Automated Export System

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The Automated Export System (AES) is the system used by U.S. exporters to electronically declare their international exports, known as Electronic Export Information (EEI), to the Census Bureau to help compile U.S. export and trade statistics. This information is also shared with the Bureau of Industry and Security, the Directorate of Defense Trade Controls, and other federal agencies involved in monitoring and validating U.S. exports. [1] Formerly this declaration was only made on paper on the Shipper's Export Declaration form.

United States Federal republic in North America

The United States of America (USA), commonly known as the United States or America, is a country comprising 50 states, a federal district, five major self-governing territories, and various possessions. At 3.8 million square miles, the United States is the world's third or fourth largest country by total area and is slightly smaller than the entire continent of Europe's 3.9 million square miles. With a population of over 327 million people, the U.S. is the third most populous country. The capital is Washington, D.C., and the largest city by population is New York City. Forty-eight states and the capital's federal district are contiguous in North America between Canada and Mexico. The State of Alaska is in the northwest corner of North America, bordered by Canada to the east and across the Bering Strait from Russia to the west. The State of Hawaii is an archipelago in the mid-Pacific Ocean. The U.S. territories are scattered about the Pacific Ocean and the Caribbean Sea, stretching across nine official time zones. The extremely diverse geography, climate, and wildlife of the United States make it one of the world's 17 megadiverse countries.

United States Census Bureau Bureau of the United States responsible for the census and related statistics

The United States Census Bureau is a principal agency of the U.S. Federal Statistical System, responsible for producing data about the American people and economy. The Census Bureau is part of the U.S. Department of Commerce and its director is appointed by the President of the United States.

Bureau of Industry and Security federal law enforcement agency of the United States

The Bureau of Industry and Security (BIS) is an agency of the United States Department of Commerce that deals with issues involving national security and high technology. A principal goal for the bureau is helping stop proliferation of weapons of mass destruction, while furthering the growth of United States exports. The Bureau is led by the Under Secretary of Commerce for Industry and Security.

Contents

Up until November 30, 2015, an exporter could file the EEI electronically to the AES using the AESDirect website, the AESPCLink software, or other AES-compatible applications. However, after the 2015 launch of the Automated Commercial Environment (ACE), all legacy AESDirect and other users must register and submit the EEI to ACE. After an EEI/SED is successfully filed and processed, the shipper receives an Internal Transaction Number (ITN) to put on the shipping documents, as a confirmation to any government agent inspecting the cargo prior to departure.

In most cases a shipper can also authorize its freight forwarder, courier company, or other third-party logistics agent to file the EEI on its behalf. [2]

Freight forwarder service company that handles the shipment of goods

A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. Forwarders contract with a carrier or often multiple carriers to move the goods. A forwarder does not move the goods but acts as an expert in the logistics network. These carriers can use a variety of shipping modes, including ships, airplanes, trucks, and railroads, and often do utilize multiple modes for a single shipment. For example, the freight forwarder may arrange to have cargo moved from a plant to an airport by truck, flown to the destination city, then moved from the airport to a customer's building by another truck.

A courier is a company, an employee of that company or a person who delivers a message, package or letter from one place or person to another place or person.

Third-party logistics in logistics and supply chain management is an organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services.

Requirements

An EEI is generally required when any one commodity on a given shipment exceeds in value. There are four conditions that necessitate filing an EEI regardless of value: a) if the export destination is Cuba, Iran, North Korea, Sudan, or Syria; b) if the shipment requires an export license or permit; c) if it is subject to the International Traffic in Arms Regulations; or d) if it contains rough diamonds. Incidentally, a shipment from the United States to Canada that exceeds in value does not require an EEI unless it falls under conditions b) through d) above.

Cuba Country in the Caribbean

Cuba, officially the Republic of Cuba, is a country comprising the island of Cuba as well as Isla de la Juventud and several minor archipelagos. Cuba is located in the northern Caribbean where the Caribbean Sea, Gulf of Mexico and Atlantic Ocean meet. It is east of the Yucatán Peninsula (Mexico), south of both the U.S. state of Florida and the Bahamas, west of Haiti and north of both Jamaica and the Cayman Islands. Havana is the largest city and capital; other major cities include Santiago de Cuba and Camagüey. The area of the Republic of Cuba is 110,860 square kilometers (42,800 sq mi). The island of Cuba is the largest island in Cuba and in the Caribbean, with an area of 105,006 square kilometers (40,543 sq mi), and the second-most populous after Hispaniola, with over 11 million inhabitants.

Iran Islamic Republic in Western Asia

Iran, also called Persia, and officially the Islamic Republic of Iran, is a country in Western Asia. With over 81 million inhabitants, Iran is the world's 18th most populous country. Its territory spans 1,648,195 km2 (636,372 sq mi), making it the second largest country in the Middle East and the 17th largest in the world. Iran is bordered to the northwest by Armenia and the Republic of Azerbaijan, to the north by the Caspian Sea, to the northeast by Turkmenistan, to the east by Afghanistan and Pakistan, to the south by the Persian Gulf and the Gulf of Oman, and to the west by Turkey and Iraq. Its central location in Eurasia and Western Asia, and its proximity to the Strait of Hormuz, give it geostrategic importance. Tehran is the capital, largest city, and leading economic and cultural center.

