COAC Seeks Alignment, Enhanced Automation in Export Recommendations

The Advisory Committee on Commercial Operations (COAC) presented a litany of recommendations related to export licensing, at the committee’s Feb. 11 meeting in San Francisco. Many of the recommendations were related to alignment of license requirements and enforcement across ports and agencies. Highlights of the recommendations from COAC are as follows:

Export informed compliance. COAC recommended that CBP work with other agencies to develop an interagency information tool for exports like CBP’s informed compliance program for importers. CBP concurred with the recommendation.

Cross-referencing ECCNs with HTS. The committee urged CBP to consider following the European Union’s lead and cross-reference the Export Control Classification Numbers (ECCNs) from the Bureau of Industry and Security’s Commerce Control List with six-digit HTS subheadings. CBP’s Michael Denning, acting executive director of Cargo and Conveyance Security at the Office of Field Operations, didn’t commit to the cross-referencing effort but said the agency would discuss “how and if the EU has done this” and “whether or not that’s feasible in the United States.”

Port standardization. CBP should lead a port standardization effort on the treatment of licensed exports, said COAC. There is currently some inconsistency between ports as to what is a violation, partly because CBP port staff have to interpret other agencies’ regulations, said COAC’s Julie Parks, who presented the recommendations to COAC. CBP tepidly concurred, saying it would move forward with an initiative to determine whether the solution to inconsistency rests with better aligning regulations across agencies.

Automated license presentation. COAC recommended that CBP “automate the presentation of all licenses and permits via the Single Window” in the Automated Export System/Automated Commercial Environment. “Capabilities should exist to link an import to an export or an export to an import, and the design should ensure flexibility of entity relationship and trade reporting,” said the recommendation. CBP’s Denning responded that the agency “now has visibility” on everything related to a commodity’s exportability, except for “a few BIS licensing officer action items.” BIS coding in AES is now complete, and DDTC’s is underway, although the State Department agency will have to remove a manual lodging requirement from its regulations, said Denning.

Listing of freight forwarders on licenses. Given new manifest and targeting capabilities and export automation tools, forwarder information should be removed from export licenses, said COAC. Currently, licenses may be applied for years before a shipment, during which time the forwarder used by an exporter can change, said Parks. CBP’s Denning said removing freight forwarders from licenses “could be a consideration,” but that it would require input from DDTC.

Alignment of valuation. COAC said the government should consider aligning valuation requirements for inbound cargo, outbound cargo, and licensing in accordance with the World Trade Organization Customs Valuation Agreement. “Values are not aligned between what is reported on a license, the value reported on an import, and the value reported on an export,” said Parks. CBP’s Denning said the agency has identified valuation as an issue, and plans to work through the Border Interagency Executive Committee (BIEC) to align across the government and between the import and export process.

Automate export data. CBP should automate export data by the creation of U.S. Principal Party in Interest (USPPI) accounts in ACE, and should allow “data visibility in ACE for a 5-year time period,” said COAC. CBP concurred, and said it is currently working to deliver exporter account functionality in ACE.