Massachusetts Export Center

Complying with the New AES Export

Reporting Requirements

August - September 2008 Newsletter
By Paula L. Murphy, Director
Massachusetts Export Center

Paula Murphy

The U.S. Census Bureau’s Foreign Trade Division recently published the long-awaited final rule implementing the provisions of the Foreign Regulations Authorization Act. The regulation requires mandatory filing of export information via the Automated Export System (AES) or AESDirect and renders the paper Shipper’s Export Declaration obsolete. The final rule became effective on July 2, 2008, with a grace period of an additional 90 days for the exporting community to achieve full compliance. The absolute final date for compliance with the new regulation, therefore, is September 30, 2008.

Exporters sending shipments meeting the following criteria must ensure that an AES entry is filed:

• All export shipments containing $2,500 or more for any one Schedule B product
classification (except shipments to Canada)

• All licensable shipments regardless of value or destination

• Shipments to some U.S. territories including Puerto Rico

Exporters may file their Electronic Export Information (EEI) directly with the Census Bureau via AESDirect or have their freight forwarder file the information on their behalf. Regardless of filing method, however, exporters are required to keep all AES documentation and related information on file for five years.

Exporters and forwarders are required to comply with new AES filing deadlines depending upon the mode of transportation. The new regulations also have tougher penalty provisions that will affect all parties to the export transaction. Penalties can reach $10,000 per violation for delayed filing, failure to file, or filing false export information.

A clear understanding of and compliance with these regulations is essential to avoid penalties and seizure of shipments. The Massachusetts Export Center will host a seminar in November of 2008 featuring officials from the Census Bureau to explain these regulations in detail. For further information, call 617-973-8664 or visit www.mass.gov/export .

Paula Murphy is director of the Massachusetts Export Center, part of the Massachusetts Small Business Development Center Network. The Export Center provides a full range of support to the state’s exporting community, including counseling, technical assistance, international business development services and training programs. For further information, visit www.mass.gov/export.