[Federal Register: July 17, 2003 (Volume 68, Number 137)]
[Rules and Regulations]               
[Page 42533-42543]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17jy03-19]                         


[[Page 42533]]

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Part III





Department of Commerce





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Bureau of the Census



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15 CFR Part 30



Automated Export System Mandatory Filing for Items on the Commerce 
Control List (CCL) and the United States Munitions List (USML) that 
Currently Require a Shipper's Export Declaration (SED); Final Rule


[[Page 42534]]


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DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket Number 010622161-3092-03]
RIN 0607-AA34

 
Automated Export System Mandatory Filing for Items on the 
Commerce Control List (CCL) and the United States Munitions List (USML) 
That Currently Require a Shipper's Export Declaration (SED)

AGENCY: Bureau of the Census, Commerce.

ACTION: Final rule.

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SUMMARY: The U.S. Census Bureau (Census Bureau) is amending the Foreign 
Trade Statistics Regulations (FTSR) to incorporate requirements for the 
mandatory Automated Export System (AES)/AESDirect filing for items 
identified on the Department of Commerce's Commerce Control List (CCL) 
and the Department of State's United States Munitions List (USML). The 
AES is the electronic method to file the paper Shipper's Export 
Declaration (SED) and the ocean manifest information directly with the 
Bureau of Customs and Border Protection (CBP). AESDirect is the Census 
Bureau's free Internet-based system for filing SED information with the 
CBP's AES. Further references to AES covers both AES and AESDirect. You 
are only required to file information via AES for those CCL and USML 
items that require an SED. This rule will, among other things, provide 
provisions for AES mandatory filing in the FTSR.

DATES: Effective Date: This rule is effective August 18, 2003.
    Implementation Date: The Census Bureau will implement provisions of 
this rule on October 18, 2003. This will allow all affected entities 
sufficient time to come into compliance with this rule.

FOR FURTHER INFORMATION CONTACT: C. Harvey Monk, Jr., Chief, Foreign 
Trade Division, U.S. Census Bureau, Room 2104, Federal Building 3, 
Washington, DC 20233-6700, (301) 763-2255, by fax (301) 457-2645, or by 
e-mail: c.harvey.monk.jr@census.gov.
SUPPLEMENTARY INFORMATION:

Background

    The Census Bureau is responsible for collecting, compiling, and 
publishing trade statistics for the United States under the provisions 
of Title 13, United States Code (U.S.C.), chapter 9, section 301. The 
paper SED and the AES are the primary media used for collecting such 
trade data, and the information contained therein is used by the Census 
Bureau for statistical purposes only. This information is exempt from 
public disclosure under the provisions of Title 13, U.S.C., chapter 9, 
section 301(g). The SED and AES records also are used for export 
control purposes under Title 50, U.S.C., and Title 22, U.S.C., to 
detect and prevent the export of certain critical technology and 
commodities to unauthorized destinations or end users and to ensure 
compliance with export control laws and regulations under the authority 
of the Department of State.
    Under the current rules and regulations, export information is 
compiled from both paper and electronic transactions filed by the 
export community with CBP and the Census Bureau. The AES is an 
electronic method by which the U.S. principal party in interest (USPPI) 
or the authorized agent can transmit the required export information. 
For purposes of completing the SED or AES record, the USPPI is the 
person in the United States that receives the primary benefit, monetary 
or otherwise, from the export transaction. The authorized agent is the 
person in the United States who is authorized by power of attorney or 
written authorization by the USPPI or the foreign principal party in 
interest to prepare and file the SED or AES record. A paper SED or the 
electronic equivalent AES record is required, with certain exceptions, 
for exports of merchandise valued at more than $2,500 from the United 
States, Puerto Rico, and the U.S. Virgin Islands to foreign countries 
or exports between the U.S. Virgin Islands and Puerto Rico and the 
United States. The SED or AES record also is required for all exports 
under a Bureau of Industry and Security (BIS) or Department of State 
(State Department) export license or State Department license 
exemption, regardless of value, unless exempted from the requirement 
for an SED or AES record by the State Department (see 15 CFR, part 30, 
Sec.  30.55(h)(2) and 22 CFR parts 120-130).
    For export data filed via a paper SED, the USPPI or freight 
forwarder must present the SED to the exporting carrier when the cargo 
is tendered to the carrier. The vessel, air, or rail carrier must 
present the manifest and supporting documentation to the CBP Port 
Director at the port of export within four days after departure if a 
bond is posted with CBP. However, this rule does not apply to SEDs or 
AES shipments subject to BIS or State Department licenses or State 
Department license exemptions. If the information is filed in the AES, 
an exemption legend is included on the vessel, air, or rail manifest, 
or other commercial loading documents indicating that no SED is 
attached, with a transaction identification number or unique identifier 
to identify the electronic AES record. If no manifest is required or 
the manifest is electronically filed, the paper SEDs or the 
electronically filed AES exemption legends are presented directly to 
CBP.
    Electronic filing strengthens the U.S. Government's ability to 
control the export of critical goods and technologies and weapons of 
mass destruction to prohibited and unauthorized end-users and affords 
the government the ability to significantly improve the quality, 
timeliness, and coverage of export statistics. Currently, fifty (50) 
percent of the paper SEDs submitted contain one or more errors in 
export reporting, accounting for a significant percentage of unreported 
exports. Reporting on the AES has demonstrated that, compared to paper 
filing, the error rate is reduced substantially and coverage is 
improved. Currently, the error rate for export transactions filed 
through the AES is approximately six (6) percent. At this time, the 
electronic AES filing of the required export information under Title 
13, U.S.C., Section 301, is strictly voluntary for the export of most 
items.
    On November 29, 1999, the President signed H.R. 3194, the 
Consolidated Appropriations Act of 1999, into law (Pub. L. 106-113). 
Section 1252(a) of this law, amends Title 13, U.S.C., chapter 9, 
section 301, to add subsection ``(h)'' authorizing the Secretary of 
Commerce to require by regulation, mandatory reporting requirements for 
filing export information through the AES for items identified on the 
CCL and USML that require the SED. The effective date of this amendment 
was 270 days after the Secretary of Commerce, the Secretary of the 
Treasury, and the Director of the National Institute of Standards and 
Technology jointly provided a certification to the Committee on Foreign 
Relations of the Senate and the Committee on International Relations of 
the U.S. House of Representatives that a secure AES mainframe computer 
system of CBP and the Internet-based AESDirect system of the Census 
Bureau was capable of handling the expected volume of information 
required to be filed, plus the anticipated volume from voluntary use of 
the AES, and AES had been successfully implemented and tested and was 
fully functional with respect to reporting all items on the CCL and 
USML, including quantities and destinations. The required certification 
report was submitted to Congress in June 2001. The certification report

