The ITN is a term you will inevitably come across when you are dealing with export shipments. ITN which stands for Internal Transaction Number is received after your Electronic Export Information is approved in the Automated Export System. In layman terms, ITN can be compared to a passport which verifies your identity as you travel through the world.
An ITN is received through email and incorporates the year, month, day of acceptance followed by a 6-digit unique random number.
But why exactly do you need ITN and what purpose it serves in export?
Read on to know!
1] It’s your proof of filing.
Electronic Export Information (EEI) is to be mandatorily filed by exporters according to the U.S. Foreign Trade Regulations (FTR). Simply filing, however, is not enough for a smooth processing. One needs to be very careful while filing the EEI as errors in the same can lead to civil and criminal penalties. These penalties are exorbitant and can go up to $10,000 per violation as enforced by the Office of Export Enforcement. Receiving an ITN is a proof that filing has been carried out correctly in accordance with the standards of the FTR.
2] Helps verify the accuracy of filing in a routed export transaction.
ITN ensures the information you filed was accurate in routed export transactions. In case you are hiring professionals to work on the processing, you will have to thoroughly monitor each transaction and ensure all your documentation is rightly being completed by freight forwarders.
3] It’s required on certain documents.
ITN plays a very important role in most documents. Documents like Bill of lading, Airway bill, Export shipping instructions and Other commercial loading documents demand mention of ITN. Export transactions valued at or under $2,500 that don’t require a license or non-licensed export transactions destined to Canada are two exceptions wherein ITN is not mandatory. However, your shipments may be held up in customs by your carrier, freight forwarder or both if your ITN doesn’t appear on the expected documents.
All of this indicates why ITN is an essential element for exporters. Without it, there can be several hindrances that will keep popping up throughout the export process. It won’t be an exaggeration to state that without an ITN, you just can’t export your merchandise. So, without much delay place in your ITN number request and get started on the export process!
