Tag Archive for BIS

Export Violations Lead to $3M in Fines for Chinese Company

December 10, 2012 Caroline Export Compliance No comments

Last week the China Nuclear Industry Huaxing Construction Co., Ltd. (Huaxing), a corporation controlled by the People’s Republic of China, pled guilty to violating the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations (EAR) and other related charges.

This plea marks the end of the Bureau of Industry and Security’s long-term investigation of illegal exports of epoxy coatings from the United States to the Chasma II Nuclear Power Plant in Pakistan. According to the BIS report, Huaxing willfully exported, re-exported, and transshipped (and/or attempted to export, re-export and transship) multiple shipments of the high performance coatings without acquiring the proper licenses between June 2006 and March 2007.

Huaxing has agreed to pay $3 million in combined criminal and civil fines as part of the guilty plea in addition to five years of corporate probation. The terms of Huaxing’s probation also requires implementation of an export compliance and training program.

Read the full BIS Press Release for more information.

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.

eVOLVE 2012 Update: Eric Hirschhorn Announced as Keynote Speaker

August 23, 2012 Caroline Amber Road, eVOLVE No comments

Under Secretary of the Bureau of Industry & Security Announced as Keynote Speaker at Amber Road’s User Conference

Amber Road is pleased to announce that Eric Hirschhorn, Under Secretary of the U.S. Commerce Department’s Bureau of Industry and Security (BIS), will be a keynote speaker at our annual user conference, eVOLVE 2012! He will be providing an update on export reform.

Other confirmed speakers include William McNeill (with the Gartner Group), and several Amber Road customers: Abercrombie & Fitch, GE Healthcare, General Mills, Leggett & Platt, Levi Strauss & Co., NetApp, New York University, Quantum Corporation, and Sherwin Williams.

eVOLVE 2012 will be a great opportunity for customers to learn about new product and service initiatives, exchange best practices with other users, and gain tips on how to maximize your GTM investment. Attendees will be able to choose from five different specialty tracks.

Click here for more information or to register.  We look forward to seeing you in October!

ING Bank N.V. Agrees to Forfeit $619 Million for Illegal Transactions with Cuban and Iranian Entities

June 18, 2012 Caroline Denied Party, Export Compliance, Export Compliance Program, Restricted Party Screening, Trade Compliance, Trade Compliance Software, Trade Regulations No comments

According to the Bureau of Industry and Security (BIS), ING Bank N.V. has agreed to forfeit $619 million to the Justice Department and the New York County District Attorney’s Office for illegally moving billions of dollars through the US financial system on behalf of Cuban and Iranian sanctioned entities. ING Bank is held responsible for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA), as well as violating New York state laws by illegally moving over $2 billion dollars through the US financial systems via more than 20,000 transactions between the early 1990s and 2007. This fine is the largest ever against a bank in connection with an investigation into US sanctions violations.

ING Bank executed this scheme through tactics including:

- eliminating payment data that would have revealed the involvement of sanctioned countries and entities

- advising sanctioned clients on how to conceal their involvement in U.S. dollar transactions

- threatening to punish certain employees if they failed to take specified steps to remove references to sanctioned entities in payment messages

Most upsetting is that these illegal activities occurred with the knowledge and encouragement of members of both the legal and compliance departments.

The bank has also entered a parallel settlement agreement with the Office of Foreign Assets Control (OFAC). As part of the agreement, ING will be required to conduct a full review of its policies and procedures to ensure that its compliance program is functioning effectively.

To read the entire Bureau of Industry and Security (BIS) press release, click here.

For information on Amber Road’s Restricted Party Screening solution, which enables companies to automate the screening process, click here.

 

BIS Publishes New “Best Practices” for Exporters

September 6, 2011 Caroline Export Compliance, Global Trade Management Software, Trade Compliance Software No comments

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) recently released a new set of best practices that are aimed at helping exporters, re-exporters and freight forwarders guard against the diversion of dual use items shipped to a transshipment hub.  While transshipments are a growing part of international trade and offer many benefits, they can be used illegally to either disguise the final destination or divert trade to unauthorized end users.

The new set of best practices encourages exporters to maintain strong internal compliance strategies, conduct focused outreach, and continuously raise awareness of export control regulations and obligations.

The following is a summary of the best practices published by BIS:

  • Companies should pay attention to the Red Flag Indicators on the BIS website.
  • Companies should seek to utilize Trade Facilitators that administer sound export management and compliance practices.
  • Companies should “know” their foreign customers – by obtaining detailed information to measure the risk of diversion.
  • Companies should avoid routed transactions when exporting and facilitating the movement of dual-use items.
  • When the Destination Control Statement (DCS) is required, companies should provide the appropriate Export Control Classification Number (ECCN) and the final destination where the item(s) are intended to be used.
  • Companies should provide the ECCN or the EAR99 classification to freight forwards, and should report this information in AES.
  • Companies should use information technology to the maximum extent feasible to augment “know your customer” and other due-diligence measures.

For more detailed information, please read the full article.

What’s Happening with Export Reform?

July 28, 2011 Caroline Export Compliance No comments

The Bureau of Industry and Security (BIS) recently published proposed changes to US export law in the Federal Register and asked for public comment. The changes primarily deal with the fact that the US has two lists for items that require export control and licensing:  the US Munitions List (USML) administered by the State Department, and the Commerce Control List (CCL) maintained by the Commerce Department.
 
