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AES International Shipping

What's in this article?
  1. Aes International Shipping Overview
  2. How It Works
  3. The Benefits Of Using Aes International Shipping
  4. Ensures Compliance With Export Laws
  5. Corrects Mistakes As They Happen
  6. Cuts Costs
  7. Eliminates Paper Reviewed Licenses
  8. Keeps Up With The Worldwide Edi Migration
  9. Acts As A Tool For Assessing And Measuring Potential Markets
  10. Coordinates The Work Of Multiple Agencies
  11. Technology
  12. The Risks Of Using Aes International Shipping
  13. Penalties For Aes Filing Violations And Other Misconduct
  14. Filing Of An Eei Application After The Deadline Has Passed
  15. Non-Filing
  16. Eei Errors
  17. Failure To Maintain Documentation
  18. Carriers Are Subject To A Variety Of Penalties
  19. We Can Help
AES International Shipping

The Automated Export System (AES) uses tried-and-true technology in a novel approach to address a major flaw in the export process. Prior to AES, export shipments documentation was paper-based, which was costly, time-consuming, and prone to errors.

According to cbp.gov, the AES was the result of collaboration between a number of state and federal agencies and exporters, including the CBP, the Foreign Trade Division of the Bureau of the Census (Commerce), the Bureau of Industry and Security (Commerce), the Directorate of Defense Trade Controls (State), and the export trade community.

The AES will help re-engineer the way the US exports. Read on to find out how it is improving the export industry.

AES International Shipping Overview

The AES system is used by US exporters to electronically declare their international shipments to the Census Bureau, a procedure known as Electronic Export Information (EEI), which aids in the compilation of export and trade statistics in the US.

Other government agencies utilize it as well for trade enforcement.

The AES is the central location where export shipment data required by several agencies is electronically lodged with CBP, utilizing the benefits of electronic data interchange (EDI).

Electronic Export Information (EEI) is completed using AES instead of paper. Export data is collected electronically and revised on the spot, with errors discovered and addressed before submitting.

AES is a national system that connects all ports and forms of transportation across the country. It was created to ensure that export regulations are followed and enforced, to improve trade statistics, to decrease redundant reporting to numerous authorities, and improve customer service.

How It Works

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When an exporter agrees to ship goods, the export procedure begins. Shipping arrangements (booking) are made with the carrier by the exporter or an authorized agent. AES is used to send commodity information from the exporter or authorized agent.

This information can be obtained directly from the exporter or authorized agent, as well as from a service center or port authority.

AES checks the data against editing tables and US Government agency requirement files and then sends the filer a confirmation or error response.

The receipt message for booking is delivered when the booked cargo is obtained, and the departure message is sent once the vessel has actually left if the carrier is a part of the Vessel Transportation Module.

The carrier must send the whole export manifest electronically using AES within ten calendar days of departure. The transportation data is also validated by AES, which subsequently generates either a confirmation or error message.

Any AES error messages must be repaired and the revised messages must be sent to AES.

The Benefits of Using AES International Shipping

Whether you're an exporter, a carrier, a freight forwarder, a port authority, a service center, a non-vessel operating common carrier, or a consolidator, AES offers you benefits.

Ensures compliance with export laws

The AES ensures your compliance with current U.S. export reporting regulations with its advanced editing system and your subsequent changes. The system returns an Internal Transaction Number as verification that your export documentation was properly filed (ITN).

Corrects mistakes as they happen

When data is missing or inaccurate, AES gives rapid feedback to the filer. You can rectify mistakes with AES at any moment.

Cuts costs

With up-front data adjustments, you can save money on errors. Time spent handling paper can be reduced and duplicate reporting avoided.

Switching from a paper-based, data-entry-intensive system to a single point of electronic data input can save you a lot of money.

When the burden of keying several documents for each transaction is considerably minimized, as well as repeated keying from paper to electronic medium and back, it can result in significant savings.

Eliminates paper reviewed licenses

Export shipment data is electronically validated against a previously approved export license. That transaction is then sent to the appropriate partnership agency.

Keeps up with the worldwide EDI migration

The NAFTA and GATT agreements are in sync with AES. If AES export certification is granted, the 60-day clock for producing proof of duty payment to other NAFTA nations may begin to tick. Doing business in various nations will be easier as a result.

Acts as a tool for assessing and measuring potential markets

Export statistics derived from precise trade data can help your company keep ahead of the competition in the global trade industry.

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Coordinates the work of multiple agencies

The Automated Export System (AES) is a channel via which required export shipment data is routed to the appropriate agency.

To collect and disseminate export trade statistics, the Bureau of Census extracts AES data. The goal is to replace the EEI's manual processing and paper review with accurate data delivered in an electronic format for analytical and statistical reporting.

AES compares dual-use shipments to the Bureau of Industry and Security's approved licenses and sends the information to that agency.

For example, the Directorate of Defense Trade Controls uses the AES partnership agency system to check outbound weaponry shipments against previously authorized permissions and send the results to the appropriate agency.

For the future phases of AES, they continue to form cooperation with other organizations.

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Technology

The AES system was created with flexibility in mind. It employs industry-standard technologies that can be used by both large and small businesses.

Export shipping data can be transmitted through AES. You can use:

  • User-created software
  • Vendor software
  • The electronic mailbox of the Value Added Network (VAN)
  • A port authority's or a service center's infrastructure
  • AESDirect, a free internet application from the Bureau of the Census
  • Service centers and software providers

The Risks of Using AES International Shipping

To prevent penalties, recurrent violations, and shipment seizures, international shippers must be aware of the filing deadlines.

Penalties for AES filing violations and other misconduct

Exporters that fail to file a complete, true, accurate, and timely EEI in the AES may be subject to monetary and criminal penalties.

Parties who utilize the AES for illicit purposes may face penalties as well.

Filing of an EEI application after the deadline has passed

Late filing of the EEI is one of the most common causes of fines or penalties. When an EEI is filed after the deadline, it is known as late filing.

Non-filing or failure to file is defined as an EEI filed more than 10 days after the deadline date.

Failure to file also includes EEIS filed after CBP identifies and notifies the exporter of the violation. Late filing carries a penalty of $1,100.00 per day, with a maximum penalty of $10,000.00 and up to five years in prison.

Non-filing

When CBP discovers that an export transaction does not have a record in the AES, it notifies the USPPI, the exporter, or the agent before the violation is addressed.

Moreover, whether or not an EEI was detected by CBP, any EEI filed beyond the due date is considered a failure to file. A fine of up to $10,000.00 per day for failure to file a tax return is possible.

EEI errors

Errors in the EEI are another source of penalty.

Reporting the incorrect HTS/Schedule B Code, reporting the incorrect value, reporting the incorrect USPPI and consignee, etc. are all examples of common errors.

Another violation is when the carrier does not get the proof of filing (ITN or exemption citation). If there is a problem with the EEI submission, AES will issue a notification message. Fines of up to $10,000 may be imposed if the error is not corrected and the filing is resubmitted.

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Failure to maintain documentation

PPIs, exporters, carriers, and agents must keep ITNS and export papers for a period of five years, according to CBP and the Census Bureau.

Sanctions will be imposed if the FTR is not followed. CBP may undertake audits on an as-needed basis to ensure that the exporter or firm disclosed accurate export data in the AES.

Carriers are subject to a variety of penalties

Not reporting the proof of filing or exemption citation in the export manifest, as well as failure to notify the USPPI/exporter of changes to the export date or port of export, are all violations that can result in penalties for exporting carriers.

Noncompliant carriers are subject to a $10,000 maximum penalty. The penalty for failing to file an export manifest on time is $1,000 per day, up to $10,000 per violation.

If there are mitigating circumstances, the carrier may be punished at the lower end of the mitigation range. The penalty is applied at the high end of the mitigation range if aggravating elements exist.

We Can Help

AES international shipping has resulted in a number of changes in the US export industry. If you are in the export business, it's important to understand this system well.

At A-1 Auto Transport, we can help you understand AES so that you comply with the different rules and regulations and don't incur any penalties. We have years of expertise offering a variety of services in the global shipping industry.

To learn more, contact our team today. We are here to help!

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Joe Webster began his journey in the auto transport field by attending the University of Southern California (USC), where he graduated with a Bachelor of Business Marketing. 

After college, he started his career in the auto transport industry from the bottom up and has done virtually every job there is to do at A-1 Auto Transport, including but not limited to: Truck Driver, Dispatch, Sales, PR, Bookkeeping, Transport Planner, Transport Manager, International Transport Manager, Brokering, Customer Service, and Marketing. Working with his mentor Tony Taylor, Joe Webster has learned the ins and outs of this industry which is largely misunderstood. 

With over 30 years experience in the industry, we've been helping people ship their vehicles, motorcycles, RV's, heavy equipment, household goods and more across the country or overseas without a hitch. Ask us anything.

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I considered selling my car when I moved to Washington. It was old and rusty, but I grew attached to it. So, I called a couple companies to transport it to my new home, but they both fell through.

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A-1 Auto Transport is a disclosed agent for the following shipping companies:

Trans Global Auto Logistics, Inc.
3401 E Randol Mill Rd
Arlington, TX 76011
NO. 018191NF
CFR Rinkens
15501 Texaco Avenue
Paramount, CA 90723
NO. 013055NF
ABC Worldwide LLC
2840 NW 2nd Ave #105
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NO. 025472F
CSI Logistics
435 Division Street
Elizabeth, NJ 07201
FMC 22206
Intl Cargo
45 Campus drive
Edison, NJ 08837
NO. 17858N
ShipYourCarNow LLC
1160 South Rogers Circle Suite 1
Boca Raton, FL 33487
NO. 025646
Merco Air & Ocean Cargo, Inc.
6 Fir Way
Cooper City, FL 33026
NO. 021869F
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