by David Noah

 

If your company exports goods valued at more than $2,500 to anywhere other than Canada or goods that require an export license, Foreign Trade Regulations (FTR) require that you file your export information electronically through the Automated Export System (AES). The Census Bureau uses this information to calculate export statistics and shares it with U.S. Customs & Border Protection (CBP) to ensure compliance with U.S. export regulations.

 

While previously you could file this information on a Shipper's Export Declaration (SED) paper form, changes to the FTR eliminated this option. In addition, the new regulations increased the civil and criminal penalties for failing to file through AES or for filing incorrect information up to a maximum of $10,000 per violation—a 10-fold increase over previous penalties.

 

The new regulation also granted the Office of Export Enforcement and U.S. Customs and Border Protection the ability to investigate and enforce these rules.

 

When to File Through AES

 

An AES filing is required for most exports of merchandise valued at $2,500 or more by Schedule B number from the United States to a foreign country from one hour up to 24 hours prior to the actual export depending on the method of transportation. The AES filing is also required for all exports that require an export license from the Commerce or State departments regardless of value. Exports from the U.S. to Canada don't require an AES filing regardless of the value of the merchandise unless an export license or license exception is required.

 

When required, an AES filing can be submitted by the U.S. Principal Party in Interest (USPPI), which is typically the U.S. exporter; an authorized agent of the USPPI; or, when the buyer hires a U.S.-based freight forwarder to arrange the export, an authorized U.S. agent of the Foreign Principal Party in Interest (FPPI), which is typically the ultimate consignee. If the export company or the foreign buyer is going to rely on an agent or freight forwarder to file a submission through AES, they must present this agent with a written limited power of attorney or some other written authorization.

 

According to the Census Bureau, electronic filing of the SED information improves the government's ability to monitor and prevent exports of critical goods and technologies that may threaten our national security and significantly improves the quality and timeliness of export statistics.

 

When an exporter utilizes AES as part of an export documentation software such as Shipping Solutions, the company can eliminate redundant data entry that reduces mistakes and provides a substantial cost savings. Some Shipping Solutions customers have said they have recouped their investment in the software in less than 10 export shipments.

 

In addition, by utilizing an AESDirect-certified software program, export companies eliminate the need to create their own direct interface with AES, which involves an application and on-site approval process. It also allows them to keep the AES filing in-house since the exporter is responsible for the accuracy of the data regardless of who they have file it.

 

Registering for AESDirect

 

The AESDirect web page includes a lot of information about how AES works. AES recommends that you read the Registration Help information as well as the Terms & Conditions for using the service before you complete the registration form.

 

In order to register for AES, you must first complete and submit the registration form by clicking on the Register New Account link found near the top of the AESDirect web page.

 

Once you've reached the registration form, simply enter the information requested:

Company Information—Enter the name, filer ID number (usually a company’s tax ID or EIN number), and filer ID type. If you choose to use your company's Dun and Bradstreet Number as your Filer ID, you must enter your tax ID number in the IRS Number field below.

Account Administrator and Administrator Address—Your company must identify a person to administer your AES account. Enter that person's contact information here. They will be responsible for creating and maintaining a permanent administrator code, changing the AESDirect password, overseeing the maintenance of the account and providing authorized users the updated password information.

Corporate Office—Enter the contact information for your company's corporate office.

Corporate Contact—Enter the contact information for your company's corporate contact. This may be the same person as your Account Administrator listed above.

Other Information—Unless you are filing export information for other exporters, you should select the USPPI radio button.

Submit Form—Enter your name and email address and check the two boxes that indicate you are providing accurate information and are willing to abide by the terms of usage for AESDirect, and then click on the Submit button.

As soon as the AESDirect account has been set up, AES will send an email to the person you nominated as your Account Administrator. He or she should click on the link in the email to be taken to a website to complete the registration process:

Account Admin Code—This is the code that allows the Account Administrator to change the company's password and account profile information. It is also used to obtain access to several AESDirect advanced capabilities and functions. Only the Account Administrator should have this code, and only he or she has the option of changing it at any time.

Username—This is the user name that must be used to log in to AESDirect to file through AES. The user name for the company account never changes and is always in lower case letters. Everyone in a company using the account to file shipment information through AESDirect uses the same user name.

Password—This is the second data element that must be entered to log in to AESDirect. Everyone in a company using the account to file shipment information through AESDirect uses the same password. Note, however, that the password can be changed at any time and must be changed every 180 days for security reasons. Only the company's Account Administrator can change the password, and he or she is responsible for advising all company filers when the password has been changed.

Once your Account Administrator has submitted the final information for your AESDirect account, anyone at your company that has access to the user name and password will be able to log in. However, your account will not be activated and you will not be able to begin filing through AESDirect until someone at your company passes the Certification Quiz.

 

The AESDirect Certification Quiz

 

In order to fully activate your AESDirect account someone at your company must pass the certification quiz. You can take the quiz immediately upon registration or up to 30 days after you registered for an AESDirect account. If the quiz is not completed within that timeframe, your account will be deleted from AESDirect and you will need to submit a new registration request.

 

To prepare for the certification quiz, you can read the AES User Guides, review some sample shipments, and attend online or onsite training sessions. You'll find a variety of training options under "Training" on the left side of the AESDirect webpage.

 

Once you have prepared for the quiz, click on Certification Quizzes on the Home Page and then select either the AESDirect Interactive Certification Quiz or theAESPcLink Certification Quiz. If you will be filing through AES directly from the AESDirect website or will be using a third-party software program like Shipping Solutions, you should click on the link for the AESDirect Interactive Certification Quiz.

 

Each quiz consists of a series of multiple choice and true/false questions. At least 27 (of 30) questions must be answered correctly to pass the quiz, and you can take the quiz as many times as necessary to pass.

 

When someone from the company has passed the quiz, the AESDirect service will automatically complete the account set-up for filing through AES. The Account Administrator will be notified by email when this process is complete. At that time, the Account Administrator can distribute the user name and password to the company's authorized filers.

 

As soon as you receive this notification, your company is now ready to file your export information electronically. You have also completed the hardest part of using AES. From this point forward, you can begin filing your information electronically from the AESDirect website, through the free AESPcLink software, or through an export documentation software like Shipping Solutions.