New Regulations Require Electronic Filing of Export Documents

The final rule requiring the mandatory filing of electronic export information was published in the Federal Register on June 2, 2008. The Bureau of Census announced the final rule requiring mandatory electronic filing of export information through the Automated Export System (AES) or AESDirect for shipments where a Shipper’s Export Declaration is required. The AES is an electronic method for filing the paper SED information directly with the U.S. Customs and Border Protection (CBP) and the Census Bureau. The AESDirect is the Census Bureau's free Internet-based system for filing SED information through the AES. The current $2,500 exemption level for reporting will not change since this would increase the number of shipments reported and neither Census nor CBP has the resources to process the information.

Under the new regulations, exporters or their agents will be required to file electronic data in roughly the same time intervals as import cargo: 24 hours for ocean cargo, two hours in advance for rail and air, and one hour before trucks arrive at the border. Effective July 2, exporters will be required to file all export documents electronically; however, exporters will be given 90 days to adjust before enforcement actions will be taken. Even though the majority of exporters currently file electronically, may exporters at the southern border still file paper copies.

When the enforcement starts in October, parties could be fined up to $10,000. Penalty amounts have been increased from $100 to $1000 each per day of non-compliance for a maximum of $10,000 per violation. Criminal penalties may be applied in which the penalty will not exceed $10,000 and/or imprisonment for not more than five years. Enforcement responsibilities have been delegated to the Bureau of Industry and Security (BIS), CBP and U.S. Immigration and Customs Enforcement (ICE). Other noteworthy provisions include information on how to submit voluntary self-disclosures of a violation or suspected violation of the reporting requirements, power of attorney requirements for agents and a section on record keeping that explains the documentation/records each party is expected to retain. Records must be maintained for 5 years from date of export.

Click HERE to view the full text of the new export regulations.