The Census Bureau is accepting comments through Dec. 30 on a proposed rule that would make a number of changes to the Foreign Trade Regulations.
USPPIs. Census wants to expand who may be considered the U.S. principal party in interest for goods that enter the U.S. for consumption or warehousing and are then stored in a warehouse or storage facility or admitted into a foreign-trade zone before being exported. Current regulations allow the customs broker to be the USPPI when the broker or a foreign person is listed as the importer of record, but Census notes that when such goods have been stored for weeks, months, or years after entry parties other than the broker may have knowledge and control of those goods.
As a result, this rule would provide that if a broker or foreign person is listed as the importer of record when entering goods into the U.S., the broker will be listed as the USPPI in the electronic export information if the goods are being exported without change or enhancement within 30 calendar days of import. After that time the warehouse or storage facility in possession, and with knowledge and control, of the goods when they begin their journey to the port of export would be the USPPI.
Further, when the broker is the USPPI it would be required to obtain consent from its client to share information from the import entry that supports the preparation and filing of the EEI in the Automated Export System.
Data Elements. This rule would require the entry number when foreign-origin goods are entered for consumption or warehousing and then stored in a warehouse or storage facility or admitted into a FTZ. Census explains that the entry number will provide a link to the U.S. Customs and Border Protection entry data where the country of origin data can be obtained.
The rule would also insert a new appendix to specify the data elements the USPPI and the authorized agent are responsible for in a routed export transaction (i.e., where the foreign PPI selects a U.S. forwarding or other agent to facilitate the export of goods from the U.S., regardless of the terms of sale).
EEI Filing. This rule would (1) require the EEI filer to maintain a physical office or residence in the U.S., be physically located in the U.S. at the time of preparing and filing the EEI, and have an EIN or DUNS and be certified to report in the Automated Export System, (2) amend the Drug Enforcement Agency’s authorization to require EEI filing in AES for all licenses and permits under 12 CFR 1309, (3) clarify that EEI filing is excluded when goods are moving in-transit through the U.S., Puerto Rico, or the U.S. Virgin Islands from one country or area to another when the goods do not enter the U.S. for consumption or warehousing, and (4) clarify that the EEI may not be used for tax purposes, export marketing, or promotion unless otherwise noted.
Definitions. The rule would amend definitions of “buyer,” “end-user,” “filer,” “foreign port of unlading,” “foreign PPI,” “forwarding agent,” “intermediate consignee,” “order party,” “seller,” “shipment,” “ultimate consignee,” and “USPPI.” It would also add a definition for “conveyance” and remove the definition for “consignee.”
Other. Other proposed changes would clarify (1) that the intermediate consignee must physically take possession of the goods, (2) that the foreign port of unlading is where the goods are removed from the exporting conveyance, (3) the import reporting requirements for repairs, and (4) that foreign persons may not submit a voluntary self-disclosure.
For more information on how the proposed changes might affect your business, please contact Kristine Pirnia at (202) 730-4964 or via email.
Copyright © 2025 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.