January 2002 

Two New Seminars Offer Assistance with AES, Export Documents

If you're looking for help completing your export documents or need an explanation of the U.S. Customs Automated Export System (AES) for filing your Shipper's Export Declaration (SED), two new seminars offer assistance.

Simplifying Export Documents: New Solutions for Documentary Requirements is a special one-day program sponsored by the International Trade Center at Radford University in Radford, Virginia. This full-day, hands-on workshop addresses the major aspects of export documentation preparation, new regulations and updates, the SED, and INCOTERMS.

Participants will use computer workstations and Shipping Solutions® software to complete a set of export documents.

Understanding the Automated Export System provides an overview of the AES filing process, a detailed review of the AES test required to become a registered AES user, and a review of the information required for each export filing through AES. This half-day class will be held at the Minneapolis Community and Technical College in Minneapolis, Minnesota, and is co-sponsored by Metropolitan State University, the Minnesota World Trade Association and the Minnesota Trade Office.

Both seminars will be held February 15, 2002, and offer hands-on computer training. Attendees of both seminars will also receive a free demo copy of Shipping Solutions, America's #1 selling export documentation software.

Due to a major grant, the registration fee for Simplifying Export Documents is only $89 and includes a continental breakfast, lunch and training materials in a three-ring notebook. Registration begins at 8:30 a.m. and the program runs from 9 a.m. until 4 p.m.

To register, contact Ms. Jennifer Quesenberry at the Radford University Business Assistance Center at (540) 831-6056.

Registration for Understanding AES begins at 8 a.m. with a continental breakfast, and the class runs from 8:30 a.m. until noon. All attendees receive 

  • printouts of all the screens that you will see at the AES website,
  • an explanation of the AES tutorial provided during the session, and
  • review of the test that you need to pass in order to finalize your registration as an AES user.

The registration fee for this program is $75 ($65 for MWTA members, MnSCU graduate students or faculty). Register by calling (612) 341-7024.

Joseph A. Robinson is the instructor for Simplifying Export Documents. Catherine J. Petersen and Rich Cox will be leading the Understanding AES seminar.

Additional Int'l Trade Seminars Available Around the U.S.

If you are interested in learning more about AES, export documents or other aspects of international trade, International Business Training (IBT) offers dozens of day-long seminars almost every month in major cities across the U.S.

Current seminar topics include:

Produced by Global Training Center—a leading provider of international trade seminars—these classes have helped thousands of individuals become more proficient at their jobs and more valuable to their companies.

In addition to day-long seminars, IBT offers a variety of reference books and self-study classes designed to help international trade professionals do their jobs.


Understanding U.S. Principal 
Party in Interest
(Part 1)

By Catherine J. Petersen

This is the first of four articles that will discuss the definition and use of the U.S. Principal Party in Interest (USPPI) and provide real-life case studies (with the names changed) of which firm is legally the USPPI.

In the fall of 2000, the U. S. Census Bureau updated the look of the Shipper's Export Declaration (SED) and the corresponding Foreign Trade Statistics Regulations. The SED and regulations became law on October 1, 2000, with a grace period for compliance until April 1, 2001.

These changes were more than a badly needed facelift to the SED, which was last updated in 1988. The new rules changed Block 1a from "Exporter" to 
"U. S. Principal Party in Interest" or USPPI. There are several reasons that the regulations changed. Three of the reasons are summarized here:
  1. Clarify and specify the documentation and documentation sharing responsibilities of all parties in an export transaction. In a routed export transaction the forwarding agent is responsible for providing the U.S. principal with documentation verifying that the information provided by the U.S. principal was accurately reported on the SED/Automated Export System (AES).
  2. Identify the data the USPPI is responsible for reporting, which is their name, Employer's Identification Number (EIN), and basic commodity information to the U.S. agent of the foreign principal party in interest in a routed export transaction (excluding ultimate consignee). This is all they will be liable for. Bureau of Export Administration (BXA) and U.S. Customs concur with this provision.
  3. Create conformity in document issuance. For purposes of completing the SED/AES the exporter is always designated as the USPPI, and the Foreign Trade Statistics Regulations clearly specifies who that party must be. Also, the Export Administration Regulations define the parties who may be listed as "applicant" on the BXA license. The only difference is that the EAR, in certain routed export transactions, will allow the agent of the foreign principal party in interest to be listed as the exporter on the license.

This has caused consternation and confusion among many companies that are shipping their merchandise to foreign customers as they try to understand the regulations and determine who is legally defined as the USPPI for their shipments.