[[Page 42535]]

described the security measures in place to develop, implement, and 
maintain each system; summarized the information system assessment 
reports prepared by the General Services Administration, Office of 
Information Security, and CBP; and provided the Census Bureau's 
response to those security assessment reports listing the specific 
actions taken by both agencies to ensure the security and functionality 
of the system. In addition, the AES received a security accreditation 
from CBP, and the AESDirect system received a security accreditation 
from the Census Bureau. On July 26, 2001, the Census Bureau published a 
program notice in the Federal Register (66 FR 39006) announcing that 
the AES certification report was submitted to Congress, and that the 
Census Bureau would be issuing rules, and allowing the public to 
comment, on this subject.
    As authorized by section 1252(b) of Pub. L. 106-113, the Census 
Bureau is amending the FTSR to specify the mandatory provisions for 
electronically filing SEDs as well as the time and place requirements 
for filing. In addition, the Census Bureau is amending the FTSR to 
specify: (1) The requirements for the filing of SEDs through the 
electronic AES and the provisions and responsibilities of parties 
exporting items identified on the CCL and USML via the AES; (2) the 
provision by the Department of Commerce for the establishment of on-
line assistance services to be available for those individuals who must 
use the AES; (3) the provision by the Department of Commerce for 
ensuring that an individual required to use the AES is able to print 
out from the AES a validated record of the individual's submission, 
including the date of submission and a transaction number or unique 
identifier, where appropriate, for the export transaction; and (4) a 
requirement that the Department of Commerce print out and maintain on 
file a paper copy or other acceptable back-up record of the 
individual's submission at a location selected by the Secretary of 
Commerce.
    The Census Bureau is amending the FTSR to specify how electronic 
export information is identified on the manifest by mode of 
transportation and defining the carrier's responsibilities. In addition 
to amending regulations to provide for the mandatory filing via the 
AES, this rule amends Sec. Sec.  30.63 (14)-(21) to collect additional 
data through the AES to meet the State Department's requirements and 
will assist the Department of State to implement the Congressional 
requirement in section 38(i) of the Arms Export Control Act, Title 22 
U.S.C., section 2778(i) for U.S. persons to provide to the Department 
of State a report containing all shipment information of items 
controlled under the International Traffic in Arms Regulations (ITAR), 
22 CFR parts 120-130. Finally, this rule adds to the paper SED the 
requirement to enter the freight forwarder's Employer Identification 
Number (EIN) when required. This requirement applies to filers who are 
not required to file through AES and who choose to file a paper SED, 
rather than filing voluntarily through AES.
    One additional revision the Census Bureau is making to the FTSR is 
the removal of AES Filing Option 3. Option 3 allowed the filer to 
provide partial predeparture information and complete information five 
(5) working days from the date of exportation. The Census Bureau 
identified four (4) specific reasons for eliminating Option 3. Option 3 
has shown to be underutilized by the AES filers. Of the 734,916 total 
average AES shipment transactions collected per month, Option 3 filings 
averaged only 28,739 or 3.9 percent. Additionally, of the 5,000 plus 
AES filers, only 53 filers used Option 3 and of those, only seven (7) 
used Option 3 exclusively. The data collected were often incomplete and 
inaccurate because of missing postdeparture filings. Lastly, Option 3 
has shown to be a burden by requiring filers to transmit twice for one 
shipment.
    The Census Bureau published a proposed rulemaking and request for 
comments in the Federal Register on October 9, 2002 (67 FR 62911). As 
previously noted, the Census Bureau also published a program notice on 
the subject (66 FR 39006) on July 26, 2001. A summary of comments 
received from the export trade community and the Census Bureau's 
responses to the comments are presented in this rule. The effective 
date of this rule is August 18, 2003. The Census Bureau will implement 
provisions of this rule on October 18, 2003. This will allow all 
affected entities sufficient time to come into compliance with this 
rule.

Response to Comments

    The Census Bureau received 14 letters commenting on the Notice of 
Proposed Rulemaking (NPR) published in the Federal Register on October 
9, 2002 (67 FR 62911). Nine of the letters contained comments on two or 
more issues. The Census Bureau sent letters to all commentors 
addressing their concerns. After consideration of the comments 
received, the Census Bureau revised certain provisions in the final 
rule to address the concerns of the commentors and to clarify the 
requirements of the rule. The major concerns were as follows:
    1. Clarify the future status of postdeparture filing utilizing AES 
Option 4 or another form of postdeparture reporting. There is concern 
among commentors that the Census Bureau will discontinue allowing 
postdeparture filing for data on export transactions reported through 
the AES. This is not the case. The Census Bureau does not intend to 
eliminate Option 4 postdeparture filing. We intend to eliminate only 
Option 3 filing, a hybrid pre- and postdeparture filing procedure. For 
reasons given in the NPR, AES Option 3 is underutilized by AES filers, 
and its use has resulted in incomplete and inaccurate data filing. Only 
seven (7) companies, representing less than four (4) percent of monthly 
export trade data transactions, used Option 3 exclusively to file data 
on export shipments. By requiring filers to transmit partial 
predeparture information initially and complete information after 
exportation, Option 3 has been a burden to AES filers.
    Other commentors are in favor of eliminating Option 3 filing only 
if the Census Bureau makes a commitment to maintaining Option 4 or some 
form of postdeparture filing. Several commentors requested that the 
Census Bureau, in its final decision, emphasize the importance of 
retaining Option 4 filing in light of various governmental initiatives 
that are intended to capture information on export shipments as early 
as possible.
    The Census Bureau supports postdeparture filing through AES because 
it recognizes that some trade community business practices may preclude 
predeparture filings. AES Option 4 filing considers the trade 
community's business practices and also provides for an approval 
process that ensures that only the most compliant companies are 
approved. While it is possible that Option 4 filing may undergo 
modifications due to current or future Census Bureau or other 
government agency initiatives, the Census Bureau will continue to work 
closely with its counterparts in other agencies to make available to 
the exporting community some form of postdeparture filing. In the case 
of ITAR controlled exports, the Department of State has determined that 
because of law enforcement as well as national security concerns, it 
will no longer authorize the use of AES Option 4.
    2. Amend the proposed rule to address time and place for presenting 
the exemption statements to carriers. Commentors are concerned that 
USPPIs and authorized freight forwarders may

[[Page 42536]]

