E3u—U.S. Export Clearance Requirements, Including Schedule B Classification

Subscriber price: $213.00, Non-subscriber price: $335.00
Estimated total study time: 16 hours 55 minutes

This course covers U.S. requirements which must be fulfilled just prior to the export of goods from the U.S., with emphasis on preparation and transmission requirements for shipper's export declaration (electronic export information, EEI) using the Automated Export System (AES).

This course is designed for exporters and freight forwarders who are involved in collecting SED information, classifying products for export, and in preparing and transmitting AES records. It will also be of value for U.S. exporters responsible for supervision of these tasks and for appointing freight forwarders and other agents to perform export declarations on their behalf.

In particular, this course addresses:

• When an export declaration (EEI) is and is not required
• Who must transmit EEI or provide that information to an agent for filing, export authorization criteria
• Conveyance of authority by an exporter or foreign consignee to an agent, such as freight forwarder, to make transmit EEI on its behalf
• Classification of commodities for statistical purposes using the U.S. Schedule B
• Specific information required for export declaration (EEI), including:
  • Transaction party information
  • Export authorization citation
  • Product description and Schedule B line-item information
  • Additional EEI requirements for exports covered by U.S. export licenses and license exceptions
  • Other information and processing required for certain exports
• Exceptions to the requirement for a filing EEI using alternative means of declaration

Introduction to U.S. Export Clearance Requirements

(Estimated study time: 57 minutes)

• Introduction to Export Clearance
  • What is an "Export"?
  • Three Types of U.S. Export Declarations
  • USG Regulations Affecting U.S. Export Declaration
    • U.S. Foreign Trade Regulations (FTR)
    • Export Administration Regulations (EAR)
    • CBP (Customs) Regulations (CR)
    • International Traffic in Arms Regulations (ITAR)
  • Export Clearance Requirements by Export Carrier

Shipper's Export Declaration (EEI): When Required

(Estimated study time: 1 hour 11 minutes)

• Export Clearance and Shipper's Export Declaration (EEI)
• Base Criteria for EEI (AES Filing) Requirement
• Exports for Which EEI (AES Filing) is Always Required
• FTR (Census) Rules on Confidentiality
  • Basic Rule
  • Prohibition Against Disclosure for "Non-official Purposes"; Civil Penalty
• Getting Started; AES Interface Options

When SED is Not Required

(Estimated study time: 48 minutes)

• When EEI is Not Required
• Additional "Miscellaneous Exemptions" from SED (EEI) Requirements
• When EEI Exemptions Do Not Apply
• AES Exemption and Exclusion Legends
• AES Exemption or Exclusion Legend When EEI is Not Required

Determining U.S. Export Requirements

This lesson addresses the basic responsibility of the exporter (USPPI, or FPPI when responsibility has been transferred) to determine U.S. export requirements, including export controls which may apply to a prospective export.
Note that this topic is addressed in significantly greater detail in GISTnet course E2u—U.S. Exports Subject to Controls; Export Licensing Procedures for Exporters.

(Estimated study time: 41 minutes)

Exporter Responsibilities for EEI filing; Conveyance of Authority to Filing Agent

(Estimated study time: 1 hour 19 minutes)

• "Exporter" vs. "Principal Party in Interest"
• AES Filer Must Be in the U.S.
• Authority and Responsibility for Accuracy of EEI
  • General—USPPI Always Responsible for Providing Accurate Information
  • FPPI Responsibility in a Routed Export Transaction
  • Agent/Forwarder Responsibilities
• Exporter's Identification Number (EIN)
  • Typical Situation—USPPI as Exporter
  • FPPI as U.S. Exporter (USPPI)
    • FPPI in the U.S. When Goods Are Purchased or Procured for Export
    • Routed Export Transaction
    • Cargo Assembly of Routed Export Shipments
• Requirement To Convey EEI Transmission Authority and Why Is This Important?
  • Suggested Language for Written Authorization or Power of Attorney
  • "Written Authority" vs. Power of Attorney Authority
• Responsibility of USPPI to Provide Information to Agent (AES Filer)
  • General
  • USPPI Engages Agent (Forwarder)
  • FPPI Engages Agent (Forwarder, Routed Export Transaction)
• Responsibility of USPPI, AES Filer and Other Parties to Maintain and Produce Records
  • More Information on Conveying Authority

Export Declaration Preparation - Options & Requirements

(Estimated study time: 1 hour 13 minutes)

• General—A Significant Task Requiring Understanding of FTR and EAR
• Specified Mandatory vs. Conditional EEI Data
• Mandatory AES Data Elements

Export Declaration Preparation - Options & Requirements, cont.

(Estimated study time: 1 hour 0 minutes)

• Conditional AES Data Elements
• Optional AES Data Elements
• Exemption from Reporting Complete Commodity Information
• Needed EEI Information Not on Commercial Documents
• Pre-Determination of Export Information by Product and Transaction Parties
• USPPI Must Provide Needed Information to AES Filing Agent

Schedule B Classification Process Overview

(Estimated study time: 1 hour 12 minutes)

• General—Classification of Exported Products for Trade Statistics
• Schedule B Classification Process
  • Preparation—Key Things to Understand About the Schedule B
  • Use of HTSUS (Import Tariff) for Export Classification
  • Classification by "Use"
  • Schedule B Chapter 98—Classification Based on Special Export Circumstances
• Schedule B Classification Process STEPS
  • Step #1—Preliminary Questions about Item to be Classified
  • Step #2—Schedule B (or HTSUS) Commodity Index and Search Feature
  • Step #3 (If Needed)—Use Schedule B (or HTSUS) Table of Contents
  • An Example of Schedule B Classification

