In a “routed shipment” the “authorized agent” is not required to give the U.S. Principal Party in Interest (USPPI) the export data. This data was formerly collected in a Shipper's Export Declaration (SED) and is now mandated to be filed through the Automated Export System (AES) or AESDirect. This raised the question of which records must be retained by a USPPI in a routed shipment.
A routed shipment occurs when there is a foreign buyer that makes a purchase from a domestic seller here in the U.S. Rather than have the domestic seller arrange for the transport of the goods to the foreign destination, the foreign buyer (aka, the "Foreign Principal Party in Interest" (FPPI)) finds its own U.S. agent to assist it with the export.
For this type of transaction, the FPPI authorizes a U.S. agent (Authorized Agent) to facilitate the export of items from the U.S. and prepare and file electronic export information (EEI). This electronic export data is filed in AES.
For a routed shipment, the USPPI must retain documentation to support the information provided to the Authoized Agent for preparing the EEI, and provide the agent with certain information to assist in preparing the EEI. This information includes:
(i) Name and address of the USPPI
(ii) USPPI's EIN or DUNS
(iii) State of origin (State)
(iv) FTZ if applicable
(v) Commercial description of commodities
(vi) Origin of goods indicator: Domestic (D) or Foreign (F)
(vii) Schedule B or HTSUSA, Classification Commodity Code
(viii) Quantities/units of measure
(ix) Value
(x) Export Control Classification Number (ECCN) or sufficient technical information to determine the ECCN
(xi) All licensing information necessary to file the EEI for commodities where the Department of State, the Department of Commerce, or other U.S. government agency issues a license for the commodities being exported, or the merchandise is being exported under a license exemption or license exception.
(xii) Any information that it knows will affect the determination of license authorization
The Authorized Agent in a Routed Transaction is responsible for filing the EEI accurately and timely and must retain the documentation to support the EEI reported through AES which includes the following data elements:
(i) Date of export.
(ii) Transportation Reference Number.
(iii) Ultimate consignee. (vii) Country of ultimate destination.
(viii) Method of transportation.
(ix) Carrier identification and conveyance name.
(x) Port of export.
(xi) Foreign port of unloading.
(xii) Shipping weight.
(xiii) ECCN.
(xiv) License or license exemption information.
These regulations provide that upon request, the Authorized Agent shall provide the USPPI with the data elements above. The reality however, is that even upon repeated request, this information may never be received by the USPPI.
Therefore, under the regulations the USPPI may request a copy of the electronic record or submission from the U.S. Census Bureau. Keep in mind however, that the Census Bureau's retention and maintenance of AES records does not relieve filers from requirements.
Questions or comments? Feel free to email me at clark.deanna@gmail.com
A routed shipment occurs when there is a foreign buyer that makes a purchase from a domestic seller here in the U.S. Rather than have the domestic seller arrange for the transport of the goods to the foreign destination, the foreign buyer (aka, the "Foreign Principal Party in Interest" (FPPI)) finds its own U.S. agent to assist it with the export.
For this type of transaction, the FPPI authorizes a U.S. agent (Authorized Agent) to facilitate the export of items from the U.S. and prepare and file electronic export information (EEI). This electronic export data is filed in AES.
For a routed shipment, the USPPI must retain documentation to support the information provided to the Authoized Agent for preparing the EEI, and provide the agent with certain information to assist in preparing the EEI. This information includes:
(i) Name and address of the USPPI
(ii) USPPI's EIN or DUNS
(iii) State of origin (State)
(iv) FTZ if applicable
(v) Commercial description of commodities
(vi) Origin of goods indicator: Domestic (D) or Foreign (F)
(vii) Schedule B or HTSUSA, Classification Commodity Code
(viii) Quantities/units of measure
(ix) Value
(x) Export Control Classification Number (ECCN) or sufficient technical information to determine the ECCN
(xi) All licensing information necessary to file the EEI for commodities where the Department of State, the Department of Commerce, or other U.S. government agency issues a license for the commodities being exported, or the merchandise is being exported under a license exemption or license exception.
(xii) Any information that it knows will affect the determination of license authorization
The Authorized Agent in a Routed Transaction is responsible for filing the EEI accurately and timely and must retain the documentation to support the EEI reported through AES which includes the following data elements:
(i) Date of export.
(ii) Transportation Reference Number.
(iii) Ultimate consignee. (vii) Country of ultimate destination.
(viii) Method of transportation.
(ix) Carrier identification and conveyance name.
(x) Port of export.
(xi) Foreign port of unloading.
(xii) Shipping weight.
(xiii) ECCN.
(xiv) License or license exemption information.
These regulations provide that upon request, the Authorized Agent shall provide the USPPI with the data elements above. The reality however, is that even upon repeated request, this information may never be received by the USPPI.
Therefore, under the regulations the USPPI may request a copy of the electronic record or submission from the U.S. Census Bureau. Keep in mind however, that the Census Bureau's retention and maintenance of AES records does not relieve filers from requirements.
Regarding records retention, a USPPI must retain documentation to support the information provided to the authorized agent for filing the EEI when it has authorized an agent to file the EEI on its behalf.
Questions or comments? Feel free to email me at clark.deanna@gmail.com
Deanna,
ReplyDeleteWe often have routed export transactions in which a foreign customer (FPPI)of our foreign affiliate instructs our US facility to ship the goods through his FF. The problem we have in such transactions is that the FPPI's purchase order is based on the pricing provided by our foreign affiliate, which requires the foreign affiliate's invoice to be exported with the goods to the FPPI. So the question we are struggling to answer is....is it permissable under US law to use our foreign affiliate's pricing to determine the US export value for purposes of EEI filing, or, can we use the US facility's pricing for the EEI and ship our foreign affiliate's invoice with the goods?
I would sincerely appreciate your response.
Kindest regards.
Hello Anonymous,
ReplyDeleteMy apologies for the delay in responding, I did not see your comment until this morning.
Please send me your name, email address and other contact information to dclark@shaynelawgroup.com so that I may respond more fully to your inquiry. Thanks.
Hello Deanna,
ReplyDeleteI really appreciate this clear summary of USPPI and agent responsibilities, and I shared it with my team. One question. I notice that hazmat status of the goods is not included in the list of information the USPPI must provide. However this information must be filed as part of the EEI per HS number (D or F)
Is this really a gap, or am I misreading your list and the hazmat status falls under one of the points you gave?
Regards,
Tara Gidwani
Hi Tara,
ReplyDeleteAs a general premise, a USPPI in a routed transaction should provide the FPPI with such information as to make a complete AES filing. The above list is simply that which is detailed in the regulation itself in 15 CFR 30.3.
While this is not to be construed as legal advice, such hazmat disclosure should be made as it is after all a required data element on the EEI per the export regulations at 15 CFR 30.6 (Electronic Export Information Data Elements).
This is particularly so where such disclosure is necessary for licensing purposes or where it is not clear from the nature of the product itself nor indicated on the invoice.
Please feel free to email me a dclark@shaynelawgroup.com with any other questions in the event this does not answer your question.
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