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New Foreign Trade Regulations Impact Carnets

 

(Shortcut to What You Need To Know)

 

UPDATE AS OF APRIL 3RD 2014:

ENFORCEMENT DELAYED UNTIL OCTOBER 2ND 2014

 

Final Rule Enforcement and Exceptions

As of April 5th, 2014, a final rule under the U.S. Foreign Trade Regulations will be enforced requiring some goods, temporarily exported under ATA Carnet or TECRO/AIT Carnet, to be tracked by the U.S. Census Bureau using the Automated Export System (AES).

Formerly, all goods traveling under a carnet were exempt from the EEI filing requirement. Now, all carnet shipments are not exempt however there are still several key exceptions to this requirement:

  • Goods valued less than $2500 are exempt. As long as no single item on the General List is valued greater than $2500, no EEI filing is necessary unless subject to licensing or other export controls.
  • Hand-carried goods traveling under a U.S. carnet unless subject to licensing or other export controls, are exempt.
  • Goods traveling under a U.S. Carnet to Canada, unless subject to licensing or other export controls, are exempt.

Background and Purpose

The Census Bureau via the AES collects Electronic Export Information (EEI) for the purpose of developing export trade statistics. Other Federal government agencies use the EEI for export control purposes to detect and prevent the export of certain items by unauthorized parties or to unauthorized destinations or end-users. Collecting EEI for carnet shipped goods is part of the Federal government's effort to secure our borders and the international supply chain.

How To File The EEI

Note that EACH carnet export from the U.S., even if the subsequent export is the same goods, under the same carnet, must file the EEI. For example:

  1. ATA Carnet "export #1" goes to the U.K. and files the EEI, later returning to the U.S.
  2. The same ATA Carnet and goods now is headed for the U.K. and is "export #2" going to Canada. No EEI filing is required as goods to Canada are exempt unless using an export license. However, the yellow counterfoil box 3 must note, "No EEI per Exemption 30.36(a)."  The goods later return to the U.S.
  3. Again, that same ATA Carnet and goods now goes from the U.S. to the U.K. for a second time. "Export #3" has a second EEI filing. Goods and carnet make a final trip back to the U.S. and the carnet is returned.
  4. Summary of EEI compliance: 2 EEI filings, one each for trip to the U.K., 1 exemption noted on the yellow counterfoil for the trip to Canada.

Foreign Carnets (non-U.S. Issued)

All goods traveling under foreign carnets to the U.S., whether hand-carried or shipped, are required to file the EEI through the AES upon re-export from the U.S. Contact us at 800.ATA.2900 for details.

What Are The Details? What, Exactly, Do I Have To Do To Comply?

Details of the filing requirements include:

  • the timing of the EEI filing,
  • the required export information for the filing
  • how the Internal Transaction Number (ITN) is to be recorded on the carnet certificates, and
  • how exemptions are to be noted on the yellow counterfoils.

Although a carnet shipment may be exempt, a Carnet Specialist may suggest filing the EEI to avoid delays at Customs.

What Are The Penalties, If Any?

Failure to file the EEI is sufficient grounds for U.S. Customs and Border Protection to potentially issue penalties against the exporter for violations of the Foreign Trade Regulations.
 

Carnet Specialist can assist you and answer any questions on this new requirement. For immediate assistance, call the boomerang carnets┬« Carnet HelpLine┬« at 800.ATA.2900.