Census Receives Mixed Feedback on Removing Export Filing Requirements for Puerto Rico, Virgin Islands

The Census Bureau received a mixed bag of feedback as it considers whether to eliminate certain filing requirements for exports to Puerto Rico and the U.S. Virgin Islands (see 2009160033). Many of the U.S. industry groups that submitted comments, released by Census Dec. 2, said the Automated Export System filings are a burden for their members and their elimination is long overdue. But government officials from both the U.S. and Puerto Rico cautioned Census about removing the requirements, saying it could lead to an absence of a vital source of data collection and damage the islands’ economies.

Kiesha Downs, chief of Census’ Foreign Trade Division’s regulations branch, said she did not expect the 60 comments to be so split. “Honestly, I was surprised,” Downs said in a brief Dec. 4 interview. Although the Puerto Rican government has for years asked the agency to remove the filing requirements and said the AES unfairly treats it like a foreign country (see 2003100054), the Puerto Rican officials and economists who commented said the requirements should be maintained. Downs said Census has not made a decision on whether to remove the requirements and is still reviewing comments. “We still have to set up a meeting with management,” she said. “It’s definitely on our radar.”

The Puerto Rico Economists Association said the change would “limit foreign trade data” that provides “crucial” information on the island’s economic development. José Caraballo-Cueto, director of Puerto Rico’s Census Information Center, said the U.S. should be collecting more information from exporters, not less. “I urge you not to remove this requirement that would lead to substantial data loss, but to do the opposite,” Caraballo-Cueto said, suggesting that Census should add “exported services to the external trade data.”

The U.S. Department of the Interior also cautioned Census, saying the elimination of the data could “directly impact” statistics used to calculate the gross domestic product for Puerto Rico and the U.S. Virgin Islands. The agency’s Office of Insular Affairs said it is “not aware of any comprehensive alternative data source.” Mario Marazzi, a member of Census’ Scientific Advisory Committee, said the EEI filings are the “only official source” of such information. “Without a viable and tested alternative data source,” Marazzi said, “the proposal to remove the Requirements will make it impossible to measure and analyze the economy of Puerto Rico.”

U.S. industry groups, however, said the filings discriminate against Puerto Rico and cost its members time and money. The Retail Industry Leaders Association called the requirements “an unnecessary administrative and financial burden” that “impedes commerce between the U.S. mainland and its territories.” The National Retail Federation said the elimination of the requirements would save one of its members “several hundred thousand dollars.” Without the requirements, the NRF said, exporters would see less “supply chain disruptions and transportation costs” and reduced “administrative costs on product classification EEI filer resources.”

“The requirement imposes a very costly and unnecessary burden on exporters for what should be treated as interstate commerce,” the NRF said. “We continue to question why the EEI is required for shipments to Puerto Rico and the U.S. Virgin Islands, but not for other U.S. territories.”

The American Association of Exporters and Importers also said it supports the removal of the filing requirements and said Census can find alternative data from statistics collected by the Commerce Department’s Bureau of Economic Analysis. AAEI said that data is used to calculate “U.S. GDP activity, state-to-state activity and U.S. international transactions.”

Census also received anonymous comments that supported the elimination of the requirements and said they are discriminatory. “EEI should not need to be filed when shipping to a US territory,” one commenter wrote. “Puerto Ricans are US citizens for God's sake.” Another said the requirements raise the cost of shipping to the island. “This is a clear discrimination against citizens of the US just for living in a US Territory,” that person wrote.

The Florida Customs Brokers & Forwarders Association said it received a “mixed” reaction from its members on removing the requirements. The group recommended that Census keep the requirements until it can find an alternative source for the data. “The data collected through EEI is important to decision makers in commercial industry, logistics providers, and the federal government,” FCBF said. “Businesses both on the islands and in the contiguous U.S. use this data to inform choices and services around new and existing markets.” The group said it is not aware of any other alternative data source.