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didyouknow(1)What is a USPP?

Am I The U.S. Principal Party In Interest (“USPPI”)?

The USPPI, as defined in the Foreign Trade Regulations ("FTR"), is the person in the United States that receives the primary benefit, monetary or otherwise, of the export transaction. In other words, if you are the recipient of the purchase order from the overseas party for cargo that is exported and you are invoicing them for the product, you are the USPPI no matter what the terms of sale are.

 

 

What are my responsibilities as the USPPI?

  1. DETERMINE COMMODITY JURISDICTION: Which U.S. Government Agency controls my product? Are my products subject to the Export Administration Regulations ("EAR"), the U.S. Department of State' Directorate of Defense Controls ("DDTC") International Traffic and Arms Regulations ("ITAR") and/or other government agencies such as the Nuclear Regulatory Commission ("NRC"), Drug Enforcement Administration ("DEA"), or Bureau of Alcohol and Tobacco & Firearms ("ATF")?
  2. KNOW YOUR CUSTOMER: Perform due diligence on the end user(s); know their intended end use; and ensure that no party to the export transaction is on any of the U.S. Government's lists of restricted parties with whom U.S. companies and U.S. Persons cannot do business without proper U.S. Government authorization.
  3. CLASSIFY PRODUCTS: for Statistics (Schedule B or the US Harmonized Tariff Schedule ("USHTS") and License Determination (Commerce Control List ("CCL") i.e. ECCN or EAR99, or US Munitions List ("USML")). License requirements are dependent upon an item's classification, technical characteristics, ultimate destination, end- user, and end-use. Exporters must determine whether or not the product being exported requires a license or whether it qualifies for a license exception.
  4. FILE ELECTRONIC EXPORT INFORMATION ("EEI") into the Automated Export System ("AES") or authorize your forwarder to file on your behalf by signing a Power of Attorney ("POA") or other written authorization such as a Shipper's Letter of Instruction ("SLI"). POAs should specify the responsibilities of the parties with particularity and should state that the forwarder has the authority to act on behalf of the Principal Party in Interest as its true and lawful agent for purpose of filing the Electronic Export Information ("EEI") in accordance with the laws and regulations of the U.S. Note: On "Routed Export Transactions", authorization is the responsibility of the Foreign Principal Party in Interest ("FPPI").
  5. MAINTAIN SHIPMENT RECORDS: according to the regulations of the controlling Government Agency; typically 5 years from the date of export

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