The current export control statute, written in 1979, reflects its Cold War heritage and hasn’t adapted to the rapid pace of technological change since then. Many items on the USML that were once considered high risk to national security are now widely available or low risk.
 
A key aspect of the proposed reform legislation would remove those items from the USML and move them to the CCL where exemptions to licensing are more flexible. This would allow the government to focus its limited resources on controlling transactions that need the highest level of scrutiny.
 
The details of the reform are available here. Of course, Management Dynamics will continue to monitor the changes proposed to the export control rules and numbering system. Once enacted, our classification and license determination products will accurately reflect the changes. For now, we support the efforts of our legislators to update and streamline the export control lists so they are more in line with today’s technologies.

BIS Update Meet and Greet at Gordon Biersch

August 17, 2010 Caroline Customs Compliance, Export Compliance, Global Trade Management, Import Compliance, Trade Compliance No comments

Are you attending this year’s BIS Update Conference, Aug. 31 – Sept. 2 in Washington, DC?  If so, Management Dynamics invites you to join us for a Meet and Greet Reception at Gordon Biersch (just a few blocks from the Hyatt), on Wednesday Sept. 1 at 7pm. We’ll be serving cocktails and heavy hors d’oeuvres.

If you’re interested in attending, RSVP via our event page on LinkedIn, or send an email to emilythornton (at) managementdynamics (dot) com -  We hope to see you there!

BIS Posts Export Compliance Guidelines Manual

February 22, 2010 Caroline Customs Compliance, Export Compliance, Trade Compliance, Trade Compliance Solutions No comments

The Bureau of Industry & Security (BIS) has posted a detailed guideline manual regarding their tips for establishing an export management program.

Read the 145-page PDF here: COMPLIANCE GUIDELINES: HOW TO DEVELOP AN EFFECTIVE EXPORT MANAGEMENT AND COMPLIANCE PROGRAM AND MANUAL

I do not have time to read through the manual in detail at the moment, but from a brief lookover it appears to have some great tips for getting management onboard during a compliance project, how to contact BIS if you have export questions, key points for export compliance training, and information on recordkeeping.

It’s a very valuable document for trade compliance professionals – probably useful to save to your desktop for quick reference!

If you are more of a auditory learner, check out the below webinar for more tips on establishing (or enhancing) your export compliance program.

Webinar: Key Strategies for Establishing an Export Management System:

Small to medium-sized companies represent 97% of all US exporters, but don’t always have the resources to keep up with the constantly changing landscape of export regulations and cannot afford the business risks of non-compliance.

This webinar, hosted by World Trade Magazine, addresses key findings from an industry survey on how companies manage export compliance and highlights a number of best practices for your company to consider when implementing an export management system.

BIS Export Control Forum: Registration Now Open

December 17, 2009 Caroline Customs Compliance, Export Compliance, Trade Compliance No comments

The BIS has announced that registration is now available for the upcoming Export Control Forum this February.

From BIS:

Registration is now open and the agenda has been posted for the Export Control Forum, to be held on February 22-23, 2010 in Irvine, CA.

We have changed the format and venue this year in response to recommendations you have provided. The Export Control Forum will be held at the Hyatt Regency Hotel in Irvine, CA, and one registration will now cover the day-and-a-half program.

As in years past, day one of the Forum will feature key management, policy, legal, and licensing specialists from the Bureau of Industry and Security. We will also have representatives from the Bureau of the Census, and the Departments of Treasury, State and Defense.

Together, these speakers will provide updates on significant developments in the export control field. The day will conclude with a gala reception, offering you the opportunity to mingle and discuss issues of concern with the presenters and other participants.

On day two, you have the option to choose from one of two half-day sessions, dedicated to more in-depth discussion of selected topics.  This year, those sessions will be: “The Commodity Jurisdiction Process,” and “Blindsided: Export Controls That Can Catch You By Surprise.”

Please consult our website for additional details at http://www.bis.doc.gov/seminarsandtraining/irvine_feb_22_23_10.htm.  We hope to see you at the Forum next year.

Sign up for the BIS email notification service to receive updates like these.

Hirschhorn to be Nominated for Undersecretary of BIS

September 14, 2009 Caroline Customs Compliance, Export Compliance, Trade Compliance No comments

Eric L. Hirschhorn will be nominated by Pres. Barack Obama for the position of Under Secretary of the US Commerce Department’s Bureau of Industry and Security (BIS).  Hirschhorn is currently a partner at Winston & Strawn, the executive secretary of the Industry Coalition on Technology Transfer, and has also authored a handbook on export controls.

“BIS has a unique mission at the intersection of international trade and national security,” U.S. Commerce Secretary Gary Locke said. “Eric Hirschhorn has a wealth of experience working with export controls and I look forward to having him onboard as we implement President Obama’s vision to reform the export control system and increase competitiveness of U.S. companies by facilitating the sale of our goods while protecting national security.”

If confirmed by the Senate, Hirschhorn will oversee the Commerce agency that advances U.S. national security, foreign policy and economic objectives by ensuring an effective export control and treaty compliance system and by promoting U.S. strategic technology leadership.

Read the whole story on Hirschhorn at the Department of Commerce

Or, check out his Export Controls and Embargo Handbook on Amazon.com.

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