not always be able to present exemption information to exporting 
carriers at the time cargo is first tendered to the exporting carrier, 
especially when the carrier assumes responsibility for cargo at an 
inland port and provides intermodal transportation to the port of 
exportation. In some situations, the USPPI or forwarding agent may not 
have produced export documentation on which exemption information is 
required to be shown, at the time goods are tendered to the first 
carrier.
    The Census Bureau agrees that the USPPI or its authorized agent 
does not always have exemption information available to provide to the 
carrier when cargo is initially tendered to a carrier for export. This 
is especially true in cases where the USPPI or agent arranges 
transportation that involves more than one carrier. The intent of Sec.  
30.12(d) of the FTSR is to require AES filers to deliver exemption 
information to the exporting carrier. To clarify the intent of this 
section, the Census Bureau is amending Sec.  30.12(d) to emphasize that 
the USPPI or forwarding agent is required to deliver the AES exemption 
legend to the exporting carrier, that is, the carrier that will 
transport the goods to the foreign country.
    3. Clarify filing responsibilities of the USPPI and its authorized 
freight forwarder. Commentors are concerned about the documentation 
responsibilities of the USPPI and the authorized forwarding agent in 
reporting information on export transactions. Responsibilities of the 
USPPI and authorized agent, including those involving routed export 
transactions, are specifically described in sections 30.4(b) and (c) of 
the FTSR. The Census Bureau does not intend to imply that any provision 
of section 30.4 is being revised by amending any other section of Title 
15, Code of Federal Regulations, part 30 (the FTSR).
    Two commentors proposed the institution of a joint filing system to 
be used by the USPPI and the authorized agent as a means to reduce 
liability on the parties and to alleviate the dependency of each party 
on the other to file complete data on export transactions. The Census 
Bureau considered establishing a method of filing export information 
that would allow the USPPI and the authorized forwarding agent to 
submit information jointly to CBP via the AES. However, the Census 
Bureau did not go forward with this filing option because of the cost 
of implementation and the potential risks associated with matching 
information from two different parties.
    4. Explain the need for reporting additional address information 
for the USPPI. Several commentors expressed concern that by amending 
Sec.  30.7(d)(3) of the FTSR, the Census Bureau is requiring additional 
address information from the USPPI. Some commentors indicated that the 
new address requirement would be difficult to comply with because of 
the lack of information on the origin of shipments for multiunit 
establishments. Many commentors also questioned the reason for the 
amendment. In amending Sec.  30.7(d)(3) of the FTSR, the Census Bureau 
is not requiring an additional address for the USPPI, but is merely 
defining the address required for the USPPI as the location where the 
goods began their journey to the port of export. For shipments handled 
by freight forwarders, it is the responsibility of the USPPI to provide 
forwarding agents addresses that reflect the origin of goods for export 
reporting purposes.
    The address should correspond to the two-digit state code reported 
for the state of origin. However, the Census Bureau requires the entire 
address, including ZIP Code, to develop and compile substate data or 
metropolitan area export data to replace the discontinued exporter 
location series. Substate data are used by local and State governments, 
among other parties, to gauge the impact of trade legislation on the 
economy of local jurisdictions as well as to monitor local area trade 
development programs. Since about 90 percent of AES transactions 
currently have transaction-level addresses reported, the Census Bureau 
does not expect to add significantly to the reporting burden of AES 
filers with this requirement.
    5. Amend the proposed rule requiring reporting of the 
Transportation Reference Number (TRN) to reflect current trade 
practices. Commentors are concerned that filers of export data will not 
have the information to comply, in a timely manner, with the 
requirements of Sec. Sec.  30.7(j) and 30.63(b)(11) of the FTSR, 
specifically for shipments sent by air and truck. After consideration 
of comments received concerning reporting of the TRN, the Census Bureau 
has determined that documents specified in the NPR, namely, the master 
air waybill for air shipments, the bill of lading for rail shipments, 
and the Freight or Pro Bill for truck shipments, are not usually 
available to the USPPI or the authorized agent at the time cargo is 
given to air, rail, and truck carriers. Currently, the TRN is a 
conditional field in the AES except for shipments made by vessel where 
the information is required. The Census Bureau has made the TRN an 
optional reporting requirement for other than vessel shipments filed 
through the AES or via the SED. The Census Bureau amended language 
contained in Sec. Sec.  30.7(j) and 30.63 (c) of the FTSR to reflect 
these revisions.
    6. Clarify the responsibilities of exporting carriers relative to 
presentation of the exemption legend to the CBP. Several commentors 
indicated concern about the proposed language in FTSR Sec. Sec.  30.21, 
30.22, and 30.65 regarding requirements for annotating and transmitting 
exemption statements for export shipments and filing of manifests by 
exporting carriers. Some commentors think that the language could imply 
responsibility on the part of exporting carriers for properly 
annotating the exemption legend. This is not the case. The USPPI or the 
authorized agent is responsible for properly annotating the exemption 
legend.
    Further, there is concern that references to carriers exempt from 
filing manifests as detailed in Sec.  30.21(f) of the regulations do 
not include carriers for all modes of transportation. It is not the 
Census Bureau's intent to institute a change in carrier responsibility 
with regard to the annotation and presentation of proof of filing 
citations or exemption legends for shipments filed through the AES or 
shipments for which SEDs are not required. When required, it is the 
responsibility of the USPPI or the authorized agent to provide the 
exemption legend or proof of filing citation on bills of lading, air 
waybills or other commercial loading documents for presentation to the 
carrier prior to export.
    The Census Bureau does not propose to hold exporting carriers 
liable for the content of exemption legends presented by USPPIs or 
authorized agents for transactions reported through the AES or by way 
of the paper SED. The Census Bureau is revising the language contained 
in Sec.  30.22(a) and (b) and Sec.  30.65(b) of the FTSR to clarify the 
responsibility of exporting carriers with regard to the content and 
submission of exemption legends. The Census Bureau also is revising the 
language contained in Sec.  30.21(4) to include references to all modes 
of transportation exempt from filing manifests with the CBP.
    Also, commentors expressed concern about the lack of availability 
of the International Traffic in Arms Regulations (ITAR) applicable to 
shipments filed through the AES and mentioned in these and other 
sections of the FTSR. The State Department will issue a final rule 
concerning time of filing and proof of filing citations prior to the 
Census Bureau's implementation of the final rule.

[[Page 42537]]

    7. Clarify the role of Data Entry Centers (DECs) in filing for CCL 
and USML export shipments. Some commentors are concerned about the role 
of DECs in handling shipments on the CCL and USML subsequent to 
issuance of this rule. Currently, DECs may transmit through the AES 
export information submitted by a USPPI or authorized agent, including 
items identified on the CCL or USML lists. With issuance of this rule, 
only the USPPI or its authorized agent may file information on CCL or 
USML shipments through AES. Companies acting as DECs may transmit CCL 
and USML information through the AES if: (1) The reports are prepared 
by the USPPI or its authorized agent, or (2) the DEC becomes an 
authorized agent for the USPPI, with a properly executed power of 
attorney. The DEC cannot be the filer. The decision to transmit or not 
to transmit information on CCL or USML shipments through the AES is 
made solely by the DEC. Only companies acting as authorized agents of 
the USPPI with a properly executed power of attorney or written 
authorization are permitted to modify or amend information provided by 
the USPPI either before or following transmission through the AES.

Changes to the Proposed Rule as a Result of Public Comments

    The changes made in this final rule to what has been included in 
the proposed rule are as follows:
    (1) Section 30.7(j) is amended to require reporting of the TRN 
optional for shipments exported by modes of transportation other than 
vessel. This change is in response to concerns addressed in Item No. 5 
of the ``Response to Comments'' section.
    (2) Section 30.12(d) is amended to specify the proper carrier to 
which the USPPI or the authorized agent is to present the exemption 
legend or proof of filing citation for shipments filed through the AES. 
This change is in response to concerns addressed in Item No. 2 in the 
``Response to Comments'' section.
    (3) Section 30.21(4) is amended to clarify the types of carriers 
excluded from filing manifests with CBP and to stipulate the conditions 
under which operators of these carriers are required to present 
exemption legends or filing citations to CBP. This change is in 
response to concerns addressed in Item No. 6 in the ``Response to 
Comments'' section.
    (4) Sections 30.22(a) and (b) are amended to clarify language 
describing the exporting carrier's responsibility for transmitting the 
exemption legend or proof of filing citation to CBP when an SED is not 
required because data on an export transaction are filed through the 
AES. This change is in response to concerns addressed in Item No. 6 in 
the ``Response to Comments'' section.
    (5) Section 30.22(f) is amended to limit the application of 
paragraph (f) to items identified on the Department of Commerce's CCL 
and the State Department's USML. This change is in response to concerns 
addressed in Item No. 6 in the ``Response to Comments'' section.
    (6) Section 30.63(c) is amended by making reporting of the TRN 
optional for other than vessel shipments in Sec.  30.63(c). This change 
is in response to concerns addressed in Item No. 5 in the ``Response to 
Comments'' section.
    (7) Section 30.65(b) is amended to clarify the exporting carrier's 
responsibility for transmitting the exemption legend or proof of filing 
citation to CBP for data on export transactions filed through the AES. 
This change is in response to concerns addressed in Item No. 6 in the 
``Response to Comments'' section.

