It’s almost Thanksgiving and when I think Thanksgiving, I think about traditions. In the spirit of traditions, here are five annual traditions your company should adopt when it comes to export compliance.
DDTC has announced an administrative settlement with the company, AeroVironment, Inc. for violations of the AECA and the ITAR in connection with the unauthorized exports of defense articles, to include technical data, failure to properly maintain records involving ITAR-controlled transactions, and violations of the provisos, terms, and conditions of export authorizations.
The policies and processes dictated by the DDTC as they relate to the administration of the ITAR have begun to change. The changes that have occurred and are about to occur relate to the process in which Registrations, License Applications, Advisory Opinions, Commodity Jurisdictions and Voluntary Disclosures are submitted to DDTC.
Huawei Technologies and ZTE Corporation may both soon garner a new title – “Foreign Adversary”. The Federal Communication Commission (“FCC”) has taken the first action, announcing that it plans to vote in November to designate Huawei Technologies and ZTE Corporation as posing national security risks.
In a real baseball game, the players have the goal of staying at bat and not getting out, however, in the game of encryption, you are actually looking to get out. In particular, you want to determine if your item can “get out” of the Category 5 Part 2 controls.
The ICC has now released the latest revisions, which they believe will help simplify the responsibilities of the buyer and the seller in a trade finance contract. The latest version of INCOTERMS becomes effective January 1, 2020 and is to apply to contracts entered into after that date.
The World Trade Organization recently ruled that the U.S. was free to impose $7.5 B in tariffs on European goods being imported into the U.S. The ruling is the result of years of litigation related to allegations by the U.S. that Airbus SE had received $18 billion in discounted financing and other trade-distorting subsidies.
The U.S. Department of Commerce announced sanctions against twenty-eight Chinese governmental and commercial organizations for engaging in or enabling activities contrary to the foreign policy interests of the United States, by adding these organizations to the Entity List. The entities that were listed have been connected to human rights abuses with respect to China’s suppression of rights of the Uighurs and other predominantly Muslim ethnic minorities.
In July, CBP updated its Forfeiture Remission Guidelines for Export Control Violations. Considering the fact that the last update was published in 2004, changes were due.
On August 30th, BIS published Due Diligence Guidance regarding exports, re-exports, and transfers to Pakistan. With the increased concern regarding Pakistan’s nuclear program and risks of diversion, BIS is urging companies to conduct additional due diligence when it comes to transactions destined for Pakistan.