The best website to search answers and look up the regulations is the U.S. Census website. The Census website provides these definitions of the USPPI:

Who is the U.S. Principal Party in Interest (USPPI)?

The person in the United States that receives the primary benefits, monetary or otherwise, of the export transaction; generally that person is the U.S. seller, manufacturer, order party, or foreign entity. The foreign entity must be listed as the USPPI if it is in the United States when the items are purchased or obtained for export.

Who cannot be the U. S. Principal Party in Interest (USPPI)?

The forwarding agent or the consolidator cannot be listed as the U.S. principal party in interest on the SED or AES record.

Who can be the U.S. Principal Party in Interest (USPPI)?

Generally that person can be the:
  • U.S. Seller (wholesaler/distributor) of the merchandise for export.
  • U.S. Manufacturer if selling the merchandise for export.
  • U.S. Order Party - Party who directly negotiated between the U.S. seller and foreign buyer and received the order for the export of the merchandise.
  • Foreign Entity if in the U.S. when items are purchased or obtained for export.

Case Study

This first case study is a common export transaction and is relatively easy to determine who is the USPPI. Future case studies will demonstrate how complex it can be to determine the USPPI.

Seller: Monterrey Fish Supply & Trading Co., 14555 Monterrey Bay Road, Monterrey, CA 98888

Monterrey Fish Supply & Trading Co. sold 30 Metric Tons of frozen fish to their customer in Taiwan under CIP Kaohsiung, Taiwan, international freight prepaid. Monterrey will be the shipper on the international bill of lading and they will issue the international commercial invoice.

USPPI in this transaction: Monterrey Fish Supply & Trading Co.

Exporter in this transaction: Monterrey Fish Supply & Trading Co.

It is important to remember that this is an excerpt from a variety of sources, including the regulations. If your situation differs from the one described above and you need further clarification for your records, the U.S. Census welcomes your inquiries at ftdwebmaster@ccmail.census.gov.

Ms. Petersen's bio.

Important International Trade Links

 Bureau of Export Administration (BXA)
 CIA World Factbook
 Federal Maritime Commission
 Import Administration
 International Trade Administration
 International Trade Data System
 NAFTA Customs Website
 Small Business Administration
 Trade Information Center
 U.S.A. Trade Center
 U.S. Census Bureau
 U.S. Customs Service
 U.S. Department of Agriculture
 U.S. Department of State
 U.S. Department of Treasury
 U.S. International Trade Commission
 U.S. Trade Representative


General Information

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International Trade Seminars Offer In-Depth Study

Knowledge is power. In the international marketplace, knowledge can also mean survival.

If you and your company are going to succeed internationally, you need to know what you are doing every step of the way. A single misstep may not only cost your company money, it can lead to stiff fines and even a ban on exporting. 

International Business Training offers a variety of day-long seminars that will help you walk confidently through the maze of import-export procedures and regulations.

Produced by Global Training Center—a leading provider of international trade seminars—these classes have helped thousands of individuals become more proficient at their jobs and more valuable to their companies.

Export Documentation and
International Logistics: Ocean and
  Air Transportation
Letters of Credit - Export & Import
NAFTA Rules of Origin
Tariff Classification: Using the
  Harmonized Tariff Schedule

These one-day seminars not only provide a complete overview of the scheduled topic, they include the corresponding reference book that will provide continued assistance long after the seminar has ended.

For more information about any of our seminars, just click on the topic above, visit our web page, or call International Business Training at 1-800-641-0920.

International Business Training Books & Self-Study Courses
Whether you're thinking about expanding your business internationally, you've just made your first international transaction, or you're a seasoned international trader, International Business Training (IBT) can help you gain the knowledge you need to thrive in the growing global economy.

Check out our expanded list of titles that will help your company increase profits, limit your liabilities and cut unwanted expense.

 Alternate Financing  
 Audit & Compliance: Customs
   Modernization Act  
 Drawback Made Easy  
 Exploring International Trade Options
 Export Documentation & Shipping
 Export Letters of Credit & Drafts
 Export Marketing and Sales
 Export Order Processing

 Export Sales Agents & Distributors
 Export Sales and Marketing Manual

 Exporting to Canada: Documentation
   and Procedures
 The IBT Guide to INCOTERMS 2000
 Import Procedures & Documentation
 Int'l Small Business Logistics  
 Mexico Procedures and
 NAFTA Documentation & Procedures
 Textiles & Wearing Apparel:
   Documentation & Procedures
 Uniform Commercial Codes vs.

For more information about any of our export books or self-study courses, just click on any of the titles above, visit our web page, or call International Business Training at 1-800-641-0920.




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