SEDs, 
supporting documentation and/or the exemption statement) to the Customs 
Port Director at the port of exportation. Outbound vessel manifests may 
be filed via paper or electronically through the vessel transportation 
module, a component of the AES, as provided in U.S. Customs Service 
Regulations, 19 CFR 4.63 and 4.76. SEDs may be filed via paper or 
electronically via the AES.
    (a) Paper SED--paper manifest. If filing paper SEDs and paper 
manifest, attach the copies of the SEDs to the manifest. For each item 
of cargo, the Transportation Reference Number on the SED covering the 
item must be shown on the manifest.
    (b) Paper SED--electronic manifest. If filing paper SEDs and the 
electronic outbound vessel manifest, carriers are responsible for 
submitting paper SEDs directly to the Customs Port Director.
    (c) Electronic SED--paper manifest. If filing the electronic SED 
and paper outbound manifest, carriers must annotate the outbound 
manifest with the appropriate AES exemption legends as provided in 
Sec.  30.65 of this part.
    (d) Electronic SED and manifest. If filing the SED information and 
outbound vessel manifest electronically through the AES, the carrier 
must adhere to the instructions specified in U.S. Customs Regulations, 
19 CFR, 4.76 and Sec.  30.60 of this Part and transmit the appropriate 
exemption legend as provided in Sec.  30.65 of this part.
    (e) When an SED is not required. If an item does not require a SED, 
the proper exemption legend must be annotated on the outbound manifest 
or other appropriate commercial documents as provided in Sec.  30.50 of 
this Part.
    (f) Exports to Puerto Rico. When filing paper manifests for 
shipments from the United States to Puerto Rico, the manifest shall be 
filed with the Customs Port Director where the merchandise is unladen 
in Puerto Rico.
    (1) Vessels. Vessels transporting merchandise as specified in Sec.  
30.20 of this part (except vessels exempted by paragraph (e)(4) of this 
section) shall file a complete Cargo Declaration Outward With 
Commercial Forms, Customs Form 1302-A. In addition, vessel carriers are 
required to perform the following:
    (i) Bunker fuel. Vessel manifest (including vessels carrying bunker 
fuel to be laden aboard vessels on the high seas) clearing for foreign 
countries shall show quantities and values of bunker fuel taken aboard 
at that port for fueling use of the vessel, apart from such quantities 
as may have been laden on vessels as cargo.
    (ii) Coal and Fuel Oil. The quantity of coal shall be reported in 
metric tons (2240 pounds), and the quantity of fuel oil shall be 
reported in barrels of 158.98 liters (42 gallons). Fuel oil shall be 
described in such manner as to identify diesel oil as distinguished 
from other types of fuel oil.
    (2) Aircraft. Aircraft transporting merchandise as specified in 
Sec.  30.20 of this part, shall file a complete manifest on Customs 
Form 7509, as required in U.S. Customs Regulations, 19 CFR 122.72 
through 122.76. All the cargo so laden shall be listed and shall show, 
for each item, the air waybill number or marks and numbers on packages, 
the number of packages, and the description of the goods.
    (3) Rail carriers. Rail carriers transporting merchandise as 
specified in Sec.  30.20 of this Part shall file a car manifest. Such 
manifest shall be filed with the Customs Port Director at the port of 
exportation, giving the marks and numbers, the name of the shipper or 
consignor, description of goods and the destination thereof. The 
manifest may be a waybill, or copy thereof, or a copy of the manifest 
prepared for foreign customers.
    (4) Carriers not required to file manifests. Carriers other than 
vessels, aircraft, and rail carriers, or vessels under 5 net tons 
engaged in trade with a foreign country other than by sea are not 
required to file manifests. Vessels specifically exempted from entry by 
section 441 of the Tariff Act of 1930 are exempt from filing manifests. 
Carriers exempted from filing manifests are required, upon request, to 
present to the Customs Port Director regulatory SED exemption legends 
or AES exemption legends. Failure of the carrier to do so constitutes a 
violation of the provisions of these regulations, and renders such 
carrier subject to the penalties provided for in Sec.  30.95 of this 
part.
    8. Amend Sec.  30.22 by adding a sentence to the end of paragraph 
(a), adding a sentence after the first sentence in paragraph (b), and 
adding paragraph (f) to read as follows:


Sec.  30.22  Requirements for the filing of Shipper's Export 
Declarations or AES Exemption Legends by departing carriers.

