Date:                        July 2002

Memorandum To:    All AES Participants

FROM:             Barbara Boney
                  Chief, Data Collection and Coordination Branch
                  Foreign Trade Division
                  U.S. Bureau of the Census

SUBJECT:     New Procedure for Exporting from a Foreign Trade Zone 

Effective July 1st 2002, The U.S. Census Bureau (Census Bureau) and 
the U.S. Customs Service (Customs) has amended the filing procedures 
for North American Free Trade Agreement (NAFTA) duty deferral 
entries to reduce reporting burden on the trade community and to 
clarify procedures.

Currently, Foreign Trade Zone  (FTZ) export shipments to another 
NAFTA country require a Customs Form (CF) 7501 08 entry to be 
Filed even if a duty deferral claim will not be submitted.  This 
requirement has resulted in companies filing paper forms CF 7512 and 
CF 7501 and additionally reporting the export via a Shipper's Export 
Declaration (SED) or through the Automated Export System (AES) 
or AESDirect. 

To reduce the burden upon companies with duty deferral entries while 
maintaining the quality of reported statistics, the Census Bureau and 
Customs have agreed (based on the filer's discretion) to permit these 
types of consumption entries that would be filed as an 08 to be filed 
on an 06 entry as long as the export portion of the transaction is filed 
via AES, or AESDirect,  not on a paper SED.  Additionally, a new 
export information code  "ZD" has been created to identify these 
goods when filing shipment information.

PROCEDURE

The  filing procedures are amended so that foreign goods manufactured 
or changed in condition and shipped from a FTZ for export to a NAFTA 
country can be filed using two options at the filer's discretion:

1. Filing the Automated Broker Interface (ABI) entry summary, entry 
   type 06 (see footnote):
a.     Shipments to Canada - no SED reporting is required, except for 
       U.S. Munitions List (USML) or Commerce Control List (CCL) 
       Articles.  For these articles, the SED information must be filed 
       with Customs in AES or AESDirect prior to exportation.
b.     Shipments to Mexico - the export must be filed in AES or 
       AESDirect, with the correct FTZ number, the entry number 
       from the entry summary, and be reported with the new export 
       information code "ZD" which is now assigned for this purpose.
c.     If shipments to another NAFTA country appear on an 06 entry, 
       no CF 7512 Transportation & Export (T&E) or Alternate T&E 
       tracking will be required.
2. Filing the ABI entry summary, entry type 08:
a.     Shipments to Canada B no other Census export documentation 
       is required.  Licensable shipments or otherwise controlled 
       shipments must meet the required reporting requirements.
b.     Shipments to Mexico B other current 08 documentation 
       requirements remain, including export documentation, to support 
       this filing as found in Customs regulatory requirements Title19, 
       Code of Federal Regulations, Section181.53.
c.     When shipments to another NAFTA country appear on an 08, a 
       CF 7512 or Alternate T&E is required.

If you have further questions regarding the FTZ export procedure, please call 
the Data Collection Coordination Branch of the Census Bureau, Foreign Trade 
Division at 301-457-2259.


Footnote

*  The procedures contained herein apply to both individual 06 transactions 
and weekly 06 entries.