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Effective January 13, 2022, the U.S. Census Bureau’s (“Census”) Automated Export System (“AES”) began issuing a response code 66Q notifying Electronic Export Information (“EEI”) filers whenever they enter an export control classification number (“ECCN”) and destination combination that is prohibited under the Export Administration Regulations’ (“EAR”) destination-based controls.  For now, such mismatches in filings will merely result in Compliance Alerts, but beginning on or around July 13, 2022, Census plans for the ECCN/destination mismatch to result in a “Fatal Error” that, if left uncorrected, will subject the principal party or authorized agent to penalties under the Foreign Trade Regulations (“FTR”).  EEI filings are required by both the EAR administered by the Bureau of Industry and Security (“BIS”) and by the FTR administered by Census and enforced by U.S. Customs and Border Protection (“CBP”).  Notably, the Census bulletin announcing the change directed questions to a BIS email address, suggesting BIS may be increasing its surveillance of the treasure trove of data provided in EEI filings.  Time will tell.

Also, on February 4, 2022, Census withdrew its September 17, 2020 advance notice of proposed rulemaking (“ANPRM”) concerning the proposed removal of domestic EEI filing requirements for shipments between U.S. states and Puerto Rico and the U.S. Virgin Islands.  Those domestic filing requirements remain in force.  Census uses the data to publish estimated statistics such as Puerto Rico’s and the U.S. Virgin Islands’ gross domestic product.  Census received nearly 100 comments regarding the ANPRM—43 in favor of removing the EEI requirements and 50 in favor of keeping them in place.  The ANPRM reports Census and fellow Commerce Department agency, the Bureau of Economic Analysis, are open to alternative data gathering measures, but for now EEI filings to and from the U.S. territories remain legal requirements.

Husch Blackwell’s Export Controls and Economic Sanctions Team regularly reviews clients’ EEI filings records and stands ready to assist.  Should you have any questions or concerns, please contact Cortney MorganGrant Leach or Tony Busch of our Export Controls and Economic Sanctions Team.

 

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Photo of Tony Busch Tony Busch

Tony advises clients on export control matters pertaining to the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). Tony also provides the export control profile required for “critical technologies” analysis in Committee on Foreign Investment in the United States…

Tony advises clients on export control matters pertaining to the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). Tony also provides the export control profile required for “critical technologies” analysis in Committee on Foreign Investment in the United States (CFIUS) matters. Additionally, Tony counsels clients seeking to comply with Census Bureau Foreign Trade Regulations (FTR), Bureau of Industry & Security (BIS) Anti-boycott Regulations, and Office of Foreign Assets Control (OFAC) sanctions.

Photo of Grant Leach Grant Leach

Grant focuses his practice on international trade, international compliance, securities, mergers, acquisitions and general corporate matters.

Photo of Cortney Morgan Cortney Morgan

An experienced attorney in the area of international trade and supply chain issues, Cortney advises foreign and domestic clients on all aspects of international trade regulation, planning and compliance, including import (customs), export controls, economic sanctions, embargoes, international trade agreements and preference programs.

Photo of Isabella Peek Isabella Peek

A love for international law drew Isabella to Georgetown Law and ultimately to Husch Blackwell.

Isabella’s early career experience working across the United States (D.C., Chicago, Reno, Omaha, Carson City), and experience studying abroad in England and Italy, solidified her ambition to work

A love for international law drew Isabella to Georgetown Law and ultimately to Husch Blackwell.

Isabella’s early career experience working across the United States (D.C., Chicago, Reno, Omaha, Carson City), and experience studying abroad in England and Italy, solidified her ambition to work with clients worldwide. Her passion for international issues is what first drew her to Georgetown Law School, and it later made Husch Blackwell a logical next career step.

Isabella’s skill and ambition made her a formidable competitor on the equestrian team in college, giving her the opportunity to build a high level of self-discipline and contribute to the success of a team. Her time management abilities helped Isabella perform at a high level both academically and as an equestrian. It’s that kind of accomplishment and organization that make her such an effective partner for clients and businesses around the globe.