Mandatory Electronic Filing Now in Effect

As part of new Foreign Trade Regulations (FTR), effective July 2, 2008, the Census Bureau is requiring mandatory filing of export information through the Automated Export System (AES) or through the AESDirect for all shipments where a Shipper's Export Declaration (SED) is required. After a 90-day implementation period, which ends September 30, 2008, exporters must file their export information electronically through the AES or AESDirect.

These new regulations have tougher penalty provisions that affect everyone in the export process. Penalties may be imposed per violation of the FTR from $1,100 to $10,000 both civil and criminal, for the delayed filing, failure to file, false filing of export information, and/or using the AES to further any illegal activity.

The U.S. Department of Homeland Security's U.S. Customs and Border Protection (CBP) timed the implementation of its new regulations pertaining to pre-departure electronic filing of export cargo information to coincide with the new Census Bureau rules. The new timeframe for providing the filing information to exporting carriers or pipeline operators will be:

1. Vessel Cargo = 24 hours prior to loading
2. Air Cargo = 2 Hours Prior to Scheduled Departure
3. Truck Cargo = 1 Hour Prior to Arrival at U.S. Border
4. Rail Cargo = 2 Hours Prior to Arrival at U.S. Border
5. Pipeline Exports = Within 4 Days of End of Month
6. Mail and Other = 2 Hours Prior to Exportation
7. Post-Departure = No later than 10 Days from Export

It is important that exporters understand these new requirements so that they avoid the increased penalties and seizure of commodities. The Census Bureau has instructed filers of export information to make every effort to submit these data via the AES or AESDirect to eliminate the use of paper SEDs immediately. During the implementation phase, the Census Bureau will use "informed compliance" to outreach to filers identified in violation of the FTR. Anyone submitting paper after September 30, 2008 will be in violation of the FTR and subject to penalties.

Information on AES Compliance Seminars and AESPcLink Certification Workshops is available on-line at www.census.gov/trade. AESDirect is a free Internet-based application for companies that register on-line at www.aesdirect.gov.

-- Stanley Pfrang