    (a) * * * When the export information for a shipment is filed via 
the AES, the carrier is responsible for presenting the proper AES 
exemption legend as provided in Sec.  30.65 of this part and the ITAR 
(22 CFR part 121) for U.S. Munitions List (USML) shipments.
    (b) * * * If the export information is filed electronically via the 
AES, the carrier is responsible for providing the Customs Port Director 
at the port of exportation with the proper AES exemption legend as 
provided in Sec.  30.65 of this part and the ITAR (22 CFR, part 121) 
for U.S. Munitions List (USML) shipments.
* * * * *
    (f) Information on items identified on the Commerce Control List of 
the EAR (15 CFR Supp. No. 1 to part 774) or the U.S. Munitions List of 
the ITAR (22 CFR part 121) that require an SED, must be filed through 
AES. The exporting carrier must not accept paper SEDs or cargo that 
does not have the appropriate AES filing exemption legend as set forth 
in Sec.  30.65 of this part and the ITAR (22 CFR part 121) for U.S. 
Munitions List (USML) shipments. Acceptance of paper SEDs or cargo 
without the appropriate exemption legend constitutes a violation of the 
provisions of these regulations, and renders such carrier subject to 
the penalties provided for in Sec.  30.95 of this part.
* * * * *
    9. Amend Sec.  30.23 by adding a sentence to the end of the 
paragraph to read as follows:


Sec.  30.23  Requirements for the filing of Shipper's Export 
Declarations by pipeline carriers.

    * * * If the merchandise transported by pipeline is identified on 
the Commerce Control List of the EAR (15 CFR Supplement No.1 to part 
774) or the U.S. Munitions List of the ITAR (22 CFR, part 121), and 
requires an SED, the data regarding the shipment must be filed 
electronically through the AES.

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

    10. Amend 30.60 to revise paragraph (a) to read as follows:


Sec.  30.60  General requirements for filing export and manifest data 
electronically using the Automated Export System.

* * * * *
    (a) Participation. Filing using the AES is mandatory for those 
items identified on the Commerce Control List (CCL) of the EAR (15 CFR 
Supplement No. 1 to part 774) or the U.S. Munitions List (USML) of the 
ITAR (22 CFR, part 121). You are only required to file information via 
AES for those items that require a Shipper's Export Declaration. All 
other participation in the AES in voluntary. Information for items

[[Page 62916]]

identified on the CCL or the USML filed via AES must be filed by the 
U.S. principal party in interest or the authorized agent. A Data Entry 
Center, service center, or port authority may transmit an AES record 
for CCL or USML items, completed by the U.S. principal party in 
interest or the authorized agent, without obtaining a power of attorney 
or written authorization. A Data Entry Center, service center, or port 
authority must have a power of attorney or written authorization from 
the U.S. principal party in interest or foreign principal party in 
interest if it completes any export information in AES for CCL or USML 
shipments. Companies may also buy a software package designed by an AES 
certified software vendor. Certified trade participants (filing agents) 
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, includeU.S. principal parties in 
interest or the authorized agents, carriers, non-vessel operating 
common carriers (NVOCC), consolidators, port authorities, software 
vendors, or service centers. Once becoming certified, an AES filer 
(filing agent) must agree to stay in complete compliance with all 
export rules and regulations.
* * * * *
    11. Amend Sec.  30.61 to revise the introductory text, remove 
paragraph (b), and redesignate paragraph (c) as paragraph (b) to read 
as follows:


Sec.  30.61  Electronic filing options.

    As an alternative to filing paper Shipper's Export Declaration 
forms (Option 1), two electronic filing options (Option 2 and 4) for 
transmitting shipper's export information are available to U.S. 
principal parties or the authorized filing agent. The electronic filing 
Option 4 takes into account that complete information concerning export 
shipments is not always available prior to exportation. Information on 
the export of items identified on the Commerce Control List of the EAR 
(15 CFR Supplement No. 1 to part 774) or the U.S. Munitions List of the 
ITAR (22 CFR, part 121) that require an SED can be filed using Options 
2 or 4. Option 4 may only be used when the appropriate licensing agency 
has granted the U.S. principal party in interest or the authorized 
agent authorization to use this option. The available AES electronic 
filing options are as follows:
* * * * *
    12. Revise Sec.  30.62 to read as follows:


Sec.  30.62  AES/AESDirect Certification, qualification, and standards.

