W&G Advisory: Beware – Overlooking a technical change in declaration requirements could delay exports

March 16, 2012

Some companies that export items that do not require an export license have been taking an “easy” path in their export declarations.  That path has now been closed.  Declarations have been filed for such exports with “NLR” (no license required) in the License Code C32 field of the AES (Automated Export System) filing and “EAR99” (not on the control list) in the ECCN (Export Control Classification Number) field.  This approach sought to avoid the laborious process of identifying and entering product classification numbers for what are license-free exportations.  Effective March 17, 2012, such an AES filing can generate an “ERROR” message and cause delay in export clearance.  Now, License Code C33 must be used if the items are not on the control list or are under anti-terrorism control only, and NLR may be entered.  If License Code C32 is to be used (i.e., for items on the control list on grounds other than or in addition to anti-terrorism, but not requiring a license to the destination), the applicable ECCNs must be supplied in the classification field of the AES filing.

Eyes can quickly glaze with such fine print. Ignoring this development could lead to costly delay, however. This is not front page news (don’t expect to see it even in the Federal Register), and companies with little need for export licenses may not be devoting significant resources to monitoring such developments. Do compliment your logistics folks if they are on top of this and are making any needed adjustments to AES filings.

See http://www.cbp.gov/xp/cgov/trade/automated/aes/tech_docs/aestir/june04_intro/appendices/
AESBroadcast #2012018.

For more information please contact Cecil Hunt at (202) 730-1309 or chunt@wiltshiregrannis.com.

This advisory is not intended to convey legal advice. It is circulated as a convenience and is not intended to reflect or create an attorney-client relationship as to its subject matter.

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