Program Requirements

    In order to comply with the requirements of Pub. L. 106-113, 
requiring AES mandatory filing for items on the Department of 
Commerce's CCL and the State Department's USML, the Census Bureau is 
amending the appropriate sections of the FTSR to specify the 
requirements for the AES mandatory filing and the revision to the paper 
SED. For purposes of this rule, all references to filing mandatory AES 
shipments are limited to those kinds of shipments and do not apply to 
shipments that may be reported on the paper SED.
    The Census Bureau is revising the following sections of the FTSR:
    [sbull] Section 30.1 to specify the general requirements for 
filing, via the AES, items identified on the CCL and USML that would 
otherwise require the filing of an SED;
    [sbull] Section 30.7 to add instructions for filing the address of 
the USPPI, the freight forwarder's EIN on the paper SED, the 
transportation reference number, instructions for filing the gross 
shipping weight for air, vessel, truck, and rail modes of 
transportation via paper and the AES and delete references to ``marks 
and numbers'';
    [sbull] Section 30.12 to specify the instructions regarding the 
time and place for presenting SED information;
    [sbull] Section 30.21 to specify the departing carrier's 
responsibility for filing export and manifest data via paper and/or the 
AES, as appropriate;
    [sbull] Section 30.22 to specify the responsibilities of the 
departing carrier to deliver to the CBP Port Director, at the time of 
exportation, the required documentation for electronically filed items;
    [sbull] Section 30.23 to amend the requirements for the pipeline 
carrier when the item is identified on the CCL or USML;
    [sbull] Section 30.60 is amended to specify participation 
requirements in the AES;
    [sbull] Section 30.61 to specify the electronic filing options 
required for mandatory filing and to delete references to Option 3;
    [sbull] Section 30.62 is amended to update the specifications for 
certification, qualification, and standards for AES and AES Direct;
    [sbull] Section 30.63 to revise the requirements for entering a 
USPPI's profile in AES and to add data elements required in the AES to 
validate State Department's Directorate of Defense Trade Controls 
(DDTC) licensed or license-exempt shipments and to remove references to 
Option 3;
    [sbull] Section 30.65 to specify the requirements for annotating 
the proper exemption legends when exports are filed through the AES;
    [sbull] Section 30.66 to specify requirements as stated in section 
1252(b)(2) of Pub. L. 106-113, which pertains to recordkeeping and 
documentation requirements;
    [sbull] Revise Appendix A to amend the instructions for the Letter 
of Intent;
    [sbull] Revise Appendix B to delete references to Option 3 filing 
and to reserve it for future use; and
    [sbull] Revise Appendix C to clarify export information codes, 
license codes, and in-bond codes.
    The collection of additional data items listed in Appendix C has 
been approved by the Office of Management and Budget (OMB). In 
addition, the Census Bureau is also making the minor revisions 
discussed previously in the section entitled, ``Changes to the Proposed 
Rule as a Result of Public Comments.''
    The State Department and the Department of Homeland Security concur 
with the provisions contained in this rule.

Rulemaking Requirements

Regulatory Flexibility Act

    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration that this rule will not have a significant impact on a 
substantial number of small entities. The factual basis for this

[[Page 42538]]

certification was published in the proposed rule. No comments were 
received regarding the economic impact of this rule. As a result, no 
final regulatory flexibility analysis was prepared.

Executive Orders

    This rule has been determined to be not significant for purposes of 
Executive Order 12866. It has been determined that this rule does not 
contain policies with Federalism implications as that term is defined 
under Executive Order 13132.

Paperwork Reduction Act

    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall a person be subject to a penalty for failure 
to comply with, a collection of information subject to the requirements 
of the Paperwork Reduction Act (PRA), unless that collection of 
information displays a current, valid OMB control number. In accordance 
with the PRA, 44 U.S.C., Chapter 35, OMB approved on April 26, 2002, 
with control number 0607-0512, the collection of all information 
associated with the AES and SED under this rule. We estimate that each 
electronic SED will take approximately 3 minutes to complete; we 
estimate that each paper SED will take approximately 11 minutes to 
complete.

List of Subjects in 15 CFR Part 30

    Economic statistics, Foreign trade, Exports, Reporting and 
recordkeeping requirements.

0
For the reasons set out in the preamble, 15 CFR part 30 is amended as 
follows:

PART 30--FOREIGN TRADE STATISTICS

0
1. Revise the authority citation for part 30 to read as follows:

    Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization Plan 
No. 5 of 1950 (3 CFR 1949-1953 Comp., 1004); and Department of 
Commerce Organization Order No. 35-2A, July 22, 1987, as amended.


0
2. In Part 30, revise all references to the ``Bureau of Export 
Administration'' to read the ``Bureau of Industry and Security,'' and 
revise all reference to ``BXA'' to read ``BIS.'' Also, revise all 
references to the ``U.S. Customs Service'' to read the ``Bureau of 
Customs and Border Protection,'' and revise all references to 
``Customs'' to read ``CBP.''

0
3. Revise the heading of subpart A to read as follows:

Subpart A--General Requirements--U.S. Principal Party In Interest 
(USPPI)

0
4. Amend Sec.  30.1 as follows:
0
a. Revise all references to ``exporters or their agents'' to read 
``U.S. principal party in interest or the authorized agent'' in 
paragraph (a).
0
b. Revise paragraph (b).
0
c. Revise paragraph (c).
    The revisions read as follows:


Sec.  30.1  General Statement of requirement for Shipper's Export 
Declarations (SEDs).

* * * * *
    (b) SEDs shall be filed for merchandise moving as described above 
regardless of the method of transportation. Instructions for the filing 
of SEDs for vessels, aircraft, railway cars, etc., when sold foreign 
appear in Sec.  30.33. Export information that is required to be filed 
for items identified on the Commerce Control List (CCL) of the Export 
Administration Regulations (EAR) (15 CFR Supplement No. 1 to part 774) 
or the State Department's U.S. Munitions List (USML) of the 
International Traffic in Arms Regulations (ITAR) (22 CFR, part 121) is 
to be filed electronically through AES. This requirement to file 
information via AES applies to those items that would otherwise require 
the filing of an SED. Exemptions from these requirements and exceptions 
to some of the provisions of these regulations for particular types of 
transactions are found in subparts C and D of this part.
    (c) In lieu of filing paper SEDs as provided elsewhere in this 
Section, when an SED would be required, the USPPI or the authorized 
agent is required to file shippers' export information, when required, 
electronically through the AES for the export of items identified on 
the CCL of the EAR (15 CFR Supp. No. 1 to Part 774) or the USML of the 
ITAR (22 CFR, part 121) as provided for in subpart E of this part, 
Electronic Filing Requirement-Shipper's Export Information. Information 
for items identified on the USML, including those exported under an 
export license exemption, must be filed electronically prior to export, 
unless exempted from the SED filing requirement by the State 
Department. For USML shipments, refer to the ITAR (22 CFR, parts 120-
130) for requirements concerning the AES proof of filing citation and 
filing time requirements. The USPPI or the authorized agent filing SEDs 
for the export of items not on the CCL or the USML has the option of 
filing this information electronically as provided for in subpart E of 
this part.

0
5. Amend Section 30.7 as follows:
0
a. Add paragraph (d)(3).
0
b. Revise the first sentence of paragraph (e).
0
c. Revise paragraph (j).
0
d. Remove and reserve paragraph (k).
0
e. Add a sentence after the second sentence in paragraph (l).
0
f. Revise paragraph (o).
    The additions and revisions read as follows:


Sec.  30.7  Information required on Shipper's Export Declaration.

* * * * *
    (d) * * *
    (3) Address (number, street, city, state, Zip Code) of the USPPI. 
In all export transactions, the USPPI shall report the address location 
from which the merchandise actually starts its journey to the port of 
export. For example, an SED covering merchandise laden aboard a truck 
at a warehouse in Georgia for transport to Florida for loading onto a 
vessel for export to a foreign country shall show the address of the 
warehouse in Georgia. If the USPPI does not have a facility (processing 
plant, warehouse, distribution center, or retail outlet, etc.) at the 
location from which the goods began their export journey, report the 
USPPI address from which the export was directed. For shipments of 
multiple origins reported on a single SED, report the address from 
which the greatest value begins its export journey or, if such 
information is not known at the time of export, the address from which 
the export is directed.
    (e) Forwarding or other agent. The name, address, and EIN or Social 
Security Number (SSN) of the duly authorized forwarding or other agent 
(if any) of a principal party in interest must be recorded where 
required on the SED or AES record. * * *
* * * * *
    (j) Transportation Reference Number. Enter the Transportation 
Reference Number as follows:
    (1) Vessel Shipments. Report the booking number for all sea 
shipments. The booking number is the reservation number assigned by the 
carrier to hold space on the vessel for cargo being exported. This 
number is required to be reported for all vessel shipments.
    (2 ) Air Shipments. Report the master air waybill number for all 
air shipments. The air waybill number is the reservation number 
assigned by the carrier to hold space on the airplane for cargo being 
exported. The reporting of this number is optional.
    (3) Rail Shipments. Report the bill of lading (BOL) number for all 
rail shipments. The BOL number is the reservation number assigned by 
the carrier to hold space on the rail car for cargo being exported. The 
reporting of this number is optional.

