{"id":10909,"date":"2020-08-12T17:42:30","date_gmt":"2020-08-13T00:42:30","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=10909"},"modified":"2023-01-18T17:43:34","modified_gmt":"2023-01-19T01:43:34","slug":"export-management-and-aes-filing-for-us-exporters","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2020\/08\/export-management-and-aes-filing-for-us-exporters","title":{"rendered":"Export Management and AES Filing For US Exporters"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10910&#8243; img_size=&#8221;full&#8221;][vc_column_text]<i><span style=\"font-weight: 400;\">US export management is no easy task. In this QAD Precision Report we discuss the importance of correctly filing export declarations with AES.<\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400;\">Understanding ACE<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The US Customs and Border Protection is responsible for customs, including cargo screening. Companies must report their imports and exports to CBP. They do this via the Automated Commercial Environment (ACE) portal on the CBP website.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Understanding AES<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the US, an electronic export declaration is filed using the Automated Export System (AES). Users log on to the ACE portal and then enter all the shipment information on to AESDirect.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AES is a central collection point for key export data. It has also replaced\u00a0 paper-bound processes. Manually filing export declarations is not only time-consuming, but also prone to error.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, AES was designed to ensure compliance with export laws and regulations. It also improves the collection of trade statistics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, exporters must meet all the requirements in order to file a correct export declaration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Electronic Export Information \u2014 EEI \u2014 is the actual data that exporters submit. The EEI includes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The exporter\u2019s name, address and identification number<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Detailed information about the products being exported<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The products classification and licensing requirements<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Exporters must ensure that all of this information is 100 percent accurate. This can be a challenge if you are manually entering information into AES. A mistake could risk exposing your company to shipment delays, or penalties for non-compliance.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why You Should Always File Export Declarations<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are three very good reasons why you should ensure that you correctly file your exports declarations with AES.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">FINES\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Non-compliance is not an option. You could be subject to civil and criminal penalties for not filing export declarations or for filing incorrect information. The more mistakes you make, <\/span><a target=\"_blank\" href=\"https:\/\/www.cbp.gov\/sites\/default\/files\/assets\/documents\/2018-Jul\/Mitigation%20Guidelines%20ICP%20-%20Foreign%20Trade%20Regulations%20Penalties.pdf\" rel=\"noopener\"><span style=\"font-weight: 400;\">the higher the fines.<\/span><\/a><\/p>\n<h3><span style=\"font-weight: 400;\">DELAYS AND COSTS\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Get your export declaration wrong and your shipment is likely to be held in customs. These delays are costly, financially and to your reputation. Increased cycle times have a knock-on effect not only to your customer, but to your customer\u2019s customers too.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">EXPORT COMPLIANCE REGULATIONS\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">CBP uses AES data to ensure that exports are compliant with regulations. The aim of these export laws is to ensure that exporters do not send critical goods and technologies \u2014 either by accident or on purpose \u2014 to sanctioned individuals, organizations or countries.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Rules and Exceptions<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While the majority of US exports must be filed with AES, there are some exceptions. For the most part, if your merchandise is valued at $2,500 or more by Schedule B number you need to file.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, there are rules, and exceptions to the rules, that make things a little more complicated.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">ORIGIN<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The origin of your goods can impact whether you need to submit an export declaration.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s an example. Imagine you are exporting ten items in a single shipment. All ten items are exactly the same, and have the same classification. They are not controlled goods, and are all of domestic origin. Each has a declared value of $300.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this case, the total value is $3,000. As a result, this exceeds the $2,500 threshold. Therefore, you must file.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if five of the items were sourced from a foreign country, the rules are different. In such a case, you don\u2019t need to make an AES filing. This is because by origin, the goods would only have a combined declared value of $1,500.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">OUR FRIENDS UP NORTH<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Generally speaking, US exporters don&#8217;t need to file with AES if they are exporting to Canada. However, there are exceptions to this exception.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you export self-propelled vehicles or any goods that require an export license, or a license exception, to Canada, you must file.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">THE DIAMOND RULE<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Rough diamond exports always require an AES filing. This is true no matter where you are exporting the diamonds, or whatever the value. This includes exports to Canada.