Foreign Trade Regulations (FTR): Electronic Export Information (EEI) Filing Requirements for Shipments Between the United States and Puerto Rico and the U.S. Virgin Islands (USVI)

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Published

February 4, 2022

Issuing agencies

Commerce DepartmentCensus Bureau

Abstract

The Census Bureau published an Advance Notice of Proposed Rule Making (ANPRM) in the Federal Register on September 17, 2020 to request comments on the overall impact of the removal of the Electronic Export Information (EEI) filing requirements for shipments between the United States, Puerto Rico and the U.S. Virgin Islands. The Census Bureau has decided to continue the current EEI filing requirement for Puerto Rico and the USVI and continue to publish the U.S. Trade with Puerto Rico and U.S. Possessions (FT-895) Publication Series. This decision was made after careful consideration based on the feedback received from the ANPRM and discussions between the Census Bureau and several stakeholders. The Census Bureau will continue to collect the EEI because there is no alternative data source that yields the same high- quality data for Puerto Rico and the U.S. Virgin Islands. The EEI data meets the Census Bureau's statistical objectives and the needs of its data users, including the Bureau of Economic Analysis (BEA), who produces the Gross Domestic Product estimates for Puerto Rico and the U.S. Virgin Islands, which is a Principal Federal Economic Indicator. Both the Census Bureau and BEA are open to considering proposed alternative data sources which will be evaluated, tested, and verified to determine whether the data meet the statistical objectives of the current EEI.

Full Text

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<title>Federal Register, Volume 87 Issue 24 (Friday, February 4, 2022)</title>
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[Federal Register Volume 87, Number 24 (Friday, February 4, 2022)]
[Proposed Rules]
[Pages 6440-6443]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-02341]

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DEPARTMENT OF COMMERCE

Census Bureau

15 CFR Part 30

[Docket Number 220124-0033]
RIN 0607-AA58

Foreign Trade Regulations (FTR): Electronic Export Information
(EEI) Filing Requirements for Shipments Between the United States and
Puerto Rico and the U.S. Virgin Islands (USVI)

AGENCY: Census Bureau, Commerce Department.

ACTION: Advance Notice of Proposed Rulemaking; withdrawal.

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[[Page 6441]]

SUMMARY: The Census Bureau published an Advance Notice of Proposed Rule
Making (ANPRM) in the Federal Register on September 17, 2020 to request
comments on the overall impact of the removal of the Electronic Export
Information (EEI) filing requirements for shipments between the United
States, Puerto Rico and the U.S. Virgin Islands. The Census Bureau has
decided to continue the current EEI filing requirement for Puerto Rico
and the USVI and continue to publish the U.S. Trade with Puerto Rico
and U.S. Possessions (FT-895) Publication Series. This decision was
made after careful consideration based on the feedback received from
the ANPRM and discussions between the Census Bureau and several
stakeholders. The Census Bureau will continue to collect the EEI
because there is no alternative data source that yields the same high-
quality data for Puerto Rico and the U.S. Virgin Islands. The EEI data
meets the Census Bureau's statistical objectives and the needs of its
data users, including the Bureau of Economic Analysis (BEA), who
produces the Gross Domestic Product estimates for Puerto Rico and the
U.S. Virgin Islands, which is a Principal Federal Economic Indicator.
Both the Census Bureau and BEA are open to considering proposed
alternative data sources which will be evaluated, tested, and verified
to determine whether the data meet the statistical objectives of the
current EEI.

FOR FURTHER INFORMATION CONTACT: Lisa E. Donaldson, Division Chief,
Economic Management Division (EMD), Census Bureau, by phone (301) 763-
7296 or by email at <a href="/cdn-cgi/l/email-protection#167a7f6577387338727978777a726579785675737865636538717960"><span class="__cf_email__" data-cfemail="64080d17054a014a000b0a050800170b0a2407010a1711174a030b12">[email&#160;protected]</span></a> or Kiesha Downs, Chief,
Trade Regulations Branch, EMD, Census Bureau, by phone (301) 763-7079
or by email at <a href="/cdn-cgi/l/email-protection#4d2624283e252c6329223a233e0d2e28233e383e632a223b"><span class="__cf_email__" data-cfemail="066d6f63756e672862697168754665636875737528616970">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Background

