GISTnet Main page

GISTnet Library

Glossary

CFR

Exhibits

Countries

My Page

Help

E4u—Intro to U.S. Export Controls and AES for Forwarders

Subscriber price: $208.00, Non-subscriber price: $270.00
Estimated total study time: 14 hours 33 minutes

This course provides a process-oriented introduction to U.S. export control and declaration requirements as routinely encountered in the work of a freight forwarder. This course is intended as a primer for entry-level personnel, and a means of filling in gaps that many mid-level freight forwarder clerks and customer service employees may have in their understanding of this important topic.

Everyone who documents export shipments, enters and/or transmits Electronic Export Information (EEI), and places AES exemption statements on transport documents should have this or equivalent training in order to help avoid becoming involved in export violations.

As a short introductory course, however, we do not herein address the much broader full range of U.S. export control and compliance topics. Nor do we cover all the informational requirements, forwarder authorization and other advanced issues surrounding proper preparation and transmission of EEI. These topics are covered in detail in other GISTnet courses. However, the study text for this course does contain many references and links to more detailed information as found elsewhere in the GISTnet Library should a learner wish to pursue particular topics in more detail.

Overview—Export Clearance Process, U.S. Export Regulation Objectives

This lesson opens with a process chart depicting generic steps a forwarder takes, or should take, in determining export clearance requirements, and then the processing of EEI when required. With the steps a forwarder is responsible for in mind, we begin with an examination of the reasons for the process, starting with the five basic objectives of U.S. export regulation.

(Estimated study time: 40 minutes)

• Introduction
• Process Flowchart
• Commerce and National Sovereignty
• Objectives of BIS Administered Export Controls

U.S. Export Regulation Objectives, cont.; Sources of Assistance; Export Statistics

This lesson continues with high-level objectives of U.S. export regulation, sources of assistance for exporters and forwarders in meeting specific requirements, and requirement for export declarations for the collection of trade statistics for exports whether or not items exported are subject to any export controls.

(Estimated study time: 48 minutes)

• Introduction
• Additional Export Control Objectives/Agencies
  • Restrictive Trade Practices
  • ITAR (U.S. Munitions List)
  • Sanctioned Parties
  • Destination Country Sanctions
• Specific Reasons for Control (CCL)
• When in Doubt as to Export Controls
  • Sources of Government Assistance
  • Informal Assistance from DOC/BIS
  • Formal CCL Classification Request
• Trade Statistics

Key Regulations Affecting U.S. Exports

This course is all about U.S. export regulations. This lesson addresses the three agencies and their regulations which forwarders are most affected by: The "EAR," "FTR," and the "ITAR."

(Estimated study time: 46 minutes)

• Introduction
• Key U.S. Export Regulations & Agencies
  • EAR (Export Administration Regulations)
    • General
    • Relationship of EAR to Other Export Regulations
  • FTR (Foreign Trade Regulations)
  • ITAR (International Traffic in Arms Regulations)
• U.S. Exports to OFAC Sanctioned Parties Are Generally Prohibited

General U.S. Export Requirements

(Estimated study time: 1 hour 5 minutes)

• Introduction
• Export Licenses for Controlled Exports
• Export Clearance and Shipper's Export Declaration (EEI)
• Restrictive Trade Practices and Boycotts
• Export Record Keeping

Responsibility of Forwarders; Enforcement of U.S. Export Requirements

(Estimated study time: 43 minutes)

• Introduction
• Responsibility of Forwarders and Other Agents
• Civil and Criminal Sanctions for Violation of Export Laws and Regulations
  • Legal Support for the Export Administration Regulations
  • Types of Sanctions for Export Violations
  • Violation of the ITAR (Defense Articles and Services)
  • Violation of the FTR (False, Late or Not Filed EEI)
• Export Enforcement by BIS and CBP

Recognizing Exports that Are or May Be Controlled

(Estimated study time: 1 hour 13 minutes)

• Introduction
• Recognizing Export Shipments that Are or May Be Controlled
  • Introduction
    • Will a Particular Export Require an Export License or Other Pre-authorization?
    • Challenges Faced by Agents Acting as Exporters on Behalf of Others
    • Challenges Faced by Freight Forwarders
  • General Prohibitions
  • Non-Controlled Exports
    • U.S. Territories and Possessions
    • Canada
    • Publicly Available Information/Technology

Recognizing Exports that Are or May Be Prohibited

(Estimated study time: 1 hour 1 minute)

• Introduction
• Exports that Are or May Be Prohibited
  • Countries Subject to Embargoes or Highly Restricted
    • Countries Embargoed by U.S. and/or Having Specially-Targeted Sanctioned Parties
    • Other Restricted Countries
    • Countries Prohibited or Highly Restricted for In-Transit Cargo
    • Summary
  • Shippers and Other Parties Who are Denied or Sanctioned
  • Commodity-Based Controls
  • Using the Commerce Control List to Identify Controlled Items

Recognizing and Dealing with Suspicious and Naive Shippers; Supervision and Expertise

(Estimated study time: 51 minutes)

