By: Sean Kline
Determining who the USPPI is in an export transaction can be challenging at times. There are five different parties that can be the USPPI. Those parties include:
- U.S. Seller
- U.S. Manufacturer
- U.S. Order Party
- U.S. Customs Broker
- Foreign Entity
We receive numerous scenarios from the trade community who are trying to determine who the USPPI is in their transaction. Most cases are straightforward and easy to determine. However, there are some that make you think and maybe even have to draw a diagram. Below are some of those not so easy scenarios.
Scenario 1:
Boston Auto is a U.S. seller of vehicles and Car Traders is an online auctioneer, that auctions used automobiles. Car Traders directly negotiates the sale of an automobile between the foreign buyer and Boston Auto. Who is the USPPI?
Car Traders, the online auctioneer, would be the USPPI because they are acting in the capacity of an order party. However, if Boston Auto only posts the vehicle on Car Traders website, and Boston Auto negotiates directly with the buyer, Boston Auto is the USPPI.
Scenario 2:
An Italian company sells and sends goods to a U.S. company. The U.S. company refuses to take possession of the goods and the goods need to be returned to the Italian company. Who is the USPPI?
If the U.S. company is the importer of record, they are the USPPI. However, if the importer of record is a foreign entity, the USPPI will be the Customs Broker who cleared the goods on their behalf. Refer to the CF-7501 to determine who cleared the goods at the port of entry.
Scenario 3:
A tourist from Africa visits the U.S. and buys a necklace valued over $2,500 from Jewelry Depot. Who is the USPPI?
The tourist would be the USPPI because they were in the U.S. at the time the goods were purchased. They would provide their foreign passport number to a U.S. authorized agent in order for the agent to complete the AES filing.
For more information about the responsibilities of the USSPI please consult section 30.3 of the Foreign Trade Regulations.
Scenario 3:
What if a person from another country (Africa, Europe, etc…) buys an item in the US valued over $2,500 via the internet. He then asks to have that item shipped to a Freight Forwarder in the US. The Forwarder would fill out the AES (after obtaining a POA from his client – the foreigner). Who would be the USPPI?
Thank you for your question Manuela. When determining who the USPPI is, it is important to know who is receiving the monetary or primary benefit from the export transaction. My understanding is that the freight forwarder in this case is completing the AES on behalf of the seller (after they give the freight forwarder a power of attorney). The U.S. seller is still the person or company who is receiving money from abroad to export the item. If that is the case, they are the USPPI.
What if the US seller does not want to be the USPPI as he is not aware of this transaction and he does not want to spend time doing the paperwork, can the freight forwarder use the FPPI as the USPPI with the address where the goods are originating then even if he did not go to the US to purchase the product or can he assign the freight forwarder to act as the USPPI?
@Teresa
The USPPI must fulfill their responsibilities as detailed in the Foreign Trade Regulations. The responsibility of serving as the USPPI cannot be passed on to another entity.
Great blog and information on USPPI
Ryan, V.P.
If my company buy goods from US manufacture to supply a customer in UK who is the USPPI ?
If your company is located in the US it would be the USPPI since it is selling the goods to a foreign buyer. The transaction between your company and the US manufacturer is a domestic transaction that is outside the scope of the Foreign Trade Regulations.
We are a US manufacturer and have billed and shipped product to a US Distributor. They are consolidating these products in the US and are reshipping them to their sister company overseas. They are asking us to fill out the EEI-USPPI form for our products. Should we be the one to fill out this form?
It is considered a domestic transaction when you sell your goods to a US Distributor. As a result, you are not the USPPI and do not need to complete Electronic Export Information (EEI). It is the Distributor that sells the goods to a foreign buyer that would be listed as the USPPI and would be responsible for complying with the Foreign Trade Regulations.
We are a Canadian resident company. We do a trade show in the US, and write a number of orders for Central and South America. Most of these customers have their orders consolidated in the US, and are then exported to them. Who would be the USPPI? Neither the buyer or seller are residents of the US. Since the order was done in the US, could I as the seller be deemed the USPPI? I recognize shipping in bond, is the best way to go, but is not always feasible.
@Tim,
Great question! Because the buyer is physically here purchasing the order they would be considered the USPPI. They would use their foreign passport information when filing in AES. You can check out section 30.3(b)(2) of our regulations for more detailed information regarding the USPPI.
Josefina, a variation on my earlier question. The first order is done from a show in the US. My customer then places a reorder via email. I am based in Canada, and my customer wants me to send his order to their freight forwarder in Miami. From here it is forwarded onto Central America. The freight forwarder is asking me to fill in the Shippers Letter of Instruction. Who is the USPPI?