[[Page 42539]]

    (4) Truck Shipments. Report the Freight or Pro Bill number for all 
truck shipments. The Freight or Pro Bill number is the number assigned 
by the carrier to hold space on the truck for cargo being exported. The 
Freight or Pro Bill number correlates to a bill of lading number, air 
waybill number or Trip number for multi-modal shipments. The reporting 
of this number is optional.
    (k) [Reserved]
    (l) * * * Include marks, numbers, or other identification shown on 
packages and the number and kinds of packages (i.e., boxes, barrels, 
baskets, bales, etc.). * * *
    (o) Gross (shipping) weight. Enter the gross shipping weight in 
kilograms on the SED or the AES record, including the weight of 
containers, for air, vessel, truck, and rail methods of transportation. 
However, for containerized cargo in lift vans, cargo vans, or similar 
substantial outer containers, the weight of such containers should not 
be included in the gross weight of the commodities. If the gross 
shipping weight information is not available for individual Schedule B 
items because commodities covered by more than one Schedule B number 
are contained in the same shipping container, approximate shipping 
weights should be used for each Schedule B item in the container. The 
total estimated weights must equal the actual shipping weight of the 
entire container or containers and contents.
* * * * *

0
6. Revise Sec.  30.12 to read as follows:


Sec.  30.12  Time and Place for Presenting the SED, Exemption Legends 
or Proof of Filing Citations.

    The following conditions govern the time and place to present paper 
SEDs, exemption legends, or proof of filing citations. It is the duty 
of the USPPI or the authorized agent to deliver the required number of 
copies of the SED, the exemption legends, or the proof of filing 
citations when the cargo is tendered to the exporting carrier. 
Information on items identified on the CCL of the EAR (15 CFR Supp. No. 
1 to Part 774) or the USML of the ITAR (22 CFR part 121) that would 
otherwise require the filing of an SED, must be filed through the AES. 
Information for items identified on the USML, including those exported 
under an export license exemption, must be filed electronically prior 
to export, unless exempted from the SED filing requirements by the 
State Department. For State Department USML shipments, refer to the 
ITAR (22 CFR parts 120-130) for more specific requirements concerning 
the AES proof of filing citation and filing time. Failure of the USPPI 
or the authorized agent of either the USPPI or foreign principal party 
in interest to comply with these requirements constitutes a violation 
of the provisions of these regulations, and renders such principal 
party or the authorized agent subject to the penalties provided for in 
Sec.  30.95 of this part.
    (a) Postal Exports. SEDs for exports of items being sent by mail, 
as required in Sec.  30.1 of this part, shall be presented to the 
postmaster with the packages at the time of mailing.
    (b) Pipeline Exports. SEDs for exports being sent by pipeline are 
not required to be presented prior to exportation; however, they are 
required to be filed within four (4) working days after the end of each 
calendar month. These SEDs must be filed with the CBP Port Director 
having jurisdiction for the pipeline, and the filer must deliver the 
SED in the number of copies specified in Sec.  30.5 of this part to 
cover exports to each consignee during the calendar month.
    (c) Exports by other methods of transportation. For exports sent 
other than by mail or pipeline, the required number of copies of SEDs 
as prescribed in Sec.  30.5 of this part shall be delivered to the 
exporting carrier when the cargo is tendered to the exporting carrier.
    (d) Exports Filed Via AES. For exports filed through the AES, it is 
the duty of the USPPI or the authorized agent to deliver to the 
exporting carrier, the AES exemption legends as provided for in Sec.  
30.65 of this part or the AES proof of filing citation as provided for 
in 22 CFR (parts 120-130) of the ITAR when the cargo is tendered to the 
exporting carrier for transport to the foreign country.

Subpart B--General Requirements--Exporting Carriers

0
7. Revise Sec.  30.21 to read as follows:


Sec.  30.21  Requirements for the filing of manifests.

    Carriers transporting merchandise via vessel, aircraft, or rail are 
required to file an outbound manifest (along with the required SEDs, 
supporting documentation and/or the exemption statement or the proof of 
filing citation) to the CBP Port Director at the port of exportation. 
Outbound vessel manifests may be filed via paper or electronically 
through the vessel transportation module, a component of the AES, as 
provided in CBP Regulations, 19 CFR, Sec. Sec.  4.63 and 4.76. SEDs may 
be filed via paper or electronically via the AES.
    (a) Paper SED--paper manifest. If filing paper SEDs and paper 
manifest, attach the copies of the SEDs to the manifest. For each item 
of cargo transported via vessel, the Transportation Reference Number on 
the SED covering the item must be shown on the manifest.
    (b) Paper SED--electronic manifest. If filing paper SEDs and the 
electronic outbound vessel manifest, carriers are responsible for 
submitting paper SEDs directly to the CBP Port Director.
    (c) Electronic SED (AES)--paper manifest. If filing the SED 
information electronically (AES) and paper outbound manifest, carriers 
must annotate the outbound manifest with the appropriate AES exemption 
legends as provided in Sec.  30.65 of this part.
    (d) Electronic SED (AES) and manifest. If filing the SED 
information and outbound vessel manifest electronically through the 
AES, the carrier must adhere to the instructions specified in CBP 
Regulations (19 CFR, Sec.  4.76) and Sec.  30.60 of this part and 
transmit the appropriate AES proof of filing citation as provided in 
Sec.  30.65 of this part.
    (e) When an SED is not required. If an item does not require the 
filing of an SED, the appropriate exemption legends must be annotated 
on the outbound manifest or other appropriate commercial documents as 
provided in Sec.  30.50 of this part.
    (f) Exports to Puerto Rico. When filing paper manifests for 
shipments from the United States to Puerto Rico, the manifest shall be 
filed with the CBP Port Director where the merchandise is unladen in 
Puerto Rico.
    (1) Vessels. Vessels transporting merchandise as specified in Sec.  
30.20 of this part (except vessels exempted by paragraph (f)(4) of this 
section) shall file a complete Cargo Declaration Outward With 
Commercial Forms, CBP Form 1302-A. In addition, vessel carriers are 
required to perform the following:
    (i) Bunker fuel. The manifest for vessels (including vessels 
carrying bunker fuel to be laden aboard vessels on the high seas) 
clearing for foreign countries shall show quantities and values of 
bunker fuel taken aboard at that port for fueling use of the vessel, 
apart from such quantities as may have been laden on vessels as cargo.
    (ii) Coal and Fuel Oil. The quantity of coal shall be reported in 
metric tons (2240 pounds), and the quantity of fuel oil shall be 
reported in barrels of 158.98 liters (42 gallons). Fuel oil shall be 
described in such manner as to identify diesel oil as distinguished 
from other types of fuel oil.
    (2) Aircraft. Aircraft transporting merchandise as specified in 
Sec.  30.20 of this part, shall file a complete manifest on CBP Form 
7509, as required in CBP Regulations, 19 CFR 122.72 through

[[Page 42540]]

122.76. All the cargo so laden shall be listed and shall show, for each 
item, the air waybill number or marks and numbers on packages, the 
number of packages, and the description of the goods.
    (3) Rail carriers. Rail carriers transporting merchandise as 
specified in Sec.  30.20 of this part shall file a car manifest. Such 
manifest shall be filed with the CBP Port Director at the port of 
exportation, giving the marks and numbers, the name of the shipper or 
consignor, description of goods and the destination thereof. The 
manifest may be a waybill, or copy thereof, or a copy of the manifest 
prepared for foreign customers.
    (4) Carriers not required to file manifests. Carriers exempted from 
filing manifests are required, upon request, to present to the CBP Port 
Director the proof of filing citations, SED exemption legends, or AES 
exemption legends for each shipment. Failure of the carrier to do so 
constitutes a violation of the provisions of these regulations, and 
renders such carrier subject to the penalties provided for in Sec.  
30.95 of this part.

