Archive for Export Controls

UPCOMING WEBINAR: Expanding into New Export Markets: Understanding Export Controls and Compliance

May 20, 2013 Colleen Bush Amber Road, Export Compliance, Export Controls, Webinars No comments

Despite President Obama’s pledge to double exports, the U.S. Government continues to vigorously enforce export controls and has expanded trade embargo restrictions and sanctions. Accordingly, businesses pursuing export opportunities must be focused on compliance.

Please join Amber Road, World Trade 100 and K&L Gates LLP for a complimentary webinar broadcasting live on Thursday, May 30 at 2pm EDT on Expanding into New Export Markets: Understanding Export Controls and Compliance.

Key topics will include:

  • An overview of export controls including ITAR, EAR, OFAC, deemed exports, and CCL
  • Best practices to improve your company’s export compliance processes
  • Strategies for implementing trade compliance technology

Learn how your company can ensure compliance with export controls – Register today!

UPCOMING WEBINAR: Export Control Reform Update: Preparing for Transition

March 29, 2013 Caroline Amber Road, Export Compliance, Export Controls, Webinars No comments

Join Amber Road and American Shipper on Tuesday, April 23 at 2pm EDT for a complimentary webinar focusing on the Obama Administration’s Export Control Reform (ECR) Initiative. During Export Control Reform Update: Preparing for Transition, presenters will discuss recent progress on ECR, what the industry can expect in the near term, and how to prepare for these and future changes.

Topics will include:

  • Benefits of the anticipated changes and how the government is preparing for implementation
  • The transition from proposed to final rules and the expected schedule for publication
  • Looking beyond reform to other potential improvements in the Export Administration Regulations
  • How exporters will need to adjust their business processes
  • The role GTM technology will play in supporting exporters’ compliance requirements

Speakers will include:

  • Eric Hirschhorn, Under Secretary, Department of Commerce’s Bureau of Industry and Security
  • Beth Peterson, President, BPE Global
  • Kristine Bols, Director of Global Trade Content, Amber Road

Join us to learn what you should be doing to prepare for these ECR changes. Register today!

BIS Proposal Revises Export Controls for Military Electronics

December 3, 2012 Caroline Export Compliance, Export Controls No comments

The Bureau of Industry and Security (BIS) has recently proposed a new rule regarding the control of military electronic equipment and related items. The rule mandates that the President will no longer determine warrant control under the United States Munitions List (USML), but rather on the Commerce Control List (CCL). This rule is being proposed along with another from the Department of State‘s Directorate of Defense Controls, which would amend the list of articles controlled by USML Category XI.

BIS said its intent is that the new Export Control Classification Numbers “not increase the number of destinations to which a license is required, alter the policy under which license application are reviewed or create any apparent instances of an item that is subject to the EAR being covered by more than one ECCN.”

BIS has issued a deadline of January 28, 2013 for comments to the proposed rule. Click here to view the full notice from the Federal Register. Check out this article for more information.

UPCOMING WEBINAR: How Will the USML to CCL Migration Impact Exporters?

September 13, 2012 Caroline Amber Road, Export Controls, Webinars No comments

Ongoing export control reform is bringing about some major changes for exporters, particularly because pieces, parts and components from the U.S. Munitions List (USML) will be migrating to the Commerce Control List (CCL).

Join Amber Road on Tuesday, September 25 at 2pm EDT for a complimentary webinar discussing the challenges exporters are facing as a result of the ongoing export reform.  During How Will the USML to CCL Migration Impact Exporters?, industry experts will:

  • Tell you about the changes that have already occurred, and discuss what changes are still to come
  • Provide you with specific examples of products that will be affected
  • Explain how trade automation software can be beneficial during times like these

Speakers will include:

  • Todd Willis, Director, Munitions Control Division, Bureau of Industry and Security
  • John Priecko, President and Managing Partner, Trade Compliance Solutions
  • Anthony Hardenburgh, VP Global Trade Content, Amber Road

Join us to learn how your company can stay ahead of the export reform changes. Register today!

Increased Infrared Detection Technology Export Restrictions Opposed by Industry

September 5, 2012 Caroline Export Controls No comments

A recent Pentagon effort to add infrared detection technology to the U.S. Munitions List has caused concern for many U.S. companies. Infrared imaging is currently considered a dual use item because it has both commercial and military purposes. Adding the technology to the U.S. Munitions List could potentially shut U.S. companies out of a global market of about $2.6 billion by 2017 in the automotive, surveillance and security industries.

Infrared imaging’s military and commercial uses include night-vision devices, weapon sights, automobile collision-avoidance cameras, security cameras, and thermography. Because of this, the technology is only subject to the Department of Commerce’s export controls. If moved to the State Department’s Munitions List, infrared imaging would face the government’s most stringent export rules. Export licenses would be harder to obtain and increased restrictions would be implemented for transferring technology to third parties.

Because the rest of the world considers the technology dual-use, this decision by the Pentagon would give foreign competition a significant advantage. The controls would cause a substantial reduction of manufacturing and design facilities in the U.S. and move development offshore, so the Pentagon is anticipating a fierce debate by U.S. companies. A draft of the revised munitions list is expected to be released as early as this month.

Click here to read the entire article.