Hello Tim,
USPPI stands for U.S. Principal Party in Interest, or USPPI. It is the U.S. person or entity that is the primary benefactor (monetarily or otherwise) from an export transaction. You can get more information regarding this term at:
http://globalreach.blogs.census.gov/2012/02/16/usppi-ttom/
Our company manufactures products for an OEM. We drop ship our products directly to a company in France for inclusion into that company’s product. Who is the USPPI? Us as the manufacturer or the OEM as the company ordering the product for the french company?
My customer states that they are a non-US entity and that all purchases are for export for use in Africa . Their account bill to address is a PO Box in San Antonio, Texas. Payment is received from a US bank. Their parent company is in Houston, Texas – a US entity. Our order terms are ex works and we make arrangements for delivery to their freight forwarder. The PO handler/receiptor is in their parent company in Houston. They state we should be the USPPI and their freight forwarder has sent us their “Shippers Letter of Instructions” – POA. Is this a US transaction? Who should be the USPPI?
@ Jennifer,
The Foreign Trade Regulations were not written to accommodate incoterms, such as “ex works.” To determine who the USPPI is, you must determine the party who is receiving the monetary benefit from the export transaction. Therefore, was the non-U.S. entity customer in the United States at the time the goods were purchased for export? If the non-U.S. entity made the purchase and they were physically here at the time of purchase, then they would be considered the USPPI. If that is not the case, we would need to know who the foreign party purchased the goods from in order to determine who the USPPI is.
What if a customer purchases the items online but never came to the USA, and the items purchased are from an individual who does not have a tax ID#? How would this be reported in AES? Is it ok to use the FPPIs passport number? Of course POA will need to be filled out by FPPI as well.
If the transaction is completed online then the USPPI would be the U.S. seller. If they do not have an Employer Identification Number they can quickly obtain one by calling 1-800-829-4933 and registering as a sole proprietorship.
What if the USPPI is not willing to obtain a tax id# because the transaction was only a 1 time deal?
The USPPI is required to obtain this information.
Hi, can a foreign entity purchase goods from a US manufacturer and deliver(sell) to another foreign entity in US soil (i.e execute a FOB transaction delivering to a foreign entity’s freight forwarder? who is the USPPI?
thanks
The USPPI would be the U.S. manufacturer because they sold the goods to a foreign entity and the goods were subsequently exported. It would be considered a routed transaction because the foreign buyer is controlling the movement of the goods out of the country.
we are a US based company selling to a company in Mexico; but only shipping to the border in Laredo. The buyers freight forwarder will assume the goods at the border, cross and clear into Mexico on behalf of the customer. Who is responsible for completing the USPPI form?
@ Arnette,
Thank you for your question. Identifying the USPPI can be rather tricky, especially in your situation. I suggest contacting the Regulations, Outreach and Education Branch to speak with a regulatory specialist directly. They can be reached at 1-800-549-0595, option 3.
I’m not so sure that the FPPI’s passport number will be required…
Did you check their website?
Regards,
Paul Harvey
@Paul,
If a foreign entity purchased goods while in the United States and subsequently exported those goods, they can use their foreign passport number in place of an Employer Identification Number (EIN). However, this does not apply to dual citizens or individuals legally issued a Taxpayer Identification Number (which can be used to apply for an EIN).
I work for a company that is like a “job shop”. If a company in the U.S. places an order with us (also in the U.S.) to make 10 parts for them and then ship them to their customer in France, who is the USPPI? Us or the U.S. company? We provide all the export documents in our name.
@Marcie – Making sure you are listing the correct USPPI is a must, but sometimes identifying the correct party is difficult. In your case, I would suggest contacting the Regulations, Outreach and Education Branch to discuss your particular scenario. They can be reached at 1-800-549-0595, option 3 or at ftdregs@census.gov
A company in the USA sells goods to a customer in China. The customer in China will arrange the freight forwarder and delivery details (DHL in this case). Who is the USPPI?
@Luke, The U.S. Principal Party in Interest is the primary benefactor of the export transaction in the United States. Based on my understanding of your scenario, the US company is selling their goods to a customer in China and is in turn paying the US seller for the goods. Therefore, the USPPI is the U.S. company who sold the goods to the customer in China.
I work in a company in Japan. We used to buy from a US company but they have been acquired by a Singaporian company and now, we order (and pay) to Singapore but goods are exported from US.