North Korea Sovereign state in East Asia

North Korea, officially the Democratic People's Republic of Korea, is a country in East Asia constituting the northern part of the Korean Peninsula, with Pyongyang the capital and the largest city in the country. To the north and northwest, the country is bordered by China and by Russia along the Amnok and Tumen rivers and to the south it is bordered by South Korea, with the heavily fortified Korean Demilitarized Zone (DMZ) separating the two. Nevertheless, North Korea, like its southern counterpart, claims to be the legitimate government of the entire peninsula and adjacent islands.

Shipments to and from Puerto Rico must be treated like any other "international export" under the EEI requirements. On the other hand, cargo headed to American Samoa, Guam, Northern Mariana Islands, and most of the other U.S. territories are treated as domestic shipments and do not need an EEI. The U.S. Virgin Islands is a special case: shipments from that territory to either the U.S. mainland or Puerto Rico are treated as "domestic", but cargo headed in the other direction is treated as "international".

Puerto Rico Unincorporated territory of the United States

Puerto Rico, officially the Commonwealth of Puerto Rico and briefly called Porto Rico, is an unincorporated territory of the United States located in the northeast Caribbean Sea, approximately 1,000 miles (1,600 km) southeast of Miami, Florida.

American Samoa US territory in the Pacific

American Samoa is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of Samoa. Its location is centered on 14.2710° S, 170.1322° W. It is on the eastern border of the International Date Line, while independent Samoa is west of it.

Guam Island territory of the United States of America

Guam is an unincorporated and organized territory of the United States in Micronesia in the western Pacific Ocean. It is the westernmost point and territory of the United States, along with the Northern Mariana Islands. The capital city of Guam is Hagåtña and the most populous city is Dededo. The inhabitants of Guam are called Guamanians, and they are American citizens by birth. Indigenous Guamanians are the Chamorros, who are related to other Austronesian natives of Eastern Indonesia, the Philippines, and Taiwan. Guam has been a member of the Pacific Community since 1983.

Information collected

Among the data that is required to file an EEI includes the following:

The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a Taxpayer Identification Number (TIN), and when used for the purposes of reporting employment taxes, it is usually referred to as an EIN. These numbers are used for tax administration and must be not used for any other purpose. For example, the EIN should not be used in tax lien auction or sales, lotteries, etc.

U.S. state constituent political entity of the United States

In the United States, a state is a constituent political entity, of which there are currently 50. Bound together in a political union, each state holds governmental jurisdiction over a separate and defined geographic territory and shares its sovereignty with the federal government. Due to this shared sovereignty, Americans are citizens both of the federal republic and of the state in which they reside. State citizenship and residency are flexible, and no government approval is required to move between states, except for persons restricted by certain types of court orders. Four states use the term commonwealth rather than state in their full official names.

Port of entry place where one may lawfully enter a country

In general, a port of entry (POE) is a place where one may lawfully enter a country. It typically has border security staff and facilities to check passports and visas, and inspect luggage to assure that contraband is not imported. International airports are usually ports of entry, as are road and rail crossings on a land border. Seaports can be used as ports of entry only if a dedicated customs presence is posted there. The choice of whether to become a port of entry is up to the civil authority controlling the port.

See also

The Export Administration Regulations (EAR) are a set of regulations found at 15 C.F.R. § 730 et seq. They are administered by the Bureau of Industry and Security, which is part of the US Commerce Department. In general, the EAR govern whether a person may export a thing from the U.S., reexport the thing from a foreign country, or transfer a thing from one person to another in a foreign country. The EAR apply to physical things as well as technology and software.

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Electronic data interchange (EDI) is the concept of businesses electronically communicating information that was traditionally communicated on paper, such as purchase orders and invoices. Technical standards for EDI exist to facilitate parties transacting such instruments without having to make special arrangements.

Freight transport physical process of transporting commodities and merchandise goods and cargo

Freight transport is the physical process of transporting commodities and merchandise goods and cargo. The term shipping originally referred to transport by sea but in American English, it has been extended to refer to transport by land or air as well. "Logistics", a term borrowed from the military environment, is also used in the same sense.

The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. They are widely used in international commercial transactions or procurement processes and their use is encouraged by trade councils, courts and international lawyers. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the global or international transportation and delivery of goods. Incoterms inform sales contracts defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer, but they do not themselves conclude a contract, determine the price payable, currency or credit terms, govern contract law or define where title to goods transfers.

Tea Act 1773 act

Tea Act 1773 was an Act of the Parliament of Great Britain. The principal objective was to reduce the massive amount of tea held by the financially troubled British East India Company in its London warehouses and to help the financially struggling company survive. A related objective was to undercut the price of illegal tea, smuggled into Britain's North American colonies. This was supposed to convince the colonists to purchase Company tea on which the Townshend duties were paid, thus implicitly agreeing to accept Parliament's right of taxation. Smuggled tea was a large issue for Britain and the East India company, since approximately 86% of all the tea in America at the time was smuggled Dutch tea.