The Census Bureau is responsible for collecting, compiling, and
publishing export trade statistics for the United States under the
provisions of Title 13, United States Code (U.S.C.), Chapter 9, Section
301. Collecting and compiling trade statistics between the United
States, Puerto Rico, and other territories is part of the U.S. Census
Bureau's monthly processing of EEI. Ultimately, these statistics are
sourced from the EEI filings in the Automated Export System (AES) and
published in the FT-895 Publication Series. This FT-895 monthly program
presents total quantity and value of detailed commodities shipped
between the United States, Puerto Rico, and U.S. territories, including
the U.S. Virgin Islands (USVI).
The ANPRM published in the Federal Register on September 17, 2020,
(85 FR 58016) received 93 comments on the overall impact of the removal
of the EEI filing requirements for shipments between the United States,
Puerto Rico and the USVI. The Census Bureau received 50 comments in
support of maintaining the current EEI filing requirement and 43
comments supporting the removal of the EEI filing requirement. A
summary of the comments is provided below.
Comments provided in support of removing the EEI filing requirement
to Puerto Rico and the USVI fell under the following themes:
1. Inequality: Several commenters support removing the EEI filing
requirement were concerned about unfair treatment of U.S. territories.
While Puerto Rico and the USVI are not states, they are territories of
the United States and exports to and from these territories are
considered domestic, not international shipments. Several commenters
believe federal agencies should employ consistent treatment of Puerto
Rico and the USVI for statistical data. Another commenter indicated,
other agencies under the Department of Commerce (DOC), such as the
Bureau of Industry and Security (BIS) and the International Trade
Administration do not treat shipments to and from Puerto Rico and the
USVI as exports. Another commenter stated that the requirement of EEI
is the reason many businesses deny service to the trade community
located in U.S. Caribbean territories. Another commenter indicated the
EEI filing requirement hinders trade competitiveness and negatively
impacts job creation.
2. Increased cost and burden: Several commenters were concerned
that requiring EEI filing to U.S. territories has increased the cost
and time of the shipping process for U.S. exporters and freight
forwarders. Some commenters indicate the need to dedicate staff and/or
hire additional personnel to manage EEI filings has increased labor
cost for businesses. Commenters were also concerned that the
requirement to file EEI between the mainland U.S., Puerto Rico and the
USVI imposes substantial regulatory and economic burden on exporters.
Several commenters stated that the Department of Commerce should
minimize any governmental paperwork burden (electronic or otherwise) on
U.S. citizens engaged in lawful commercial transactions within the U.S.
Several commenters also indicated the EEI filing process imposes
unnecessary burden on commerce by impeding the flow of trade and
economic development in these territories due to the additional
paperwork and administrative costs imposed by the EEI filing
requirement. Several commenters stated that the costs are significant
in terms of time lost, human resources required; many shippers and
manufacturers in the U.S. have decided not to ship to these territories
due to these additional steps in the shipping process and restrictions
on trade. Additionally, some commenters pointed out that the cost of
the EEI filing limits sourcing of U.S. products and increases the cost
of goods in Puerto Rico and the USVI.
3. Possible alternative data sets: Several commenters identified
the possibility of alternative methods for collecting export statistics
data. One commenter stated that Puerto Rico is a part of the same U.S.
Customs system and should use the same data collection methods as the
other 50 states. Other commenters suggested that EEI is viable through
data that already exists from multiple sources. One commenter suggested
that EEI filing is repetitive and duplicative to manifest requirements
of other agencies. Several commenters suggested specific alternative
data sets such as the DOC's Bureau of Economic Analysis (BEA) data,
which collects trade data that is used to calculate U.S. Gross Domestic
Product (GDP) activity, state-to-state activity, and U.S. international
transactions. Several commenters also proposed the use of Customs and
Border Protection (CBP) manifest data, Puerto Rico's Sistema Unificado
de Rentas Internas (SURI), Puerto Rico Port Authority data, monthly
reporting similar to the current pipeline reporting, and the FT-895
report as alternative data sources.
Comments provided for maintaining the EEI filing requirement to
Puerto Rico and USVI fell under the following themes:
1. Statistical purposes: The EEI reporting requirement yields high
quality data for Puerto Rico and the USVI that serve several specific
statistical objectives. Eliminating the mandatory requirement would
remove an additional step in the shipping process. However, there would
be several statistical implications associated with this change.
Statistical data provides insight on policy decisions, GDP estimates,
business development and marketing, economic recovery, research and
academia as well as historical data and methodology, critical in
measuring economic growth for Puerto Rico and the USVI.

