U S Census Bureau Foreign Trade Statistics Regulations

U. S. Census Bureau Foreign Trade Statistics Regulations 15 CFR Part 30 * * U. S. Principal Party in Interest and Forwarding Agent Responsibilities, Power of Attorney, Mail Exports, Intangible Software Transmissions U. S. International Trade Statistics Foreign Trade Division July 11, 2000

U. S. Census Bureau Trade Comments On Proposed Rule • • Specify that SED/AES record is for statistical purposes. Clarify forwarding agent documentation sharing responsibilities in a routed transaction. Clarify U. S. principal party in interest liability concerns in a routed export transaction. Add manufacturer/seller block/field to SED/AES. Confidentiality of U. S. principal party in interest EIN. Impact on consolidated/containerized shipments. Clarify conformity of documents provisions. 2000

U. S. Census Bureau Foreign Trade Statistics Regulations Export Administration Regulations Objectives • FTSR -- U. S. Census Bureau - 15 CFR Part 30 • Accurate Trade Statistics • Provide provisions for completing the SED or AES record. • EAR - - Bureau of Export Administration 15 CFR Parts 730 - 774 • Export Control • Simplify Export Clearance 2000

U. S. Census Bureau Exporter (U. S. Principal Party in Interest) Export Transaction • • • Prepare the SED/AES record OR authorize a forwarding or other agent to prepare and file the SED/AES record, with a power of attorney, written authorization, or signing the authorization on the paper SED. If authorizing a forwarding or other agent…. provide information to such agent for completing the SED/AES record. Maintain documentation to support the information reported on the SED/AES record. 2000

U. S. Census Bureau EXPORTER (U. S. Principal Party in Interest) Routed Export Transaction • Provide basic commodity information to the forwarding or other agent for completing the SED/AES record, including name, EIN, Schedule B no. , and value, excluding ultimate consignee. • Maintain documentation to support information provided to the forwarding or other agent. • [NOTE: In a routed export transaction, the U. S. Principal Party in Interest is not required to provide the forwarding or other agent with a power of attorney or written authorization]. 2000

U. S. Census Bureau FORWARDING AGENT RESPONSIBILITIES Export Transaction • • Prepare the SED/AES record based on information received from the exporter (U. S. principal party in interest) or other parties to the transaction. Obtain a power of attorney, written authorization, or signed authorization on the paper SED from a principal party in interest. Provide the exporter (U. S. principal party in interest) with a copy of the export information filed in the form of a completed SED, electronic facsimile, or in a manner prescribed by the exporter (U. S. principal party in interest). Maintain documentation to support information reported on the SED/AES record. 2000

U. S. Census Bureau FORWARDING AGENT RESPONSIBILITIES Routed Export Transaction • • Prepare, sign, and file the SED based on information obtained from the exporter (U. S. principal party in interest) and/or other parties to the transaction. Obtain a power of attorney or written authorization from the foreign principal party in interest to act on its behalf in the export transaction. Maintain documentation to support information reported on the SED/AES. Upon request, provide the U. S. principal party in interest with documentation that the information provided by the U. S. principal party in interest was accurately reported on the SED/AES record. 2000

U. S. Census Bureau WHO GOES IN BLOCK 1 a & 2 ON THE SED • The U. S. Principal Party in Interest - The person in the United States that receives the primary benefit monetary or otherwise of the export transaction. • GENERALLY THAT PERSON CAN BE THE: • U. S. Seller (wholesaler/distributor) of the merchandise for export. • U. S. Manufacturer if selling the merchandise for export. • U. S. Order Party - Party who directly negotiated between the U. S. seller and foreign buyer and received the order for the export of the merchandise. • Foreign Entity if in the U. S. when items are purchased or obtained for export. 2000

U. S. Census Bureau U. S. PRINCIPAL PARTY IN INTEREST Employer Identification Number (EIN) • • • Section 30. 91 of the FTSR prohibits disclosure of SED/AES information. Forwarding or other agents are prohibited from releasing copies of SED/AES information to anyone for unauthorized or unofficial purposes. EIN has been a SED regulatory reporting requirement since 1980. EIN is used on numerous business and financial documents. EIN on SED or AES record is strictly confidential. 2000

U. S. Census Bureau CONSOLIDATED/CONTAINERIZED EXPORTS • • • A shipment is defined as merchandise shipped from one U. S. principal party in interest, to one ultimate consignee, on the same vessel/flight, to the same country, on the same day. Current regulations require a separate SED/AES record for each shipment in the container. The forwarding agent or the consolidator cannot be listed as the U. S. principal party in interest on the SED or AES record. 2000

U. S. Census Bureau CONFORMITY OF DOCUMENTS FTSR & EAR • • • With the revision to the SED/AES record to list the U. S. Principal Party in Interest, there is no longer a conformity of documents issue. There is no uniform and consistent conformity of documentation for all export documents due to the varying requirements of different Federal government agencies and private organizations. The EAR specifies its conformity of documents requirements for the information on the license application. There is no specific conformity of documents requirement in the FTSR. Customs and BXA officials are aware of the document conformity requirements. 2000

U. S. Census Bureau ADDITIONAL AMENDMENTS • • • Include provisions on electronic transfer of intangible software and technology not subject to the FTSR. Amend provision on submitting corrections to mail exports. Raise SED/AES mail exemption limit from $500 to $2500. Amend the provision for reporting value to specify that the value on the SED/AES is the USPPI’s price to the foreign principal party in interest. Amends and updates certain SED exemption requirements to be consistent with the EAR. Clarifies provisions for providing import verification information to the Census Bureau. 2000

U. S. Census Bureau REVISED SECTIONS OF THE FTSR • • § 30. 1 - Clarify provisions electronic transfer of software and technology not subject to FTSR. § 30. 4 - Clarify that the SED/AES is only used for statistical purposes; the Exporter fields on the SED/AES are revised to read, U. S. Principal Party In Interest; clarifies when a foreign entity is listed as a U. S. principal party in interest; clarifies the documentation and documentation sharing requirements or all parties in a transaction. § 30. 7 - Clarify USPPI and forwarding agent reporting responsibilities. Clarify reporting of value by the USPPI as the USPPI’s price to the foreign principal party in interest. § 30. 16 - Clarify reporting corrections for mail exports. § 30. 54 - The Special exemptions for mail shipments is removed. With value limitation at $2500 mail exports are the same as all other exports and this section is no longer necessary. § 30. 55 - Included SED/AES exemptions for software, technical data, mass market software, exports through Canada. § 30. 70 - Provision to provide import verification information to the Census Bureau. 2000

U. S. Census Bureau For Additional Information Contact: Regulations, Outreach, & Education Branch Voice: 301 -457 -2238 FAX: 301 -457 -3765 Internet: www. census. gov/foreign-trade/www Mail: U. S. Census Bureau Foreign Trade Division Room 3125 -3 Suitland Road Washington, DC 20233 2000