Warehouses, Brokers, And FTZs — Who Is The Exporter Now

The Final Rule

The US Census Bureau has issued a Final Rule under the Foreign Trade Regulations (FTR), clarifying requirements for in-transit shipments and refining how to determine and assign responsibility for filling out export information.

Key Changes / Updates

1. New and Revised United States Principal Party in Interest (USPPI) Scenarios
   • When goods enter the US (for consumption or warehousing) and are then later exported (via warehouse, bonded warehouse, FTZ, or storage), the USPPI may now be (depending on circumstances): the warehouse operator, storage facility, FTZ operator, or bonded warehouse operator.
   • If a customs broker serves as the USPPI, they must obtain consent from the importer of record to disclose confidential information from the customs entry in order to use it to prepare or file the EEI.
2. Definition Revisions and Additions
   The rule revises or adds many definitions in § 30.1(c), including but not limited to:
   • "Buyer (purchaser)"
   • "Country of ultimate destination"
   • "Export statistics"
   • "Foreign goods"
   • "Intermediate consignee"
   • "Order party"
   • "Ultimate consignee"
   • "US Principal Party in Interest (USPPI)"
3. Data Element and Filing Adjustments
   • The rule clarifies what information must be supplied by the USPPI or authorized agent in routed export transactions; Appendix C is revised to more clearly specify responsibilities.
   • Certain data fields are being changed for clarity: e.g. in § 30.6 (data elements) the "intermediate consignee" must physically take possession, "ultimate consignee" examples based on what is known at time of export, etc.
   • The rule removes some references or redundant requirements, e.g. references to export license or export license number in certain data element descriptions have been streamlined.
4. Confidentiality / Consent Requirements
   • Customs brokers acting as USPPI must secure consent from importer of record before disclosing entry information.
   • USPPI obligations to rely on information that it has or receives from other parties in the export transaction where appropriate.
5. Penalties, Voluntary Self-Disclosure, Downtime, and Exclusion Provisions
   • The rule clarifies penalty provisions, especially in relation to the USPPI's knowledge and what must be reasonably relied upon, e.g. other parties with knowledge of the goods.
   • The rule clarifies procedures and requirements during AES (Automated Export System) downtime.

Compliance Timeline & Dates

Effective date: September 15, 2025. There is no delayed implementation mentioned beyond the effective date — users should be prepared by that date for all the revised definitions, data elements, responsibilities, etc.

What Exporters, Brokers, Warehouses, and FTZ Operators Need to Do

To ensure compliance, stakeholders should take the following actions:

• Review your current roles in export transactions (USPPI, authorized agent, etc.) and assess whether your status changes under the new scenarios.
• If you are a customs broker, ensure you have or obtain client consent where needed for disclosure of entry data to use in EEI filings.
• Update internal policies and workflows to ensure the correct party supplies or obtains required data elements, especially for routed export transactions.
• Train staff on revised definitions and examples (ultimate consignee, intermediate consignee, etc.) and ensure your data capture systems can provide required information.
• Review any contracts or agreements (e.g. with warehouse/FTZ operators or brokers) to ensure responsibilities are clearly allocated in light of the new rule.
• Monitor AES / EEI filing procedures, especially in case of system downtime, to ensure you are following the clarified requirements.

Potential Risks and Penalties

• Misidentification of USPPI in scenarios before export (especially where goods are stored in warehouses or FTZs) — mistakes here could lead to penalties.
• Failure to secure required client consents (for brokers) could cause non-compliance.
• Systems or software that capture EEI data may need updates to reflect changed or clarified data fields and obligations.
• Lack of awareness about the revised definition of "intermediate consignee" (must physically take possession), "ultimate consignee," etc.

The August 2025 FTR final rule puts in place clearer requirements for in-transit exports and the identification of the USPPI. Effective September 15, 2025, exporters, brokers, warehouse/FTZ operators, and others involved in export transactions must review and potentially revise their practices to ensure proper assignment of responsibilities, accurate EEI filings, and compliance with consent/confidentiality and other clarified duties.

If you have questions about how this rule impacts your particular operations or need help updating internal policies or drafting consent forms, our trade-law team is available to assist.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.