Foreign Trade Division Trade Promotion Coordinating Committee 1 September 2012

Today’s Topics Foreign Trade Regulations (FTR) Electronic Export Information (EEI) Impact to the Trade Community Filing Requirements Filing Time Frames Outreach Efforts 2

Foreign Trade Regulations (FTR) Purpose and Why it Matters Facilitate Export Activities Balance of Trade Statistics Data Used to Identify New Trade Opportunities Ensure Fair Trade Opportunities for American Businesses Trade Data Influences U.S. Foreign and Domestic Policy 3

Current AES Statistics 94% pre departure shipments 6% post departure shipments 48, 200 AES filers 2,301 unresolved fatal errors (Jan-March 2012) 4

When is an EEI Record Required? (FTR 30.2) 5 An EEI record must be filed for exports of physical goods when shipped as follows: U.S.  foreign countries U.S.  U.S. Virgin Islands Puerto Rico  foreign countries Puerto Rico  U.S. Virgin Islands U.S.  Puerto Rico Licensable commodities

6 What is a Shipment? (FTR 30.1)  ONE USPPI shipping their merchandise, to  ONE foreign consignee, on  ONE carrier moving the product out of the U.S., on  ONE day, and  Valued over $2,500 per Schedule B number or license is required 1 Tip: The ONE Rule

U.S. Principal Party in Interest (FTR 30.3) The U.S. Principal Party in Interest is the: U.S. Person or Entity Primary Benefactor (Monetary, or Otherwise) Foreign Entity (if in the U.S. at time goods are purchased or obtained for export) Generally that Person can be the: U.S. Seller: (Wholesaler or Distributor) U.S. Manufacturer U.S. Order Party U.S. Customs Broker 7

8 USML Shipments [FTR 30.4 (b)(1)] & [22 CFR (b)] Non- USML Shipments [FTR 30.4 (b)(2)] 24 hours prior to vessel departure 24 hours prior to loading 8 hours prior to truck departure 1 hour prior to truck arriving at U.S. border 8 hours prior to scheduled departure time 2 hours prior to scheduled departure time 24 hours prior to train departure 2 hours prior to train arriving at U.S. border 2 hours prior to export Filing Time Frames

Shipments Exempt from Filing (FTR )  Country of ultimate destination is Canada [30.36(a)]  $2,500 or less per Schedule B number [30.37(a)]  Tools of Trade: hand carried, personal or company use, not for sale, not shipped as cargo, returned within 1 year [30.37(b)]  Intangible exports of software & technology [30.37(f)]  Commodities consigned to the U.S. Armed Services (30.39)  Shipments to U.S. government agencies (30.40) 9

Record Retention (FTR 30.10) Census: Retain documents verifying the shipment for 5 years from the date of export Other Government Agencies: Adhere to requirements of other agencies with export control requirements 10

Implement Best Practices 11  Perform cross training  Implement mentoring program  Know your U.S. authorized or forwarding agent  Develop training manual  Attend seminars & workshops

Foreign Trade Division Outreach AES Compliance Seminars  Also offered in Spanish Webinars  Also offered in Spanish AES Compliance Review Program Company Training Port Visits 12

Automated Export System Branch (Option 1) Commodity Analysis Branch (Option 2) Regulations, Outreach and Education Branch (Option 3) Secure Fax: Website: Foreign Trade Division