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05-05-2010 - Exporters, CBP Issuing Penalties for EEI/AES Filings

U.S. Customs and Border Protection (CBP) entered into enforcement of the mandatory Electronic Export Information (EEI) (aka AES) filing requirement. The rule was implemented on July 2, 2008 with penalty enforcement commencing February 1, 2009. Only recently did CBP begin issuing penalties for non-compliance.

Effectively the rule imposed by the Census Bureau requires mandatory filing of export information through the Automated Export System (AES) for all shipments where a Shipper’s Export Declaration (SED) is required. Additionally, these new regulations have tougher penalty provisions that affect everyone in the export process.  Penalties may be imposed per violation of the FTR from $1,100 per day to $10,000 both civil and criminal, for the delayed filing, failure to file, false filing of export information, and/or using the AES to further any illegal activity.

 Also, all AES filers are faced with new filing deadlines by mode of transportation for reporting export information.  It is important that you understand these new requirements so that you avoid the increased penalties and seizure of your commodities.

The most common errors are non-filing or late filing of the EEI. Other violations include incorrectly reporting the value, USPPI, consignee, end-user, commodity description/HTS/Schedule B Code, port of export, failure to identify the shipment as a “Routed” transaction, failure to correct information via AES as changes become known or failure to retain records for five years.

Penalties for non-filing will be issued at $10,000.00, inaccurate filing at $10,000.00 and penalties for late filing issued at $1,100.00 per day, maximum of $10,000.00. Mitigation of penalties may be available. Please review EEI Penalties.pdf for a complete overview of penalties, mitigation guidelines and aggravating factors.

The regulations are clear in that all information must be complete and accurate at the time of AES filing irrespective of your business being approved for Option 2 (pre-departure) or Option 4 (post-departure) filing privileges. Thus, it is imperative that comprehensive shipping instructions be submitted prior to vessel cut off to ensure timely and accurate AES filing. We request that shippers provide all pertinent shipment details promptly to avoid potential fines or penalties.

Geo. S. Bush & Co., Inc. (GSB) is proficient in understanding the EEI program and requirements as well as our ability to file an EEI. Please think of Geo. S. Bush & Co., Inc. as your EEI/supply-chain management partner.  Several factors need to be pre-determined prior to filing an EEI.  To ensure your company is compliant with the EEI requirements, please call (503) 228-6501, and/or email: info@geosbush.com.