Background

AES was developed and implemented by Customs and Census to electronically capture data that is currently being submitted on SEDs and through the Census Bureau's Automated Export Reporting Program (AERP). As originally proposed, AES required all Shipper's Export Declaration (SED) data be submitted pre-departure in accordance with current export regulations.

The trade, while supporting the concept of electronic SED filing, felt that the original AES program required modification for two primary reasons. First, a significant portion of the trade believes that pre-departure filing of SED data does not conform to current business processes because, in many cases, exporters do not have complete information prior to departure. Second, AES eliminated a privilege many exporters had relied on for nearly 30 years - AERP- which allowed post departure filing of SED data for qualified exporters.

In response to the trade's request to address these issues, Customs and Census developed AES-PASS (Post-Departure Authorized Special Status). AES-PASS allowed qualified exporters to provide a brief IOU, followed by a post-departure submission of the full SED data. While this proposal significantly improved AES, some of the trade remained concerned that the two issues described above had not been completely addressed and those two separate transmissions would be required for each transaction.

After a period of discussion, Customs, Census, and the trade agreed to an "Interest Based Negotiation" (IBN) to resolve the remaining differences. Under the direction of the Under Secretary of the Treasury (Enforcement) James Johnson, a subcommittee of the Commercial Operations Advisory Committee (COAC), supplemented with other experienced members of the trade community, was selected to represent the trade. Several employees of both Customs and Census represented the government. A series of three IBN meetings, each lasting three days, was held in April, May, and June of 1998.

Expanded Export Reporting Options

The following enhancements were agreed upon by the industry-government teams to expand the trade's electronic filing options within AES. There will be four (4) filing options for reporting export commodities:

1. Paper reporting.

ELECTRONIC REPORTING:
1. Full pre-departure AES transmission.
2. Two-step AES transmission; partial pre-departure.
3. Full post-departure AES transmissions.

Option 1: Paper SED, Pre-Departure


a) No electronic communication.
b) No change from current system. Paper SED given to carrier prior to exportation.
c) Goods subject to State Department Munitions Licenses--Will probably move to Track 2 when automated program to decrement is in place.


Option 2: AES with Full Pre-Departure Information


a) All shipments where the full SED information is available prior to exportation.
b) Other shipments as noted below:
1) Used Vehicles.
2) Essential and precursor chemicals for the manufacture of narcotics.
3) Any other shipment defined as sensitive by law or Executive Order.


The exporter/agent will provide the carrier with the unique shipment reference number prior to exportation.


Option 3: AES with Partial Pre-Departure Information


a) No prior approval is needed to use Option 3.
b) Available for shipments for which full SED data is not available prior to exportation.
c) Shipments by Option 4 approved exporters for which pre-departure information is required for licenses or other purposes.
d) Full SED information should be transmitted as soon as it is known, but no later than five (5) working days from the date of exportation.



Pre-Departure Data Elements Required for Option 3 AES Filing
Exporter ID	Country of Ultimate Destination
Forwarder ID	Ultimate Consignee
Carrier ID	Unique Shipment Reference Number
Commodity Description or Schedule B/HTS	Intended US Port of Export
Estimated date of export	Method of Transportation Code
Transportation reference number--booking, air way bill, etc.	HAZMAT-Y/N
License Code	License Number




The exporter/agent will provide the carrier with the unique shipment reference number prior to exportation.


Option 4: AES with No Pre-Departure Information


a) Exporters must be approved for Option 4 by AES Partnership Agencies.

1) Freight forwarders can apply for Option 4 privileges on behalf of an exporter when they have a signed power-of-attorney.
2) Current active AES-PASS participants will be grand fathered into Option 4 for all eligible shipments.
3) Current AERP participants, both exporters and freight forwarders on behalf of their clients will be given the first opportunity to apply for Option 4 AES filing privileges.

b) Qualified shipments can be reported with no pre-departure information.
c) Full SED information should be transmitted as soon as it is known, but no later than ten (10) working days from the date of exportation.


The exporter/agent will provide the carrier with the exporter's Option 4 Identification Code prior to exportation.