The Biden Administration’s Executive Order 14017 titled “America’s Supply Chains” seeks to address supply chain disruption by strengthening domestic production in a multi-agency effort. As part of that effort, the Census Bureau now proposes additional reporting requirements designed to yield greater visibility of trade imbalances for certain goods. Specifically, Census seeks to identify the export of goods having a foreign origin, including those exported following withdrawal from bonded warehouses and foreign trade zones.
If implemented the change will require shippers of goods to provide additional detail on their sourcing so that international freight forwarders tasked with filing Electronic Export Information (EEI) in the Automated Export System (AES) may truthfully complete a new country of origin field. Census is seeking public comment from data users, businesses, and others impacted by this proposed change. Comments will be accepted on a wide range of issues associated with this expansion of EEI reporting including: potential uses of trade statistics; the value of the proposed change; the time a user might need to implement the change; business practices needed to ensure compliance; and challenges arising when warehousing goods from multiple origins.
The reporting changes would appear in the Foreign Trade Regulations at 15 CFR Part 30. Complete details of the requirement are published in the Federal Register (86 FR 71187). Comments must be received by the Census on or before February 14, 2022, and can be submitted online through the Federal eRulemaking Portal or via email to gtmd.frnotices@census.gov with the subject line RIN 0607-AA59.
Jonathan Todd is a partner in Benesch’s Transportation & Logistics Practice Group whose practice includes advising clients on technical aspects of international freight forwarding and trade regulation. Jonathan may be reached at (216) 363-4658 or jtodd@beneschlaw.com. Meg MacCallum is an associate in the Transportation & Logistics Practice Group who may be reached at (216) 363-4185 and mmaccallum@beneschlaw.com.