NEWSLETTER - SMALL BUSINESS

New Licensing Program for Exporters

by Dave Williams, International Trade Specialist

The Automated Export System (AES) is used by U.S. exporters to file a Shipper's Export Declaration (SED) electronically. By mid-2004, all U.S. exporters will be required to file SEDs on the AES. Additionally, a licensing program will be established whereby each filing company will need a filing permit, and each filing location will be required to have a licensed filer. The Bureau of the Census has not finalized the licensing program, and the details below are subject to change.

As of mid-2003, there is already mandatory AES filing for all shippers of raw and rough cut diamonds. Effective August 18, 2003, all shipments of goods on the Bureau of Industry and Security's Commerce Control List (CCL) and the Department of State's U.S. Munitions List (USML) will be required to file under the AES. By mid-2004, it is expected that all shipments that require an SED will be required to file under the AES.

At the same time, a licensing procedure is being created for companies that file under the AES. Every company that files SEDs will be required to apply for a company permit. In order to receive this permit, the company will have to prove that it has a compliance system in place and a licensed AES filer at each shipping location or location where SEDs are filed. Only one person (supervisor, etc.) per filing location will require a license. Companies using freight forwarders or other shipping agents will have to verify that their forwarder is licensed.

Based on information as of July 2003, the licensee must be a U.S. citizen or green card holder, at least 21 years of age, undergo a background check, and pass a licensing examination. The licensing examination will cover the fields of the SED as well as export regulations (EAR, ITAR, etc.) as they pertain to the completion of the SED. The exam is expected to be open-book and will likely be offered electronically (not on-line) through a testing service. There are no pre-test training or course requirements.

The 5-year license can be renewed pending completion of 40 hours of professional development from certified institutions. The International Trade Center may offer these professional development credits. Remember, this is not a license to export, only a license to file the SED through AES. BIS, State, and other agencies will still issue all export licenses.

For more information, contact the ITC at (309) 677-3075 or email Dave Williams.