The US company was acquired but company remains with its original name
(I.E., different company name from Singapore). They say that the US company cannot be the USPPI because we do not pay to them nor Singapore neither can be USPPI because they are not located in US.
I believe intermediary trade is not a rare case.
Who would be the USPPI in this case?
@Lily – The U.S. company would be the USPPI because they are receiving the primary benefit of the export transaction. If they are not charging their parent company in Singapore for the goods then they would simply report the cost of producing the goods in the value field.
hello, we are locating in Peru and we are buying in EXW terms to a company located in the US, they refuse to be the USPPI, they said that the forwarder should assume this responsibility. Is it correct?
@Tamara – The U.S. seller would be listed as the USPPI since they are receiving the primary benefit of the export transaction. If you, as the foreign buyer, are selecting the exporting carrier then it would be considered a routed export transaction and you would need to authorize a U.S. agent (either the USPPI or freight fowarder) to file the Electronic Export Information (EEI). Regardless of who files, however, the U.S. seller would still be listed as the USPPI.
My client is South Africa’s main telecom company. About 8 years ago they placed equipment in US in a rented facility to service one of their clients. The equipment is no longer requires and they want it moved back to SA. They have no presence in the USA. Who is the USPPI?
Hi,
We are International freight forwarders and have multiple clients overseas; all them buy their products online and have no presence in the US during transaction. We usually offer them to serve as an agent to fill the AES before exporting. Happen that sometimes US sellers do not want to sign us the authorization letter stating the buyer should be the USPPI. What to do if the US seller does not want to give us the authorization neither fill themselves the AES? Should we use the buyer as the USPPI? Also if merchandise is coming from Canada to be exported do we need to fill AES or only shipment in transit declaration? If so, in that case who will be the USPPI? Thanks!
Good Afternoon!
If a forwarder receives a commercial invoice that shows a Canadian company as the supplier/seller, this shipment is going to Mexico, who will be the USPPI?
@Osvaldo,
The USPPI is a the U.S. party that receives the primary benefit of the export transaction. However, we need additional details to assist you in determining who the USPPI is in this transaction. For assistance, contact the Regulations, Outreach and Education Branch at 1-800-549-0595, option 3.
We are a fulfillment company and are shipping products for another company.
The other company owns the product we just store it and ship it for them.
Who is the USPPI?
@Rick,
The USPPI, is the US party who is the primary benefactor of the export transaction. In your scenario, the company who owns the products and stores them in your warehouse is the USPPI.
Company “A” in Hong Kong buys goods from us in the U.S. They ask us to ship these goods to Company “B” in New York. Our EUC states that the goods are going to India. Company “B” and the company on the EUC are the same. Is this a domestic transaction, or should we try to get AES data from company “B” when they export?
If someone came to USA and purchased an item from local supplier, upon returned he/she ask their forwarder to bring that item for them and they only have a invoice as a record.
Their forwarder contacted with the local supplier and asked for Commercial Invoice, Packing list and USPPI but the supplier has refused to provide any other documentation except invoice. Forwarder is saying we cannot move the shipment till the supplier provide all these documents.
Then how would they brought purchased item to their home land.
Regards,
Adnan
@Adnan,
The supplier is not the USPPI. If a foreign person is physically here in the U.S. at the time of sale or export, they are considered the USPPI. However because they can not file in AES they will need to provide written authorization for a U.S. authorized agent to file, which sounds like they choose the forwarder to do so. In these types of scenario’s the filer would report the foreigner’s information in the USPPI section and report the foreigner’s passport number in the EIN field.
We are a US company providing product to a foreign company with offices in the US who will in turn obtain the export license and export it to their main location. Who is the USPPI?
@Alan, The USPPI, is the US party who receives the primary benefit of the export transaction. If your company received payment for the products from the foreign principal party in interest, then you are the USPPI.
Dear Sirs,
Our Danish company is a client by an american company and responsable for import of american produts to Europe.
Is it possible to get an Exporter of Record status as a foreign company?
Thank you in advance for your answer.
@Kristina,
We do not refer to the “Exporter of Record” but rather the US Principal Party in Interest (USPPI). A foreign entity can be considered the USPPI if they are in the US when the goods were purchased or obtained for export.
My client in Germany has asked us to ship vehicles for him. He has hired a person in the US to facilitate the purchase of his vehicles.
The person on the title isn’t the USPPI it would be the facilitator, he refuses to obtain an EIN number. How are we suppose to ship these vehicles without the USPPI getting an EIN Number? Or do we refuse the shipment. He advises he has shipped 30 vehicles in the last year with other forwarders who do not ask him for his EIN.
