SEA STAR LINE, LLC
TRADE NOTIFICATION

Rule on Mandatory AES
June 25, 2008

Effective July 22, 2008

The U.S. Census Bureau has issued its final rule requiring electronic export information filing in place of the paper Shipper's Export Declaration (SED). The Federal Register announcement, which was published on June 2, 2008, can be accessed at the following URL: http://edocket.access.gpo.gov/2008/pdf/E8-12133.pdf

The final rule becomes effective on July 2, 2008, thirty days from the date of its publication in the Federal Register. Enforcement of the final rule will begin 90 days later - on October 1 - in order to give all affected trade entities time to implement the changes required by the final rule. Highlights of the final rule include the following:

• U.S. exporters or their agents must file Electronic Export Information (EEI) through AES or AESDirect as the only permissible method of filing export data. Beginning on October 1, 2008, exporters who submit paper SEDs will be subject to penalties.
  
• Civil penalties may be imposed per violation of the FTR from $1,100 to $10,000 for delayed filing, failure to file, false filing of export information, and/or using the AES to further any illegal activity. The rule also provides penalties of up to $10,000 and up to five years imprisonment for criminal violations.
  
• Beginning on October 1, 2008, U.S. exporters or their agents must adhere to new filing deadlines for reporting export information.
  
• Although CBP and the Department of Homeland Security (DHS) requested that Census make a "National Interest Determination" (NID) to permit CBP to share export information with foreign governments as part of the goal of DHS to secure U.S. borders by this type of exchange, the new regulations do not resolve this issue.
  
• Sea Star Line is currently seeking further clarification on information relating to document cut-off times and amendments. Sea Star will keep you advised as further information becomes available.