0
8. Amend Sec.  30.22 as follows:
0
a. Revise the heading of Sec.  30.22.
0
b. Add two sentences to the end of paragraph (a).
0
c. Add two sentences after the first sentence in paragraph (b).
0
d. Add paragraph (f).
    The additions and revision read as follows:


Sec.  30.22  Requirements for the filing of SEDs or AES exemption 
legends and AES proof of filing citations by departing carriers.

    (a) * * * When the export information for a shipment is filed 
electronically via the AES, the carrier is responsible for transmitting 
the appropriate AES exemption legend as provided in Sec.  30.65 of this 
part and the AES proof of filing citation as provided in the ITAR (22 
CFR, part 121) for USML shipments. Such transmittal shall be without 
material change or amendment of the proof of filing citation as 
provided to the carrier by the USPPI or the authorized agent.
    (b) * * * If the export information is filed electronically via the 
AES, the carrier is responsible for transmitting to the CBP Port 
Director at the port of exportation the appropriate AES exemption 
legend as provided in Sec.  30.65 of this part and the AES proof of 
filing citation as provided in ITAR (22 CFR, part 121) for USML 
shipments. Such transmittal shall be without material change or 
amendment of the exemption legend or the proof of filing citation as 
provided to the carrier by the USPPI or the authorized agent. * * *
* * * * *
    (f) Information on items identified on the CCL of the EAR (15 CFR 
Supp. No. 1 to part 774) or the USML of the ITAR (22 CFR, part 121) 
that would otherwise require the filing of an SED, must be filed 
through AES. The exporting carrier must not accept paper SEDs or cargo 
that does not have the appropriate AES filing exemption legend as set 
forth in Sec.  30.65 of this part and the AES proof of filing citation 
as provided for in the ITAR (22 CFR, part 121) for USML shipments. 
Acceptance of paper SEDs or cargo for items on the CCL or USML without 
the appropriate exemption legend or proof of filing citation 
constitutes a violation of the provisions of these regulations, and 
renders such carrier subject to the penalties provided for in Sec.  
30.95 of this part.
* * * * *

0
9. Amend Sec.  30.23 by adding a sentence to the end of the paragraph 
to read as follows:


Sec.  30.23  Requirements for the filing of Shipper's Export 
Declarations by pipeline carriers.

    * * If the merchandise transported by pipeline is identified on the 
CCL of the EAR (15 CFR Supplement No. 1 to part 774) or the USML of the 
ITAR (22 CFR, Part 121), and requires an SED, the data regarding the 
shipment must be filed electronically through the AES.
* * * * *

Subpart E--Electronic Filing Requirements--Shipper's Export 
Information

0
10. Revise Sec.  30.60(a) to read as follows:


Sec.  30.60  General requirements for filing export and manifest data 
electronically using the AES.

* * * * *
    (a) Participation. Filing using the AES is mandatory for those 
items identified on the CCL of the EAR (15 CFR Supplement No. 1 to part 
774) or the USML of the ITAR (22 CFR, part 121) and that would 
otherwise require the filing of an SED. All other participation in the 
AES is voluntary. Information for items identified on the CCL or the 
USML filed via AES must be filed by the USPPI or the authorized agent. 
A Data Entry Center (DEC), service center, or port authority may 
transmit an AES record for CCL or USML items, completed by the USPPI or 
the authorized agent, without obtaining a power of attorney or written 
authorization. A DEC, service center, or port authority must have a 
power of attorney or written authorization from the USPPI or foreign 
principal party in interest if it completes any export information in 
AES for CCL or USML shipments. Filers may also use a software package 
designed by an AES certified software vendor. Certified trade 
participants (filing agents) can transmit to and receive data from the 
AES pertaining to merchandise being exported from the United States. 
Participants in the AES process, who may apply for AES certification, 
include USPPIs or the authorized agents, ocean carriers, software 
vendors, or any organization acting as a service center. Once becoming 
certified, an AES filer (filing agent) must agree to stay in complete 
compliance with all export rules and regulations.
* * * * *

0
11. Amend Sec.  30.61 as follows:
0
a. Revise the introductory text.
0
b. Revise paragraph (b).
0
c. Remove paragraph (c).
    The revisions read as follows:


Sec.  30.61  Electronic filing options.

    As an alternative to filing paper SEDs (Option 1), two electronic 
filing options (Option 2 and 4) for transmitting shipper's export 
information are available to U.S. principal parties or the authorized 
filing agent. The electronic filing Option 4 takes into account that 
complete information concerning export shipments is not always 
available prior to exportation. Information on the export of items 
identified on the CCL of the EAR (15 CFR Supplement No. 1 to part 774) 
or the USML of the ITAR (22 CFR, part 121) that would otherwise require 
the filing of an SED must be filed using Option 2. Option 4 may only be 
used when the appropriate licensing agency has granted the USPPI 
authorization to use this option. The available AES electronic filing 
options are as follows:
* * * * *
    (b) AES with no information transmitted prior to exportation 
(Option 4). Option 4 is only available for approved USPPIs and requires 
no export information to be transmitted electronically using AES prior 
to exportation. For approved Option 4 filers, all shipments (other than 
those requiring an export license, unless specifically approved by the 
licensing agency for Option 4 filing, and those specifically required 
under electronic filing Option 2), by all methods of transportation, 
may be exported with transmission as soon as it is known, but no later 
than ten (10) working days from the date of exportation. Shipments of 
used vehicles between the United States

[[Page 42541]]

and Puerto Rico may be filed using Option 4. Certified AES authorized 
filing agents or service centers may transmit information post 
departure on behalf of approved Option 4 USPPIs, or the USPPI may 
transmit the data. All USPPIs filing a Letter of Intent for Option 4 
filing privileges will be cleared through a formal review process by 
CBP, the Census Bureau, and other federal government agencies 
participating in the AES (partnership agencies) in accordance with 
provisions contained in Sec.  30.62. The USPPI or the authorized agent 
must provide the exporting carrier with the USPPI's Option 4 AES 
exemption legend as described in Sec.  30.65.

0
12. Amend Sec.  30.62 as follows:
0
a. Add an introductory text.
0
b. Revise paragraph (a).
0
c. Redesignate current paragraph (b) as paragraph (e).
0
d. Add a new paragraph (b).
0
e. Add paragraphs (c) and (d).
    The additions and revisions read as follows:


Sec.  30.62  AES/AES Direct Certification, qualification, and 
standards.