@Michele,
If a U.S. person is buying vehicles and then shipping them to a foreign individual, the U.S. buyer would be the USPPI. In this scenario, the USPPI must obtain an EIN in order to properly file the Electronic Export Information (EEI).
If a seller in Canada wants to send his goods to US for export to Fiji using a freight forwarder, who is the USPPI and how would it work once goods are in US for export?
@Ben,
The answer varies depending on a number of factors. To ensure you get the correct answer call 1-800-549-0595 option 3 and a Foreign Trade Regulations Specialist will assist you.
Let say a foreing company byus items from several suppliers in the US and ships it to Brazil. I understand that the foreign company is the USPPI . Right? is it possible to consolidate all the items under the same shipment under a single AWB? Are there limitations to consolidate (value, tax regime. etc) ? Foreign company is located in Grand Cayman Islands.
I have a question.
If my company collects “ocean plastic” from the beaches in Hawaii, sends it to the US mainland to have it scrubbed and pelletized, then ships it to Taiwan to have bottles made, who is the USPPI?
Once the bottles are made from the ocean plastic they are shipped back to the US where they are filled with hand soap and sold in the US.
@Macelo
If the foreign buyer is not in the U.S. at the time the goods are purchased or obtained for export they would not be the USPPI. Instead, the USPPIs would be the individual U.S. sellers and a separate AES filing would be required for each of these USPPIs.
@ Jim
Your company would be the USPPI assuming it maintains ownership through the process in which the plastic is scrubbed and pelletized.
Thanks that is what I thought.
FPPI asks authorized freight forwarder agent to pick up metal from US factory A, bring metal to US factory B for heat processing, then pick up from US factory B and export the processed metal. There is only one B/L because there is only one metal although two companies are involved.
is US factory A or B the USPPI in this transaction ? or both ?
thanks
@Roger,
The USPPI is the US party that primarily benefits from the export transaction (monetary or otherwise). In this case, I recommend you ask the FPPI which party was paid for the exported goods.
I did not see a response to Bens question regarding company in Canada. Can anyone give a answer to this?
@Tim,
The answer is subject to the details of the scenario. We suggest for you to call 1-800-549-0595 option 3 and have one of our Foreign Trade Regulations Specialist assist you with your specific scenario.
Is USPPI and exporter of record the same?
@ Jill, Yes you are correct.
Can you give a regulations reference to support this answer?
The information on the USPPI is based on sections 30.1(c), 30.3(b)(2), and 30.6(a)(1) of the Foreign Trade Regulations (FTR).
The information on the USPPI is based on sections 30.1(c), 30.3(b)(2), and 30.6(a)(1) of the Foreign Trade Regulations (FTR).
My inquiry is for confirmation of the USPPI “Address” to be reported for a DSP-5 License shipment. Previous email information obtained from Census was that the address to be reported in AES for DSP license shipments was the USPPI address shown on the DSP-5 License under license applicant, can you confirm?
@Jerry
Great question! The Foreign Trade Regulations (FTR) were revised in March 2014, and as of October 3, 2014 the new rule requires filing of used self-propelled vehicles to Canada in the Automated Export System (AES). As a Canadian citizen, you will not be able to file in this system on your own and will need a U.S. authorized agent to file on your behalf. The authorized agent will need information such as the Vehicle Identification Number (VIN), title number/state, the port where it will be crossing, address of where the vehicle is coming from and where it is going to. Once the authorized agent files this information in the AES they will receive an Internal Transaction Number (ITN), which must be provided to the Customs and Border Protection port of export 72 hours departure.
Hi
I am a US Citizen re-locating to India for work. I’m using International Movers to move my household items like TV and furniture. Who is USPPI in this case and should i get a person EIN from IRS?
@Ram, You will be the USPPI and a personal EIN will be required when moving your household goods abroad. To make things easier, however, you can use the Export Information Code “HH” rather than classifying all your household items. Please be sure to check back soon as we plan on publishing a blog specifically on household goods in the near future.
I have a question, what if a company in Brazil, with no locations or representatives in the US, orders and pays for an order at a US based supplier, the supplier then sends the merchandise to a freight forwarder, hired by the Brazilian entity, to be exported…. Who is the USPPI?
@Ruda. In your scenario, the U.S. supplier would be the USPPI since it is receiving the primary benefit of the export transaction. If the foreign buyer is controlling the movement of the goods out of the country it would be considered a routed export transaction which will effect the responsibilities of the parties to the transaction. More information on routed export transactions can be found here.
