Ask Your Logistics Expert… What is EEI and who needs to take care of this?

Q:  What is EEI and who needs to take care of this?

A: Foreign Trade Regulations and determining if an Electronic Export Information (EEI) is required.
Mandatory EEI filing through the Automated Electronic System (AES) went into effect on October 2, 2008. This required specific filing for tangible cargo with a value greater than $2500 that is being exported from the United States, Puerto Rico, or the Virgin Islands to foreign destinations.

Additional characteristics to determine if an EEI is required include:
•    Shipments regardless of value containing rough diamonds 
•    Shipments regardless of value being sent to Cuba, Iran, North Korea, Sudan or Syria 
•    Shipments regardless of value that require an export license or permit

Who files the EEI?
The EEI should be filed by the United States Principal Party in Interest (USPPI), the USPPI’s authorized agent (forwarder/carrier), or the Foreign Principal Party in Interest (FPPI).

In routed exports, FPPI is ultimately responsible for filing an EEI.  FPPI’s are able to authorize forwarders or carriers to file an EEI in AES by issuing a Power of Attorney (POA) or a written authorization, also referred to as a Routed Transaction Authorization Form.  

Shipper Letter of Instruction (SLI) is used by many of our clients to provide the forwarder shipping instructions, special shipper requirements, and information required to complete the transport.  This form is also used by the USPPI to provide all the information required for filing of the EEI into the AES.  The shipper provides this document, in addition to all other export documents, to the freight forwarder (or carrier), which authorizes the freight forwarder to file AES on behalf of the USPPI.

Why do we file an EEI for these transactions?
The EEI is used for compiling the official U.S export statistics for the United States and for export control purposes.

For Example:
Diehl Industries wants Rosa to ship cargo with X forwarding company.  Diehl Industries provide a SLI (Routed Transaction Form or POA) to X forwarding company.  Freight forwarder submits on the USPPI/Exporters behalf, an AES EEI. 

 

Contributors: Rosa Mateu and James Diehl,  Allyn Logistics Experts, Fort Myers, FL

Let Allyn be your logistics arm, contact us at: AllynLogisticsConsulting@allynintl.com