Automated Export System: Prospects for Improving Data Collection and Enforcement Are Uncertain.

Since the 1980s, federal agencies responsible for compiling U.S. trade statistics and enforcing U.S. export laws have experienced serious problems in obtaining accurate and timely data on exports. To improve reporting and enhance enforcement efforts, the U.S. Customs Service and the Census Bureau in 1991 initiated the Automated Export System AES. AES allows exporting companies to electronically enter data on shipments, automatically checks for errors, and provides data to help detect export violations. Although it introduced the system as voluntary, Customs recognized that achieving a high level of participation in AES would be difficult and wanted its use to be mandatory. In 1996, Customs sought to make AES mandatory for some users. However AES was not made mandatory, in part because companies raised concerns about the impact of AES on their business practices, especially if they are required to enter data before shipments depart. This report reviewed the potential impact of AES and the views of the export community regarding AES. Specifically, we sought to determine whether AES is likely to achieve its objectives of improving export data, enhancing enforcement efforts, and streamlining export data collection and, in so doing, we obtained the export communitys views on AES. We are also providing information on the export procedures of other selected countries.