Our situation is at times complicated. Our company is a Value Added Reseller of IT hardware. We have entities in many countries, but from time to time have to rely on the export ops of our distributors to deliver in certain countries (usually LatAm). If, for example, our customer is in Dominican Republic – Our company in the US buys from the distributor in the US. The distributor in the US works with a freight forwarder of our choosing to export the goods. In this scenario, is our company the USPPI? Can the distributor elect to be the USPPI instead?
@Dawn: Per your scenario, your company would be the USPPI because it is receiving the primary benefit from the export transaction. The transaction between you and your U.S. supplier is a domestic transaction that is outside the scope of the Foreign Trade Regulations.
My US company sells to a customer who is the US. They tell us to truck their shipment to their Custom’s Broker at the border. They have a manufacturing plant in Mexico. We bill to the US location. They pay us from the US location. Who is the USPPI?
Thanks.
@Karen Thomas: Your customer in the U.S. would be the USPPI because they are receiving the primary benefit of the export transaction by having the goods sent to their manufacturing plant in Mexico. The transaction between your company and your U.S. customer is considered a domestic transaction that is outside the scope of the Foreign Trade Regulations.
Thank you for your comment. That is exactly what I thought. BUT…According to my lawyer, he says that an USPPI could be the US seller. Since we are a distributor selling goods for intentions to export, even though the invoice goes to an US entity, we are still the USPPI. Since the US based customer tells us to ship to their broker (that is the knowledge that there is intentions to export), we are the where the goods originated from, that definition makes us the USPPI. The US company only directs payment and directs shipment. Their own company does receive it in Mexico. The Mexico plant would be the FPPI.
Again, this blows my mind as for years I thought exactly what you said Global Reach Sean that the transaction between us located in the US and the customer, in the US, is a domestic transaction- even though the shipment is directed to the border- even though it’s FOB “our dock”.
What do you think of what the lawyer said? You know, I am still seeking the truth even if it kills me! Thanks!
@Karen Thomas:
The transaction between you and your U.S. buyer is considered a domestic transaction even if you know your U.S. customer intends to export the goods. Your U.S. customer will still be listed as the USPPI with their EIN since they are receiving the primary benefit from the export transaction. In addition, the USPPI address will be where the goods begin their journey to the port of export, even if the USPPI does not own/lease the facility.
I work for an international company that has locations in the US as well as Italy. I am shipping a piece of equipment from one of our Us locations to one of our locations in Italy, who is the USPPI?
@rob: The USPPI is the U.S. division of the company that is sending the goods to the foreign division.
We are a freight forwarder. A client in Europe shipped goods to a buyer in the U.S. over a period of several years. Goods were rejected due to quality issues, and have been stored in various 3rd party warehouses. The foreign seller wishes to have the rejected goods consolidated and returned to them. The original importer refuses to participate in the export in any way. Can we be designated at the authorized agent for the FPPI and submit the EEI under our EIN, using the commercial invoices originally used for the imports?
@Dale
Typically the importer of record would serve as the USPPI if the goods were rejected by the buyer after entering into the consumption channels of the U.S. If the goods have been warehoused for an extended period, however, the warehouses could serve as the USPPI.
Hi there, I’m a Canadian citizen looking to purchase a motorcycle in the US. I understand that if I’m physically in the US when I purchase the motorcycle, I am the USPPI ? … and can use my Canadian passport # for AES. Is that correct? As a Canadian I cannot file the AES myself? Who would I contact to do that AES? Also, who would be considered to be the USPPI if I won a bid on Ebay for the bike.. and paid a deposit through paypal while I was in Canada, but later flew down to pay the balance in person and pickup the bike to bring back to Canada… would that be considered a purchase from Canada or physically purchasing while in the US. Who would be the USPPI in that scenario? Thanks for any info… its confusing. I don’t think a US private vendor of a vehicle would be willing to do any filling of AES. I’m trying to figure out the best and easiest way to purchase my bike.. Thanks again!
@Steve: In all the scenarios you described you would be considered the USPPI because you will be coming into the U.S. to pick up the vehicle. You are correct that as a Canadian citizen you cannot file in the AES and are also correct that your foreign passport number will be used for the USPPI ID. If the US private vendor that you purchased from is not willing to complete the filing in AES on your behalf, you can contact the Trade Information Center at 800-872-8723 to find an authorized agent here in the U.S. Please feel free to contact us with further regulatory questions at 800-549-0595, Option 3.
