 January 4, 2022Schedule B and Harmonized Tariff Schedule (HTS) Updated in the Automated Export System (AES) Effective immediately, the Schedule B and Harmonized Tariff Schedule (HTS) tables have been updated to accept the 484(f) statistical changes to the January 1, 2022 codes. AES will accept shipments with outdated codes during a grace period for 30 days beyond the expiration date of December 31, 2021. Reporting an outdated code after the 30-day grace period will result in a fatal error. The ACE AESDirect program has been updated with the January 1, 2022 codes and will accept shipments with outdated codes during the grace period. There will be a second AES update later this month to add new Schedule B and HTS codes resulting from international changes to the 2022 Harmonized System. The 2022 Schedule B and HTS tables are available for downloading at: http://www.census.gov/foreign-trade/aes/documentlibrary/#concordance The current list of HTS codes that are not valid for AES are available at: http://www.census.gov/foreign-trade/aes/documentlibrary/concordance/hts-not-for-aes.html For further information or questions, contact the U.S. Census Bureau’s International Trade Indicator Micro Analysis Branch: Telephone: (800) 549-0595, select option 2 for International Trade Indicator Micro Analysis Branch Email: eid.scheduleb@census.gov Online: www.census.gov/trade Blog: https://www.census.gov/newsroom/blogs/global-reach.html We’re Here to Help We’re here to help you get the most out of Census Bureau data. If you have a question, give us a call at 1-800-549-0595. |
It’s That Time of Year
Happy New Year…It’s that time of year again. The 2022 Preliminary Edition of the Harmonized Tariff Schedule has been published and there will be more changes later in January. Best practices in compliance include reviewing your parts lists to make sure you are using accurate and up to date HTS codes.
Why not take it one step further and develop a parts matrix listing descriptions, HTS codes, Schedule B codes, ECCN, License info, Country of Origin, and any other relevant import/export data? Your matrix will enable you to document new parts additions and changes as they occur. All departments involved in trade will be working with the same information so errors and omissions will be reduced.
Contact mitch@52.91.45.227 for help with your matrix.
LinkedIn Comment- Canada
I’m not an economist (nor do I play one on TV), but this can’t be good. Canada is the US’s largest trading partner for exports and in the top 3 for imports. Supply chains linking the two nations are relatively short and logistics less complex.
LinkedIn Comment- NLR
If NLR is your default entry this is a wake up call. Thanks Jim Dickeson – Trade Compliance Geek #compliance
It’s finally happened. I’ve been saying for years that AES needed this simple edit check.
As you know, when you export an item with an ECCN whose reason for control is the same as the reason for control for your destination country, there is a license requirement. Either you need an export license, or there may be a license exception available. But if you filed the EEI in AES with the License Type C33 for No License Required (NLR), you would have a BIS export violation. No, AES wouldn’t tell you this. You’d just get the bad news at some point in the future. Along with a penalty of up to $250,000. Cha-ching!
https://www.linkedin.com/in/adhoclogistics/detail/recent-activity/
Look This Way
Perhaps you have been “looking the other way” when it comes to export compliance. If you are lucky there have been no consequences for this negligence. CEOs and COOs, why not start off 2022 with a little executive action and move your organization towards compliance?
While a formal Export Compliance Program is the ideal solution, you may not be ready to commit the resources needed at this time. However, there are some steps that can be implemented immediately at little cost.
Here are a few best practices to help you get started :
1) Review and confirm correct Harmonized Tariff and Schedule B codes and maintain master list as updates occur. Proper classification follows established protocols and is the starting place for compliance.
2) Check Export Administration Regulations (EAR) for correct ECCN and license exception codes. Are you automatically using EAR99 and NLR? https://www.bis.doc.gov/ can help.
3) Confirm Country of Origin for all imports. This info is needed for your Commercial Invoice and is not always obvious, so consider consulting a Licensed Customs Broker.
4) Check common “Red Flags” such as denied parties lists, entities lists, and unverified lists. Once again, https://www.bis.doc.gov/ provides details and training.
