(IEEPA) that increases the maximum fines for violating export control laws
from $50,000 per violation to $250,000, or twice the amount of the transaction
that is the basis of the violation with respect to which the penalty is imposed.
The maximum criminal penalties for committing willful violations of IEEPA-
based export control laws will increase to $1,000,000, with a maximum jail
sentence of 20 years.
Finally, you also have to be aware of the additional layer of embargoes and
sanctions. For example, shipping goods to Cuba, under most circumstances,
is illegal for U.S. companies.
Modernization of government IT systems ......................................
Governments are notoriously slow adapters of new technology, so it may
come as no surprise that many are just now automating systems for keeping
track of import and export documentation. Nevertheless, companies must
have systems in place to interface with various customs authorities electroni-
cally. Here are a few of the key international customs players and how they
handle import and export documentation:
United States: Exporters are required to electronically file the export
declaration via the U.S. Census Bureau’s Automated Export System
(AES). U.S. Customs has also automated its import system, which is
called the Automated Broker Interface (ABI). Certified licensed brokers
usually handle the filing of import documents for most companies
because the process is so highly complicated. However, a growing
number of companies are self-filing these days because doing so is
cheaper and they can control their own data. Another key development
is the Automated Commercial Environment or ACE, which represents a
business process transformation on the part of Customs that will help
electronically speed legitimate trade while providing greater security.
The frequently asked questions document on ACE is 113 pages long,
indicating that there will be quite the learning curve when and if the
Automated Commercial Environment becomes a reality.European Union: The E.U. embarked on a six-year program to modern-
ize its customs systems in 2004. The European eCustoms Initiative will
create a paperless environment for customs and trade documentation.
All 25 E.U. member states will be on the common system by 2010. The
initiative includes the New Computerized Transit System (NCTS), the
Automated Export System (AES), and in 2008, the Automated Import
System (AIS).
Australia:Australia has put in place an electronic system for customs
clearance called the Integrated Cargo System (ICS). Companies are able
to access customs and other government agencies through a single elec-
tronic window.