PWC Fined $75 Million for Illegally Exporting Defense Articles to China

July 2, 2012 Caroline Export Compliance, Export Controls, Trade Compliance, Trade Regulations No comments

On June 28th, Pratt & Whitney Canada Corporation (PWC) pleaded guilty to violating the Arms Export Control Act and to making false statements regarding its illegal export of US-origin military software to China. This software was used in the development of the Z-10, China’s first modern military attack helicopter. PWC, along with its parent company, defense contractor United Technologies Corporation (UTC), and UTC’s US-based subsidiary Hamilton Sundstrand Corporation (HSC), will have to pay more than $75 million as part of a settlement with the Justice and State Departments.

Beginning in the 1980’s, China sought to develop a military attack helicopter. After the US Congress imposed a prohibition upon licenses for the export of defense articles to China in 1990, China began developing the attack helicopter under the disguise of a civilian helicopter in order to receive Western assistance.

PWC began supplying illegal Z-10 engines to China in 2000, despite knowing that they were assisting in the development of an attack helicopter. The software used to test and operate these engines was produced by HSC in the US and modified for a military helicopter application, therefore making it a defense article that required a US export license. PWC failed to disclose these illegal exports to the US government until 2006, when an investor group recognized the illegal business activity. When making a disclosure to the State Department, PWC made numerous false statements, including that they were unaware that the Z-10 program involved a military helicopter.

The Justice Department has charged UTC, PWC, and HSC with the following counts:

  • Count One charges PWC with violating the Arms Export Control Act
  • Count Two charges PWC, UTC, and HSC with making false statements to the US government
  • Count Three charges PWC and HSC with failure to inform the US government of exports of defense articles to China in a timely manner

Under the agreement, the companies must pay $75 million and retain an Independent Monitor to assess their compliance with export laws for the next two years.

ICE Director Morton has this to say about the case:

This case is a clear example of how the illegal export of sensitive technology reduces the advantages our military currently possesses. American military prowess depends on lawful, controlled exports of sensitive technology by U.S. industries and their subsidiaries, which is why ICE will continue its present campaign to aggressively investigate and prosecute criminal violations of US export laws relating to national security.

To read the Department of Justice press release, click here: http://1.usa.gov/N1FoRC

British Businessman Extradited to the U.S. to Face Export Violation Charges

March 19, 2012 Caroline Export Compliance, Export Compliance Program, Export Controls, Trade Compliance No comments

After losing an appeal in British courts, Christopher Tappin was extradited from the U.K. and brought to the U.S. on February 24th. Mr. Tappin, a British businessman, faces charges in connection with a scheme to illegally export parts used in Hawk surface-to-air missile systems to Iran.  On March 5th, a United States federal grand jury indictment was handed down.  Mr. Tappin was charged with one count each for: conspiracy to illegally export defense articles, aiding and abetting the illegal export of defense articles, and conspiracy to conduct illegal financial transactions. If convicted, Mr. Tappin faces up to 20 years in prison.

Mr. Tappin was investigated by The Bureau of Immigration & Customs Enforcement (ICE), which is an agency within the U.S. Department of Homeland Security.  ICE established a front company for the purpose of detecting potential illegal exports.  U.S. authorities allege that an associate of Mr. Tappin dealt with the front company to purchase items which were then exported to Iran via the Netherlands.

To read more about this case, click here.

This case illustrates the extent to which the U.S. government will go to convict people (and companies) that commit export violations.  It further demonstrates that anyone can be extradited and charged for violations of U.S. export control laws, regardless of their place of residency, and even if there are no equivalent laws in their country of citizenship.

Ensuring compliance with government export rules and regulations is a complex process.  Effectively screening against restricted party lists, determining license requirements, and generating the necessary documentation for a shipment is often a challenge for exporters.

Learn how your company can automate (and simplify) these complex processes.  Check out Amber Road’s Trade Export brochure.

New Trade Enforcement Agency Established

March 12, 2012 Caroline Amber Road, Export Compliance, Export Compliance Program, Export Controls, Foreign Trade Barriers, Interagency Trade Enforcement Center, National Export Initiative, Regulatory Compliance, Trade Agreements, Trade Compliance, Trade Regulations No comments

President Obama recently signed an executive order, establishing the Interagency Trade Enforcement Center (ITEC) within the U.S. Trade Representative (USTR).  The Obama administration is aimed at doubling exports by the year 2015, and this new agency will help facilitate that goal.

According to Ron Kirk, Ambassador of USTR, the ITEC is among the most significant commitment of resources and expertise since the establishment of the USTR. The purpose of the Interagency Trade Enforcement Center will be to coordinate U.S. trade rights under international agreements, monitor unfair trade practices, as well as identify and eliminate foreign trade barriers. These tasks will hopefully curb the production of counterfeit and unsafe goods and improve market access for U.S. exporters. The ITEC will also strengthen trade enforcement of intellectual property laws.

Chairman of the House Trade Working Group, Rep. Mike Michaud (D-Maine), said, “Signing this order brings us one more important step closer to the level of trade enforcement we need to counter the predatory practices of countries like China.”

Based on the signed executive order, the mission and function of The Interagency Trade Enforcement Center will be to:

(a) serve as the primary forum within the Federal Government for USTR and other agencies to coordinate enforcement of U.S. trade rights under international trade agreements and enforcement of domestic trade laws;

(b) coordinate among USTR, other agencies with trade related responsibilities, and the U.S. Intelligence Community the exchange of information related to potential violations of international trade agreements by our foreign trade partners; and

(c) conduct outreach to U.S. workers, businesses, and other interested persons to foster greater participation in the identification and reduction or elimination of foreign trade barriers and unfair foreign trade practices.