[[Page 6442]]

A. Public Policy Decisions: Several commenters noted, EEI is
utilized by the Government of Puerto Rico to produce statistical
reports, gauge economic activity, and assist in sound policy making. A
federal agency commented that it uses the data in its initiative to
estimate Puerto Rico GDP statistics. Specifically, the agency commented
that reliable GDP statistics for U.S. territories contribute to a
better understanding of economic development, such as the impact of
federal disaster relief spending in these areas. For example, to date,
Congress has appropriated more than $60 billion for Puerto Rico
recovery efforts following hurricanes in 2017 and earthquakes in 2020.
Without high-quality GDP statistics, it is difficult for policy makers
to gauge the impact of such funding on the Puerto Rican economy.
Additionally, another federal agency has concerns about the loss of
data, specifically, petroleum trade between the United States and
Puerto Rico. This federal agency uses the data for calculation of the
total shipped volumes of petroleum and other fuels. There is currently
no other source of information or method for tracking trade flows of
oil and other energy-related commodities between the United States and
Puerto Rico. There is no alternative data source to collect this
information because Puerto Rico does not locally collect the data and
these data are not included in any other U.S. Census Bureau economic
surveys. Commenters are concerned because this information can aid
federal agencies in developing strategic plans to ensure Puerto Rico
has resilient power generation systems for the future, as the current
Administration starts to steer away from oil and towards sustainable
energy and information.
B. Business Development and Marketing: One commenter stated that
accurate and precise data is critical for the development of small
businesses in Puerto Rico and to develop and update business and
marketing plans to move Puerto Rico's economy forward. Another
commenter noted that businesses in these territories and the U.S.
mainland use this detailed data to inform choices and services around
new and existing markets, which allows for more competition and better
consumer options.
C. Economic Recovery: Several commenters noted, keeping the EEI
filing requirement for Puerto Rico and the USVI allows these
territories to rebuild their economies and accurately measure, project,
and plan economic development. One commenter noted, the lack of
reliable statistics is the worst scenario for a country in economic
crisis as they work towards restructuring their debt and attaining a
sustainable economy. Several other commenters noted that without a
viable and tested alternative data source, the proposal to remove the
requirements will make it impossible to measure and analyze Puerto
Rico's economy. Other commenters noted that an economic development
plan is urgent, and it cannot be attained without having complete,
accurate and confident data that includes the information for shipments
between the United States and Puerto Rico and USVI.
D. Research and Academic Importance: Several commenters were
concerned that the proposed rule to eliminate the EEI filing
requirement to Puerto Rico and the USVI will have a significant impact
on research and academia. Commenters noted that without the filing
requirement, economic students, scholars, entrepreneurs and citizens
will not be able to access updated Census Bureau data for research
policy purposes. One scholar specifically noted that the Census
Bureau's statistical information for economic and agricultural economic
courses is useful to students completing projects and thesis papers
within their master's program. Another commenter was also concerned
that the loss of this data will directly impact the agricultural
industry with current global economic and climatic change.
2. Enforcement Purposes: We received several comments against
removing the EEI filing requirement for export control and enforcement
purposes. One commenter noted that without the collection of data from
the U.S. mainland to Puerto Rico and USVI, enforcement agencies lose
visibility on potential criminal activity. The Census Bureau consulted
with one federal agency on this comment. This agency noted that the
removal of the EEI filing requirements for shipments from the U.S. to
those territories would adversely impact the agency's ability to ensure
the effective enforcement of items subject to the Export Administration
Regulations, potentially diverted to foreign countries.
3. No valid alternative data set: Though commenters presented
potential alternative data sets, one commenter noted that the level of
detail would not be similar to that obtained through the EEI
requirement, and the data would not be compiled with the rigorousness
as that by the Census Bureau. One federal agency also noted that the
EEI is high-quality economic data which is not typical for the U.S.
territories because the U.S. territories are not included in most
federal surveys. Territory-level surveys and administrative data are
limited. Several commenters noted, there is currently no substitute for
EEI that is routinely available, continuous, current, high frequency
and published with documentation and technical support. Without an
alternative data source that meets the same statistical objectives, it
is not possible to continue to produce GDP estimates for Puerto Rico or
the USVI. Should the broader FT-895 report be eliminated as a result of
the discontinuation of the EEI-sourced data, GDP estimates for the
territory of American Samoa will also be at risk.
4. Cost Benefit: Several commenters noted that the Automated Export
System (AES) is a mature system the trade industry understands and
knows how to operate. There is concern that creating an entirely new
system to capture the same data in today's current environment is an
unnecessary burden. Additionally, creating a new system would come at a
significant cost to the U.S. Government during a time of increased
strain on Government funding, as well as costs to the industry. One
commenter noted that many EEI filers for Puerto Rico's data also use
the AES for international shipments to foreign countries and adding an
alternative system would add a burden to their current operations and
workflow. Several economists commented that the requirement to file EEI
does not add significant burden on business and the cost and value of
the EEI data is greater than the inconvenience to the trade compared to
the potential sales acquired, the current information technologies and
the fact that the bulk of the shipments to the U.S. are done by large
U.S. corporations.
5. GDP Estimates: Several commenters noted that the Census Bureau's
FT-895 reports and other statistical trade documents provide routine,
consistent, and continuous monthly and annual data that is necessary
and relevant for statistical and time-series compatibility. These
commenters also added that consistent definitions are critical to
ensure GDP estimates and the loss of the FT-895 and EEI reporting will
adversely affect the computations of GDP estimates. One commenter
specifically stated that the methodology should include a monthly total
of the value of goods between the U.S., Puerto Rico and the USVI rather
than presenting it on an annual frequency. Another commenter who has
used the data for many years is concerned that interruptions or
inconsistencies with the current dissemination of the Census Bureau
data would create problems. Additionally, one federal agency noted that
they significantly rely on trade data

