Electronic SED filing to become mandatory for some U.S. exporters

The U.S. Census Bureau's Automated Export System (AES) will become mandatory for some exporters beginning March 2002. At that point, anyone exporting munitions or items subject to export licensing will be required to file their Shipper's Export Declarations (SEDs) electronically via AES.

The mandatory AES filing requirement is part of the 1999 "Proliferation Prevention Enhancement Act" which requires that the above mentioned export shipments be filed through AES 270 days after the Administration certifies AES's security and successful implementation. That certification was sent to Congress this past June.

AES remains optional for all other exporters, although legislation to make it mandatory for all exporters has passed the U.S. House of Representatives and is currently before the Senate Foreign Relations Committee. A recent report issued by the U.S. Department of Commerce recommends that shippers and forwarders be required to file SEDs through AES by 2005.

While AES isn't currently required for most exporters, ocean carriers have added a financial incentive to file SEDs through AES. Beginning last November, exporters and freight forwarders who submit SEDs to ocean carriers on paper can be charged $100 per declaration.

Because it has been certified by the U.S. Census Bureau, Shipping Solutions 2000 makes it easy to file an SED through AES. Users simply enter their shipping information in the program's EZ Start Screen, print out whatever documents they need on plain paper, and click on a single button to begin uploading their export data to AESDirect.

To use this service, exporters only need to sign up for a User ID and Password from AESDirect, which they can receive by registering, watching an on-line tutorial, and then passing a short quiz. There are no hidden costs or fees and they can avoid the cumbersome process of getting their company certified for AES.

RESOURCES:

View the new mandatory filing regulations in the U.S. Federal Register.

Visit AESDirect.

Download a free demo version of Shipping Solutions 2000 with AES Certification.

Ten Profitable Tips for Exporters & Importers

1. Trade in products you know and understand. Whether it's sporting goods or diesel locomotives, domestic sales or international sales, you have to know the product to be able to succeed.

2. Learn the basics first. You can't learn everything. Be an expert in your product. Learn the basics of international marketing, payment, and customs. Many community colleges have inexpensive courses. Contact the U.S. Department of Commerce, your state Department of Commerce, and the Small Business Administration. They have seminars and conferences, and can tell you about other resources.

3. Ask for assistance from the experts. Before you begin, talk with a bank's international department (at most large banks), and with a Freight Forwarder (exports) or Customs Broker (imports). These specialists are listed in the Yellow Pages.

4. Keep in touch with all of your sales leads. Put together a mailing list and make sure they hear from you three or four times a year. Don't let them go to someone else.

5. For success in exporting:
A) Get the order.
B) Make sure you're going to get paid for the order.
C) Ship the order.

6. For success in importing:
A) Figure ALL costs, including transportation, insurance, Customs duties, then double-and triple-check them.
B) Pre-sell (have advance orders for) as much of the imported merchandise as possible BEFORE you place YOUR order.

7. Add an extra margin into your wholesale price. This will be to cover unforeseen expenses, or be a margin you can "give away" in negotiations.

8. Look both ways. If you're selling overseas, ask your buyer what products he has that you can look at for the U.S. market. If you're buying, ask your supplier what types of products you can supply to him for the market in his country.

9. Don't spend money until you make money. Don't pay for fancy letterheads until you can afford to. Be professional, but be a frugal professional.

10. Sell Quality Products. (People don't want junk.) Be Honest. (You stay in business that way.) Keep Your Word. (Only way to get a repeat order.)

Joseph Zodl is the author of Export-Import: Everything You and Your Company Need to Know to Compete in World Markets, now in its fourth printing.

For more information on Export-Import, click here.

(c) 1995, 2001 Joseph Zodl.  Used by permission.