@ James, let me clarify your question... "I'm wondering how USPPI is going to effect my business here in Spain. Do I also have to find an authorised agent?" I'm assuming you are located in Spain. The requirements I'm discussing are related to U.S. export requirements, not import requirements into Spain. If you are coming into the US, from Spain, and purchasing products or obtaining products for export, yes, you would need a U.S. agent to file on your behalf. I responded to another question (@ Bryce) related to finding U.S. agents that have overseas locations. Hopefully that will help...

@ Bryce, there are many US agents that have locations abroad. One recomendation is to find a US agent that has an office in the country where your products are being exported. One place to start is export.gov. Once on their site, type "finding a forwarder" in the search box. The search will provide you with different options to finding a forwarder. Another option is to contact the National Customs Brokers and Forwarders Association of America (NCFBFAA). Their website is www.ncbfaa.org. NCBFAA has a membership directory that could help you find a forwarder or agent that has locations abroad.

There are several sources to find forwarders and U.S. agents. One place to start is export.gov. Once on their site, type "finding a forwarder" in the search box. The search will provide you with different options to finding a forwarder. Another option is to contact the National Customs Brokers and Forwarders Association of America (NCFBFAA). Their website is www.ncbfaa.org. NCBFAA has a membership directory that could help you find a forwarder or agent in your area.

@Nina... Let me clarify your scenario... To define the USPPI, we have to look at who the foreign party is paying in the United States. In your scenario, which U.S. party is the foreign party paying? Even though the goods may be shipped from another U.S. party's location, who did the foreign party pay? If the foreign party paid Company B in the US, but Company B asked Company A to ship the goods from their location, then Company B is still the USPPI because the foreign party paid Company B.

@Judi... Let me clarify your question... You sell goods to a party in the U.S. and that party, let's call them Company A, sells it to a foreign customer, and Company A asks for you to ship the goods, who is the USPPI? Company A is making the sale with the foreign party, which makes Company A the USPPI, even though you are shipping it from your location.

@ Danielle, you are correct... The Brazilian would be the USPPI, since he was in the United States at the time the goods were obtained for export. Furthermore, he would also be the Ultimate Consignee, because he is receiving the goods abroad.

You are correct... Mass market software, that can be purchased over the counter, valued under $2,500, does not have to be reported in the AES, assuming the product is not licensable. The FTR exemption 30.37(a) would apply.

Based on FTR 30.2(a)(1), information reported in the AES is for "all exports of physical goods." In your example, the software, "preloaded customized software", is not a physical good. However, the server is a physical good, which would need to be reported. As stated, we require the value of the media for exports of customized software and in this case, we would consider the server as the media of the "customized software". The selling price of the server is $10,000 and that's what it required to be reported in the AES.

You are correct, in your example the Related Party Identifier would be flagged as NO. By definition, the USPPI and the Ultimate Consignee would have to be related. Based on your scenario, the USPPI and Ultimate Consignee are not related.

The FTR does not regulate the commercial invoice, only what's reported in the Automated Export Sysytem. Make sure you keep all documentation related to the shipment in case there are any questions.

Unfortunately, the official comment period ended on March 22, 2011.

The AES is not required for this type of shipment and as a result classification is not needed for Census purposes. However, if there are State Department requirements, you may need to contact them directly.

Company A would not be shown as the Intermediate Consignee because by definition within the Foreign Trade Regulations, section 30.1 it states that an Intermediate Consignee acts "with the purpose of effecting delivery of items to the ultimate consignee." In this example, Company A, is not physically moving the item to the ultimate consignee. However, I agree with your best practice recommendation that Company A and all parties related to the export transaction should be screened to ensure compliance.

Mailing a paper copy of the export license will not be required to be reported in the AES. In this case, the paper copy of the export license, as you state "the printed matter" would not be valued over $2,500 and would not be required to be reported in the AES.

Based on your statements "update their software... there is no physical item...", you are correct that no AES record is required in this scenario. The AES is used to track tangible goods that leave the United States. Even though there is a Bureau of Industry and Security (BIS) license you still are not required to file the information in the AES because there is no tangible item. However, you must adhere to BIS's licensing requirements.

Yes, the Bureau of Industry and Security (BIS) also offers guidance to Freight Forwarders and Authorized U.S. Agents. Here is a link for the Freight Forwarder Guidance under the BIS Export Management and Compliance Program. http://www.bis.doc.gov/complianceandenforcement/freightforwarderguidance.htm

Ron, You asked how long is the probation period? Let me clarify to make sure we on the same page... If you receive an error message in the AES, you are not automatically placed on a probation list. However, if there are certain mistakes that you make on a continually basis or there are certain Customs or licensing violations, you may be contacted to resolve these issues. Our goal is to make sure you avoid systematic reporting errors that can lead to possible fines.

Roy, At the beginning of the year, we realize that companies make the mistake of reporting 2009, instead of 2010. This type of error falls into the arena of a keying mistakes that many filers make versus a systematic problem such as misclassification or invalid license information. You mentioned "probation list", but that "list" doesn't exist. We follow up with companies that have low compliance rates to offer assistance to improve their reporting, to avoid penalties, fines, or seizures.