Within a few short weeks, the International Chamber of Commerce (“ICC”) will release the much-anticipated INCOTERMS 2020 and, as it did in 2010, the publication of the ICC decisions will change the landscape of international trade. As you may remember, the INCOTERMS were reduced from thirteen (13) to eleven (11) with the 2010 revisions. While…
Capital One is famous for its slogan, “What’s in your wallet?” But in the world of trade compliance officers, the pertinent question might be, “What’s in your compliance plan?” Earlier this year, OFAC published “A Framework for Compliance Commitments.” This framework provides direction and insight into what the agency believes are essential elements of a…
According to Treasury Department statistics, during the first six months of 2019, the Office of Foreign Assets Control (OFAC) has issued nearly $1.3 billion in penalties. That represents 18 settled cases and is an amount which is 17 times greater than all of 2018 (when there were seven settled cases.) The totals for OFAC penalties…
On June 20, 2019, the Department of Justice announced that Walmart and its wholly owned Brazilian subsidiary plead guilty and agreed to pay a combined criminal penalty of $137 million to resolve allegations of violations of the Foreign Corrupt Practices Act (“FCPA”). The fines include $728,898 in criminal penalties, $3,694,490 in criminal forfeiture, plus a…
Like many trade compliance professionals, I go out and peruse various trade compliance newsletters, the U.S. government agencies websites, and other media to keep up-to-date on compliance issues. Recently, my attention was caught by a case involving Darling Industries of Tucson, Arizona. A closer look at Empowered Officials On February 28, 2019, the Directorate of…
If you’ve spent any time in trade compliance, you’ve probably come across the term “reasonable care.” But what, exactly, does that mean? The ambiguous nature of this phrase has caused many different interpretations over the years. Let’s review some practical ways to apply this principle to your global trade compliance program. The idea of “reasonable…
Last week, FLIR Systems, Inc. entered into a Consent Agreement with Department of State, Directorate of Defense Trade Controls (“DDTC”) to settle allegations of violations of the International Traffic in Arms Regulations (“ITAR”). There were 347 alleged violations cited in the Proposed Charging Letter. These violations included 219 counts of unauthorized exports to Foreign-Person employees;…
Just like cooler temperatures and falling leaves are the harbingers of autumn, so too are the notifications that will soon be arriving from U.S. Customs and Border Protection (CBP) that your company has been selected for a Focused Assessment. What can you do to prepare for one of these assessments? How can you ensure that…
Routed Export Transactions And Your Business Have you ever struggled to determine the responsibilities and parties in a routed export transaction? If so, you’re not alone! Routed transactions make even the most experienced exporters pause. They have been described as dreaded, confusing, mysterious, and complicated! What is a Routed Export Transaction? The difference between a…
Zhongxing Telecommunications Equipment Corporations, (“ZTE”), and its subsidiaries and affiliates entered into a settlement with three U.S. government agencies covering civil and criminal charges filed against the company. The proposed $1.9 billion settlement closes a five-year investigation into ZTE’s exporting and reexporting activities, whereby roughly $40 million of U.S.-origin goods passed through China to companies…