Written by Michael Ford of TradeBridge Consulting
Federal agencies play a critical role in regulating and administering export data, particularly concerning dual-use goods and compliance with export control policies.
The Bureau of Industry and Security (BIS) and Customs and Border Protection (CBP) are two of the many agencies involved in overseeing export regulations that impact data requests. These agencies utilize export data not only to enforce compliance, but also to inform economic policy and monitor national security interests.
The U.S. Census Bureau’s latest Federal Register Notice (FRN) took effect on September 15, 2025, and may be labeled as a final rule. However, the content delivered some “clarification,” for exporters regarding the reporting of “ultimate consignee”, but make no mistake—not understanding this carries significant compliance risks and operational impacts.
Who is Your Ultimate Consignee?
Census issued out several scenarios on how to report the party in the transaction known as “Ultimate Consignee”. The identification party is based on knowledge at time of export, therefore routed orders and orders that are in transit may be at risk.
Key Details:
- Ultimate consignee is now defined as “the person located abroad who ultimately receives the export shipment, as known at the time of export”
- Key clarification: When there is knowledge of an end user’s name and address and when the end user will receive the goods, the end user is the ultimate consignee
- When the foreign buyer is a reseller/distributor and the end user is unknown or there’s no knowledge of when the end user will receive goods (e.g., goods stored in inventory), the foreign buyer is the ultimate consignee
The Risk: Misidentifying the ultimate consignee affects export controls and can trigger holds by CBP awaiting further information and/or documentation.
Why the Clarification Matters:
- Knowledge-based determination: The “as known at time of export” standard creates documentation requirements
- End user vs. buyer distinction: The clarification requires companies to distinguish between these parties based on actual knowledge
- Audit trail necessity: Companies must be able to demonstrate their knowledge state at time of export
Real-World Impact: Incorrect ultimate consignee reporting can lead to export control violations, particularly for dual-use items or routed orders in which limited information is known
THE BUSINESS CASE FOR IMMEDIATE ACTION
- Financial Impact Analysis:
- Average penalty per violation: $2,500 – $10,000
- Shipment delay costs: $1,000 – $5,000 per delayed container
Bottom Line
The clarification shared by Census isn’t just a technical clarification—it’s a compliance red flag. Exporters should review internal processes for capturing consignee and end user data, update export documentation practices to reflect the “knowledge at time of export” standard, and most importantly, educate staff on distinguishing buyers vs. end users. Not taking these steps now could be costly to your company, resulting in penalties, shipment delays, and enforcement risks.
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