Key Issues
Export Modernization
Today, the process for exporting shipments from the United States is a highly manual and labor- intensive exercise. Under the auspices of the COAC, CBP and the trade community created the Export Modernization Working Group to address this problem. The Group published a white paper in 2022 which identified the centerpiece of the future export process as a progressive filing model of data transmission. In this model, shipment information is decoupled from transportation information and the paper export manifest of today is deconstructed into its constituent components of house bill, master bill and conveyance information. In this manner, progressive filing makes possible the earliest possible transmission to CBP of the house bill data that is most critical to risk assessment. Master bill and conveyance information are added to the shipment’s ACE manifest record later in time, as each piece of information becomes available. The model allows the linkage of AES information to manifest information at the lowest level – the house bill – and at the earliest time to further facilitate risk targeting.
Progressive filing further allows data to be provided to CBP in line with the Trade Act of 2002’s directive that data be provided by the party in the best position to do so, which for the express industry means the express consignment operator (ECO) will provide the shipment level data as soon as it is available in their automated system, with the final manifest being submitted shortly after the flight’s departure. Because it enables early risk assessment, progressive filing allows early shipment interception and inspection, at a point in the supply chain before shipments have been consolidated, moved to the port of export, containerized, and/or loaded. The location of these inspections will be coordinated between the ECO and CBP to identify the port of availability, the location where the shipment is available before it has been consolidated and where CBP has the appropriate officers to conduct the inspection.
Progressive filing will facilitate CBP’s ability to target and enforce in the export environment while imposing the minimum operational and financial burden on carriers. The goal of all stakeholders is a system that is maximally efficient and functional for carriers and CBP.
Export Controls
With the Russian invasion of Ukraine and the deterioration of U.S. relations with China, the U.S. Government has expanded the imposition of export controls on dual use and high technology products formerly shipped to those countries. In implementing the new rules, the Unites States should collaborate closely with our allies to ensure:
- The implementation of the new export controls regime is conducted to ensure the maximum level of harmonization between allied systems. EAA recommends a balanced approach to export control cooperation between the U.S. and other governments that considers economic impact along with national security so as not to put any country’s firms at a competitive disadvantage.
- In particular, the Governments should agree on controls for cybersurveillance technology, including a list of what products fall under their respective regimes, the countries where export of the technology should be restricted, and criteria for granting licenses. The core principle of this effort should be “higher walls around fewer goods.” We should be focusing on prohibiting the export of critical technology, not restricting trade.
- Governments should share best practices for coordinating among the various Government agencies with export control authorities to ensure a more streamlined and efficient border clearance process for restricted goods, to include greater alignment between the International Traffic in Arms Regulations (ITAR) and other countries’ controls on military items.
- As part of this effort, Governments should agree on a standard approach to goods in transit that does not require logistics providers to obtain licenses for products that will not enter the commerce of the relevant nation(s). Free movement is a bedrock principle that should be applied, with practical consideration, to the movement of goods.
- The U.S. should leverage the experience with integrating the AEO trusted trader regime in an export context, and its applicability to reducing risk for export controls compliance, with a view toward creating a voluntary CTPAT program for exports from the U.S. with tangible, meaningful benefits.
