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The Notice of Proposed Rulemaking (NPRM) to revise the Foreign Trade Regulations (FTR) has been published. This rule reflects new export reporting requirements that are related to the International Trade Data System (ITDS). ITDS was established by Executive Order 13659 and streamlines the export and import process for American businesses as well as the Security and Accountability for Every (SAFE) Port Act of 2006. In short, this Notice of Proposed Rulemaking creates a single window for collecting trade-related information.
Several sections in the Foreign Trade Regulations have been revised. Let’s look at the ones with the most significant impact. First, we have proposed adding two new data elements to the information that companies report. One is the “original International Transaction Number (ITN).” This would be an optional data element that could be used if a previously filed shipment is replaced or divided and additional shipment(s) must be filed. This field would help both the trade community and enforcement agencies know if the original shipment(s) was filed properly.
The second data element is the “used electronics indicator.” This is a conditional data element that asks companies to identify whether used electronics under particular Harmonized Tariff Schedules or Schedule B classification numbers are new or used. This data element would help ensure compliance with the Resource Recovery Act (RCRA) and Executive Order 13693.
Another notable revision is a change in the Automated Export System’s certification process. Filers would now register their Automated Export System account through the Customs and Border Protection (CBP) website, and there would no longer a certification quiz to register for an account.
Additionally, in accordance with Foreign Trade Regulations Letter #6, we revised the timeframes for split shipments to 24 hours by vessel or seven days by air, truck or rail. We also made revisions throughout the Foreign Trade Regulations to move entirely from paper collection of trade information to an electronic equivalent.
As a Notice of Proposed Rulemaking, the proposed revisions are not set in stone. We invite the export trade community to make comments to the revisions we have proposed during the 60-day comment period. You can submit comments to us through the Federal e-Rulemaking portal using the RIN Number 0607-AA55.
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