We are a US supplier of steel tubing and bar; we also have some machined products we sell. We have recently made a sale to a company in the UK (Ex Works); the UK company has a US facility and one of their engineers (foreigner) has asked if he could take the product back to the UK with him in his luggage. (these are small parts). Is he now the USPPI?
@Raul: The foreign entity can be the USPPI if they are physically in the United States when the items are purchased or obtained for export. In such situations, the foreign entity will need to have a U.S. authorized agent file on their behalf using the foreign entity’s DUNS number, border crossing number, passport number, or any number assigned by CBP.
One of our customers in Peru is buying materials from a US based company. Goods are being eported to Brazil from the US and our customer does not want the Brazilian entity to know who the supplier is in the US. Customer is asking us to cut the Bill of lading with his information on the exporter box. Is that possible?
@Camilo: The Foreign Trade Regulations (FTR) do not govern the Bill of Lading (BOL). However, Section 30.7 of the FTR mandates that you annotate the BOL with the Proof of Filing Citation (Internal Transaction Number), or the exemption or exclusion legend if it applies.
I understand the definition of USPPI, etc…
In my business as a service provider, I provide the following services: receiving, shipping, storing, packaging, and distributing. Basically we manage the goods of the Exporter/USPPI. However, my client tells me that I may act as the USPPI because I manage his goods. He believes that a contract will solve the USPPI issue. I tell him the laws and regulations cannot be overridden by a contract.
Please advise.
@Carlos: The USPPI is the person or legal entity in the United States that receives the primary benefit, monetary or otherwise, from the export transaction. Generally, that person or entity is the U.S. seller, manufacturer, or order party, or the foreign entity while in the United States when purchasing or obtaining the goods for export. Therefore, if the exporter you are dealing with is receiving benefit from the export transaction, they are the USPPI based on the Foreign Trade Regulations.
Hi.
We are a company in Mexico and we are paying to a Company in Switzerland for goods manufactured in the US. This good are exported to Mexico from the US. The invoice states Exporter (US Company), Seller (Switzerland Company). Is this correct? Who wil be the USPPI?.
Thanks,
@Iker: The USPPI is the party here in the U.S. that receives the primary benefit from the export transaction. From your example, the manufacturer here in the U.S. will be the USPPI.
We are a distributor of military parts selling these parts to foreign governments. Some of these governments have their own Freight Companies in the US, owned by the foreign governments and used exclusively by the foreign governments to export goods. These freight companies file the AES and obtain any export licenses necessary for export. We ship all goods we sell to the foreign government to these freight companies for export. I have been told by these freight companies that they are the USPPI since they are a branch of the foreign end user in the US. Is this correct?
Thank you.
@Mary Hall: If the entity here in the U.S. is meets the requirements of an order arty based on Section 30.3(b)(2)(iii) of the Foreign Trade Regulations (FTR): “If a U.S. order party directly arranges for the sale and export of goods to the FPPI, the U.S. order party shall be listed as the USPPI in the EEI,” then that entity will be the USPPI. Please feel free to contact us at 800-54-0595, Option 3 for further guidance.
What if a US Seller sells to a foreign company. The US Seller sends to warehouse in US where the warehouse repackages goods and then exported. Who would be the USPPI?
@bryan: The USPPI is the party who receives the primary benefit from the export transaction. If the warehouse is not dealing with the foreign customer at all goods, only repackaging the goods, then the U.S. seller will be the USPPI. Please feel free to contact us with any further regulatory questions or concerns at 800-549-0595, Option 3.
Good morning,
We have a company in italy and we want to buy goods from an American supplier.
The problem is that the goods are EXW then we have to fill all documents required for export.
The company from which we want to buy also said that they not want to appear in any of these documents (included EEI)
If a shipping company organizes export of the goods can be considered order party then USPPI?
alternatively if our company is registered in USA as foreign LLC and buy the goods from american supplier and then ship goods in italy to our company who is the USPPI?
@Leonardo: The Foreign Trade Regulations (FTR) were not written to accommodate incoterms such as EXW. The USPPI based on the FTR is the party receiving the primary benefit from the export transaction. If the Italian company is purchasing goods from the American supplier then the American supplier is the USPPI. If a U.S. order party directly arranges for the sale and export of goods to the FPPI, the U.S. order party shall be listed as the USPPI.
Can anyone be designated by the USPPI an “authorized agent” to file the AES on their behalf? Must the party be a freight forwarder, or can the authorized agent be any U.S. entity?