In a contract of carriage, the consignee is the entity who is financially responsible for the receipt of a shipment. Generally, but not always, the consignee is the same as the receiver.

A freight rate is a price at which a certain cargo is delivered from one point to another. The price depends on the form of the cargo, the mode of transport, the weight of the cargo, and the distance to the delivery destination. Many shipping services, especially air carriers, use dimensional weight for calculating the price, which takes into account both weight and volume of the cargo.

Drawback, also known as duty drawback is defined by the United States Customs and Border Protection (CBP) as the refund of certain duties, internal and revenue taxes and certain fees collected upon the importation of goods. Such refunds are only allowed upon the exportation or destruction of goods under U.S. Customs and Border Protection supervision. Duty drawback is an export promotions program sanctioned by the World Trade Organization and allows the refund of certain duties taxes and fees paid upon importation which was established in 1789 in order to promote U.S. innovation and manufacturing across the global market.

An air waybill (AWB) or air consignment note is a receipt issued by an international airline for goods and an evidence of the contract of carriage, it is a document of title to the goods. Hence, the air waybill is non-negotiable.

International Commercial Law is a body of legal rules, conventions, treaties, domestic legislation and commercial customs or usages, that governs international commercial or business transactions. A transaction will qualify to be international if elements of more than one country are involved.

Affreightment is a legal term used in shipping.

United States Customs and Border Protection (CBP) has announced a new rule, known as the Importer Security Filing (ISF) or more commonly called 10+2; which requires containerized cargo information, for security purposes, to be transmitted to the agency at least 24 hours (19 CFR section 149.2 before goods are loaded onto an ocean vessel headed to the U.S. for shipment into the U.S. 10+2 is pursuant to section 203 of the SAFE Port Act, and requires importers to provide 10 data elements to CBP, as well as 2 more data documents from the carrier.

Entry visibility is an aspect of supply chain visibility, allowing a company to manage the proper use of trade compliance data for the importation of goods from the time they leave a foreign supplier until the time those goods reach their destination. Entry visibility aims to ensure that all regulatory, compliance, and documentation requirements are met in a timely fashion along the way. When importing into the U.S., every individual transaction must be compliant with The Customs Modernization Act, and the Importer Security Filing (10+2). Under the Mod Act, importers are required to maintain and produce timely records at the time of entry. Furthermore, the Mod Act includes a "Reasonable Care" clause, which states that importers and brokers need a comprehensive audit process to ensure they have met all compliance requirements and provided the correct information on all entry filings.

The Global Identification Number for Consignment (GINC) is part of the GS1 system of standards. It is a simple tool used to identify goods in world trade.

The United States imposes tariffs on imports of goods. The duty is levied at the time of import and is paid by the importer of record. Customs duties vary by country of origin and product. Goods from many countries are exempt from duty under various trade agreements. Certain types of goods are exempt from duty regardless of source. Customs rules differ from other import restrictions. Failure to properly comply with customs rules can result in seizure of goods and criminal penalties against involved parties. The United States Customs and Border Protection (“CBP”) enforces customs rules.

A shipping agency or shipping agent is the designated person or agency held responsible for handling shipments and cargo, and the general interests of its customers, at ports and harbors worldwide, on behalf of ship owners, managers, and charterers. In some parts of the world, these agents are referred to as port agents or cargo brokers. There are several categories of shipping agents such as: port agents, liner agents, and own agencies, each rendering specific services depending on the shipping company they represent.

Bill of lading document issued by a carrier (or their agent) to acknowledge receipt of cargo for shipment

A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment. Although the term historically related only to carriage by sea, a bill of lading may today be used for any type of carriage of goods.

A freight claim or cargo claim is a legal demand by a shipper or consignee against a carrier in respect of damage to a shipment, or loss thereof.

A Customs declaration is a form that lists the details of goods that are being imported or exported when a citizen or visitor enters a customs territory . Most countries require travellers to complete a customs declaration form when bringing notified goods across international borders. Posting items via international mail also requires the sending party to complete a customs declaration form.

Haven is a company that automates logistics for ocean freight companies. Based in Singapore, San Francisco and Basel, it manages a freight rate and logistics transportation management system for large international supply chains. Haven is considered one of the pioneers of the digital revolution in shipping logistics.

References

PD-icon.svg This article incorporates  public domain material from websites or documents ofthe United States Department of Homeland Security .

  1. ↑ "About AES". U.S. Customs and Border Protection. Archived from the original on 2015-05-16. Retrieved 2015-05-28. The Automated Export System (AES) is a joint venture between CBP [U.S. Customs and Border Protection], the Foreign Trade Division of the Bureau of the Census (Commerce), the Bureau of Industry and Security (Commerce), the Directorate of Defense Trade Controls (State), other Federal agencies, and the export trade community. It is the central point through which export shipment data required by multiple agencies is filed electronically to Customs
  2. ↑ Less Than Container Load Services, http://troylines.com/wp-content/uploads/2015/08/Troy_e-brochure_4.10.pdf
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