5) Review export documentation for possible improvements.
Make export compliance a front-end process not a last minute shipping function. Remember, while Logistics Service Providers (LSPs) are valued partners, the exporter bears primary responsibility for compliance. Finally, if exporting under ITAR you need a responsible trained officer.
Contact mitch@52.91.45.227 for immediate assistance.
FTA Tariff Tool
In a recent post we discussed Country Commercial Guides published by the International Trade Administration, which is part of the US Department of Commerce.
The FTA Tariff Tool is another valuable ITA resource for exporters . This tool enables exporters to determine duty rates when shipping to foreign countries. Here is the link:
https://www.trade.gov/fta-tariff-tool-home
For help with international logistics contact mitch@52.91.45.227
LinkedIn Comment- Juan Villa
Clear explanation of the issues.
File and Forget is Risky
Exporters, are you filing and forgetting? Auditing EEI (also referred to as AES) filings is a good business practice. If you are a self filer is anyone checking the accuracy of your submissions? Does your freight forwarder have an audit procedure in place if they are filing for you? Here is the risk of a “file it and forget it” policy:
§ 30.71 False or fraudulent reporting on or misuse of the Automated Export System.
(a) Criminal penalties –
(1) Failure to file; submission of false or misleading information. Any person, including USPPIs, authorized agents or carriers, who knowingly fails to file or knowingly submits, directly or indirectly, to the U.S. Government, false or misleading export information through the AES, shall be subject to a fine not to exceed $10,000 or imprisonment for not more than five years, or both, for each violation.
Are you aware of these potential filing errors?
A common misconception is that EEI and Commercial Invoice value should match. However, inland freight charges must be accounted for in the EEI filing whether or not they are on the commercial invoice.
or
The new mandatory filing requirement in Section 758.1(b)(10) applies to all items that have an ECCN and are destined to China, Russia, or Venezuela, regardless of value, end use or end user.
For audits of your EEI filings contact mitch@52.91.45.227 .
LinkedIn Comment- Responsible Parties
Deep SenGupta• 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐢𝐧𝐠 𝐃𝐒𝐆 𝐆𝐥𝐨𝐛𝐚𝐥 𝐋𝐋𝐂’𝐬 𝐬𝐞𝐫𝐢𝐞𝐬 𝐨𝐟 𝐭𝐡𝐞 𝟐𝟓 𝐤𝐞𝐲 𝐞𝐥𝐞𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐚𝐬𝐬𝐞𝐬𝐬𝐢𝐧𝐠 & 𝐫𝐞𝐝𝐮𝐜𝐢𝐧𝐠 𝐨𝐮𝐫 𝐜𝐥𝐢𝐞𝐧𝐭’𝐬 “𝐈𝐧𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐓𝐫𝐚𝐝𝐞 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐒𝐜𝐨𝐫𝐞”
CHAPTER 2: RESPONSIBLE ORGANIZATION: When employees wear multiple hats (for example: the warehousing or procurement staff are also the Import-Export compliance go-to person), compliance usually falls through the cracks.
WHAT IS THIS AND WHY IS IT IMPORTANT TO THE TRADE COMPLIANCE SCORE?
Excellent post Deep…in my opinion compliance officers should report directly to CEO, COO, or legal dept. They must have autonomy and authority
The Waters Edge- Part 2
As noted in a recent post, complying with US export regulations is only half of the battle in an international transaction. Clearing customs and arranging transportation in the destination country can be even more complex. Issues include choice of customs broker and freight forwarder, Importer of Record status, establishing EORI and VAT accounts, marking and labeling, and much more.
Experienced LSPs (Logistics Service Providers) are valuable partners and should be able to provide guidance. However, due diligence on the part of the exporter means doing some research in advance. This is especially true when shipping to a country for the first time.
The International Trade Administration publishes on-line Country Commercial Guides available at no cost. Check them out at https://www.trade.gov/ccg-landing-page
Contact mitch@52.91.45.227 for help with international shipping.