ace/aes filing requirements - siaed.org 2 1045_customs, census [email protected] –...

Kiesha DownsChief, Trade Regulations BranchInternational Trade Management

DivisionU.S. Census Bureau

Marc BinderSenior PartnerITC Strategies

Robert RawlsOutbound Enforcement and Policy

Branch ChiefU.S. Customs and Border

Protection

ACE/AES FILING REQUIREMENTS

SIA PROPRIETARYNOTE: All speaker comments are off-the-record and not for public release

Today’s topics

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• Agency Interaction

• Information Sharing

• Information Flow

• Foreign Trade Regulation (FTR) Filing Requirements for Technical Data

• US Customs and Border Protection Update

• DDTC FRN 3 January 2017

• Electronic Notification Requirements Update

• License Lodging and updates to DSP-73’s and DSP-61’s

• FMS Shipment Filing requirements

• Other issues


Agency interaction

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• Agencies:• Census Bureau

• Foreign Trade Regulations (FTR) for the reporting of Electronic Export

Information (EEI)

• Customs and Border Protection (CBP)

• Automated Commercial Environment (ACE) is the electronic environment that

allows import and export data to report in one system

• Department of State, Directorate of Defense Trade Controls

• International Traffic in Arms Regulations (ITAR)


Information Sharing• International Trade Data System

• Executive Order 13659: Streamlining the Export/Import Process forAmerica’s Businesses (February 19, 2014)

• The trade community is now able to submit export and importinformation through a “Single Window”


Information Flow


Foreign trade regulations (ftr)filing requirements for technical data

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• Mandatory Filing Requirements• FTR Section 30.2(a)(1)(iv)(C)

• Subject to the ITAR, but exempt from license requirements

• Exempt from Filing Requirements• FTR Section 30.37(u)

• Exports of technical data and defense service exemptions ascited in 22 CFR 123.22(b)(3)(iii) of the ITAR


DDTC Federal Register Notice• The Directorate of Defense Trade Controls

(DDTC) issued a Federal Register Notice (FRN) onJan. 3, 2017 requiring the electronic notification ofCBP of all imports and exports of DDTC controlledgoods.– Entries– Exports– Licenses– License exemptions


Licenses• Imports

– File via ACE (Formal and Informal entries)• Each Harmonized Tariff Number is filed with a DDTC PGA

Message set– Includes the license number, registration number, and

quantity– The HTS line has the value

• The DSP-61 or DSP-73 does not have to be presented to CBPfor decrementation (on imports or exports)

• ACE and AES now decrement the license automatically.• Import history prior to Jan. 3, 2017 should be sent to

[email protected]– License number, total import dollar value, and the date of

the last importation against the license.– Do not send the information to the ports.


Licenses (Continued)• Entry

– Separate the HTS commodity lines for controlledand non-controlled commodities

– Separate HTS commodity line for the repair valueof the shipment

• Suggestion that invoices clearly note thecommodity value and the value of the repairsseparately.

• It will be important that brokers/freightforwarders are paying close attention to thedetails of the shipment when making entry ofthe goods.


Licenses• Exports

– File the same way as previous via AES.– The license has been decremented for years now.– No longer have to present the DSP-61 or DSP-73

for decremention manually


Benefits for Automation of the DSP-61s/73s

• No longer have to present the DSP-61s and DSP-73s to CBP for manual decrementation on import orexport.– (Estimated) 2 hours/transaction X $10/hour X

70,000 licenses X 6 transaction/year = $8,400,000per year in savings.

• No lost licenses• Exporter/broker/freight forwarder still has to

maintain the same recordkeeping requirements.


ITAR and Carnets• It is estimated that approximately 10% of all DSP-61s

and DSP-73s utilize a carnet.• Issues with the carnet

– Don’t post against the license– No electronic notification to CBP or DDTC (strictly

a paper-based process)– No recordkeeping regarding the import or export

against carnets• ITAR requires electronic notification to CBP and

DDTC via ACE and/or AES• ITDS requires the move from paper documents to

electronic submission of information.SIA PROPRIETARY

NOTE: All speaker comments are off-the-record and not for public release

ITAR and Carnets• The Carnet issue in association with ITAR shipments

is very complex.• The total number of carnets coming into or leaving the

United States is unknown.• CBP goals

– Develop mechanism for the electronic notificationof CBP that ITAR controlled goods are coming intoand/or leaving the United States.

– Not to require the collection of duty, taxes, and feeson the goods being shipped via a carnet.

– Trying to maintain the utility of the carnet.


Technical Data• Previously required technical data to be reported

through an electronic system that was neverdeveloped.

• The electronic submission of the license exemptionsfor the export of technical data allows for CBP andDDTC to have visibility in the technical data exports.

• Still optional per 22 CFR 123.22(b)(3)(iii)– Still must be able to provide CBP with proof of

DDTC notification upon request.• Exporters can file the technical data exports via the

Automated Export System.


License Exemptions• No change in how license exemptions are filed for

exports.• License exemptions for imports are filed via the DDTC

PGA Message set along with the DDTC RegistrationNumber– DDTC Registration Numbers

• M-1234 (The dash is required)• M12345• The registration number used in the DDTC PGA

message set has to match exactly the registrationon the license.

– Not all system edits are currently in place. Eachlicense exemption will be reviewed and any needededits will be added in the future.


Foreign Military Sales Automation• CBP and DSCA is working to automate the FMS processing

of import and export shipments.– The automation is expected to be completed by the end of

2017.• The automation is not in place yet.

– Still have to file the DSP-94, the LOA, amendments, andmodifications with CBP.

• CBP will publish a pipeline notice when the FMS process hasbeen automated.

• Filing via AES for exports has not/will not change.• Have to electronically file the DDTC PGA message for FMS

coming into the US under 22 CFR 123.4(a)(5) or 126.6(c).• Improved edits, e.g., exact match against FMS case ID and

edits on the country of destination.SIA PROPRIETARY

NOTE: All speaker comments are off-the-record and not for public release

Other Issues• 123.17(g)(2) – (USG PPE) no change in the current

process• 123.22(b)(2) – (Emergency exports) no change in the

current process – the filing is done via AES• Can the PGA data be filed without filing an entry – no• Transmit any import history (DSP-61 and 73) (license

number, total imported value and date of last import(prior to 1/3/2017)) to Robert Rawls([email protected])

• CBP now has the complete license information.


Other Issues (continued)• Lodging of licenses (DSP-5, 6, 61, 62, 73, and 74) no

longer required. CBP receives all of the informationfrom DDTC electronically.

• Closing out the license (export) – the license (DSP-61s/73s are closed out the same way as DSP-5.

• The DSP-61s/73s are decremented upon import.• ACE and AES are linked to share information

regarding imports and exports against licenses andlicense exemptions.


U.S. Customs and BorderProtection: Export Enforcement

Robert C. RawlsOutbound Program Branch ChiefOffice of Field Operations, CBP

202-344-2847Email: [email protected]

Department of Homeland Security


Questions?


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