FTR Export Reporting Requirements for Cargo Sold
After Exportation from the United States

August 4, 2015

A question was recently asked by an exporter of bulk commodities about whether they are required by the Foreign Trade Regulations (FTR) to update their AES filing when the commodities are resold while in-transit. In researching the question I discovered an interesting answer. First, however, the FTR provides that when exporting goods (commodities) the filer of the electronic export information (“EEI”) is required to report the name and address of the ultimate consignee, as known at the time of export. See 15 CFR 30.6(a)(3).

So, the answer seems pretty clear cut, right? Not so fast. In researching this question I came across an article in the March 2012 AES Newsletter that specifically addresses correcting the EEI for a shipment that was exported and, while the cargo was in transit to its original destination, a portion was sold to another consignee in a different location. The article explains that under FTR Section 30.9(a), the filer has an obligation to make corrections “as soon as possible” to EEI once the new information becomes known.

In the example provided by Census in the article, the original EEI was reported with a value of $10,000 in fresh apples destined to a consignee in China. While en route, however, half of the shipment value was sold to a 3rd party. According to Census, the original EEI filing must be corrected to show that only half of the original quantity and value ($5,000) was shipped to the original consignee, and a new EEI record must be created for the balance of the shipment going to the new ultimate consignee.

In its article, Census explains that because of the division in the shipment while in-transit, AES requires separate reporting of the now two shipments. The first shipment must be corrected using the original Internal Transaction Number (ITN), and a new record must be created to obtain a second ITN (but with the original date of export). The filer is instructed to transmit the original EEI as a REPLACE or CHANGE, and then submit the new EEI (with a different Shipment Reference Number) as an ADD.

Further, because the new EEI will trigger a compliance alert (because the AES database cannot translate the original EEI into two or more shipments) you must also contact the U.S. Customs and Border Protection (CBP) Outbound Enforcement Team at the port of exportation to inform them that part of the shipment was redirected, and advise them that you are amending the records as a result of changes to the shipment in accordance with 15 CFR 30.9(a).

Sounds easy, doesn’t? If you are flummoxed by a question about Census’s Foreign Trade Regulations, send it to us and we’ll help you get an answer!

Please contact George R. Tuttle, III (george.tuttle.iii@tuttlelaw.com) at (415) 986-8780 if you have questions or would like additional information on this or other Customs matters. 

George R. Tuttle, III, is an attorney with the Law Offices of George R. Tuttle in San Francisco.

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

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