1. AES NOW and 2014 Presented for Export Expo 2013 December 10, 2013 by Harvey Waite, OCEANAIR Inc

2. EF - AES filings REFERENCE NO MAWBUS PORT OF EXPORT ETDEXPORT DATE AES FILING DATE AES FILING TIME AES FILING STATUS AES ITNAES SHIPPER SUPPLIED ITN EXDEC COMM VALUE 1318978-01160-54129563JFK11/23/2013 11/22/201308:33 PMACCEPTEDX20131122084442 51,837 1318978-02160-54129563JFK11/23/2013 11/21/201306:32 PMACCEPTEDX20131121067798 17,920 1318979-01932-40377094BOS11/23/2013 11/22/201305:44 PMACCEPTEDX20131122069604 13,140 1318979-02932-40377094BOS11/23/2013 NOT SUBMITTED 2,383 1318981932-40377131BOS11/23/2013 NOT SUBMITTED 1319013-01932-40377164BOS11/23/2013 11/22/201308:39 PMACCEPTEDX20131122084848 176,010 1319013-02932-40377164BOS11/23/2013 11/22/201308:39 PMACCEPTEDX20131122084849 45,096 1319013-03932-40377164BOS11/23/2013 11/22/201308:39 PMACCEPTEDX20131122084850 9,729 1319013-04932-40377164BOS11/23/2013 NOT SUBMITTED 1,958 1319038-01006-90957996BOS11/23/2013 11/21/201312:05 PMVERIFYX20131121021427 3,116/19,011 1319040-01932-40377201BOS11/23/2013 11/22/201312:00 PMACCEPTEDX20131122021145 5,624 1319040-02932-40377201BOS11/23/2013 NOT SUBMITTED 2,079 1319041-01297-84356016JFK11/23/2013 NOT SUBMITTED 1,260 1319045297-25656540 11/23/2013 NOT SUBMITTED 0 1319046297-25700765 11/23/2013 NOT SUBMITTED 0 1319047297-25700743 11/23/2013 NOT SUBMITTED 0 1319054-01724-19221031BOS11/23/2013 11/22/201303:53 PMACCEPTEDX20131122054357 10,124 1319056-01160-54129655JFK11/23/2013 11/22/201302:31 PMACCEPTEDX20131122027161 61,737 1319057-01176-58363793BOS11/23/2013 NOT SUBMITTED 700 1319058-01172-89185526JFK11/23/2013 NOT SUBMITTED 1,790 1319060-01932-40377223BOS11/23/2013 NOT SUBMITTED 100 1319063-01932-40377234BOS11/24/2013 11/22/201308:35 PMACCEPTEDX20131122083754 3,589 1319063-02932-40377234BOS11/24/2013 11/22/201311:15 PMACCEPTEDX20131122090386 9,996 1319048-01297-84356020JFK11/24/2013 11/22/201305:29 PMACCEPTEDX20131122067824 3,073 1319048-02297-84356020JFK11/24/2013 11/23/201312:19 AMACCEPTEDX20131123000255 46,612 1319049-01125-70194316BOS11/24/2013 NOT SUBMITTED 10,802 1319044-01006-90958000BOS11/24/2013 NOT SUBMITTED X201311220552090 1319039-01160-54129633ORD11/25/2013 11/21/201301:34 PMACCEPTEDX20131121031723 9,372 1319051-01172-89185530JFK11/25/2013 NOT SUBMITTED 841

3. WHAT IS NEW WITH AES (AUTOMATED EXPORT SYSTEM) First remember what is old: AES (Automated Export System) is a computer program that collects your Electronic Export Information (EEI). There are more than forty Data Elements that may be submitted to Customs and the Census Bureau. A Data Element may be U.S Principal in Interest (USPPI), Ultimate Consignee. Port of Export, License Code/License Exemption Code, Value, Export Control Classification Number (ECCN), etc, etc. Most Data Elements are mandatory and some are optional. All Data Elements MUST be correct! There are limited opportunities to amend data after its original filing but it is still considered a violation. A simple clerical error can cost you a $10,000.00 penalty! They ARE being issued! Your shipment data is immediately sent to at least seven Government Agencies and is available to at least fourteen Other Government Agencies (OGAs).

4. Now review what is new: (Effective April 5, 2014 as published in the Federal Register March 14, 2013: Significant Changes will be: Ultimate Consignee must be declared as one of four types: Direct Consumer, Government Entity, Reseller or Other/Unknown at the time of export. Temporary shipments Exemption removed, i.e. Carnet shipments International Waters have several changes, please consult regulations License Value, must now also report actual license value in addition to amount shipped There are over twenty-four changes to the AES Requirements which may be reviewed in detail at the following sites: Federal Register http://www.census.gov/foreign- trade/regulations/regs/regulations20130314-federalregister05435.pdfhttp://www.census.gov/foreign- trade/regulations/regs/regulations20130314-federalregister05435.pdf Census Bureau Summary: http://www.cbp.gov/linkhandler/cgov/trade/basic_trade/export_docs/changes_foreign_trer.ctt/ changes http://www.cbp.gov/linkhandler/cgov/trade/basic_trade/export_docs/changes_foreign_trer.ctt/ changes If you have questions, please do not hesitate to contact Paul D’Eon pdeon@oceanair.net or Harvey Waite hwaite@oceanair.net of OCEANAIR’s Compliance Group.pdeon@oceanair.nethwaite@oceanair.net

5. . C-TPAT (Customs-Trade Partnership Against Terrorism) CBP (Customs and Border Protection division of Department of Homeland Security) Is moving to expand the program and provide additional incentives to encourage participation Presented at Export Expo 2013 by Harvey Waite, OCEANAIR Inc.

6. Several Benefits of Joining the C-TPAT Program: 1.Reduced shipment inspections by CBP 2.Costs savings associated with reduced inspections 3.Increased predictability of Supply Chain 4.Competitive advantage 5.Often a business partner requirement 6.Possible integration of C-TPAT and Importer Self-Assessment Your C-TPAT participation will give your foreign Authorized Economic Operator (AEO) importer customer benefits listed above

7. EXPORT advantages of C-TPAT: 1.Currently applies to only those countries in the European Union* and Japan. 2.You and your overseas partner will have lower automated risk assessment scores when determining the need for cargo inspection, other factors being equal. 3.New Zealand, Canada, Jordan, Korea and Taiwan have signed Mutual Recognition Agreements (MRA) but do not yet have operational instructions. 4.Singapore, Israel, China, Mexico and Switzerland have Mutual Recognition Projects in place to move forward with the U.S to develop Mutual Recognition Agreements. 5.If your overseas buyer is an Authorized Economic Operator in the EU or Japan, they are designated as a C-TPAT compliant company and a secondary inspection by CBP may not be required.

8. There is a labor cost for members of the C-TPAT, however, with additional incentives being developed consistently, the costs are becoming relatively less and less. This reinforces the significant and ever increasing importance of CTPAT to both your import and export trade compliance and supply chain security programs. If you have any questions, please do not hesitate to contact OCEANAIR’s Compliance Division; William Connolly or Harvey Waite. Phone 781-2862700 E-mail bconnolly@oceanair.net or hwaite@oceanair.net CBP C-TPAT website: http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/ *European Union: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdombconnolly@oceanair.nethwaite@oceanair.net http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat/