FTSR Letter No. 165

To: U.S. Customs Service Headquarters, Customs Management Centers, Port Directors,Department of CommerceDistrict Offices,Freight Forwarders, Exporters, Exporting Carriers, Consolidators, and Other concerned

From: Bureau of the Census (Census) and the U.S. Customs Service (Customs)

Subject: Shipper's Export Declaration (SED) Requirements

The Census and Customs are concerned that an increasing number of SEDs are deficient -- as many as one out of every two paper SEDs contains errors of omission or commission. Also, concerns are now being raised about the accuracy of outbound vessel manifests. Customs, with Census' participation, has compared a sample of outbound vessel manifests and SEDs with actual cargo loaded. Preliminary results indicate that vessel manifests also are inaccurate. In many instances, cargo is not being manifested on the vessel actually carrying the merchandise, but rather included on the manifest of a vessel departing later when the SEDs are available.

This practice hinders Customs in its efforts to detect violations of export laws. Also, this practice results in inaccurate trade statistics. Since these statistics are utilized in sensitive trade negotiations and important economic policy decisions, accuracy is critical.

The principal cause of this problem is the failure of exporters and forwarders to provide complete and accurate SEDs to exporting carriers at the time of exportation. In the past, Customs has generally limited its enforcement actions of fining the carriers up to $1,000 for filing SEDs late. However, Customs can detain shipments when the requirements as described in the attachment are not met (22 U.S.C. 401). If voluntary compliance with requirements is not improved, it may become necessary to delay or detain export shipments when SEDs have not been properly completed or presented in a timely manner. In order to avoid difficulties, please read the attachment which spells out the responsibilities of the various parties to the export transactions. Every effort should be made by exporters, freight forwarders, and carriers to comply with these requirements.

_________________________ ______________________
C. HARVEY MONK, JR. Peter J. Baish
Chief, Foreign Trade Division Outbound Process Owner
Bureau of the Census U.S. Customs Service

Attachment

EXPORTER AND FREIGHT FORWARDER SED REQUIREMENTS

Must provide accurate and complete information on the SED. The exporter is responsible even if the SED is prepared by an authorized agent.

15 CFR 30.4 & 30.7

Exporter must provide the forwarder with a formal power of attorney, or the less formal written authorization as stated on the SED.

15 CFR 30.4

The forwarder must submit the SED to the exporting carrier prior to exportation--There is no four day delayed filing for freight forwarders.

15 CFR 30.12

Forwarders must provide the exporting carrier with statements or citations when an item or shipment is exempt from SED requirements.

15 CFR 30.50

Exporter or forwarders must report corrections, cancellations, or amendments to information reported on the SED to Customs at the port of exportation as soon as the need for such changes is determined.

15 CFR 30.16

Exporter or forwarders must maintain all records relating to the exportation for a period of 3 years.

15 CFR 30.11 & 787.13

EXPORTING CARRIER REQUIREMENTS

Must receive SEDs or exemption statements or citations from exporter prior to department.

15 CFR 30.12 & 30.50

Must file manifest (vessel & aircraft) and all required SEDs with Customs prior to department unless a bond
is filed with Customs. The manifest must include exemption statements or citations in all cases where an
SED is not required. 15 CFR 30.20, 30.21, & 30.22

19 CFR Part 4.75 (a) &
122.75-76

If a bond is filed with Customs the carrier must file a complete manifest and all required SEDs within four business days after clearance or department--Carriers are subject to fines up to $1,000 per violation if the SEDs are filed late.

15 CFR 30.24
19 CFR Part 4.75 (b) & 122.74