• Introduction
• WARNING—People and Cargo You Want to Avoid!
• Recognizing Suspicious Shippers and Shipments
  • Understanding Regulatory Framework and How to Access Information
  • Using Checklists, Guidelines and Red Flags
  • Trust Your Gut and Avoid Complacency with Regular Shippers
  • Act on Your Suspicions Based on Company Policy
• Dealing with Naive Shippers
• Internal Expertise and Job Responsibility for Export Compliance

Information and Preparation Needed for Export Clearance

(Estimated study time: 1 hour 17 minutes)

• Introduction
• A World of Detail
• Is Filing of EEI Required?
  • General—Geographic Scope for which EEI is Required
  • Exemptions to EEI Filing Requirement ("SED Exemptions")
  • In-Transit & In-Bond Goods
• Transaction Party Responsible for EEI Filing
• Forwarder Authorization to File EEI
• EEI Data Gathering, Consistency and Filing Deadline
  • General
  • Data Used for Both EEI and Transportation Document
  • Time Limit for Transmitting EEI

Schedule B Classification—System, GRIs, Item Descriptions

(Estimated study time: 47 minutes)

• Introduction
• The HTS Classification System
  • General—The System
  • Access to the Schedule B
• General Rules of Interpretation (GRIs)
  • General
  • Limitations and Errors in Using Schedule B Online Search Feature
  • Correct Classification Requires Both Understanding of Process and Attention to Detail
• Description of Commodities
  • Conformity of EEI with The Authorizing Export License or Permit

Schedule B Classification—Process & Steps

(Estimated study time: 59 minutes)

• Introduction
• Schedule B Classification Process
  • Preparation—Key Things to Understand About the Schedule B
  • Use of HTSUS (Import Tariff) for Export Classification
  • Classification by "Use"
  • Schedule B Chapter 98—Classification Based on Special Export Circumstances
• Schedule B Classification Process STEPS
  • Step #1—Preliminary Questions about Item to be Classified
  • Step #2—Schedule B (or HTSUS) Commodity Index and Search Feature
  • Step #3 (If Needed)—Use Schedule B (or HTSUS) Table of Contents
  • An Example of Schedule B Classification

Schedule B Classification—Net Quantity & Export Value

(Estimated study time: 1 hour 6 minutes)

• Introduction
• Net Quantity (Schedule B Units)
  • General
  • Double Reporting Units
  • Statistical vs. Authorized Quantity under Department of State DDTC licenses
• U.S. Export Value (for EEI)
  • General—FTR Requirements for EEI Value
  • Adjustments to EEI Value for Delivery Terms other than FAS, CPT Port of Export, or DPU or DAP, Land Border
  • Estimating Adjustments to EEI Value
    • FTR Allows for Estimation
    • Pro-Ration of Adjustments Across Multiple Schedule B Numbers
  • Values for Certain Types of Transactions

AES Operational Challenges; Addressing Error Messages

(Estimated study time: 1 hour 22 minutes)

• Introduction
• Gathering Needed Data for EEI Filing
• EEI Must Contain Export Authorization or an AES Exemption or Exclusion
• Minimum Time Prior to Departure to Transmit EEI
  • Time Limits by Transportation Mode
  • Operational Challenges with Pre-Departure EEI Information
    • General—Export Carrier Must Not Export Cargo without EEI or AES Exemption Legend
    • Challenges with Certain Cargo and Shipping Circumstances (Perishables, Scrap, Project Cargo)
• Dealing with AES Error, Warning and Information Messages
  • Five Types of Response Messages
  • Interpreting & Responding to Particular Error Messages
• Corrections to EEI (AES Record)
  • General
  • Correcting a "Fatal Error"
  • Other EEI Corrections
  • EEI Cancellation

Annotation to Export Carrier's Document When EEI Not Required; Pre-Export Customs Processing when Required

(Estimated study time: 50 minutes)

• Introduction
• AES Exemption or Exclusion Legend When EEI is Not Required
• Exports Requiring Special CBP Processing Prior to Export
  • General—U.S. Export Controls Apply
  • Exports under Customs Bond
  • Exports Subject to Customs Duty Drawback
  • Carnets
  • DEA Controlled Exports
  • Used Self-Propelled Vehicles
  • USAID Documents

Forwarder Representing FPPI in a Routed Export Transaction; U.S. Export Requirements vs. Transaction Delivery Terms; Export Record Keeping

(Estimated study time: 1 hour 5 minutes)

• Introduction
• Obtaining Seller or Supplier Information
  • General
  • Specific Information a USPPI Must Provide on a Routed Export Transaction
• Forwarder Acting as Applicant on Export License
• U.S. Export Requirements vs. Transaction Trade Terms (Delivery Terms)
  • General—What Trade Terms Do and Do Not Specify
  • EXW Terms
  • "F" Terms
  • "C" and "D" Terms
  • U.S. Seller USPPI Responsibility for Determining Export Requirements Under All Trade Terms
  • Transfer of Seller's Export Determination Responsibility to Buyer
  • Summary
• Record-Keeping—A Five Year Period