USPPI Responsibility Information Sheet

Version 14.0 – June 20, 2022 www.ncbfaa.org_Association Documents

WHAT IS AN EXPORT WHERE SHOULD I GO FOR ASSISTANCE?

Any item that is sent from the United States to a foreign destination is an export. "Items"
include, but are not limited to, commodities such as clothing, building materials, circuit U.S. DEPARTMENT OF COMMERCE
boards, automotive parts, as well as software and technology, such as blueprints, design Bureau of Industry and Security ("BIS")
plans, retail software packages and technical information.
Census Bureau Foreign Trade Division
Am I The U.S. Principal Party in Interest (“USPPI”)? U.S. DEPARTMENT OF STATE
The USPPI, as defined in the Foreign Trade Regulations ("FTR"), is the person in the United
States that receives the primary benefit, monetary or otherwise, of the export transaction. Directorate of Defense Trade Controls
In other words, if you are the recipient of the purchase order from the overseas party for ("DDTC")
cargo that is exported and you are invoicing them for the product, you are the USPPI no U.S. DEPARTMENT OF THE TREASURY
matter what the terms of sale / Incoterms® are.
Office of Foreign Assets Control ("OFAC")
WHAT ARE MY RESPONSIBILITIES AS THE USPPI?
• DETERMINE COMMODITY JURISDICTION: Which U.S. Government Agency controls USEFUL LINKS:
my product? Are my products subject to the Bureau of Industry and Security’s Export BIS Introduction to Export Controls
Administration Regulations ("EAR"), the U.S. Department of State's Directorate of
Defense Controls’ ("DDTC") International Traffic and Arms Regulations ("ITAR") and/or BIS Commodity Jurisdiction
other government agencies such as the Nuclear Regulatory Commission ("NRC"),
Drug Enforcement Administration ("DEA"), or Bureau of Alcohol and Tobacco & Firearms BIS Export Licensing Requirement FAQs
("ATF")?
• "KNOW YOUR CUSTOMER": Perform due diligence on the end user(s). Know their BIS Export Control Classification Numbers
intended end use and ensure that no party to the export transaction is on any of the (“ECCN”)
U.S. Government's lists of restricted parties with whom U.S. companies and U.S.
persons cannot do business without proper U.S. Government authorization. BIS "Know Your Customer" Guidance
• CLASSIFY PRODUCTS for statistics (Schedule B or the US Harmonized Tariff
Schedule ("USHTS")) and License Determination (Commerce Control List ("CCL") i.e. BIS On-Line Training Room
ECCN or EAR99, or US Munitions List ("USML")). License requirements are
dependent upon an item's classification, technical characteristics, ultimate destination, BIS Red Flag Indicators
end-user, and end-use. Exporters must determine whether or not the product being
exported requires a license or whether it qualifies for a license exception. Consolidated Screening List
• TRANSMIT ELECTRONIC EXPORT INFORMATION ("EEI") to the Automated Export
System ("AES") or authorize your forwarder to file on your behalf by signing a Power Electronic Code of Federal Regulations
of Attorney ("POA") or other written authorization such as a Shipper's Letter of ("eCFR")
Instruction ("SLI"). POAs should specify the responsibilities of the parties with
particularity and should state that the forwarder has the authority to act on behalf of Embargoes and Sanctions ("BIS")
the Principal Party in Interest as its true and lawful agent for the purpose of filing the
Electronic Export Information ("EEI") in accordance with the laws and regulations of the Embargoes and Sanctions ("OFAC")
U.S. Note: On "Routed Export Transactions", authorization is the responsibility of the
Foreign Principal Party in Interest ("FPPI"). Foreign Trade Regulations ("FTR")
• MAINTAIN SHIPMENT RECORDS as required by the regulations of the controlling
Government Agency, typically 5 years from the date of export. Schedule B Look-Up and HTS Look-Up

• PROVIDE THE FORWARDER WITH COMPLETE AND ACCURATE EXPORT INFORMATION including licensing and other Partner
Government Agency ("PGA") information necessary for filing the EEI. Generally, in the case of a "Routed Export Transaction", the
USPPI is still responsible for providing this information to their forwarder. (Refer to 15 CFR 30.3 and 15CFR 30.6)
o Name and address of the USPPI o Ultimate Consignee Type: a) Direct Consumer;
o USPPI Tax ID Number (EIN or DUNS) b) Government Entity; c) Reseller; d) Other/Unknown
o Point of Origin o ECCN (EAR99 if commodities are not on the
o Schedule B (or USHTS) Number Commerce Control List), or USML Category
o Schedule B / USHTS Quantity and Unit of Measure o NLR, EAR License Exception Code, ITAR Exemption
o Commercial/Generic Commodity Description For licensed cargo:
o Value (at the port of export) by Schedule B / USHTS
o License Number
o Domestic (D) or Foreign (F) Indicator
o Value of goods moving against the license
o PGA data elements if required by Appendices Q and X

"This document is intended to provide guidance and information only. It reflects the Forwarder’s position on and interpretation of the applicable laws or regulations from
The Code of Federal Regulations and does not in any way replace or supersede those laws or regulations. If USPPI has any questions, it should consult its counsel.”
© 2022 The National Customs Brokers & Forwarders Association of America, Inc.
 USPPI Responsibility Information Sheet www.ncbfaa.org 2022 2

WHAT ARE THE FORWARDER’S RESPONSIBILITIES?

