U.S. Census Bureau Proposes New Country of Origin Field Requirement in AES When Exporting Foreign Origin Goods

January 14, 2022

In a Federal Register notice published December 15, 2021, the U.S. Census Bureau is proposing to amend the Foreign Trade Regulations to include a new data element, country of origin, when foreign origin is selected in the Foreign/Domestic Origin indicator field in the Automated Export System (AES).

Currently, exporters are only required to identify whether goods are “domestic” or “foreign” when exporting. Domestic goods are defined as goods that are grown, produced, or manufactured in the United States, or previously imported goods that have undergone substantial transformation in the United States, including changes made in a U.S. FTZ, from the form in which they were imported, or that have been substantially enhanced in value or improved in condition by further processing or manufacturing in the United States. Foreign goods are those that were originally grown, produced, or manufactured in a foreign country, then subsequently entered into the United States, admitted to a U.S. FTZ, or entered into a CBP bonded warehouse, but not substantially transformed in form or condition by further processing or manufacturing in the United States, U.S. FTZs, Puerto Rico, or the U.S. Virgin Islands.

According to Census, the current requirements do not provide sufficient information to identify gaps in domestic product and supply, to evaluate supply chains or to address trade imbalances. Census believes that the increased granularity of data provided by a country-of-origin field would significantly improve the accuracy of asymmetry evaluation, as well as the creation, negotiation, and evaluation of U.S. trade agreements and the ability to monitor goods within the U.S. supply chain.

Adding this requirement will require those exporters, who do not currently do so, to collect, maintain and report the specific country of origin for the goods they purchase and export.

Comments about this change in the Foreign Trade Regulation requirements must be received on or before February 14, 2022.

For additional information on this or other Customs matters, contact George R. Tuttle, III at geo@tuttlelaw.com or (415) 288-0428.

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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