Schedule B Classification—System, GRIs, Item Descriptions (E3)

(Estimated study time: 52 minutes)

Net Quantity and Export Value Information

(Estimated study time: 1 hour 5 minutes)

• Net Quantity (Schedule B Units)
  • General
  • Double Reporting Units
  • Statistical vs. Authorized Quantity under Department of State DDTC licenses
• U.S. Export Value (for EEI)
  • General—FTR Requirements for EEI Value
  • Adjustments to EEI Value for Delivery Terms other than FAS, CPT Port of Export, or DPU or DAP, Land Border
  • Estimating Adjustments to EEI Value
    • FTR Allows for Estimation
    • Pro-Ration of Adjustments Across Multiple Schedule B Numbers
  • Values for Certain Types of Transactions

Export Authorization Information

(Estimated study time: 1 hour 4 minutes)

• EEI Must Contain Export Authorization or an AES Exemption or Exclusion
• Commerce Control List (CCL) & ECCNs
• General
• Consistency of Information—General
  • Consistency Among All Transaction Documents Always Important
  • Basic EAR Requirement
  • Distinction Between "Exporter" and "USPPI"
• Item Description on License vs. Other Descriptive Requirements
  • Conformity of EEI with The Authorizing Export License or Permit

Export License Shipping Tolerances, Deadlines for Shipment; Export Under a License Exception

(Estimated study time: 1 hour 11 minutes)

• Shipping Tolerances—Licensed Value, Number or Measurement
  • Shipping Tolerances in General
  • Tolerances Allowed under DOC (BIS) Export Licenses
  • Value Tolerance Allowed for DOS (DDTC) Export Licenses
• Latest Shipping Date under an Export License
  • License Validity Period
  • Deadline for Export under an Export License
  • Shipment under an Expiring DOC License
    • General
    • Reshipment of Undelivered Items
  • Shipment under Expiring Licenses from Other USG Agencies
  • Shipment Planning
• Exports under an EAR License Exception—EEI and Compliance Requirements
  • General—EAR License Exception
  • Use of License Exception for Shipments Exempt from Electronic Export Information (EEI) Filing
    • AES Exemption vs. License Exception; When EEI IS Required
    • When EEI Is Not Required for Shipments Subject to a License Exception
    • AES Exemption Legend for Shipments under License Exceptions
    • EEI for Shipments Not Subject to an Export License or Other U.S. Export Controls (NLR & EAR99)

Transportation Routing or Delivery Changes After EEI Transmission; Destination Control Statement

(Estimated study time: 53 minutes)

• Post-EEI transmission Changes in Export Transportation or Delivery
  • Diversion of Licensed Export Beyond the Control of the Transportation Carrier
• Destination Control Statement (DCS)
  • DCS for Items Subject to the EAR
    • Basic DCS Requirement
  • Destination Control Statement for Defense Articles
  • Forwarder's Responsibility for Adding a Destination Control Statement to Shipping Documents

SED Information Based on Situation; Splitting Shipments to Evade EEI or Export License Requirements Prohibited

(Estimated study time: 37 minutes)

• Cargo Exported under Bond and from FTZs
  • General
  • EEI for Goods Exported under Bond from a Bonded Warehouse or FTZ
• Routed Export Transactions
• Related Parties
• Rules Concerning EEI for Split Shipments
  • General
  • Prohibition Against Splitting Shipments to Evade EEI or Export License Requirement
    • SED Requirements for In-Transit Cargo

Authority to Export: NLR and License Exceptions

(Estimated study time: 1 hour 0 minutes)

• EEI for Shipments Not Subject to an Export License or Other U.S. Export Controls (NLR & EAR99)
• General—EAR License Exception
• Use of License Exception for Shipments Exempt from Electronic Export Information (EEI) Filing
  • AES Exemption vs. License Exception; When EEI IS Required
  • When EEI Is Not Required for Shipments Subject to a License Exception
  • AES Exemption Legend for Shipments under License Exceptions
  • EEI for Shipments Not Subject to an Export License or Other U.S. Export Controls (NLR & EAR99)
• EEI for Shipments with a Combination of ECCNs, Schedule B Numbers and Export Authorizations
  • General
  • Break-Outs between Schedule B Numbers and ECCNs
  • A Portion of a Shipment Exempt from AES Filing Requirement

AES Transmission Deadlines, Dealing with Error Messages, Correcting Errors

(Estimated study time: 1 hour 9 minutes)

• Minimum Time Prior to Departure to Transmit EEI
  • Time Limits by Transportation Mode
  • Operational Challenges with Pre-Departure EEI Information
    • General—Export Carrier Must Not Export Cargo without EEI or AES Exemption Legend
    • Challenges with Certain Cargo and Shipping Circumstances (Perishables, Scrap, Project Cargo)
• Dealing with AES Error, Warning and Information Messages
  • Five Types of Response Messages
  • Interpreting & Responding to Particular Error Messages
• Corrections to EEI (AES Record)
  • General
  • Correcting a "Fatal Error"
  • Other EEI Corrections
  • EEI Cancellation

AES Exemption or Exclusion Legend; AES Supervision & Operational Issues; AES Software Solutions

(Estimated study time: 45 minutes)

• AES Exemption or Exclusion Legend When EEI is Not Required
• AES Downtime Procedures
• General—Export Manifest & Clearance Requirements
• General AES Operational Management Issues (Exporter & Forwarder)
  • Work Flow and Quality Concerns
  • Who's in Charge? Operational Recommendations
  • Preparing & Supporting an AES Lead Filer
• AES Software Systems
• AES System Technical Information