@James: An authorized agent is defined in the Foreign Trade Regulations (FTR) as: “ An individual or legal entity physically located in or otherwise under the jurisdiction of the United States that has obtained power of attorney or written authorization form a USPPI or FPPI to act on its behalf, and for purposes of this part, to complete and file the EEI.” As long as the party acting as a authorized agent is in the US and has obtained either a power of attorney (POA) or written authorization, they can be the authorized agent.
There are templates of a POA and written authorization available on our website.
We are a U.S. Company selling/shipping one of our systems to a U.S. Government entity in the United States Virgin Islands. Do we use our USPPI or the U.S. Government entity in the USVI?
@Rick: The USPPI will be the U.S. Company selling the system, and the ultimate consignee will the entity in the U.S. Virgin Islands.
What if a foreign company exports an item to a customer in the US. The item ends up needing repaired and it is sent back to the foreign company to be fixed. The foreign company’s US counter part arranges for the item to be picked up and exported directly to the foreign company. The US company, however, never takes possession of the goods. Who is the USPPI, the US customer or the US counter part of the foreign company who facilitated the shipment?
Answer: Since the US buyer never takes possession of the goods, the USPPI would be the entity noted as the importer of record when the goods are entered into the U.S.
We have many clients overseas that buy vehicles online through their foreign accounts with Copart auto auction or Insurance auto auction. They pay them directly through wires, then hire us (Freight Forwarder) to move the vehicles to the port of loading to be shipped overseas. Who is the USPPI? can it be the the client overseas after obtaining POA from him and using his passport# in AES along with the address of the auction where the vehicle was sold?
Answer: The USPPI in this situation cannot be the foreign entity, as the foreign entity must be physically in the U.S. at the time the commodity was purchased or obtained for export to be considered the USPPI. Therefore, the USPPI would be the auctioning company if they take ownership of the vehicle or the U.S. entity on whose behalf the auctioning company is selling the vehicle.
Can you please clarify? Per Scenario 1:
Boston Auto is a U.S. seller of vehicles and Car Traders is an online auctioneer, that auctions used automobiles. Car Traders directly negotiates the sale of an automobile between the foreign buyer and Boston Auto. Who is the USPPI?
Car Traders, the online auctioneer, would be the USPPI because they are acting in the capacity of an order party. However, if Boston Auto only posts the vehicle on Car Traders website, and Boston Auto negotiates directly with the buyer, Boston Auto is the USPPI.
This doesn’t mention that the auctioning company, “Car Traders” in this scenario, has to take ownership of the vehicle in order to be the USPPI. It does say if the vehicle is only posted on the auction website and Boston Auto does the negotiation on their own behalf that they are the USPPI.
Is the order party required to take ownership of the good being exported in order to be the USPPI? It is confusing – based on the scenario it appears that if Car Traders does the negotiating they would be the USPPI with no mention of the requirement to take ownership.
Definition of Order Party – “the person in the US that conducts the direct negotiations with foreign purchaser or ultimate consignee and who, as a result of these negotiations, receives the order from the FPPI.” There is no reference to Order Party taking ownership.
Can you please clarify? Thank you.
Hello Debra,
The order party is not required to take ownership of the goods in order to be the USPPI. Each scenario is unique, so please call the Trade Regulations Branch at 1-800-549-0595, option 3 or e-mail us at itmd.askregs@census.gov for further clarification.
I am new to exporting and have concerns whether or not we are doing the paperwork correctly.
When the shipment per Schedule B is less than $2500, I believe customs looks at the commercial invoice to verify information. Who is the USPPI in this case?
Ship To; ABC Co. Hong Kong
Sold To: ABC Co, Hong Kong
Shipper: 567 Company USA
Freight Forwarder: 123 Transport USA
Inco Terms: Will Call
Carrier: Customer Pick-Up
Freight Forwarder is given the ” Ship to ” account number to charge the for shipping charges/duties etc.
I understand that whoever receives the monetary value of the product is the USPPI which I think will be ABC Co. in Hong Kong.
The USPPI is 567 Company since as the U.S. seller, they are receiving the primary monetary benefit from the export.
The USPPI is 567 Company since as the U.S. seller, they are receiving the primary monetary benefit from the export.
We are a freight forwarder and our customer is the FPPI (Ultimate Consignee) and has no US entity or representation. The Shipper is in the UK and has no US entity or representation. The Shipper sent to us (the freight forwarder for the FPPI) an order via UPS, which UPS automatically cleared under our name and made us the importer of record. Now this order must be sent in our consolidation to Honduras. In this case who would be the USPPI?
