New Export Reporting Requirements From The U.S.
Effective October 2, 2014, the U.S. Census Bureau (Census) Foreign Trade Regulations (FTR) mandated the filing of Electronic Export Information (EEI) through the Automated Export System (AES) or AESDirect for all used self-propelled vehicles, regardless of value or country of destination. Importers and exporters of used self-propelled vehicles need to keep in mind this new condition is in addition to the current 72-hour notice requirements.
What Is Considered A Used Self-Propelled Vehicle?
Any self-propelled vehicle that has been purchased and re-sold (even if the vehicle is only days old) is considered a used vehicle; and includes any automobile, truck, tractor, bus, motorcycle, motor home, and any other self-propelled machinery or equipment. However, the requirement to file AES does not apply to dealer-to-dealer transactions when the equipment is brand new.
Impact On U.S. Exporters?
AES filing is now mandatory. These regulations apply to all exports of any used-self-propelled vehicle from the U.S.
If you are planning to buy a vehicle in the U.S. and import the vehicle into Canada or another country, the new regulation in effect will make the export process a little more complicated. The U.S. exporter or appointed agent is now required to file EEI and report to the U.S. Census through AES to provide vehicle, shipper, and consignee information.
Who Can File Through The Automated Export System?
AES filings must be handled by a U.S. domiciled company. A Customs Broker, Freight Manager or United States Principal Party in Interest (USPPI) can file the AES declaration. In other words, the AES filing for an Internal Transaction Number (ITN) can only be done by a resident of the U.S. (i.e. the seller or an appointed agent).
How The Automated Export System Works?
AES was created as a channel through which required export shipment information reaches the appropriate agency involved in monitoring and validating U.S. exports. Once the AES filing has been completed, an ITN will be assigned. The Customs Broker or Importer provides the ITN on the Vehicle Export Cover Sheet to U.S. Customs and Border Protection (CBP) to file 72 hour notice and bring the vehicle across the U.S. border.
Penalties For Non-Compliance
It is important to understand these requirements to avoid costly penalties. CBP will begin to issue penalties on behalf of Census in amounts up to $10,000 USD for non-compliance per violation. These penalties may be imposed for failure to file export information in AES, delayed filing, filing of false or misleading information, and any other violations of Foreign Trade Regulations. Canadian buyers of vehicles from the U.S. should start complying right now or risk having their vehicle held up at the border.
How Can I Get Help?
Pacific Customs Brokers can handle these filings on your behalf and offers full and partial AES filing services for commercial and individual importers. Contact us to learn how we will help you meet your AES obligations.