File Your Electronic Export Information (EEI)

December 2, 2024 by Leave a comment

When you export, are you filing the correct electronic export information (EEI) with the U.S. Government? Most aircraft part export transactions will require that EEI be filed.

You are required to file an EEI for an export from the United States if any of the following apply:

  • Shipment of a single item or merchandise valued at more than $2,500 (Shipments to Canada are exempt from this requirement) (15 C.F.R. § 758.1(b)(5));
  • Any export that requires a license (15 C.F.R. § 758.1(b)(2));
  • Any export destined for a category E:1 or E:2 nation, like Cuba, Iran, North Korea or Syria (15 C.F.R. § 758.1(b)(1));
  • Exports of 9×515 or “600 series” items, including exports to Australia, Canada, and the United Kingdom (15 C.F.R. § 758.1(b)(3));
  • Exports under license exception Strategic Trade Authorization (STA) (15 C.F.R. § 758.1(b)(4));
  • If you are shipping to somewhere that does not normally require EEI, but it is transiting that location to a destination that normally requires EEI, then you must file the EEI (15 C.F.R. § 758.1(b)(6));
  • Exports under authorization Validated End-User (VEU) (15 C.F.R. § 758.1(b)(7));
  • Exports to someone on the Unverified List (supplement no. 6 to part 744 of the EAR) (15 C.F.R. § 758.1(b)(8));
  • Many exports of shotguns or other weapons (15 C.F.R. § 758.1(b)(9));
  • Exports to the People’s Republic of China, Russia, or Venezuela (15 C.F.R. § 758.1(b)(10))

This list assumes that you are shipping aircraft parts that are controlled under the Export Administration Regulations and are listed under one of the CCL categories (that is, the part has an ECCN).

You can find more information on how and where to file EEI on the International Trade Administration’s website.

Some of the more common exceptions to filing EEI are (this is not a complete list):

  • When the value of the export (classified under each Schedule B number) is $2,500 or less and mandatory EEI filing is not required;
  • Exporting under any of these license exceptions: BAG, GFT, GOV, TSR, TMP;
  • Exports for a U.S. airlines’ own use under AVS;
  • Certain exports going to Canada.

If you are relying on one of these exemptions to NOT file EEI, then you must add a statement to the first page of the bill of lading, air waybill, or other commercial loading document, and on the carrier’s outbound manifest. The statement must begin with “NOEEI” and describe the basis for the exemption by referencing the section number of the exemption. For example, you might use “NOEEI 30.37(a)” for shipments when the value of each individual Schedule B number is $2,500 or less; and “NOEEI 30.36” for qualifying shipments to Canada. This statement would be offered in lieu of the normal annotation with the International Transaction Number (ITN) that would have been issued by AES if you had filed EEI.

As always, you can use these articles as a first step in your compliance analysis, but you should carefully read the rules to make sure you are in full compliance.

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How Do You Calculate the Export VALUE of an Overhauled Aircraft Part?

November 18, 2014 by Leave a comment

If you are exporting an overhauled civil aircraft part, then how do you calculate the value of the export?

The value of an export must be reported as part of the electronic export information (EEI) that is required by the regulations.  15 C.F.R. § 30.6(a)(17).  When you sell a unit, the value is easy to calculate – your sales price is the export value (although that “value” may have to be adjusted, as discussed below).  But when you are exporting an overhauled unit, your value may be different from this general rule.

It is most convenient for us to address this issue as three different types of transactions, each of which has a different value calculation:

(1) A part that has been imported into the United States for overhaul and is now being exported again (e.g. back to the owner).

(2) A part that has been imported into the United States for warranty repair or overhaul and is now being exported again (e.g. back to the owner) [in which the warranty covers some or all of the price of the work].

(3) A part that originated in the US as an overhauled part and then is subsequently exported as an overhauled part.

In the first case, where a part that has been sent to the US for overhaul is now being exported again to the sender, you need to have reported the article as a part imported for repair purposes at the time it was imported.  Then, when you export it back to the sender you can use Schedule B classification commodity number 9801.10.000 and you can report the export value in the EEI as the value of parts and labor from the overhaul (the value of the original unit shall not be included in the reported value).  15 C.F.R. § 30.29(a).

But if the part was sent back for warranty repair, and there is no charge for the parts and labor, then the value of the replacement parts (alone) should be reported.  15 C.F.R. § 30.29(b)(2).  There is no need to report the value of the warranty labor.  The bill of lading, manifest, air waybill, or other commercial-loading document (wherever you write the International Transaction Number, or ITN) should state: “Product replaced under warranty, value for EEI purposes.” Id.

In the third case shown above, where a part that originated in the US as an overhauled part is then subsequently exported as an overhauled part, you would report the full value of the part. If you bought the article overhauled in the US then the value is the sales price to your foreign customer. 15 C.F.R. § 30.6(a)(17)(i). If you are exporting it without a sale (e.g. for consignment to your foreign warehouse) then the value reported on the EEI is the fair market value of the overhauled article. Id.

You are supposed to adjust the EEI-reported value by adding the cost of shipping the part from the US point of origin to the port of export (costs will include freight and insurance). 15 C.F.R. § 30.6(a)(17)(ii)(A). If the part is sold at a “delivered price” (so the exporter is paying all shipping costs), then the exporter should subtract the shipping costs from the point of export to the customer (so value is adjusted downward for those post-export shipping charges). 15 C.F.R. § 30.6(a)(17)(ii)(C).

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