On June 8th, the Automated Export System underwent a major overhaul. This overhaul was done in preparation for the mandatory filing of all Shipper’s Export
Declarations through the Automated Export System.

Just to recap…

In the 1990s, Census and Customs began work on implementing the Automated Export System, allowing shippers and forwarders to electronically file the export commodity information. While this eliminated the need for the carrier to physically collect the form, the carrier must have verification the AES data has been transmitted to Census. The carrier does this by reviewing the documentation for specific verbiage indicating AES has been filed.

A Shipper’s Export Declaration is required for:
- all export shipments valued over $2500 per Schedule B from the U.S. to foreign countries (except Canada);
- all licensed shipments regardless of value, including those to Canada
- all exports over $2500 from the U.S. through Canada destined to a country other than Canada
- all export shipments over $2500 to/from Puerto Rico and to the U.S. Virgin Islands
- Items considered to be EAR99 and valued under the $2500.00 limit (per Schedule B)

Mandatory AES filing went into effect on October 18, 2003 for all Commerce Control List items and U.S. Munitions List items that require a Shipper’s Export Declaration (SED). This includes items being exported citing a license exemption as the export authorization.

There are two numbers associated with AES, which hold the key to successful transmission, the internal transaction number (ITN) and the external transaction number (XTN).

The ITN is generated by Customs AES system. It signifies that Customs is in receipt of the AES data. This number is coded by the letter “x”, the year, month, day of export (from the SED data) and a sequential number generated by the AES system.

The XTN is the unique number generated by the exporter (or forwarder). This number is made up of the EIN/SSN of the filer as well as their shipment reference number.

The export transportation documentation (bill of lading, airbill, etc.) must reflect proof of the AES. This is done as an exemption statement on the documentation. “No SED required, AES Filed 110001111-25435.”

While most the changes made during the overhaul were transparent (behind the scenes) to the user, there are some changes that are apparent.

One of the new changes with AES is that prior to the overhaul the ITN (Customs receipt number) changed with every update that was received by Customs from the user. The ITN will now remain the same, regardless of the number or types updates sent by the user via the AES system.

A recent Customs pipeline advised the citation of the ITN would be mandatory in 2005. Customs is suggesting the trade community begin utilizing the ITN as a “matter of preparation and training.”

Another change to the system is that most of the error messages that were warning errors are now appearing as fatal errors. These new edits were added to ensure valid information is being reported. Users should doublecheck, values, quantities and weights as these numbers may set off a fatal message if they are incorrect.

In the post 9/11 world, Shipper’s Export Declarations/AES transmissions are an important enforcement tool that Customs can use to target particular export commodities, destinations or any other criteria they create. As the Automated Export System continues to evolve, users can keep current with these changes through the Census and AESDirect websites as well as the Federal Register.

PACMAN is the Professional Association of Import/Export Compliance Managers. PACMAN membership consists of corporations nationwide engaged in compliance management. For more information about PACMAN please visit our website: www.compliancemaven.com.