[[Page 6443]]

from the FT-895 in constructing reliable and consistent economic
statistics, including GDP for U.S. territories. Such statistics provide
key insight into the territorial economies, and meaningful information
to businesses and decision makers alike. Territorial GDP are highly
reliant on export and import data provided from the Census Bureau's FT-
895. The direct concern is that an elimination of EEI reporting
requirements could directly impact the availability of import data used
in the USVI GDP statistics. To illustrate the significance of this
information loss, in 2018 exports reported in the FT-895 accounted for
59-percent and 9-percent of American Samoa and the USVI GDP,
respectively. The direct and indirect impact associated to the
elimination of the EEI reporting requirements could severely affect the
usefulness of American Samoa, Northern Mariana Islands, Guam and USVI
GDP as time series statistics. Should the reporting requirement be
eliminated, it remains unclear if the Census Bureau will continue to
make non-EEI-sourced trade data available for these territories. Other
commenters stated that the lack of data with no other avenue for
gathering the information would be harmful and unfortunate if such a
longtime source of information were to disappear. Similarly, a
commenter noted that the FT-895 constitutes an excellent and unique
tool benefitting individuals, businesses, academia, etc. and for which
there is no viable substitute available.
Robert L. Santos, Director, Census Bureau, approved the publication
of this notice of proposed rulemaking in the Federal Register.

Dated: January 31, 2022.
Sheleen Dumas,
Department PRA Clearance Officer, Office of the Chief Information
Officer, Commerce Department.
[FR Doc. 2022-02341 Filed 2-3-22; 8:45 am]
BILLING CODE 3510-07-P

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