Routed Export Rule Hampered by Lack of BIS Political Appointees

The Commerce Department hasn’t been able to move forward on its routed export rule because it is awaiting confirmation of political appointees in the Bureau of Industry and Security, according to a document recently posted by CBP. The rule, which has seen several delays, involves “critical issues that need attention” from BIS appointees, the document said. President Joe Biden recently nominated Alan Estevez to lead BIS (see 2107130004) and Thea Kendler to be assistant secretary for export administration (see 2107280063), but neither has had a confirmation hearing scheduled.

The routed rule is expected to include major changes to the process around assigning filing responsibilities to forwarders and address information sharing among parties in routed export transactions (see 2006020049 and 2012080046). Although Census Bureau officials said in June they had been meeting with BIS officials to “iron out the remaining sticking points,” officials remain unsure about a release date (see 2106080055).

The document said the political appointees at BIS need to give “direction regarding policy decisions” involving the rule. The rule “will not progress until the appointees are in place,” the document said. But it said both BIS and Census have “made great progress” on the rule so far.

Census is considering whether to eliminate Electronic Export Information requirements for shipments to Puerto Rico and the U.S. Virgin Islands, the document also said. Census proposed the rule in September 2020 and has been reviewing comments for months, drawing criticism from some shipping industry representatives (see 2106250021). “The comments were split on the need to report exports between the U.S. and Puerto Rico and the U.S. to U.S. Virgin Islands,” the document said. “Additional discussions are ongoing to determine a way forward.”

The document also covered some common export filing questions, including post-departure filing. CBP’s Commercial Customs Operations Advisory Committee recently recommended that the agency modernize its post-departure filing process and lift the moratorium on post-departure filing for new applicants (see 2106230056). The agency said post-departure filing “will be looked at” after the Electronic Export Manifest “is in place and new enforcement guidance at CBP is in place.”

CBP said in July it was preparing an announcement to require shippers to use EEM for all ocean, air and rail shipments, which officials said they expected to be released in several months. EEM will not yet apply to trucks, but CBP will work with Canada and Mexico “to develop a standard truck export manifest,” the document said. "This development work has not yet begun.”