[Federal Register Volume 68, Number 204 (Wednesday, October 22, 2003)]
[Proposed Rules]
[Pages 60301-60302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26576]


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DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket Number 031009254-3254-01]
RIN 0607-AA38


Mandatory Automated Export System (AES) Filing for all Shipments 
Requiring Shipper's Export Declaration Information

AGENCY: Bureau of the Census, Commerce.

ACTION: Advance notice of proposed rulemaking and request for comments.

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SUMMARY: The U.S. Census Bureau (Census Bureau) is issuing this advance 
notice of proposed rulemaking to announce and to solicit comments on 
the Census Bureau's intent to propose a rule that would make mandatory 
the filing of all export shipments requiring Shipper's Export 
Declaration (SED) information on the Automated Export System (AES)/
AESDirect. The Census Bureau also requests comment on its intention, 
subject to agreement with the Bureau of Customs and Border Protection 
(CBP) and other federal agencies participating in the AES, to modify 
the AES Option 4 post-departure filing program. The Census Bureau 
welcomes any comments or concerns regarding the impact of these 
intended changes on the export community.

DATES: Submit written comments regarding this document on or before 
November 21, 2003.

ADDRESSES: Direct all written comments to the Director, U.S. Census 
Bureau, Room 2049, Federal Building 3, Washington, DC 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, DC 20233-6700, (301) 763-2255, by fax (301) 457-2645, or by 
e-mail c.harvey.monk,[email protected].

SUPPLEMENTARY INFORMATION: The AES is the electronic method to file the 
information required on the paper SED and the ocean manifest 
information directly with the CBP. AESDirect is the Census Bureau's 
free Internet-based system for filing SED information on the AES. 
Further references to the AES cover both the AES and AESDirect.
    Filing on the AES will become mandatory for all export shipments 
required to be filed under Title 13, United States Code (U.S.C.), 
Chapter 9. On September 30, 2002, the President signed H.R. 1646 into 
law (Public Law 107-228). The short title to this law is the Foreign 
Relations Authorization Act, Fiscal Year 2003. Division B is the 
Security Assistance Act of 2002. Section 1404--Improvements to the 
Automated Export System--amends Title 13, U.S.C., Chapter 9.
    The AES mandatory electronic filing requirement and penalty 
authority are set forth in Public Law 107-228. This law directs the 
Secretary of Commerce, with the concurrence of the Secretary of State 
and the Secretary of Treasury, to publish regulations in the Federal 
Register requiring, upon the effective date of these regulations, that 
all persons who are required to file export information under Title 13, 
U.S.C., Chapter 9, file such information through the AES. The filing of 
SED information on paper will be eliminated (Option 1). This law also 
imposes penalties for delayed filings, for failure to file, filing of 
false or misleading information and for furthering other unlawful 
activities. A full description of Public Law 107-228, Section 1404, can 
be found at no cost on the Library of Congress Web site at http://www.thomas.gov.
    In the future, the Census Bureau will issue proposed and final 
rules in the Federal Register, providing for implementation of the AES 
mandatory filing requirement and allowing the public to comment. The 
Census Bureau also will issue regulations regarding imposition of the 
penalties, both civil and criminal, for the late filing, failure to 
file, and false filing of export information and furtherance of other 
illegal activities through the AES. These regulations will provide for

[[Page 60302]]

administrative proceedings for imposition of a civil penalty for 
violation(s) of Public Law 107-228. The authority to enforce penalty 
provisions of Public Law 107-228 will be delegated to the Office of 
Export Enforcement of the Bureau of Industry and Security, U.S. 
Department of Commerce, and/or the U.S. Department of Homeland 
Security.
    In addition, the Census Bureau will address other issues in the 
forthcoming rulemaking process discussed above. Because the changes 
discussed above will result in a major revision of the Foreign Trade 
Statistics Regulations, we plan to use this as an opportunity to 
improve the regulations' clarity and readability. It is possible that 
we could make some additional changes to the rules as part of this 
process.
    An additional purpose of this notice is to announce and request 
comment on the Census Bureau's intention, subject to agreement with the 
CBP and other federal agencies participating in the AES, to modify the 
AES Option 4 post-departure filing program. Currently, Option 4 is a 
method of post-departure filing that considers the trade community's 
business practices and also provides for an approval process that 
ensures that only the most compliant companies are approved for this 
method of filing. With Option 4 privileges, shipment information can be 
transmitted to the AES no later than ten working days from the date of 
exportation. (Refer to Foreign Trade Statistics Regulations, title 15, 
Code of Federal Regulations, part 30, sections 30.61 and 30.62, for 
information on AES filing Option 4.)
    The Census Bureau also has had numerous discussions over the past 
several months with the trade community and several federal government 
agencies regarding a proposal to develop and implement the AES Filer 
Licensing and Permit Program. After consultation both internally and 
externally, the Census Bureau has decided not to move forward with the 
development and implementation of an AES filer licensing program 
concurrently with requiring full mandatory electronic filing of export 
information through the AES. However, the Census Bureau will continue 
to explore the need for an AES filer licensing program.

Executive Orders

    This program notice has been determined to be not significant for 
purposes of Executive Order (E.O.) 12866. This notice does not contain 
policies with Federalism implications sufficient to warrant preparation 
of a Federalism assessment under E.O. 13132.

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 current valid Office of Management and Budget 
(OMB) control number. The forthcoming rules will contain a collection 
of information subject to the requirements of the Paperwork Reduction 
Act (44 U.S.C. 3501 et seq.). In accordance with the PRA, this 
collection of information will be submitted to OMB for approval.

Program Change

    The actual effective date of full AES mandatory filing requirements 
and implementation of the penalty provision regarding mandatory filing 
are dependent upon the publication and implementation of final 
regulatory amendments by the Census Bureau. Proposed and final rules 
defining the regulatory revisions that will be made to implement the 
legislation will be published in the Federal Register, as discussed 
above.

    Dated: October 16, 2003.
Charles Louis Kincannon,
Director, Bureau of the Census.
[FR Doc. 03-26576 Filed 10-21-03; 8:45 am]
BILLING CODE 3510-07-P