Export Clearance and Recordkeeping

1. Requirement

Clearance of exported items through United States Customs requires adherence to the specific procedures set forth in the Export Administration Regulations (EAR). These requirements are summarized below. However, please be aware that in addition to the EAR requirements, significant tax and other issues may arise with other U.S. government agencies such as Customs.

All export documents pertaining to a shipment must be in agreement and uniformly conform. Information on the Shipper’s Export Declaration and other documents that describe the shipment must be accurately presented. All entries, for example, the name and address of consignee, port of unloading, country of destination, unit price, quantity, value and so on must be in conformity.

2. Responsibility

Under the EAR, the shipper, being the exporter of record, is responsible for the proper use of product classification, license if any, and corresponding export requirements. The exporter remains liable even if the freight forwarder makes a mistake in the completion of the paperwork, or, in some instances, erroneous shipments..

3. Documentation

It is imperative that the appropriate export documentation, thoroughly and accurately completed, accompany all export shipments. Failure to do so can result in tax payments, detention or seizure of shipments, mis-shipments, penalties, government audits, and adverse publicity. The documents described below are required for exports
·        Commercial Invoice
·        Packing List
·        Shippers Export Declaration

The Shippers Export Declaration (SED), Form 7525-V, is used to compile official U.S. export statistics and is required for exports authorized by the Department of Commerce. It is a mandatory form required for virtually all shipments from the United States. An SED is not required for exports of items valued at less than $2,500 unless the items fall under a license or license exception.

The SED, when completed and presented to Customs, is a representation that all statements and information are in accordance with the appropriate export control authorizations and regulations.

4. Destination Control Statement

Destination control statements advise the recipients of U.S. origin commodities of their responsibilities under the U.S. export regulations for re-export from the country identified as the ultimate destination on the export documentation.

The destination control statement states “These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations. Diversion contrary to U.S law is prohibited.”

All invoices and transport documents relating to export shipments emanating from our U.S. offices and overseas subsidiaries must include this destination control statement.

If a domestic sale is made either in the U.S. or by any overseas subsidiaries of U.S. companies and there is reason to believe the products will be exported by the domestic purchaser, this statement must be included on the domestic invoice.

5. Retention

Exporters are to maintain records of all exports for a period of five years from the date of export or last export or re-export.

Department of Commerce’s Bureau of Industry and Security (BIS), Customs and Border Protection (CBP) and other agencies may inspect these records whenever they deem necessary and have the option to cite an exporter that fails to have or to produce requested records.

For each international shipment generated, U.S. export laws specifically require exporters and those involved in exporting to maintain records of the following documents as applicable:

1) A license: application for license; any and all documents submitted in accordance with the requirements of the EAR in support of, or in relation to, a license application.

2) Application for International Import Certificate.

3) International Import Certificate.

4) Delivery Verification Certificate or similar evidence of delivery

5) Shipper’s Export Declaration (SED).

6) Air Waybill, Bill of Lading, Dock Receipt or a short form bill of lading issued by any carrier… and any other export clearance documents.

7) Memoranda, Notes, Correspondence, Contracts, Invitations to bid, Proforma Invoices.

8) Customer’s Purchase Order.

9) Packing List.

10) Commercial Invoice.

Have you considered purchasing export documentation software or building your own system? We can help you decide on the most suitable software or help in constructing a customized system just for your own needs. Call, Email or submit your comments on the Services page.