New legislation introduced April 17 seeks to modernize the Automated Export System to prevent inadvertent exports to restricted parties or embargoed countries. Bill sponsors Don Manzullo, R-Ill., and Adam Smith, D-Wash., said the Securing Exports Through Coordination and Technology Act (H.R. 5828) “would help clarify a confusing U.S. export system that often punishes inadvertent mistakes with costly fines” as well as “strengthen the government’s ability to crack down on deliberate violators.” The bill also includes other provisions designed to improve the use and operation of the AES.
Under H.R. 5828, the AES would be required to:
• reject data submitted for exports that would violate U.S. export control or sanctions regulations by virtue of the country of destination or the involvement of a restricted entity;
• alert the exporter of potential export license requirements under the Export Administration Regulations or the International Traffic in Arms Regulations based on the codes (e.g., HTSUS number) entered to identify the export;
• issue a fatal error notice when the export data submitted includes (a) the name or address of a restricted entity or (b) an intermediate or destination country subject to U.S. trade sanctions or, in the case of defense articles and services, a U.S. arms embargo; and
• issue compliance alerts or other warnings to the filer if (a) the data submitted includes an HTSUS number inconsistent with the export control classification number or the U.S. Munitions List category; (b) in the case of a dual-use item, the license exception is not available to the country of the ultimate consignee or to the intermediate or ultimate consignee; or (c) in the case of defense articles and services, the USML category is identified but no license number, exemption or exception is correctly identified.
These changes “will prevent well-intentioned exporters, customs brokers, freight forwarders, and others who are essential to our economy from accidentally shipping prohibited goods or shipping to a prohibited location,” Smith said, and would therefore reduce associated fines. Exporters say these types of errors happen frequently, a fact sheet on the bill notes, because the wide range of export control laws and regulations administered by the departments of Commerce, State, Homeland Security, Defense and Treasury are “incredibly hard to follow.”
The bill includes the following provisions as well.
Licenses for AES Filers. The DOC would be able to establish a program to license those who file information in the AES on their own behalf or as an intermediary.
Public Disclosure of Export Information. Shipper’s export declarations and AES filings, wherever located, would be exempted from disclosure to the public. However, this information could be shared with other federal agencies or foreign governments if it is determined that it is in the national interest to do so to assist in the enforcement of U.S. export laws and regulations or to conduct and coordinate programs to combat terrorism or the proliferation of weapons of mass destruction.
Agency Involvement in Export Training. The DOC would be required to work with other relevant agencies to ensure that appropriate personnel are made available to participate in seminars, training meetings, symposiums, etc. whose purpose is to educate exporters about U.S. export laws and regulations and the AES in particular.
World Trade/Interactive