• Obtain written authorization from the appropriate principal party in interest.

• Check government lists of restricted parties. This does not remove the responsibility from the USPPI.
• Complete and file Electronic Export Information (“EEI”) via the Automated Export System (“AES”) based on the
information provided by the USPPI, if requested to do so by one of the principal parties.
THE FORWARDER RELIES ON THE ACCURACY OF THE INFORMATION PROVIDED BY THE USPPI, BUT IS RESPONSIBLE TO
QUESTION ANY INFORMATION THAT MIGHT BE INCOMPLETE OR SEEMINGLY CONTRADICTORY TO U.S. EXPORT REGULATIONS.
• On request, provide the USPPI with a copy of the information transmitted to AES on their behalf.
WE RECOMMEND THAT THE USPPI ASK THEIR FORWARDER FOR THIS INFORMATION.

USPPI CHECKLIST

SEE INDEX FOR THE EXPORT ADMINISTRATION REGULATIONS (EAR) AND ECFR 15 CFR PARTS 730-774
SEE INTERNATIONAL TRAFFIC IN ARMS REGULATIONS (ITAR) AND ECFR 22 CFR PARTS 120-130

 IS MY PRODUCT ON THE U.S. MUNITIONS LIST (USML)? (SEE 22 CFR PART 121) ARTICLES OR SERVICES THAT MEET THE
CRITERIA OF A DEFENSE ARTICLE / SERVICE ON THE USML OR PROVIDES THE EQUIVALENT PERFORMANCE CAPABILITIES
OF AN ARTICLE ON THE USML ARE SUBJECT TO THE ITAR (22 CFR, PARTS 120- 130).
• DDTC ORDER OF REVIEW AND DECISION TREE TOOLS

 IF YES, DOES MY PRODUCT REQUIRE A LICENSE OR PERHAPS QUALIFY FOR AN ITAR EXEMPTION? (SEE 22 CFR PART 123)
 IS MY PRODUCT SUBJECT TO THE EAR? (SEE 15 CFR PART 734.2-5)
 IS MY PRODUCT ON THE COMMERCE CONTROL LIST (CCL)? (SEE 15 CFR PART 732) IF YES, THEY WILL HAVE AN
EXPORT CONTROL CLASSIFICATION NUMBER (ECCN).
• ALPHABETICAL INDEX TO THE COMMERCE CONTROL LIST

 DO GENERAL PROHIBITIONS 4-10 APPLY? (SEE 15 CFR Part 736 Introduction and List of Prohibitions 4-10)
 DO I KNOW THE END USER AND END USE OF THE PRODUCT? (SEE 15 CFR PART 744)
• KNOW YOUR CUSTOMER GUIDANCE • CONSOLIDATED SCREENING LIST

 AM I SHIPPING TO A DESTINATION OF CONCERN? (SEE 15 CFR PART 738, Supplement No.1 (15 CFR 738) - Commerce
Country Chart, 15 CFR PART 774 - COMMERCE CONTROL LIST, Supplement No.1 (15 CFR 740) Country Groups)
AND ALSO "BIS" AND "OFAC" EMBARGOES AND SANCTIONS

 DO I NEED A BIS (DEPARTMENT OF COMMERCE) LICENSE?

• DEPARTMENT OF COMMERCE-BIS DECISION TREE TOOLS
• Supplement No.1 to 15 CFR Part 732 "The Decision Tree" OR,

 DOES MY PRODUCT QUALIFY FOR AN EAR LICENSE EXCEPTION? (SEE 15 CFR Part 740 )
 DO ANY OTHER GOVERNMENT AGENCY REQUIREMENTS APPLY TO MY PRODUCT? DO ANY OF THOSE REQUIRE REPORTING
IN THE AUTOMATED EXPORT SYSTEM? (SEE Appendix Q and Appendix X )

 IS THERE ANY INDICATION OF RESTRICTIVE TRADE PRACTICES OR BOYCOTT LANGUAGE? (SEE 15 CFR Part 760)
 DID I PROVIDE MY FORWARDER WITH THE COMPLETE AND ACCURATE INFORMATION REQUIRED TO FILE EEI, OR AN ITN
(INTERNAL TRANSACTION NUMBER) IF I FILED MY OWN EEI? (SEE 15 CFR 30.3 AND 15CFR 30.6)

 DID I PROVIDE MY FORWARDER WRITTEN AUTHORIZATION TO FILE AES ON MY BEHALF? (SEE 15 CFR 30.3(b)(3))
NOTE: PROVIDING AUTHORIZATION IS THE RESPONSIBILITY OF THE FPPI ON “ROUTED EXPORT TRANSACTIONS”.
 DID I REQUEST AND RECEIVE A COPY OF THE AES DATA TRANSMISSION FROM MY FORWARDER AND/OR AM I REVIEWING MY
EEI TRANSMISSIONS FOR ACCURACY UTILIZING ACE REPORTS? (SEE "How to access ACE Export Reports")

"This document is intended to provide guidance and information only. It reflects the Forwarder’s position on and interpretation of the applicable laws or regulations from
the Code of Federal Regulations and does not in any way replace or supersede those laws or regulations. If USPPI has any questions, it should consult its counsel.”
© 2022 The National Customs Brokers & Forwarders Association of America, Inc.