    Certification for AES filing will apply to the U.S. principal party 
in interest, authorized forwarding agent, carrier, non-vessel operating 
common carriers (NVOCC), consolidator, port authority, software vendor, 
or service center transmitting export information electronically using 
the AES.
    (a) AES Certification Process. 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. The Customs' and Census Bureau's client 
representatives provide assistance 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 required to repeat the certification 
testing process at any time to ensure that operational standards for 
quality and volume of data are maintained. 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:
    (1) The date that filers may begin transmitting ``live'' data 
electronically using AES;
    (2) Reporting instructions; and
    (3) Examples of the required AES exemption legends.
    (b) AESDirect Certification process. Applicants interested in 
AESDirect filing must complete the online AESDirect registration form. 
After submitting the registration, an AESDirect filing account is 
created for the filing company. The applicant will receive separate e-
mails providing an AESDirect user name, temporary administrator code, 
and temporary password. The filer uses the temporary administrator code 
to create a permanent administrator code that allows the user to create 
a permanent password. The user name and new permanent password will 
allow the filer to complete a certification quiz. Upon passing the 
quiz, notification by e-mail will be sent when an account is fully 
activated for filing via AESDirect. Print the page congratulating the 
filer on passing the quiz for retention purposes. The activation notice 
will specify which AES filing status the account has been authorized.
    (c) Filing agent certification. Once an authorized filing agent has 
successfully completed the certification process, the U.S. principal 
party in interest using that agent does not need further AES 
certification. The certified filing agent must have a properly executed 
power of attorney, a written authorization from the U.S. principal 
party in interest or foreign principal party in interest, or a SED 
signed by the U.S. principal party in interest to transmit their data 
electronically using the AES. The U.S. principal party in interest or 
authorized 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 U.S. principal party in interest to file the export information on 
behalf of the U.S. principal party in interest.
    (d) 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 if the filer fails 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 Section. The Census Bureau, if 
necessary, will take appropriate action to correct the specific 
situation(s). In the case of AESDirect, when submitting a registration 
form to AESDirect, the registering company is certifying that they will 
be in compliance with all applicable laws and regulations. This 
includes complying with the following security requirements:
    (1) AESDirect user names and passwords are to be neither written 
down nor disclosed to any unauthorized user or any persons outside of 
the registered company. Filers must change passwords for security 
purposes when prompted to do so.
    (2) Registered companies are responsible for those persons having a 
user name and password. If an employee with access to the user name

[[Page 62917]]

and password leaves the company or otherwise is no longer an authorized 
user, the company must change the password and user name in the system 
and must do so immediately in order to ensure the integrity and 
confidentiality of Title 13 data.
    (3) Antivirus software must be installed and set to run 
automatically on all computers that access AESDirect. All AESDirect 
registered companies will maintain subscriptions with their antivirus 
software vendor to keep antivirus lists current. Registered companies 
are responsible for performing full scans of these systems on a regular 
basis and eliminating any virus contamination. If the registered 
company's computer system is infected with a virus, the company should 
refrain from using AESDirect until it is virus free. Failure to comply 
with these requirements will result in immediate loss of privilege to 
use AESDirect until the registered company can establish to the 
satisfaction of the Census Bureau's Foreign Trade Division Computer 
Security Officer that the company's computer systems accessing 
AESDirect is virus free.
    13. Amend Sec.  30.63 by revising paragraph (a)(1), (b)(11), 
(b)(13), and (c), and by adding paragraphs (b)(14) through (b)(21) to 
read as follows:


Sec.  30.63  Information required to be reported electronically through 
AES (data elements).

