[ Music ]
Congratulations, you have just made an international sale!
For many of you this is your first time exporting,
so you may not be familiar with the filing requirements
of the Automated Export System,
which I will refer to as the AES.
But you may be wondering, when are you required to file an AES?
Or what constitutes an export shipment?
Or better yet, who's responsible for doing the filing?
Well my name is Kiesha Pickeral and I work
in the Foreign Trade Division of the U.S. Census Bureau.
And over the next few minutes I'm gonna share some information
that will help answer those questions.
Ultimately, I want to help make your export transaction
as smooth as possible, so let's get started.
Now the first step in determining
if you must file an AES record is by looking
at where your shipment is going.
You are required to file and AES for all physical goods
that are shipped from the United States to foreign countries,
between the United States and Puerto Rico, from Puerto Rico
to foreign countries, from Puerto Rico
to the U.S. Virgin Islands, and from the United States
to the U.S. Virgin Islands.
So if your product is not going to any of the locations
that I just mentioned,
then you're not required to file an AES.
However, if your products are then there's another step you
must be aware of.
The second step in determining
if you must file an AES record is by determining
if your order meets the Census Bureaus definition
of a shipment.
The Census Bureau defines a shipment as merchandise shipped
from one U.S. Principle Party and Interest, which I will refer
to as the USPPI, going to one consignee,
leaving on the same conveyance, whether by flight, vessel,
truck, train, or mail, going to the same country,
on the same day, and is valued at over $2,500 per Schedule B
or when a license is required.
I know I've just given you a mouthful of information,
but think of it in this simple way.
A shipment is goods from one U.S. company or individual,
to one foreign company or individual,
leaving on one carrier, going to one country, on one day,
and is valued at over $2,500 per Schedule B,
or when a license is required.
Now that we've defined a shipment,
you may be wondering, what is a USPPI?
Let me briefly explain.
The USPPI is the party in the U.S.
who is receiving the primary monetary benefit
from the export transaction.
So really we're looking at who
in the U.S. is getting paid by the foreign buyer.
The USPPI can be a U.S. seller, a U.S. manufacturer,
an order party, or even a foreign entity
if that party is physically here in the U.S.
when the goods are purchased or obtained.
Now let's go through an example.
Let's say you, the U.S. seller, receives two orders
from the same foreign buyer who is located in Japan.
On Monday he orders $1,500 of microscopes,
and on Tuesday he orders an additional $3,500
of the same microscopes.
You ship both orders on Tuesday to your customer by air.
Since you are the USPPI and are shipping both orders
to the same foreign party, going out on the same flight,
to the same country, on the same day, and the goods are valued
at over $2,500 per Schedule B number,
this is considered one shipment.
The value of the shipment is $5,000
and the information pertaining
to those transactions will be reported on one AES record.
Now let me throw a twist in it.
Let's say you use the same scenario,
but the goods are shipped out on different days.
Order number one ships out on Monday
and order number two on Tuesday.
In this scenario only number two requires an AES filing,
because it is over $2,500.
Order number one would not be filed,
because it is less than $2,500.
Now that we've determined that you have file an AES,
you must also be aware of the specific time frames
that you must adhere to.
The required time frames are based on mode of transportation.
For goods that are not licensed
by the State Department you must file your export information
in AES 24 hours prior to loading your cargo onto the vessel.
If the mode of transportation is truck,
the export information must be filed one hour prior
to the truck arriving at the U.S. Border.
For cargo leaving by air,
the information must be filed two hours prior
to the scheduled departure of the aircraft.
Cargo shipped by rail must be filed two hours prior
to the time the train arrives at the U.S. Border.
And shipments by mail must be filed two hours prior to export.
My colleagues and I are here
to help make your exporting transaction
as smooth as possible.
So if you have any questions about this presentation
or any part of the Foreign Trade Regulations, give us a call
at 1-800-549-0595 and select option 3.
Or email us at FTDREGS@census.gov.