The Automated Export System is used by the US Government for compiling trade statistics. It is also US law to report shipment date via AES filing when sending any exports out of the country valued over $2,500.00.
A relative recent addition has been the Ultimate Consignee type. Whether you file AES yourself or have someone else file it for you, chances are you’ve encountered the different classifications of the Ultimate Consignee Type: Direct Consumer, Government Entity, Reseller and Other/Unknown.
Selecting the Ultimate Consignee type can be confusing but it is also a necessary part of the Automated Export System; the table below will help you break it down and help you to learn that not all of your ultimate consignees are Other/Unknown
1. Direct Consumer –
- a. Non-government entity
- b. Consumes the good for its own use
- c. Will not resell or distribute
- d. Uses the good in the process of creating something else
2. Government Entity
- a. Entity controlled or owned by the government
3. Reseller
- a. Resells or trades
- b. Not government
- c. Does not change the product
4. Other/Unknown
- a. Does not fit it any of the categories above
- b. Nature of entity is not known
Exporters may want to consider developing a training manual, including export regulations, commodity classifications, export checklists, FAQ’s, and contacts. Exporters should always document everything related to the export transaction.