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THE SHIPPER’S LETTER OF INSTRUCTION (SLI) AND
U.S. PRINCIPAL PARTY IN INTEREST (USPPI) FORM REVIEW
PRESENTER: MATILDA VAZQUEZ, C.E.S.MERIT TRADE SERVICES
JUST A FEW THINGS TO COVER. . .
A simple agendaThe parking lot
The “other” parking lotPlease silence your cell phones Restrooms
A copy of this presentation will be sent to all attendees. Sticking to the subject of the SLIYour “at the beach” moment
WHAT IT REALLY BOILS DOWN TO:
Chapter 9 of 13 U.S.C• CHAPTER 9—COLLECTION AND PUBLICATION OF
FOREIGN COMMERCE AND TRADE STATISTICS
(a) The Secretary is authorized to collect information from all persons exporting from, or importing into, the United States and the noncontiguous areas over which the United States exercises sovereignty, jurisdiction, or control, and from all persons engaged in trade between the United States and such noncontiguous areas and between those areas, or from the owners, or operators of carriers engaged in such foreign commerce or trade, and shall compile and publish such information pertaining to exports, imports, trade, and transportation relating thereto, as he deems necessary or appropriate to enable him to foster, promote, develop, and further the commerce, domestic and foreign, of the United States and for other lawful purposes.
Foreign Trade Regulations (FTR): 15 CFR Part 30
• §30.3 Electronic Export Information filer requirements, parties to export transactions, and responsibilities of parties to export transactions.
• (a) General requirements. The filer of EEI for export transactions is either the USPPI, or the U.S. authorized agent. All EEI submitted to the AES shall be complete, correct, and based on personal knowledge of the facts stated or on information furnished by the parties to the export transaction. The filer shall be physically located in the United States at the time of filing, have an EIN or DUNS and be certified to report in the AES. In the event that the filer does not have an EIN or DUNS, the filer must obtain an EIN from the Internal Revenue Service. The filer is responsible for the truth, accuracy, and completeness of the EEI, except insofar as that party can demonstrate that it reasonably relied on information furnished by other responsible persons participating in the transaction. All parties involved in export transactions, including U.S. authorized agents, should be aware that invoices and other commercial documents may not necessarily contain all the information needed to prepare the EEI. The parties shall ensure that all information needed for reporting to the AES, including correct export licensing information, is provided to the U.S. authorized agent for the purpose of correctly preparing the EEI.
1) Export POA Formal export power of attorney that is received from the USPPI.
2) Foreign POA In a routed export transaction the formal power of attorney is obtained from the FPPI.
4) FPPI Written AuthorizationIn a routed export transaction, and in lieu of obtaining a FPOA from the FPPI, the FPPI will provide a written authorization instead.
3) USPPI Written Authorization In lieu of obtaining a formal POA from the USPPI, the USPPI will provide a written authorization instead.
WHAT ARE WE USING TODAY?
5) THE SLISupplied by the USPPI to the authorized agent in lieu of the POA or written authorization.
POA
1) Export POA Formal export power of attorney that good for every shipment until revoked.
2) Foreign POA In a routed export transaction the formal power of attorney is usually prepared for a single shipment, but can be made a continuous FPOA.
3) USPPI Written Authorization In lieu of obtaining a formal POA from the USPPI, the USPPI will provide a written authorization instead for a specific shipment.
4) FPPI Written AuthorizationIn a routed export transaction, and in lieu of obtaining a FPOA from the FPPI, the FPPI will provide a written authorization for a specificshipment.
In addition to the above, the forwarder will require the necessary EEI data elements that can come from either the commercial invoice, a sales contract, an email or fax.
