When a seller based in the United States decides to sell goods to a buyer in another country, these parties are typically referred to as the U.S. Principal Party in Interest or USPPI (seller) and the Foreign Principal Party in Interest or FPPI (buyer).
The Code of Federal Regulations (CFR) mandates that in a Routed Transaction, the FPPI is required to authorize a U.S. Agent to file the Electronic Export Information (EEI) in the Automated Export System (AES).
What is a Routed Transaction?
A transaction in which the FPPI authorizes a U.S. agent to facilitate the export of items from the United States on their behalf and prepare and file the EEI.
How can an FPPI authorize an agent, such as Green, to file the EEI in AES?
By completing a FPPI POA or issuing a written authorization.
In a routed export transaction, if an authorized agent is preparing and filing the EEI on behalf of the FPPI, the authorized agent must obtain a Power of Attorney or written authorization from the FPPI and prepare and file the EEI based on information obtained from the USPPI or other parties involved in the transaction.
The authorized agent shall be responsible for filing EEI accurately and timely in accordance with the Foreign Trade Regulations (FTR). Upon request, the authorized agent will provide the USPPI with a copy of the power of attorney or written authorization from the FPPI. The authorized agent shall also retain documentation to support the EEI reported through the AES
ELECTRONIC EXPORT INFORMATION
The EEI filing is mandatory, in fact, the airline or ocean carrier will not export the cargo without this filing. It is provided to the U.S. Census Bureau and is used for export compliance and governmental reporting.
Exemptions are available, such as if the value of the goods does not exceed $2,500 USD per HS number or if goods were previously imported under a Temporary Import Bond and never entered the U.S. consumption channels.
At Green, we offer Global Trade Services and can help you with solutions for import & export compliance.
Stay up-to-date on freight news by following us on Facebook, Twitter, and LinkedIn, and make sure to check out our website at greenworldwide.com.
you ask, green answers
Don’t see the answer you’re looking for? Submit any supply chain question and one of our Green Freight Experts will answer it for you.
