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Determining who can be the USPPI (US Principal Party in Interest) when exporting goods from the USA is a common challenge. It’s especially complicated for foreign exporters involved in a routed transaction.
For instance, if you are a foreign exporter, you can be the FPPI but can only file electronic export information (EEI) if you are in the US. That means you remain the FPPI but authorise a US party to file on your behalf.
The exporter vs. USPPI relationship becomes more complicated when goods initially imported into the USA are subsequently exported.
In response to these complexities, the US Census Bureau updated the Foreign Trade Regulations to clarify the USPPI’s role.
So, how do you legally approach the designation and responsibilities?
In this article, Blackthorne EOR explains who can be the USPPI, how to determine the right USPPI for your specific export transaction, and the responsibilities that come with the role.
Let’s keep the ball rolling!
The USPPI is the party (person or legal entity) in the United States of America who receives the majority payment or exchange of a valuable item or other legal consideration resulting from an export transaction.
In most export transactions, this party can be the USA seller, manufacturer, or order party, based on the primary benefit, as we’ll discuss later. And this is regardless of who ships, files, or controls the movement of goods out of the US.
So who can act as the USPPI in different export transactions?
Let’s dive deeper.
According to the 2026 Foreign Trade Regulations (FTR) updates, here are the various parties you can list as the USPPI in various export transactions:
A US manufacturer that exports their goods directly to a foreign entity or person is the USPPI.
If the US manufacturer sells the goods to a local seller, wholesaler, or distributor for re-export, the US buyer becomes the USPPI because it benefits primarily from the export transaction.
A US order party that negotiates between a US seller and a foreign buyer, receives an order, and arranges the export of goods to the foreign buyer becomes the USPPI.
If a customs broker is designated as the importer of record when entering goods into the US and the goods are subsequently exported within 30 days without modification, the customs broker is listed as the USPPI.
If a foreign entity or person purchases goods for reexport while physically present in the US, they are the USPPI.
When previously imported goods remain in a storage facility, warehouse, or FTZ for more than 30 days without alteration, the entity with physical possession and control of the goods can be designated as the USPPI.
If a US buyer admits goods into a FTZ and exports the goods within 30 days without modifying them, the US person is the USPPI. But if a foreign buyer outside the US admits the goods into the FTZ, the FTZ operator is listed as the USPPI in the EEI.
Since you now understand who can be the USPPI, let’s look at the criteria you can use to determine the USPPI for your transaction.
We have discussed six categories of people that can be the USPPI. But how do you determine the specific USPPI for your export transaction?
Here are the steps you can take to determine the USPPI for a standard/routed shipment and previously imported goods:
In a standard transaction, the US seller (manufacturer, distributor, or wholesaler) organises and pays for the international freight. Because you (the seller) control the movement of goods out of the US, you are the USPPI.
In a routed transaction, a foreign buyer, who is the Foreign Principal Party in Interest (FPPI), hires a US-based agent to collect the goods and organise transportation.
The foreign buyer remains the USPPI.
Here is a decision tree to guide your USPPI choice when handling standard or routed export transactions.
If you import goods into the United States and export them without modifying, enhancing, or integrating into a new product, you are the USPPI.
If a US company subsequently modifies, repairs, alters, or assembles imported components or goods, the US manufacturer is the USPPI.
The modification creates a new product in the US, making the entity adding value the primary party in interest.
Additionally, if imported goods stay for more than 30 days in a storage facility, warehouse, or foreign trade zone without modification, you have two USPPI options. That is, the initial IOR, or the entity in possession of the items.
The right USPPI depends on who has sufficient knowledge and control of the goods to file EEI.
You can refer to the decision table below to make an informed choice of USPPI for previously imported goods.
You just determined you are the USPPI for your shipment. What role do you play in the international supply chain to ensure a compliant export transaction?
Here are the five key responsibilities to prepare for:
Before you initiate an export transaction, you must understand the export requirements and regulations applicable to the goods. For instance, restricted goods must meet specific import requirements before they enter the destination country.
In our case, you want to understand which US government agency controls your products, the laws and regulations to comply with, and the compliance procedures.
Your controlled goods may fall under one of these key regulations in the US, depending on their nature and end-use:
Your goods may also be controlled under multiple regulations. So, you must ensure exported goods comply with all regulatory requirements before exporting.
If your goods are controlled, they may be banned from export, or can only be exported under specified approval or licence.
As the USPPI, you must screen all parties, including intermediaries, buyers, forwarders, and end users against the Consolidated Screening List before shipping. That way, you can determine if your goods are banned or specific licensing requirements that apply.
For instance, exporting some dual-use items may require you to provide end-use and end-user statements to verify the intended end user and end use.
To establish the applicable export requirements for your shipment, you must assign the correct customs classification code to your products. The right HS code helps identify licensing, technical, safety, labelling, tariffs, and documentation requirements.
It’s your responsibility to file electronic export information via the Automated Export System (AES). The export information to prepare includes:
If you are ineligible or need help filing these details in the AES system, you can authorise a third-party EOR/IOR such as Blackthorne, or a freight forwarder to file on your behalf.
And if you delegate the filing, you must also provide the electronic export information to the representative for accurate filing.
Note: If you appoint a third party to act on your behalf, you must sign a Power of Attorney (PoA) or a letter of instruction, authorising the third party to represent you. The PoA or letter must clearly detail the responsibilities of the parties involved.
As the USPPI, you must keep your export transaction records for at least 5 years. Beyond the regulatory requirement, these records serve as proof of compliance during compliance audits.
According to the USPPI rule, the exporter can be the US manufacturer, buyer, seller, customs broker, or an FTZ operator depending on the various circumstances we discussed. Does that imply the exporter is the same as the USPPI?
When filing EEI, yes. Under the Foreign Trade Regulations, the USPPI replaced the term exporter for the purposes of EEI filing. So, the exporter in EEI filing is the USPPI.
However, under the EAR regulations, the exporter is the party who determines and controls the sending of items outside the United States. Therefore, the USPPI is not always the exporter, especially in routed transactions.
For instance, if a US manufacturer sells goods to a foreign buyer and the buyer hires a US freight forwarder to ship the goods, the manufacturer is the USPPI. And the freight forwarder is the exporter.
We mentioned that as a USPPI, you can authorise a US-based agent to file EEI on your behalf. But that doesn’t make the agent the USPPI.
While you can delegate the filing, you cannot transfer the USPPI status. So, if you are the primary party in interest but unable to handle AES filing, you must authorise a qualified party to represent you.
But apart from the filing, can you delegate the other USPPI responsibilities? And how do you transfer the responsibilities while maintaining compliance?
Here are five key steps to follow for a compliant authorisation:
Delegating EEI filing is straightforward. But if you are a foreign buyer, you have less control over the filing process, various regulations to comply with, and an added responsibility of finding the right service providers to partner with.
What if you had one less reason to worry about when exporting from the USA?
Blackthorne understands how challenging it can be to navigate the customs clearance procedures from abroad, especially when exporting controlled goods like IT equipment.
With our EOR, IOR, and freight forwarding services, you get:
If this sounds like the solution you have been looking for, we are only a call away. You can also email us at sales@blackthorneit.com so we can start moving your IT equipment from the US.
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