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Clarification Of Routed Export Transactions

Thu Apr 01 2010
Justin Jenkins
Component ID: #ti176244342

Understandably, this concept of a routed transaction is risky and generates many questions. Let’s try to answer those questions and mitigate the risk.

Component ID: #ti1893561219

The Foreign Trade Regulations (FTR) defines a routed export transaction as, “an export transaction in which the foreign principal party in interest (FPPI) authorizes a U. S. agent to facilitate the export of a shipment from the U. S. and to prepare and file electronic export information (EEI).” Routed export transactions are a risk in that these transactions shift the control of the movement of the goods and the filing of the EEI from the U. S. Principal Party in Interest (USPPI) to the FPPI. The FPPI directs the movement of the goods out of the U. S. and authorizes the U. S. agent to file the Automated Export System record for the shipment. Though the FPPI is “controlling” the export transaction, the USPPI is still responsible for providing their name, address, and all the commodity information to the filing agent (see FTR section 30.3(e) for a detailed listing of the items).

Component ID: #ti1893561220

To ensure that the EEI is filed accurately and to reduce your risk in this type of transaction, you should ask the FPPI to authorize you to file the EEI.

Component ID: #ti1893561221

Key points about routed transactions:

Component ID: #ti1893561222

  1. The FPPI controls the movement of the goods out of the U. S.
  2. The FPPI provides the authorization to a U. S. agent to prepare and file the EEI.
  3. The USPPI provides information to the U. S. agent regarding the shipment or can file the EEI, if they have received authorization from the FPPI.

Component ID: #ti1893561223

Routed export transactions can be challenging, but if you adhere the key points discussed above, you will mitigate the risk involved in these transactions.

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