What is the Correct Consignee Type for AES?

What is the Correct Consignee Type for AES?

Recent changes to the way US Customs require AES filings to be completed have resulted in requiring further information about your consignee. Specifically the type of company they are and how they are using your goods. Knowing your customer and their business is important not only for AES but also for export compliance in regards to denied parties screening and potential red flags for exports. As an example, why is ABC Bakery Company in the Middle East buying a container full of telecommunications equipment? It is probably a dummy corporation who is actually going to move the goods to an embargoed entity or country.

The best way to determine the type of consignee they are is to examine what the company actually does. Are they a dealer of equipment/parts, manufacturer or end use business?

There are four choices you can make when submitting AES:

1. Direct consumer – is a person or company purchasing the goods for their own use.
   • Examples are machinery or equipment to be used by the consignee in a manufacturing plant or office. Machine parts to be used in part of a manufacturing process. Raw materials to be changed to finished goods.
2. Government Entity – a government owned/controlled company.
   • Examples could be government run Hospitals, state controlled power plants, factories or mines. Keep in mind in some countries the government may control businesses we take for granted as private operations.
3. Reseller – a company who intends to resale the goods in their current form.
   • Examples could be a retailer, distribution warehouse or trading company. Car dealers, warehouse clubs etc. would be further examples. It is very common for a trading company to purchase large quantities of goods for further distribution in their geographical region.
4. Other/Unknown – basically none of the above.

For further reading on the change in regulations, please refer to section 30.6(a)(28) in the FTR (Foreign Trade Regulations).

Should you have any questions in regards to your export shipments and compliance please contact our team at Superior Freight Services at superior@supfrt.com or  call 800.298.4305.

 

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