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	Automated Export System (AES) Are you in compliance? How much money can your small business afford to throw away? At some point in 2006 all U.S. exporters will be required to switch from providing paper copies of the Shipper's Export Declaration (SED) to filing the information electronically through the Automated Export System (AES). What is AES? AES is the central point through which Export shipment data required by multiple agencies is filed electronically to Customs. As a nationwide system, it is operational at all ports and for all methods of transportation. It is designed to assure compliance with and enforcement of laws relating to exporting, improve trade statistics, reduce duplicate reporting to multiple agencies, and improve customer service. AES has the goal of creating paperless reporting of all export information. When the shift from paper to electronic filing of the SED information was announced in the first part of 2003, the U.S. Census Bureau anticipated the implementation date would be April 2004. But according to a Census Bureau official, the implementation date has been pushed back and will likely take effect January 1, 2006. Until that time, exporters can still provide paper copies of the SED unless they are shipping products on the Commerce Department's Commerce Control List or the State Department's U.S. Munitions List. Companies exporting products on either of these lists were required to begin filing their SED information electronically through AES on October 18, 2003. Companies that currently aren't required to complete a paper SED won't be required to file their export information through AES. These exporters don't complete an SED because their shipments don't require an export license and (1) they are of low value or (2) they are shipping to Canada. The rule making process required Census to go through an international and external review process with other agencies affected by proposed rule changes-in this case U.S. Customs and Border Protection and the U.S. State Department. That review process was completed, and Census published the proposed rule in the Federal Register and companies affected by the proposed rule were given a 60-day comment period. Census is currently responding to those comments. When they have finished responding, they will publish the final rules in the Federal register, and they will take effect after a 90 day implementation period, most likely January 1, 2006. Click here to view the comments Also on the horizon, Census will be publishing rules increasing the penalties for delays in filing through AES, failing to file at all, or filing inaccurate information 10-fold up to $10,000 per violation. Benefits of AES? Now that I have your attention by mentioning penalties and fines you might ask, "what are the benefits of AES?" Ensure Your Export Compliance. The AES, with its sophisticated editing system - and your subsequent corrections, ensures your compliance with current U.S. export reporting requirements. The system returns an Internal Transaction Number (ITN) as confirmation that you successfully filed your export documentation. Correct Errors as They Occur. AES provides immediate feedback to the filer when data is omitted or incorrect. AES allows you to correct errors at any point in time. Decrease Your Costs. Eliminate the cost of corrections with up-front data edits. Eliminate the costly delays of paper handling. Eliminate duplicate reporting. Avoid fines and penalties. Eliminate Paper Review of Licenses Against Shipments. The interface with the Commerce Department's Bureau of Industry and Security and the State Department's Directorate of Defense Trade Controls electronically validates data on export shipments against previously-approved licenses and transmits the transaction to the appropriate Partnership Agency. Keep in Step With the Global Shift to EDI. AES is in line with the NAFTA and GATT agreements. AES export certification could start the 60-day clock for presentation of evidence of duty payment to another NAFTA country. This will make it easier to do business in multiple countries. Provide a Tool for Evaluating and Measuring Potential Markets. Accurate and timely export statistics from accurate trade data will help your business stay ahead in the global trade market. UTi United States, Inc. is a global non-asset based supply chain logistics operator providing integrated logistics solutions and services. Our services include freight forwarding, order management, customs brokerage, contract logistics and supply chain consulting. UTi has accepted the use of AES in its daily export operations delivering a competitive edge to our customers. For more information on registering with AES or the penalties involved for lack of compliance. Please visit the AES Direct Support Center at www.aesdirect.gov This webpage offers many great links to register with AES, train on using the AES system as well as additional links to other informative government websites. Please note that the information contained above is from the Census website and is intended for informative purposes only. UTi, United States, Inc. cannot be held responsible for the above content or the manner in which it is used. Ian S Strachan UTi, United States, Inc. istrachan@go2uti.com www.go2uti.com