    Certification for AES filing will apply to the USPPI, authorized 
forwarding agent, ocean carrier, or any organization acting as a 
service center transmitting export information electronically using the 
AES.
    (a) AES Certification Process. Applicants interested in AES filing 
must submit a Letter of Intent to the Census Bureau in accordance with 
the provisions contained in Sec.  30.60. CBP and the Census Bureau will 
assign client representatives to work with the applicant to prepare 
them for AES certification. The AES applicant must perform an initial 
two-part communication test to ascertain whether the applicant's system 
is capable of both transmitting data to, and receiving data from, the 
AES. The applicant must demonstrate specific system application 
capabilities. The capability to correctly handle these system 
applications is the prerequisite to certification for participation in 
the AES. The applicant must successfully transmit the AES certification 
test. The CBP's and Census Bureau's client representatives provide 
assistance during certification testing. These representatives make the 
sole determination as to whether or not the applicant qualifies for 
certification. Upon successful completion of certification testing, the 
applicant's status is moved from testing mode to operational mode. Upon 
certification, the filer will be required to maintain an acceptable 
level of performance in AES filings. The certified AES filer may be 
required to repeat the certification testing process at any time to 
ensure that operational standards for quality and volume of data are 
maintained. The Census Bureau will provide the certified AES filer with 
a certification notice after the applicant has been approved for 
operational status. The certification notice will include:
    (1) The date that filers may begin transmitting ``live'' data 
electronically using AES;
    (2) Reporting instructions; and
    (3) Examples of the required AES exemption legends.
    (b) AESDirect Certification process. Applicants interested in 
AESDirect filing or its by-products AESWebLink, AESPCLink, or AES EDI 
Upload must complete the online AESDirect registration form. After 
submitting the registration, an AESDirect filing account is created for 
the filing company. The applicant will receive separate e-mails 
providing an AESDirect user name, temporary administrator code, and 
temporary password. The filer uses the temporary administrator code to 
create a permanent administrator code that allows the user to create a 
permanent password. The user name and new permanent password will allow 
the filer to complete certification testing. Upon successful completion 
of the certification testing, notification by e-mail will be sent when 
an account is fully activated for filing via AESDirect. Print the page 
congratulating the filer on passing the test for retention purposes. 
The activation notice will specify which AES filing status the account 
has been authorized.
    (c) Filing agent certification. Once an authorized filing agent has 
successfully completed the certification process, the USPPI using that 
agent does not need further AES certification. The certified filing 
agent must have a properly executed power of attorney, a written 
authorization from the USPPI or foreign principal party in interest, or 
an SED signed by the USPPI to transmit their data electronically using 
the AES. The USPPI or authorized agent that utilizes a service center 
or port authority must complete certification testing, unless the 
service center or port authority has a formal power of attorney or 
written authorization from the USPPI to file the export information on 
behalf of the USPPI.
    (d) AES filing standards. The certified AES filer's data will be 
monitored and reviewed for quality, timeliness, and coverage. The 
Census Bureau will notify the AES filer if the filer fails to maintain 
an acceptable level of quality, timeliness, and coverage in the 
transmission of export data or fails to maintain compliance with Census 
Bureau regulations contained in this Section. The Census Bureau, if 
necessary, will take appropriate action to correct the specific 
situation(s). In the case of AESDirect, when submitting a registration 
form to AESDirect, the registering company is certifying that it will 
be in compliance with all applicable laws and regulations. This 
includes complying with the following security requirements:
    (1) AESDirect user names, administrator codes, and passwords are to 
be neither written down nor disclosed to any unauthorized user or any 
persons outside of the registered company. Filers must change 
administrator codes or passwords for security purposes when prompted to 
do so.
    (2) Registered companies are responsible for those persons having a 
user name, administrator code, and password. If an employee with access 
to the user name, administrator code, and password leaves the company 
or otherwise is no longer an authorized user, the company must change 
the password, administrator code, and user name in the system and must 
do so immediately in order to ensure the integrity and confidentiality 
of Title 13 data.
    (3) Antivirus software must be installed and set to run 
automatically on all computers that access AESDirect. All AESDirect 
registered companies will maintain subscriptions with their antivirus 
software vendor to keep antivirus lists current. Registered companies 
are responsible for performing full scans of these systems on a regular 
basis and eliminating any virus contamination. If the registered 
company's computer system is infected with a virus, the company should 
refrain from using AESDirect until it is virus free. Failure to comply 
with these requirements will result in immediate loss of privilege to 
use AESDirect until the registered company can establish to the 
satisfaction of the Census Bureau's Foreign Trade Division Computer 
Security Officer that the company's computer systems accessing 
AESDirect are virus free.
* * * * *

0
13. Amend Sec.  30.63 as follows:
0
a. Revise paragraphs (a)(1) and (b)(13).
0
b. Add paragraphs (b)(14) through (b)(21).
0
c. Revise paragraph (c).
    The additions and revisions read as follows:

[[Page 42542]]

Sec.  30.63  Information required to be reported electronically through 
AES (data elements).

    (a) * * *
    (1) USPPI/USPPI identification.--(i) Name and address of the USPPI. 
For details on the reporting responsibilities of USPPIs, see Sec.  30.4 
and Sec.  30.7 (d)(1), (2), (3), and (e).
    (ii) USPPI's profile. The USPPI's EIN or Social Security Number 
(SSN) and the USPPI's name, address, contact, and telephone number must 
be reported with every shipment. If neither EIN or SSN is available for 
the USPPI, as in the case of a foreign entity being shown as the USPPI 
as defined in Sec.  30.7(d), the border crossing number, passport 
number, or any other number assigned by CBP is required to be reported. 
(See Sec.  30.7(d)(2) for a detailed description of the EIN.)
    (b) * * *
    (13) Filing option indicator. Report the 1-character filing option 
that indicates Option 2 or 4 filing.
    (14) Directorate of Defense Trade Controls (DDTC) Registration 
Number. The number assigned by DDTC to persons who are required to 
register per Part 122 of the ITAR (22 CFR, 120-130), that has an 
authorization (license or exemption) from DDTC to export the article.
    (15) DDTC Significant Military Equipment (SME) Indicator. A term 
used to designate articles on the USML for which special export 
controls are warranted because of their capacity for substantial 
military utility or capability. See Sec.  120.7 of the ITAR 22 CFR, 
parts 120-130, for a definition of SME and Sec.  121.1 for items 
designated as SME articles.
    (16) DDTC Eligible Party Certification Indicator. Certification by 
the U.S. exporter that the exporter is an eligible party to participate 
in defense trade. See ITAR 22 CFR 120.1(c). This certification is 
required only when an exemption is claimed.
    (17) DDTC USML Category Code. The USML category of the article 
being exported (22 CFR, part 121).
    (18) DDTC Unit of Measure (UOM). This unit of measure is the UOM 
covering the article being shipped as described on the export 
authorization or declared under an ITAR exemption.
    (19) DDTC Quantity. This quantity is for the article being shipped. 
The quantity is the total number of units that corresponds to the DDTC 
Unit of Measure Code.
    (20) DDTC Exemption Number. The exemption number is the specific 
citation from the Code of Federal Regulations (22 CFR, parts 120-130) 
that exempts the shipment from the requirements for a license or other 
written authorization from DDTC.
    (21) DDTC Export License Line Number. The line number of the State 
Department export license that corresponds to the article being 
exported.
    (c) Optional data elements are as follows:
    (1) Transportation Reference Number for other than vessel 
shipments.
    (i) Air Shipments. Report the master air waybill for air shipments. 
The air waybill number is the reservation number assigned by the 
carrier to hold space on the airplane for cargo being exported.
    (ii) Rail Shipments. Report the bill of lading (BOL) number for all 
rail shipments. The BOL number is the reservation number assigned by 
the carrier to hold space on the rail car for cargo being exported.
    (iii) Truck Shipments. Report the Freight or Pro Bill number for 
all truck shipments. The Freight or Pro Bill number is the number 
assigned by the carrier to hold space on the truck for cargo being 
exported. The Freight or Pro Bill number correlates to a bill of lading 
number, air waybill number of Trip number for multi-modal shipments.
    2. Seal number. Report the security seal number of the seal placed 
on the equipment.

0
14. Revise Sec.  30.65 to read as follows:


Sec.  30.65  Annotating the proper exemption legends or proof of filing 
citations for shipments transmitted electronically.

