USPPI Requirements
A couple of the questions we frequently get asked are: what does the term USPPI mean and what are the responsibilities for exporting overseas? This is especially true for routed export transactions.
The USPPI is the U.S. Principal Party of Interest – basically the entity in the USA who is receiving the benefit of an export shipment. This can be a seller (wholesaler or distributor), manufacturer or foreign party when purchasing for export. It does not matter if you are exporting with your forwarder or if the shipment is routed by the consignee you have to follow basic rules when it comes to customs filing (AES), screening your customer, classifying products, and documentation.
The rules are slightly different depending if the shipment is a normal export or routed transaction and the link below to the Government’s AES Direct website outlines basic definitions and requirements regardless of how the documentation and filing are handled.
Exporter of Record Replaced by U.S. Principal in Interest (USPPI)
The U.S. Principal Party in Interest – The person in the United States that receives the primary benefit monetary or otherwise of the export transaction.
Generally That Person Can Be The:
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U.S. Seller (wholesaler/distributor) of the merchandise for export.
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U.S. Manufacturer if selling the merchandise for export.
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U.S. Order Party – Party who directly negotiated between the U.S. seller and foreign buyer and received the order for the export of the merchandise.
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Foreign Entity if in the U.S. when items are purchased or obtained for export.
Read More at US Census: USPPI
What is a ‘routed’ shipment? The Federal Trade Regulations (FTR) defines as:
“an export transaction in which the foreign principal party in interest (FPPI) authorizes a U. S. agent to facilitate the export of a shipment from the U. S. and to prepare and file electronic export information (EEI).”
If your shipment is routed this information and link provides great information for these specific transactions from AES:
Responsibilities of Parties in a Routed Export Transaction
(1) USPPI responsibilities.In a routed export transaction where the foreign principal party in interest authorizes a U.S. forwarding or other agent to prepare and file the EEI, the USPPI must maintain documentation to support the information provided to the forwarding or other agent for preparing the EEI as specified in Sec. 30.10(b) and provide such forwarding or other agent with the following information to assist in preparing the EEI:
- Name and address of the U.S. principal party in interest;
- U.S. principal party in interest’s, IRS, EIN;
Read more at US Census: Routed Transactions
Ideally you as the exporter would control your own shipments which protects you from unscrupulous customers, forwarders and assists with compliance. See our previous blog article on Why Should I Control My Export Shipment.
If you need any assistance with setting up an export compliance program whether the shipment is a normal export transaction or routed shipment for your customer, please contact Superior Freight Services – sales@supfrt.com or give us a call at 800.298.4305.
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