The Shipper's Export Declaration (SED) and the Automated Export System (AES)

By Catherine J. Petersen email | bio

If you are not ready to make the transition from the paper SED to AES quite yet, then this article is for you. It will provide the information you need to complete the SED along with an electronic version that you can complete and print for submission with your paperwork that you send to your freight forwarder.

Caution!

The transition from paper SED to AES will be mandatory at some point; so get ready to make the transition. It has been reported that paper SEDs will not be an option by early 2006. (See article below.) Your firm may file through AES or designate an agent or forwarder to file on your firm’s behalf.

Forwarders are frugal. First, they have already made the transition to AES to save the fees now imposed by carriers for submitting paper SEDs to them for filing with Census and Customs & Border Protection, which they would ultimately bill to you. Second, AES has reduced the forwarders’ cost of filing an SED. If you are providing a paper SED to your forwarder, it is unlikely they are using the paper form as the official SED. Most likely they are using the SED you give them as a guide for completing the AES version and charging you a transaction fee ranging from $5 to $125 per record filed with AES on your behalf.

Courier companies, such as DHL, FedEx, and UPS issued notices early this year that they will not accept the paper version of the SED from exporters. They are only accepting the AES reference numbers issued to filers who have successfully completed an AES filing.

There are several methods for filing electronically through AES including options available at AES Direct or through one of several software programs like Shipping Solutions that allow you to file through AES while also producing several other export documents without additional data entry.

Source for Paper SEDs

Private parties or your firm may print the SED form as long as it conforms to the official form published on the U.S. Census Bureau website or the Government Printing Office. Companies that prefer the paper version may prepare the SED in an electronic format such as the one at Census Bureau’s website.

Prior to signing the paper SED, read the U.S. Census Bureau’s Correct Way to Fill Out an SED. Once it is completed, your firm may print it on buff (yellow) or goldenrod-colored paper and submit it to the freight forwarder for filing.

Completing the SED

I used The Correct Way to Fill Out a Shipper’s Export Declaration as a guide to complete a sample SED. The form can be reused in your own company for completing SEDs on your export transactions. Keep a paper copy of this document for five years from the date of export as proof of your export with other export documentation.

Within the SED there are fields where it was not possible to complete a description since they are boxes that must be checked instead of text fields. Here are the field numbers and the information that will assist you in correctly selecting the answer for your transaction:

14. Carrier Identification Code—Enter the 4-character Standard Carrier Alpha Code (SCAC) of the carrier for vessel, rail and truck shipments, or the 2- or 3-character International Air Transport Association (IATA) Code of the carrier for air shipments. In a consolidated shipment, if the ultimate carrier is unknown, the consolidator’s carrier ID code may be reported. The International Air Transportation Association (IATA) issues the air carrier codes. These codes are available at AES Direct.

16. Entry Number—Enter the Import Entry Number when the export transaction is used as proof of export for import transactions, such as In-Bond, Temporary Import Bond or Drawback's and so forth. Also, an Entry Number is required for merchandise that is entered as an import (CF 7501 or Automated Broker Interface [ABI] entries) and is then being exported out of the United States.

17. Hazardous Materials—Check the appropriate "Yes" or "No" indicator that identifies the shipment as hazardous as defined by the Department of Transportation.

18. In Bond Code—Report one of the 2-character In-Bond codes listed in Part IV of Appendix C of the FTSR (15 CFR Part 30) to include the type of In-Bond or not In-Bond shipment.

19. Routed Export Transaction—Check the appropriate "Yes" or "No" indicator that identifies the transaction as a routed export transaction. A routed export transaction is where the foreign principal party in interest authorizes a U.S. forwarding or other agent to export the merchandise out of the United States.

21. "D" (Domestic), "F" (Foreign) or M (Foreign Military Sales)

(a) Domestic exports (D)—merchandise that is grown, produced, or manufactured in the United States (including imported merchandise which has been enhanced in value or changed from the form in which imported by further manufacture or processing in the United States).

(b) Foreign exports (F)—merchandise that has entered the United States and is being re-exported in the same condition as when imported.

(c) Foreign Military Sales (M)—exports of merchandise that are sold under the foreign military sales program.

27. License No/License Exception Symbol/Authorization—Whenever a SED or AES record is required:

(a) Enter the license number on the SED or AES record when you are exporting under the authority of a Department of Commerce, Bureau of Industry & Security (BIS) license, a Department of State, Office of Defense Trade Controls (ODTC) license, a Department of the Treasury, Office of Foreign Assets Control (OFAC) license (enter either the general or specific OFAC license number), a Department of Justice, Drug Enforcement Agency (DEA) permit, or any other export license number issued by a Federal government agency. For the BIS license the expiration date of the license must be entered on the paper version of the SED only.

(b) Enter the correct License Exception symbol (e.g. LVS, GBS, CIV) on the SED or AES record when you are exporting under the authority of a License Exception.

(c) See 740.1, 740.2, and 758.1 of the Export Administration Regulations (EAR).

(d) Enter the "No License Required" (NLR) designator when you are exporting items under the NLR provisions of the EAR:

(1) When the items being exported are subject to the EAR but not listed on the Commerce Control List (CCL) (i.e. items that are classified as EAR99); and

(2) When the items being exported are listed on the CCL but do not require a license.

28. Export Control Classification Number (ECCN)—Whenever a SED or AES record is required, you must enter the correct Export Control Classification Number (ECCN) on the SED or AES record for all exports authorized under a license or License Exception, and items being exported under the "No License Required" (NLR) provisions of the EAR that are listed on the CCL and have a reason for control other than anti-terrorism (AT).

The SED is more than a report of what you’re exporting; it is a control document used by various government agencies to make sure that the wrong product does not end up in the wrong country or wrong hands. Know your product, its capabilities, who your customer is and where the product is destined.

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