A Quick Guide to the Foreign Trade Regulations – Video #2

[ Music ] Congratulations, you have just
made an international sale! For many of you this is
your first time exporting, so you may not be familiar
with the filing requirements of the Automated Export System, which I will refer
to as the AES. But you may be wondering, when
are you required to file an AES? Or what constitutes
an export shipment? Or better yet, who's responsible
for doing the filing? Well my name is Kiesha
Pickeral and I work in the Foreign Trade Division
of the U.S. Census Bureau. And over the next few minutes
I'm gonna share some information that will help answer
those questions. Ultimately, I want to help
make your export transaction as smooth as possible,
so let's get started. Now the first step
in determining if you must file an AES
record is by looking at where your shipment is going.

You are required to file and
AES for all physical goods that are shipped from the United
States to foreign countries, between the United States and
Puerto Rico, from Puerto Rico to foreign countries,
from Puerto Rico to the U.S. Virgin Islands,
and from the United States to the U.S. Virgin Islands. So if your product is not
going to any of the locations that I just mentioned, then you're not required
to file an AES. However, if your products are
then there's another step you must be aware of. The second step in determining if you must file an AES
record is by determining if your order meets the
Census Bureaus definition of a shipment. The Census Bureau defines a
shipment as merchandise shipped from one U.S. Principle Party
and Interest, which I will refer to as the USPPI, going
to one consignee, leaving on the same conveyance,
whether by flight, vessel, truck, train, or mail,
going to the same country, on the same day, and is valued
at over $2,500 per Schedule B or when a license is required.

I know I've just given you
a mouthful of information, but think of it in
this simple way. A shipment is goods from one
U.S. company or individual, to one foreign company
or individual, leaving on one carrier, going
to one country, on one day, and is valued at over
$2,500 per Schedule B, or when a license is required. Now that we've defined
a shipment, you may be wondering,
what is a USPPI? Let me briefly explain. The USPPI is the
party in the U.S. who is receiving the
primary monetary benefit from the export transaction. So really we're looking at who in the U.S. is getting
paid by the foreign buyer. The USPPI can be a U.S.
seller, a U.S. manufacturer, an order party, or
even a foreign entity if that party is
physically here in the U.S. when the goods are
purchased or obtained. Now let's go through an example. Let's say you, the U.S.
seller, receives two orders from the same foreign buyer
who is located in Japan. On Monday he orders
$1,500 of microscopes, and on Tuesday he orders
an additional $3,500 of the same microscopes.

You ship both orders on
Tuesday to your customer by air. Since you are the USPPI and
are shipping both orders to the same foreign party,
going out on the same flight, to the same country, on the same
day, and the goods are valued at over $2,500 per
Schedule B number, this is considered one shipment. The value of the
shipment is $5,000 and the information pertaining to those transactions will be
reported on one AES record. Now let me throw a twist in it. Let's say you use
the same scenario, but the goods are shipped
out on different days. Order number one
ships out on Monday and order number two on Tuesday. In this scenario only number
two requires an AES filing, because it is over $2,500. Order number one
would not be filed, because it is less than $2,500. Now that we've determined
that you have file an AES, you must also be aware of
the specific time frames that you must adhere to.

The required time frames are
based on mode of transportation. For goods that are not licensed by the State Department you must
file your export information in AES 24 hours prior to loading
your cargo onto the vessel. If the mode of transportation
is truck, the export information must
be filed one hour prior to the truck arriving
at the U.S. Border. For cargo leaving by air, the information must be
filed two hours prior to the scheduled
departure of the aircraft. Cargo shipped by rail must
be filed two hours prior to the time the train
arrives at the U.S. Border.

And shipments by mail must be
filed two hours prior to export. My colleagues and I are here to help make your
exporting transaction as smooth as possible. So if you have any questions
about this presentation or any part of the Foreign Trade
Regulations, give us a call at 1-800-549-0595
and select option 3. Or email us at
[email protected].

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