AUTOMATED EXPORT SYSTEMPRESENTATION

PRESENTED BY: HARVEY R. WAITE, IIPartner, Director of Regulatory

Compliance and SecurityOCEANAIR, Inc.

December 11, 2012

AES – Automated Export System – What is it?

Facilitates filing of ELECTRONIC EXPORT INFORMATION (EEI) for collecting Statistical Data and Compliance Information

Creates an easily accessible database for multiple Governmental Enforcement Agencies

Source CFR TITLE 15, PART 30.6

http://www.gpo.gov/fdsys/browse/collectionCfr.action;jsessionid=y1P6Q18TYDdszrYyqpHn6GnsNhDfKFRNJ1g3pJ8twhMkpVyHqW2l!1120821180!-1177878327?selectedYearFrom=2012&go=Go

Go to Title 15, Subtitle B, Chapter 1, Part 30 --- Be Patient! It takes a while.

Suggestion:

Print Part 30, Subtitle B, Chapter 1: Put a copy on your desk, in the bathrooms at work and at home. Further suggest that you put a magazine cover on the front of the copy at home to maintain domestic tranquility. “Memorize”

WHAT IS NEW?

**** ENFORCEMENT, ENFORCEMENT, ENFORCEMENT ****

Why? IT IS THE LAW!

Who? CBP, Census, Directorate of Defense Trade Controls, Bureau of

Industry and Security, Homeland Security, etc.

How? Massive data bases and extremely sophisticated targeting

systems

Simple data checks at the local level. Low hanging fruit

I want to inspect your cargo and documents!

Enforcement result – Example from OCEANAIR

Agencies (CBP) will not know where cargo is located for examination

if incorrect port, date of export or carrier are submitted.

$10,000.00

PENALTIES FOR OTHER FTR VIOLATIONS, INCLUDING THE FOLLOWING (Not an Exhaustive List):

Failure to File data.

Incorrect value of shipment.

Other incorrect information in the AES record, such as an

incorrect USPPI, consignee, end-user, commodity description, or port

of export.

Failure to cite license code or license number.

Failure to obtain Power of Attorney for AES transmission

Failure to identify transaction as a routed transaction.

Failure to correct information in AES as the changes become

known to the filer.

PENALTIES FOR OTHER FTR VIOLATIONS, INCLUDING THE FOLLOWING (Not an Exhaustive List): - Cont.

Failure to provide carrier with appropriate proof of filing

citation or exemption legend by the time periods set forth in the

FTR.

Failure to retain all records relating to the export shipment

for a 5-year period from the date of export.

PENALTY ISSUANCE

These penalties may be issued against USPPIs, authorized

agents, freight forwarders, and any other person as

appropriate, or the FPPI or its authorized agent if a routed

transaction, or other persons as appropriate. The Notice of

Penalty will be issued at the maximum amount of $10,000.

PENALTY MITIGATION

First Recorded Offense - $500 to $2,500

Second Recorded Offense - $750 to $3,500

Third Recorded Offense - $1,000 to $5,000

Fourth and Subsequent Recorded Offenses - $2,000 to

$10,000

WHAT IS COMING?

MORE ENFORCEMENT

E2C2 (Export Enforcement Coordination Center) – Started March 7, 2012 – Just Gaining Traction. For background, copy and paste: http://www.whitehouse.gov/the-press-office/2010/11/09/executive-order-13558-export-coordination-enforcement-center

Participating Organizations:o U.S. Customs and Border

Protectiono Defense Criminal

Investigative Serviceo National Nuclear Security

Administrationo Defense Security Serviceo Bureau of Industry &

Security

o Department of Homeland Security (DHS)

o FBIo Departments of Justice,

Commerce, State, Treasury, Defense & Energy

o Director of National Intelligence

WHAT IS COMING? (CONT.)

Developing ITU or Information Triage Unit

Designated to collect information and intelligence from across

the government. Oversight by the Office of the National

Counterintelligence Executive.

So this is where my AES data goes…among other places…sleep

tight!

Where this is smoke, there may be fire!

AES will be part of ACE (Automated Commercial

Environment) – A single electronic platform both import and

export.