    (a) Items identified on the USML must meet the predeparture 
reporting requirements identified in the ITAR (22 CFR, part 120-130) 
for the State Department requirements concerning AES proof of filing 
citations and time and place of filing.
    (b) For shipments other than USML, the USPPI or the authorized 
agent is responsible for annotating the proper exemption legend on the 
bill of lading, air waybill, or other commercial loading document for 
presentation to the carrier prior to tendering the cargo to the 
exporting carrier. The carrier is responsible for transmitting the 
appropriate exemption legend to the CBP Port Director at the port of 
exportation as stated in Sec.  30.21 and Sec.  30.22 of this part. Such 
transmittal shall be without material change or amendment of the 
exemption legend as provided to the carrier by the USPPI or the 
authorized agent. The exemption legend will identify that the shipment 
information has been accepted as transmitted and electronically filed 
using the AES. The exemption legend must appear on the bill of lading, 
air waybill, or other commercial loading documentation and the manifest 
and must be clearly visible and include either of the following:
    (1) For shipments other than USML, the exemption legend will 
include the statement, ``NO SED REQUIRED-AES,'' followed by the filer's 
identification number and a unique shipment reference number referred 
to as the External Transaction Number (XTN) or the returned 
confirmation number provided by AES when the transmission is accepted, 
referred to as the Internal Transaction Number (ITN). Items on the USML 
must meet the predeparture reporting requirements in the ITAR (22 CFR 
parts 120-130).
    (2) For USPPIs who have been approved to participate in Filing 
Option 4, the exemption statement, ``NO SED REQUIRED-AES4,'' followed 
by the USPPI's EIN followed by the filer's identification number if 
other than the USPPI files the data.

0
15. Revise Sec.  30.66 to read as follows:


Sec.  30.66  Support, documentation and record keeping requirements.

    (a) Support. ``ASKAES@census.gov'' is an online service that allows 
electronic filers to seek assistance pertaining to AES. AESDirect is 
supported by a help desk available twelve (12) hours a day, seven (7) 
days a week.
    (b) Documentation. Filers using the AESDirect are able to print out 
from the AESDirect a validated record of the filer's submission. Filers 
using AES are able to print records containing date of submission and a 
unique identification number for each AES record submitted. The Census 
Bureau will maintain an electronic file of data sent through AES to 
ensure that an individual is able to receive from the system, a 
validated record of the submission. The USPPI or the authorized agent 
of the USPPI or the authorized agent of the foreign principal party in 
interest may request a copy of the electronic record submitted as 
provided for in Sec.  30.91 of this part.
    (c) Recordkeeping. All parties to the export transaction (owners 
and operators of the exporting carriers and U.S. principal party and/or 
the authorized agents) must retain documents or records pertaining to 
the shipment for five (5) years from the date of export. CBP, the 
Census Bureau, and other participating agencies may require that these 
documents be produced at any time within the 5-year time period for 
inspection or copying. These records may be retained in an elected 
format, including electronic or hard copy as provided in the applicable 
agency's regulations. Acceptance of the

[[Page 42543]]

documents by CBP or the Census Bureau does not relieve the USPPI or the 
authorized agent from providing complete and accurate information after 
the fact. The Department of State or other regulatory agencies may have 
additional recordkeeping requirements for exports.

0
16. Amend Appendix A as follows:
0
a. Add introductory text.
0
b. Revise items A.5, A.6, and A.10.
0
c. Revise paragraphs B and C.
0
d. Add paragraph D.
    The additions and revisions read as follows:

Appendix A to Part 30--Format for the Letter of Intent, Automated 
Export System (AES)

    The first requirement for participation in AES is a Letter of 
Intent. The Letter of Intent is a written statement of a company's 
desire to participate in the AES. It must set forth a commitment to 
develop, maintain, and adhere to CBP and Census performance 
requirements and operations standards. Once the letter of intent is 
received, a CBP Client Representative and U.S. Census Bureau Client 
Representative will be assigned to the company. Census will forward 
additional information to prepare the company for participation in 
AES.
    A. Letters of Intent should be on company letterhead and must 
include:
* * * * *
    5. Computer Site Location Address, City, State, Postal Code 
(Where transmissions will be initiated)
    6. Type of Business--USPPI, Freight Forwarder/Broker, Ocean 
Carrier, Software Vendor, Service Center, etc. (Indicate all that 
apply)
    (i) Freight Forwarders/Brokers, indicate the number of USPPIs 
for whom you file export information (SEDs)
    (ii) USPPIs, indicate whether you are applying for AES Option 2 
or Option 4* * *
    10. Filer Code--EIN, SSN or SCAC (Indicate all that apply)
* * * * *
    B. The following self-certification statement, signed by an 
officer of the company, must be included in your letter of intent: 
``We (COMPANY NAME) certify that all statements made and all 
information provided herein are true and correct. I understand that 
civil and criminal penalties, including forfeiture and sale, may be 
imposed for making false or fraudulent statements herein, failing to 
provide the requested information or for violation of U.S. laws on 
exportation (13 U.S.C. 305; 22 U.S.C. 401; 18 U.S.C. 1001; 50 U.S.C. 
App. 2410).''
    C. The AES Option 4 privilege allows a USPPI to submit complete 
data at any time prior to or after exportation provided complete 
data are submitted within 10 working days after exportation. 
Participants will be reviewed by several government agencies prior 
to acceptance into the Option 4 program.
    D. Send AES or Option 4 Letter of Intent to: Chief, Foreign 
Trade Division, U.S. Census Bureau, Washington, DC 20233 or the copy 
can be faxed to: 301-457-1159.

Appendix B to Part 30 [Reserved]

0
17. Remove and reserve Appendix B.

0
18. Amend Appendix C as follows:
0
a. Under the heading ``Part II--Export Information Codes,'' add four 
items to the last line of listed items (after ``AE'' and before the 
parenthetical sentence).
0
b. Under ``Part III--License Codes,'' revise the first subheading.
0
c. Under ``Part III--License Codes,'' add an item to the last line of 
the first list of items (after ``C50 ENC'').
0
d. Under ``Part III--License Codes'':
0
1. Revise the third subheading.
0
2. Under the current subheading ``Department of State, Office of 
Defense Trade Controls (ODTC) Codes,'' add an item to the last line of 
the third list of items (after ``S85 DSP 85'').
0
e. Under ``Part III--License Codes,'' add an item to the last line of 
the fifth list of items (after ``OPA''), and add a sentence following 
the new list item under the subheading ``Other License Types.''
0
f. Under the subheading ``Part IV--In-Bond Codes,'' remove two items 
from the sixth list of items (after ``37 Warehouse Withdrawal for 
Transportation and Exportation'' and before ``67 Immediate Exportation 
from a Foreign Trade Zone.''
    The additions, revisions, and removals read as follows:

Appendix C to Part 30--Electronic (AES) Filing Codes

Part II--Export Information Codes

* * * * *
ZD Duty deferred shipments filed via AES
FI Impelled foreign military sales
CI Impelled goods donated for charity
OI All other impelled exports
* * * * *

Part III--License Codes

* * * * *

Department of Commerce, Bureau of Industry and Security (BIS) 
Licenses

* * * * *
C51 AGR
* * * * *

Department of State, Directorate of Defense Trade Controls (DDTC) 
Codes

* * * * *
S94 DSP-94
* * * * *

Other License Types

* * * * *
SCA Canadian ITAR Exemption

    For export license exemptions under International Traffic in 
Arms Regulations, refer to 22 CFR, Parts 120--130 of the ITAR for 
the list of export license exemptions.
* * * * *

Part IV--In-Bond Codes

* * * * *
62 Transportation and Exportation [Removed]
63 Immediate Exportation [Removed]
* * * * *

    Dated: July 14, 2003.
Charles Louis Kincannon,
Director, Bureau of the Census.
[FR Doc. 03-18093 Filed 7-16-03; 8:45 am]

BILLING CODE 3510-07-P