    (a) * * *
    (1) U.S. Principal Party in Interest (USPPI)/USPPI 
identification'(i) Name and address of the USPPI. For details on the 
reporting responsibilities of USPPIs, see Sec.  30.4 and Sec.  30.7 
(d)(1), (2), (3), and (e).
    (ii) USPPI's profile. The USPPI's Employer Identification Number 
(EIN) or Social Security Number (SSN) and the USPPI name, address, 
contact, and telephone number must be reported with every shipment. If 
neither EIN or SSN is available for the USPPI, as in the case of a 
foreign entity being shown as the USPPI as defined in Sec.  30.7(d), 
the border crossing number, passport number, or any other number 
assigned by Customs is required to be reported. (See Sec.  30.7(d)(2) 
for a detailed description of the EIN.)
    (b) * * *
    (11) Transportation Reference Number. Report the Transportation 
Reference Number as follows:
    (i) Vessel Shipments. Report the booking number for all sea 
shipments. The booking number is the reservation number assigned by the 
carrier to hold space on the vessel for cargo being exported.
    (ii) Air Shipments. Report the master air way bill number for all 
air shipments. The air waybill number is the reservation number 
assigned by the carrier to hold space on the airplane for cargo being 
exported.
    (iii) Rail Shipments. Report the bill of lading (BOL) number for 
all rail shipments. The BOL number is the reservation number assigned 
by the carrier to hold space on the rail car for cargo being exported.
    (iv) Truck Shipments. Report the Freight or Pro Bill number for all 
truck shipments. The Freight or Pro Bill number is the number assigned 
by the carrier to hold space on the truck for cargo being exported. The 
Freight or Pro Bill number correlates to a bill of lading number, air 
waybill number or Trip number for multi-modal shipments.
* * * * *
    (13) Filing option indicator. Report the 1-character filing option 
that indicates Option 2 or 4 filing.
    (14) Office of Defense Trade Controls (ODTC) Registration Number. 
The number assigned by ODTC to persons who are required to register per 
Part 122 of the International Traffic in Arms Regulations (ITAR) (22 
CFR parts 120-130), that has an authorization from ODTC (license or 
exemption) to export the article.
    (15) ODTC Significant Military Equipment (SME) Indicator. A term 
used to designate articles on the United States Munitions List for 
which special export controls are warranted because of their capacity 
for substantial military utility or capability. See section 120.7 of 
the International Traffic in Arms Regulations (ITAR) 22 CFR parts 120-
130, for a definition of SME and Section 121.1 for items designated as 
SME articles.
    (16) ODTC Eligible Party Certification Indicator. Certification by 
the U.S. exporter that the exporter is an eligible party to participate 
in defense trade. See ITAR 22 CFR, Sec.  120.1(c). This certification 
is required only when an exemption is claimed.
    (17) ODTC USML Category Code. The United States Munitions List 
category of the article being exported (22 CFR part 121).
    (18) ODTC Unit of Measure (ULM). This unit of measure is the ULM 
covering the article being shipped as described on the export 
authorization or declared under an ITAR exemption.
    (19) ODTC Quantity. This quantity is for the article being shipped. 
The quantity is the total number of units that corresponds to the ODTC 
Unit of Measure Code.
    (20) ODTC Exemption Number. The exemption number is the specific 
citation from the Code of Federal Regulations (22 CFR parts 120--130) 
that exempts the shipment from the requirements for a license or other 
written authorization from ODTC.
    (21) ODTC Export License Line Number. The line number of the State 
Department export license that corresponds to the article being 
exported.
    (c) Seal Number. Optional. Report the security seal number of the 
seal placed on the equipment.
    14. Revise Sec.  30.65 to read as follows:


Sec.  30.65  Annotating the proper exemption legends for shipments 
transmitted electronically.

    (a) Items identified on the U.S. Munitions List (USML), must meet 
the predeparture reporting requirements identified in the ITAR (22 CFR 
Parts 120-130) for the State Department requirements concerning AES 
exemption legends and time and place of filing.
    (b) For shipments other than USML, the U.S. principal party in 
interest or the authorized agent is responsible for annotating the 
proper exemption legend on the bill of lading, air waybill, or other 
commercial loading document for presentation to the carrier prior to 
export. The carrier is responsible for providing the proper exemption 
legend to the Customs Port Director at the port of exportation as 
stated in Sec.  30.21 of this Part. The exemption legend will identify 
that the shipment information has been accepted as transmitted and 
electronically filed using the AES. The exemption legend must appear on 
the bill of lading, air waybill, or other commercial loading 
documentation and the manifest and must be clearly visible and include 
either of the following:
    (1) For shipments other than USML, the exemption legend will 
include the statement, ``NO SED REQUIRED--AES,'' followed by the 
filer's identification number and a unique shipment reference number 
referred to as the ``XTN'' or the returned confirmation number provided 
by AES when the transmission is accepted, referred to as the ``ITN.'' 
Items on the USML must meet the pre-departure reporting requirements in 
the ITAR (22 CFR parts 102-130).
    (2) For U.S. principal parties in interest who have been approved 
to participate in Filing Option 4, the exemption statement, ``NO SED 
REQUIRED--AES4,'' followed by the U.S. principal party's in interest 
employer identification number followed by the filer's identification 
number if other than the U.S. principal party in interest files the 
data.