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And finally, there is something else to bear in mind. If you don\u2019t need to file EEI data, you must explain why with the correct AES exemption.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Who is Responsible for Filing to AES?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As a general rule, the United States Principal Party in Interest (USPPI) submits EEI data to AES.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The USPPI can vary. It could be a US-based exporter, manufacturer or wholesaler. In addition, the USPPI could be a third party that has negotiated a sale between a US seller and a foreign buyer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are the exporter then, for the most part, you will be the USPPI and responsible for filing with AES.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the USPPI can outsource this responsibility to a third-party, such as a freight forwarder.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, in some cases, the Foreign Principal Party in Interest (FPPI) can submit the filing. The FPPI is the final consignee.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the FPPI uses a freight forwarder based in the US to arrange the export, then a US agent of the final consignee can submit the filing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All this means that exporters have several options when it comes to filing with AES. Nonetheless, the exporter must ensure all relevant export declarations have been filed with AES.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An exporter that authorizes a third-party to file the EEI with AES, will need proof of filing. Furthermore, the USPPI must make such that each filing has complete and accurate information.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Exporters need to track all AES filings no matter who submits them. If any violations occur the USPPI is responsible.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Submitting to AES<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are two ways you can file EEI data to AES. We will have a quick look at them here.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">DIY FILING<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your company or an authorized third party can file electronically using AESDirect. To do this, your company or authorized agent must log on to the ACE portal on the CPB website. After that, you enter all the shipment information on AESDirect.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every item in your shipment must have the proper classification information such as Schedule B numbers and the Harmonized System (HS) codes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Schedule B is the US export classification system, while HS numbers are international. Therefore, it is important to include HS codes in most international export documentation and commercial invoices.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">AUTOMATING AES FILING<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Companies can also use an <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/export-management\" rel=\"noopener\"><span style=\"font-weight: 400;\">export management<\/span><\/a><span style=\"font-weight: 400;\"> software solution to automate this process. Such a solution should offer integrations to customs authorities for electronic export declarations. This includes AES. As a result, you can file on your own behalf, without needing a third-party.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are the exporter and thus the USPPI, you bear the responsibility for ensuring all your exports meet the required regulations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By leveraging a software solution, you don\u2019t have to re-enter information into a separate system. This is quicker and more efficient. Most importantly, it mitigates the risk of human error.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is easy to make a typo or other error when entering a long series of HS and Schedule B numbers. With an automated solution, you can ensure that all EEI data is correctly filed and that all your export management obligations have been met.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;10910&#8243; img_size=&#8221;full&#8221;][vc_column_text]US export management is no easy task. In this QAD Precision Report we discuss the importance of correctly filing export declarations with AES. Understanding ACE The US Customs and Border Protection is responsible for customs, including cargo screening. Companies must report their imports and exports to CBP. They do this via the Automated [&hellip;]<\/p>\n","protected":false},"author":64,"featured_media":10910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2045],"tags":[2572,2571,2570,516,406],"class_list":["post-10909","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain-trends","tag-ace","tag-aes","tag-export-management","tag-global-trade-management","tag-trade-compliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Export Management and AES Filing For US Exporters | QAD Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qad.com\/blog\/2020\/08\/export-management-and-aes-filing-for-us-exporters\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Export Management and AES Filing For US Exporters | QAD Blog\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_single_image image=&#8221;10910&#8243; img_size=&#8221;full&#8221;][vc_column_text]US export management is no easy task. In this QAD Precision Report we discuss the importance of correctly filing export declarations with AES. Understanding ACE The US Customs and Border Protection is responsible for customs, including cargo screening. Companies must report their imports and exports to CBP. They do this via the Automated [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.qad.com\/blog\/2020\/08\/export-management-and-aes-filing-for-us-exporters\" \/>\n<meta property=\"og:site_name\" content=\"QAD Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/QADerp\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-13T00:42:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-19T01:43:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2023\/01\/Port-night-golden-light.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1220\" \/>\n\t<meta property=\"og:image:height\" content=\"596\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Anne Sexton\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@QAD_Community\" \/>\n<meta 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