CSMS Message: 96-000178

TO : ALL ABI BROKERS.

FROM : JOHN PIERCE

SUBJECT : SED REQUIREMENTS

DATE : 03/14/96

MARCH 14, 1996
6074011

TO : U.S. CUSTOMS SERVICE HEADQUARTERS, CUSTOMS MANAGEMENT
CENTERS, PORT DIRECTORS, DEPARTMENT OF COMMERCE
DISTRICT OFFICES, FREIGHT FORWARDERS, EXPORTERS,
EXPORTING CARRIERS, CONSOLIDATORS, AND OTHER CONCERNED

FROM : BUREAU OF THE CENSUS (CENSUS) AND THE U.S. CUSTOMS
SERVICE (CUSTOMS)

SUBJECT: SHIPPER'S EXPORT DECLARATION (SED) REQUIREMENTS

THE CENSUS AND CUSTOMS ARE CONCERNED THAT AN INCREASING NUMBER OF
SEDS ARE DEFICIENT -- AS MANY AS ONE OUT OF EVERY TWO PAPER SEDS
CONTAINS ERRORS OF OMISSION OR COMMISSION. ALSO, CONCERNS ARE
NOW BEING RAISED ABOUT THE ACCURACY OF OUTBOUND VESSEL MANIFESTS.
CUSTOMS, WITH CENSUS' PARTICIPATION, HAS COMPARED A SAMPLE OF
OUTBOUND VESSEL MANIFESTS AND SEDS WITH ACTUAL CARGO LOADED.
PRELIMINARY RESULTS INDICATE THAT VESSEL MANIFESTS ALSO ARE
INACCURATE. IN MANY INSTANCES, CARGO IS NOT BEING MANIFESTED ON
THE VESSEL ACTUALLY CARRYING THE MERCHANDISE, BUT RATHER INCLUDED
ON THE MANIFEST OF A VESSEL DEPARTING LATER WHEN THE SEDS ARE
AVAILABLE.

THIS PRACTICE HINDERS CUSTOMS IN ITS EFFORTS TO DETECT VIOLATIONS
OF EXPORT LAWS. ALSO, THIS PRACTICE RESULTS IN INACCURATE TRADE
STATISTICS. SINCE THESE STATISTICS ARE UTILIZED IN SENSITIVE TRADE
NEGOTIATIONS AND IMPORTANT ECONOMIC POLICY DECISIONS, ACCURACY IS
CRITICAL.

THE PRINCIPAL CAUSE OF THIS PROBLEM IS THE FAILURE OF EXPORTERS
AND FORWARDERS TO PROVIDE COMPLETE AND ACCURATE SEDS TO EXPORTING
CARRIERS AT THE TIME OF EXPORTATION. IN THE PAST, CUSTOMS HAS
GENERALLY LIMITED ITS ENFORCEMENT ACTIONS TO FINING THE CARRIERS
UP TO $1,000 FOR FILING SEDS LATE. HOWEVER, CUSTOMS CAN DETAIN
SHIPMENTS WHEN THE REQUIREMENTS AS DESCRIBED IN THE ATTACHMENT
ARE NOT MET (22 U.S.C. 401). IF VOLUNTARY COMPLIANCE WITH
REQUIREMENTS IS NOT IMPROVED, IT MAY BECOME NECESSARY TO DELAY
OR DETAIN EXPORT SHIPMENTS WHEN SEDS HAVE NOT BEEN PROPERLY
COMPLETED OR PRESENTED IN A TIMELY MANNER. IN ORDER TO AVOID
DIFFICULTIES, PLEASE READ THE ATTACHMENT WHICH SPELLS OUT THE
RESPONSIBILITIES OF THE VARIOUS PARTIES TO THE EXPORT TRANSAC
TIONS. EVERY EFFORT SHOULD BE MADE BY EXPORTERS, FREIGHT
FORWARDERS, AND CARRIERS TO COMPLY WITH THESE REQUIREMENTS.

_____________________________ ______________________
C. HARVEY MONK, JR. PETER J. BAISH
CHIEF, FOREIGN TRADE DIVISION OUTBOUND PROCESS OWNER
BUREAU OF THE CENSUS U.S. CUSTOMS SERVICE

ATTACHMENT

_______________________________________________
EXPORTER AND FREIGHT FORWARDER SED REQUIREMENTS

MUST PROVIDE ACCURATE AND COMPLETE
INFORMATION ON THE SED. THE EXPORTER
IS RESPONSIBLE EVEN IF THE SED IS
PREPARED BY AN AUTHORIZED AGENT.
15 CFR *30.4 & *30.7

EXPORTER MUST PROVIDE THE FORWARDER
__________________
WITH A FORMAL POWER OF ATTORNEY, OR THE
LESS FORMAL WRITTEN AUTHORIZATION AS
STATED ON THE SED.
15 CFR *30.4

THE FORWARDER MUST SUBMIT THE SED TO
_____
THE EXPORTING CARRIER PRIOR TO
____________
EXPORTATION--THERE IS NO FOUR DAY
______________
DELAYED FILING FOR FREIGHT FORWARDERS.
15 CFR *30.12

FORWARDERS MUST PROVIDE THE EXPORTING
CARRIER WITH STATEMENTS OR CITATIONS
______
WHEN AN ITEM OR SHIPMENT IS EXEMPT FROM
SED REQUIREMENTS.
15 CFR *30.50

EXPORTER OR FORWARDERS MUST REPORT
CORRECTIONS, CANCELLATIONS, OR
AMENDMENTS TO INFORMATION REPORTED ON
THE SED TO CUSTOMS AT THE PORT OF
EXPORTATION AS SOON AS THE NEED FOR
SUCH CHANGES IS DETERMINED.
15 CFR *30.16

EXPORTER OR FORWARDERS MUST MAINTAIN
ALL RECORDS RELATING TO THE EXPORTATION
FOR A PERIOD OF 3 YEARS.
15 CFR *30.11 & *787.13

______________________________
EXPORTING CARRIER REQUIREMENTS

MUST RECEIVE SEDS OR EXEMPTION STATEMENTS OR
_____
CITATIONS FROM EXPORTER PRIOR TO DEPARTURE.
15 CFR *30.12 & 30.50

MUST FILE MANIFEST (VESSEL & AIRCRAFT) AND
_____
ALL REQUIRED SEDS WITH CUSTOMS PRIOR TO
DEPARTURE UNLESS A BOND IS FILED WITH
CUSTOMS. THE MANIFEST MUST INCLUDE
EXEMPTION STATEMENTS OR CITATIONS IN ALL
CASES WHERE AN SED IS NOT REQUIRED.
15 CFR *30.20, *30.21, & *30.22
19 CFR PART 4.75 (A) & 122.75-76

___________________________________________
IF A BOND IS FILED WITH CUSTOMS THE CARRIER
_____________________________________
MUST FILE A COMPLETE MANIFEST AND ALL
___________________________________________
REQUIRED SEDS WITH FOUR BUSINESS DAYS AFTER
____________________________________________
CLEARANCE OR DEPARTURE--CARRIERS ARE SUBJECT
__________________________________________
TO FINES UP TO $1,000 PER VIOLATION IF THE
____________________
SEDS ARE FILED LATE.
15 CFR *30.24, 19 CFR PART 4.75 (B) & 122.74