Category: Export Control Reform Initiative

In recent weeks, we’ve seen significant activity from both the legislative and executive branches that could change the way foreign investment occurs in U.S. companies. These changes could also affect the export control compliance requirements of many companies who are targets of foreign investors. Keep reading for a brief history of CFIUS reviews, and the...

In July 2016, the U.S. Department of State, Directorate of Defense Trade Controls (DDTC) announced that it had re-initiated its Company Visit Program for companies engaged in ITAR-controlled work. The stated objectives of this program are: Advance DDTC’s understanding of how different companies establish and maintain an overall defense trade control program to fit the...

Effective October 14, 2016, BIS has amended the Export Administration Regulations to allow for electronic submission of reporting requests U.S. persons receive to take action in furtherance or in support of an unsanctioned foreign boycott. Prior to this, reports were only permitted to be submitted by mail using BIS 621-P or BIS 6051-P. These can...

Traditionally Export Related Voluntary Disclosures/Voluntary Self-Disclosures have been filed with DDTC, BIS, OFAC or occasionally the Bureau of Census. Each of these agencies encourages companies and individuals to file the Disclosures and they provide an incentive in that the filing can be considered as a mitigating factor to the violation(s) committed. The number of agencies...

Moving one step closer to the Single IT system goal of Export Control Reform, DDTC has acquired a new case management IT system to modernize its business processes. Additionally, DDTC has begun accepting comments related to the new DS-7788 (Application for Permanent Export, Temporary Export or Temporary Import of Defense Munitions, Defense Services and Related...

The clock is ticking! Exporters have just one month (until November 15, 2016) to change the language and use of their Destination Control Statements (DCS). As the U.S. Government moves forward with the harmonization of export regulations under Export Control Reform, the ITAR and the EAR will soon be aligned with respect to the content...

Regular readers of this blog will know that, effective July 1, 2014, DDTC completed the revision of four USML categories. With these revisions, a variety of ITAR-controlled items were transitioned to the control of the EAR. As a reminder, these revised categories were: DDTC and BIS allowed for a period of time for the transition...

Buried in the depths of the Federal Register notices published by DDTC, BIS and OFAC is an often-overlooked section that contains some very interesting predictions. This is the section to fulfill the Office of Management and Budget (OMB) requirement that government agencies communicate things like impact statements, time required to complete new forms and other...

The revision of USML Category XII was first published as a proposed rule on May 5, 2015, for public comment. The number of public comments received caused the Department of State to reevaluate the original proposed rule change and to draft a new proposed rule change (published February 19, 2016). This second proposed rule change...

DDTC recently published proposed amendments to USML Categories VIII and XIX. These amendments follow a period of public comment that began last year. The amendments are open to further public comment from now until March 25, although it’s doubtful there will be any significant further changes. After this, we expect DDTC to publish Final Rule...