Also, we understand that this is a routed transaction, is our assumption correct?
We are a freight forwarder and our customer is the FPPI (Ultimate Consignee) and has no US entity or representation. The Shipper is in the UK and has no US entity or representation. The Shipper sent to us (the freight forwarder for the FPPI) an order via UPS, which UPS automatically cleared under our name and made us the importer of record. Now this order must be sent in our consolidation to Honduras. In this case who would be the USPPI?
Also, we understand that this is a routed transaction, is our assumption correct?
Cybbelle,
The importer of record would be the USPPI. This would be considered a routed transaction if the foreign entity is controlling the movement of the goods out of the US.
If my company sells something to a customer who is located in BC, Canada and that is my final destination from the US, pay us in USD from Canada and they they later export to Peru who is the USPPI?
Matt,
For filing purposes to receive an Internal Transaction Number (ITN) for exports leaving the US, your company is the USPPI. Please be aware that a USPPI is defined as the person or legal entity in the United States that receives the primary benefit, monetary or otherwise, from the export transaction. Also, because your shipment is destined to Canada is may be exempt from export filing per the Foreign Trade Regulations 30.36, unless the commodity being shipped requires a license to be exported or is a used self-propelled vehicle which must be filed regardless. On your commercial document you would simply annotate “NO EEI 30.36”.
Matt,
For filing purposes to receive an Internal Transaction Number (ITN) for exports leaving the US, your company is the USPPI. Please be aware that a USPPI is defined as the person or legal entity in the United States that receives the primary benefit, monetary or otherwise, from the export transaction. Also, because your shipment is destined to Canada it may be exempt from export filing per the Foreign Trade Regulations 30.36, unless the commodity being shipped requires a license to be exported or is a used self-propelled vehicle which must be filed regardless. On your commercial document you would simply annotate “NO EEI 30.36”.
Our company has a US customer. They host a tradeshow, at which their customers (both domestic and foreign) come to our booth and place orders for our product. We pass the orders to our customer who processes them and sends a purchase order to us for ultimate delivery to the foreign customers. We bill our customer and send the foreign destination order to a US freight forwarder that our customer designates. Is our companies customer the USPPI?
Hollie,
If your company is being paid by the US customer hosting the tradeshow and then instructs your company to export the goods abroad, then your US customer would be the USPPI. If instead your company is being paid directly by the foreign buyer then in this case your company would be the USPPI.
Hollie,
If your company is being paid by the US customer hosting the tradeshow and then instructs your company to export the goods abroad, then your US customer would be the USPPI. If instead your company is being paid directly by the foreign buyer then your company would be the USPPI.
I hope you can help me. I work for a freight forwarding company and have been asked to move an export an LCL ocean shipment for a company located in Finland. They do not have a US entity. The product to be shipped is currently located at a company in the US that manufactures it for them. The company in Finland is not purchasing it from the manufacturer, because they already own the product. They are only paying the US company for the labor and processing fees. The company in Finland will eventually ship the goods to one of their customers in Switzerland in smaller shipments. For now, they just want to export the product to their nominated warehouse in Ireland to store it until that time. Who would we show as the USPPI in this case?
Thank you for your question. The USPPI would be the company in the US that is being paid for labor and processing as they are the U.S.-based entity receiving the primary benefit in the export.
Excellent blog and comments. We are a US Manufacturer. We are selling our consumer product goods to a US company, but we are shipping them to a freight forwarder who will export them to a conference in the Bahamas, where they will be given away for free to attendees. Who is the USPPI, and who must file with AESDirect?
Thank you for your question. The other U.S. company would be the USPPI, and they in turn would have to file the EEI or provide power of attorney/written authorization to an authorized agent to file the EEI on their behalf.
I am helping someone export goods to Africa so I have been communicating with the US seller. I reside in the US but my friend and her company are registered in Africa so I am considered the US rep. Payment for goods is being sent to me and I inturn pay the seller and shipping company. The goods are being picked up from the sellers warehouse and will be exported directly to Africa. The shipper sent me forms to compete that ask for USPPI info and an authorization form giving them permission to file the electronic forms on my behalf. Would I be considered the USPPI and if so, would I need to get an EIN?
No, you are not considered the USPPI in this transaction. Despite the fact that you are aiding your friend in this transaction, the US seller, whom your friend has purchased goods from, is the US entity ultimately benefiting financially from this transaction; making the US seller the USPPI.
love the post keep up the good work