Insights

Census Bureau Requests Public Comments Regarding Routed Export Transactions

On October 6, 2017, the U.S. Census Bureau’s International Trade Management Division (“ITMD” or “Census Bureau”) published an Advanced Notice of Proposed Rulemaking (“ANPRM”) seeking public comments regarding standard and routed export transactions.[1] The comment period will end on December 5, 2017. The Census Bureau is particularly interested in comments regarding the definition of a routed export transaction and the responsibilities of parties in routed export transactions. 

 

[1] Foreign Trade Regulations (FTR): Request for Public Comments Regarding Standard and Routed Export Transactions, 82 FR 46739 (proposed Oct. 6, 2017) https://www.federalregister.gov/documents/2017/10/06/2017-21569/foreign-trade-regulations-ftr-request-for-public-comments-regarding-standard-and-routed-export#h-7.

Trade Alert: DDTC: 07-29-2016

The Office of Defense Trade Controls Director, Sue Gainor, has announced her departure. Her exact departure date and her replacement are not yet known. 

Trade Alert: DDTC: 07-28-2016

The Directorate of Defense Trade Controls (DDTC) published revisions to United States Munitions List (USML) Categories XIV (Toxicological Agents) and XVIII (Directed Energy Weapons). Commerce published a parallel final rule a well.

Trade Alert: BIS: 07-22-2016

The Bureau of Industry and Security (BIS) recently published a final rule on penalty determinations, which became effective July 22, 2016. The rule outlines the factors that the Office of Export Enforcement (OEE) considers when setting penalties and on deciding whether to pursue administrative charges. According to BIS, the objective of this rule is to make penalty determinations more predictable and in line with penalties issued by the Treasury Department’s Office of Foreign Assets Control (OFAC). 

Trade Alert: DDTC: 07-22-2016

In response to questions from gunsmithing businesses, on July 22, 2016, DDTC issued guidance confirming registration is not required for certain activities that do not meet the ordinary, contemporary, common meaning of “manufacturing” under the ITAR. 

Trade Alert: DDTC: 07-21-2016

On July 21, 2016, DDTC published public comments submitted by industry regarding the Interim Final Rule amending the ITAR and harmonizing certain ITAR and EAR definitions. 

Trade Alert: DDTC: 07-15-2016

On July 15, 2016, DDTC published information regarding the relaunching of its company visit program (CVP). CVPs are in-person visits by Directorate of Defense Trade Controls (DDTC) staff to conduct outreach, or pursuant to a consent agreement. The visits are not audits. Although the agency claims these visits are performed to provide guidance and training to companies and are not investigative in nature, companies should take these visits seriously. If DDTC discovers a potential violation it could “recommend” companies file disclosures. Please note that the CVP is different from the “Blue Lantern” program, which consists of end-use checks by embassy personnel overseas and focus on end-user and end-use verifications related to DDTC authorizations. 

Trade Alert: DOJ: 07-08-2016

On July 8, 2016, the Department of Justice issued a press release regarding a recent criminal case involving a Chinese national sentenced to 15 months in prison for conspiring to sell “fake” integrated circuits to a U.S. buyer. The Chinese national, and his co-conspirators, approached a U.S. person to order integrated circuits which had military applications, including radiation tolerance for uses in space. After being told that these integrated circuits could not be exported to China, the conspirators proposed to supply fake integrated circuits to replace the ones they intended to steal. 

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