Exporting goods from the U.S. can be a complex task, especially when it involves complying with various regulations like the Automated Export System (AES) through the Automated Commercial Environment (ACE). Exporters are responsible for ensuring that all necessary filings are completed correctly and missing a step could lead to significant delays, fines, or even legal issues. In this post, we’ll cover the AES filing process, the role of the Shipper’s Letter of Instruction (SLI), and how ShipConsole can help automate and simplify your compliance efforts.
Why is AES Filing Necessary?
The Automated Export System (AES) is used by the U.S. government to track and collect data on exports. It ensures compliance with various trade regulations and provides critical data for U.S. Customs and Border Protection (CBP) and other government agencies. AES filing is mandatory in specific cases:
- Shipments valued over $2,500: If the value of your shipment exceeds this amount, you are required to file through AES.
- Controlled goods: Certain items, such as military equipment or dual-use technologies, require AES filing regardless of their value due to export controls.
The most important document submitted during this process is the Electronic Export Information (EEI), which includes detailed information about your shipment. Without a correct EEI filing, your goods cannot legally leave the country, and errors can result in severe penalties.
Who’s Responsible for Filing AES?
The responsibility for AES filing typically falls on the U.S. Principal Party in Interest (USPPI), which is usually the exporter. However, the USPPI can delegate this responsibility to an authorized agent, such as a freight forwarder. Even when delegating this task, the exporter remains ultimately responsible for ensuring that the filing is completed correctly.
In cases where you choose to work with a freight forwarder, it’s critical to provide proper documentation, including a Power of Attorney (POA), to authorize the forwarder to file on your behalf. Despite outsourcing, any errors made during the filing process can result in penalties or shipment delays.
What is the Shipper’s Letter of Instruction (SLI)?
The Shipper’s Letter of Instruction (SLI) plays a key role in the AES filing process, especially when you’re using a freight forwarder. This document provides the freight forwarder with detailed information about the shipment and authorizes them to file your EEI in the AES system.
The SLI typically includes:
- Description of the goods
- Value of the shipment
- Consignee details (the receiver)
- Export control details, if applicable
Having a well-prepared SLI ensures that your freight forwarder has the correct information, reducing the chance of errors and ensuring timely, accurate AES filing.
What Happens if You Don’t File or File Incorrectly?
Failing to file AES or making mistakes in your filing can lead to significant consequences, including:
- Civil fines: Penalties of up to $10,000 per violation.
- Criminal penalties: In severe cases, criminal charges could be imposed.
- Shipment delays: Incorrect or missing filings can hold up your goods at the border, delaying delivery to your customers.
- Reputational damage: Frequent errors or compliance issues can hurt your standing with regulatory agencies, freight forwarders, and shipping partners.
Common Challenges with AES Filing
Handling AES filings manually can be challenging for exporters, especially those who ship frequently or deal with complex regulatory requirements. Some of the most common challenges include:
- Time Constraints: Depending on the mode of transport, AES filings must be submitted anywhere from 1 to 24 hours before shipment. This can be stressful to manage, especially with frequent or large shipments.
- Complex Regulations: Items subject to U.S. export controls require additional filing steps, which can be confusing without specialized knowledge.
- Human Error: Manual data entry can lead to mistakes in the EEI, increasing the risk of rejected filings or penalties.
- Managing Agents: When relying on a freight forwarder, ensuring that they file the AES correctly and on time adds another layer of complexity to the process.
How ShipConsole Simplifies AES Filing and SLI Generation
This is where ShipConsole comes in, offering a software solution that automates AES filings and other export documentation tasks. ShipConsole is multi-carrier shipping software that integrates seamlessly with Oracle ERPs, making the entire AES filing process simpler and faster.
- Automated AES Filing
ShipConsole removes the need to log into the ACE portal and manually enter data. Instead, the software automatically submits your EEI to AES through ACE Integration reducing the chance of human error and ensuring that filings are accurate and timely.
- SLI Generation
ShipConsole can automatically generate the Shipper’s Letter of Instruction (SLI), including all the necessary details to authorize your freight forwarder to handle the AES filing on your behalf. By automating this step, ShipConsole helps ensure compliance and reduces the chance of mistakes.
- Instant ITN Confirmation
After your AES filing is submitted, ShipConsole receives the Internal Transaction Number (ITN) from the AES system in real time. This ITN is a critical piece of information, as it confirms that your filing has been successfully submitted. With ShipConsole, you’ll get real-time confirmation within the system, via email, and even printed on your shipping labels for easy reference.
- Oracle ERP Integration
ShipConsole integrates directly with Oracle ERPs, pulling shipment data into the AES filing process. This eliminates the need for manual data entry, ensuring that the information is consistent across your systems and reducing the risk of errors.
- Time and Cost Savings
By automating AES filings and SLI generation, ShipConsole helps improve productivity. Additionally, automation eliminates the need to pay carrier fees, which can be as high as $15-20 per shipment. These savings add up, freeing your team to focus on more important business activities.
Final Thoughts
AES filing is a critical part of the export process, but it doesn’t have to be a burden. By using tools like ShipConsole, you can automate the process, avoid costly mistakes, and ensure compliance with U.S. export regulations. With features like automated AES filings, SLI generation, and instant ITN confirmation, ShipConsole takes the hassle out of compliance, saving you time, money, and effort.
Ready to streamline your export process? Start using ShipConsole today and experience the benefits of automated AES filing!
FAQ’s
What is AES filing?
AES filing is the process of submitting Electronic Export Information (EEI) through the Automated Export System to comply with U.S. export regulations.
Who is responsible for AES filing?
The U.S. Principal Party in Interest(USPPI), typically the exporter, is responsible for AES filing. However, you can authorize a freight forwarder to handle it on your behalf.
What is the SLI in export?
The Shipper’s Letter of Instruction (SLI) is a document that provides instructions to the freight forwarder for handling export shipments and filing the EEI.
What happens if I don’t file AES?
Failing to file AES can result in fines up to $10,000 per violation and potential shipment delays or legal consequences.
How does ShipConsole simplify AES filing?
ShipConsole automates the AES filing process, generates the SLI, and provides real-time ITN confirmations, reducing the risk of errors and saving time.
Can ShipConsole integrate with Oracle ERP?
Yes, ShipConsole integrates directly with Oracle ERPs (Oracle E-Business Suite, Oracle Cloud ERP, JD Edwards and NetSuite), streamlining the data entry and filing process.
Pavan Telluru works as a Product Manager at ShipConsole. He brings over a decade of experience to his current role where he’s dedicated to conducting product demos to prospects and partners about how to organizations can efficiently manage their shipping execution process. He also leads marketing efforts at ShipConsole.