55SPEED LIMIT
SLI EXERCISESTOP
DIFFERENT FORMATS OF THE SLI
THE SHIPPER GENERATED SLI
THE NCBFAA’SSLI
THE VARIOUS FORWARDER GENERATED SLIs
Possibly outdatedNot enough informationShipper’s terms are favored
Possibly outdatedNot enough informationTerms and conditions not updatedNo instructions to the shipper
Kept current with regulatory changesComplete information / customizableTerms and conditions favor the forwardersInstructions to the shipper are includedTwo formats to tailor to everyone’s system
NCBFAA SLI TEAM
To provide a regulatory compliant “model” that forwarders and exporters can use to create or re-design their own company specific document
To include the fields that will allow the forwarder to collect the required regulatory information AND to provide guidance to the USPPI on the filing requirements
To drive consistency in the way that data is provided
We focused on the regulatory compliance data fieldsWe did not include any of the transportation or instruction fields:
• Prepaid / Collect• Insurance• Mode of Transport: Air / Ocean / Rail / Truck• Consent to Screen• Incoterms®• … and others
We found that these fields varied quite a bit from company to company.
• When you create your company specific document, you should include the fields that are customary for your company.
OUR INTENTION OUR FOCUS
HOW TO FILL OUT THE SHIPPER’S LETTER OF
INSTRUCTION
NCBFAA’s Model SLI Your Company’s SLI
SLI MODEL OFFERS GUIDANCE
• Excel version includes explanatory comments boxes with related regulatory citations
• Accompanied by a “How to complete the SLI” document with hyperlinks to regulations
• Includes new fields that are required with the April 5, 2014 implementation of the revised Foreign Trade Regulations (“FTR”)
• Allows for line item reporting of classification and license authority information
• Allows for a consistent presentation of required information
EXPLANATORY COMMENTS FOR EACH FIELD
“How to Complete the SLI” document hyperlinked to regulations.
REGULATORY SUPPORT
USPPI ADDRESS vs. FREIGHT LOCATION ADDRESS
New - AES FIELD REQUIRED BACK ON APRIL 5, 2014 Ultimate Consignee Type
Direct Consumer Government Entity Reseller Other / Unknown
ARE YOU STILL WITH ME?
OTHER SHIPMENT INFORMATION
Other information include: • Entry Numbers• FTZ Identifier• ATA Carnet• TIB Number
COMMODITY LINE ITEM REPORTING• Line item reporting of classification and licensing information
• ECCN reporting by individual line item• License authorization by individual line item• Expandable worksheet / work area
DDTC (State Dept. License) • Forwarders should ask if they can obtain a copy of the license • Some USPPIs are hesitant to provide a copy and are NOT required to do so.• Forwarder’s should verify both the License Value and Value with the USPPI.• Form includes fields for all of the required license information.
DDTC UNIT OF MEASURE • Most of the time, the Schedule B Unit of Measure (“UOM”) will be
different from the DDTC quantity (which comes from the license.
• These two columns have been purposely placed next to each other to remind everyone that they are two distinct fields.
New - AES FIELD REQUIRED BACK ON APRIL 5, 2014
License Value (required for all licenses, not just State Dept.)This is the value of the cargo being shipped under a license.Purpose: To distinguish the amount to be deducted from a license from the value of goods being reported for Census purposes (which should include inland and insurance to the port of export).
CUSTOMIZE THE SLI TO YOUR COMPANY’S
SPECIFIC POLICIES
The model includes the minimum authorization language required by the regulations – a limited export POA for this single shipment.
• You may want to enhance the language.
Does your company allow electronic signatures? If not, remove.
Customize the SLI language to reflect your policies.
OTHER CUSTOM FEATURES
• The SLI model does not include any logos, transportation details or any and other instructions to the forwarder.
• Suggested space for your company preferred fields is incorporated into the model.
CONSTRUCTIONAREA. USE
CAUTION MOVINGAHEAD
WHERE AM I GOING WITH
THIS?
N
S
25SPEED LIMIT
55SPEED LIMIT
35SPEED LIMIT
MOVING FOWARD
RIGHT WAY
The SLI and accompanying instruction sheet are available to all forwarders and exporters at Shipper's Letter of Instruction "Model“
• There is no copyright. The NCBFAA offers this tool to assist you in creating or re-designing your own company specific SLI.
At the very least, you should make sure that your SLI includes all of the fields on the model.
Following the format on the model will help drive consistency in the industry.
