When goods are shipped internationally, carriers need to be privy to the customs regulations for exports coming from the US.

Any misstep in following the written guidelines can lead to fines, penalties, and other repercussions.

For expanding the purview of the US government on all export-related tasks, it is crucial for shippers to comprehend the need for filling an Electronic Export Information (EEI) and what it encompasses.

What is Electronic Export Information?

Electronic Export Information, or EEI, is an electronic document used to declare goods being exported from the US borders to an international country.

This is done when the value of each item is over $2500 or if the need for a validated export license is mandatory to export the goods.

It also contains data regarding the consignor and consignee of the goods and shipment getting exported.

This information is crucial for the Census Bureau to create a database of trade statistics and CBP (Customs and Border Protection) to ensure that there is no illegal trade and that the parties involved comply with the export regulations.

Need for EEI

There are various reasons why filing EEI is required, such as:

  • The requirement by the Census Bureau to collect official information on the type and value of each commodity exported for trade statistics

  • The requirement by BIS or the Bureau of Industry and Security and CBP for export control and to prevent illegal trade

  • Assistance in locating suspicious shipments prior to their export

  • Strengthening the quality, timeliness, and coverage of the US government on export statistics

EEI Code

The export information code helps to identify the type or conditions of export shipment goods (such as household goods, impelled shipments, charity or donation, shipment under Foreign Military Sales, and all other shipments) mentioned by the shippers.

Different items are given a code that helps in determining their type or condition.

When to File EEI

Shippers need to file EEI when:

  • Goods exported internationally contain individual items worth over $2500
  • The contents of the shipment require an export license or permit
  • The shipment contains self-propelled items
  • The cargo is ITAR-controlled (US International Traffic in Arms Regulations)
  • The shipments are going to Cuba, North Korea, Sudan, Syria and Iran
  • The cargo, irrespective of type or value, is exported for military use in China, Venezuela, or Russia
  • The cargo contains rough or uncut diamonds

When to Not File an EEI

There are certain instances where a shipper need not file EEI, such as:

  • The final export destination is Canada
  • The shipment contains non-licensed goods
  • The shipment doesn’t contain uncut or rough diamonds
  • The shipment is delivered to destinations under US control such as Guam, American Samoa, Midway Island and the Mariana Islands.

Exceptions to this list include Puerto Rico or US Virgin Islands.

Party Responsible for Filing EEI

Generally, the responsibility of filing an EEI rests on the shoulders of the US Principal Party in Interest (USPPI) through the platform of AESDirect.

However, the USSPI (mainly exporters) has the power to authorize their freight forwarder or other third parties to prepare and file the electronic document on their behalf through a power of attorney (POA) or written statement.

In cases when the exporter or shipper is banking on a third party to submit the EEI, they must give them a Shipper’s Letter of Instruction or SLI, which contains all the export data required.

In case of a routed export transaction, FPPI (Foreign Principal Party in Interest) is the ultimate foreign customer or consignee, will facilitate the shipment export and assign the task of submitting EEI.

They must do so after providing a POA or other written statement authorizing the USSPI or a US Authorized Agent.

Platform for Filing EEI

Exporters must either self-file or authorize a third-party agent to file their EEI on ACE AESDirect Portal.

The Automated Commercial Environment (ACE) AESDirect is the central filing software for submitting the EEI to the AES or Automated Export System.

After submitting the electronic document on ACE AESDirect, AES will process the data provided and, if accepted and approved, generate an Internal Transaction Number (ITN).

In essence, ITN is a passport for your shipment required for international exports.

Consequences of Not Filing EEI

Exporters must understand and oblige with the EEI filing timelines to avoid any seizure of shipments, penalties, and repeat violations.

If an exporter fails to file a complete, timely, and accurate EEI on the AESDirect platform, they will face criminal and monetary penalties.

If any party is found to use AES for illicit activities, they will also be looking at facing punitive action.

Non-filling, late, and inaccurate filings of EEI are regarded as a violation of Foreign Trade Regulations.

The party (exporter) responsible will be subjected to a fine of $1100 daily to a maximum limit of $10,000.

An individual caught doing illegal activities can also face imprisonment of up to five years.

Difference Between EEI and AES

AES, or the Automated Export System, is the primary system for US exporters to make use of when submitting electronic declarations about their international shipments, which is EEI or Electronic Export Information.

This electronic information is sent to the Census Bureau to gather data on US export trade.

This information declared in EEI, which is logged into AES, is also used by other government agencies for trade enforcement and regulation purposes.