[[Page 62918]]

    15. Revise Sec.  30.66 to read as follows:


Sec.  30.66  Support, documentation and record keeping requirements.

    (a) Support. [email protected] is an online service that allows 
electronic filers to seek assistance pertaining to AES. AESDirect is 
supported by a help desk available twelve (12) hours a day, seven (7) 
days a week.
    (b) Documentation. Filers using the AESDirect are able to print out 
from the AESDirect a validated record of the filer's submission. Filers 
using AES are able to print records containing date of submission and a 
unique identification number for each AES record submitted. The Census 
Bureau will maintain an electronic file of data sent through AES to 
ensure that an individual is able to receive from the system, a 
validated record of the submission. The U.S. principal party in 
interest or the authorized agent of the U.S. principal party in 
interest or foreign principal party in interest may request a copy of 
the electronic record submitted as provided for in Sec.  30.91 of this 
part.
    (c) Recordkeeping. All parties to the export transaction (owners 
and operators of the exporting carriers and U.S. principal party and/or 
the authorized agents) must retain documents or records pertaining to 
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 as provided in the applicable 
agency's regulations. Acceptance of the documents by Customs or the 
Census Bureau does not relieve the U.S. principal party in interest or 
the authorized agent from providing complete and accurate information 
after the fact. The Department of State or other regulatory agencies 
may have additional record keeping requirements for exports.
    16. Amend Appendix A as follows:
    a. Add an introductory paragraph;
    b. Revise items A.5, A.6, and A.10;
    c. Remove item A.6(i) and redesignate items A.6(ii) and A.6(iii) as 
A.6(i) and A.6(ii), respectively;
    d. Revise paragraphs B and C;
    e. Add paragraph D.
    The additions and revisions read as follows:

Appendix A to Part 30-Format For Letter of Intent, Automated Export 
System (AES)

    The first requirement for participation in AES is a Letter of 
Intent. 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 performance 
requirements and operations standards. Once the letter of intent is 
received, a U.S. Customs Client Representative and U.S. Census 
Bureau Client Representative will be assigned to the company. Census 
will forward additional information to prepare the company for 
participation in AES.
    A. Letters of Intent should be on company letterhead and must 
include:
* * * * *
    5. Computer Site Location Address, City, State, Postal Code 
(Where transmissions will be initiated)
    6. Type of Business--U.S. Principal Party in Interest, Freight 
Forwarder/Broker, Carrier, NVOCC, Port Authority, Software Vendor, 
Service Center, etc. (Indicate all that apply)
    (i) Freight Forwarders/Brokers, indicate the number of U.S. 
principal parties in interest for whom you file export information 
(SEDs)
    (ii) U.S. Principal Parties in Interest, indicate whether you 
are applying for AES Option 2 or Option 4
    * * *
    10. Filer Code--EIN, SSN or SCAC (Indicate all that apply)
* * * * *
    B. The following self-certification statement, signed by an 
officer of the company, must be included in your letter of intent: 
``We (COMPANY NAME) certify that all statements made and all 
information provided herein are true and correct. I understand that 
civil and criminal penalties, including forfeiture and sale, may be 
imposed for making false or fraudulent statements herein, failing to 
provide the requested information or for violation of U.S. laws on 
exportation (13 U.S.C. Sec. 305; 22 U.S.C. Sec. 401; 18 U.S.C. Sec. 
1001; 50 U.S.C. App. 2410.''
    C. The AES Option 4 privilege allows a U.S. principal party in 
interest to send no data prior to exportation and complete data 
within 10 working days after exportation. Participants will be 
reviewed by several government agencies prior to acceptance into the 
Option 4 program.
    D. Send AES or Option 4 Letter of Intent to : Chief, Foreign 
Trade Division, U.S. Census Bureau, 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

    17. [Removed] Remove and reserve Appendix B.

    Dated: October 4, 2002.
Charles Louis Kincannon,
Director, Bureau of the Census.

[FR Doc. 02-25667 Filed 10-8-02; 8:45 am]
BILLING CODE 3510-07-P