Defense and Export-Import Update (Dec 10, 2009)


Defense and Export-Import Update (Dec 10, 2009)

 

Gary Stanley Photo

 

About Gary Stanley

Gary Stanley is the President of Global Legal Services, PC, a Washington, DC-based law firm focusing on trade compliance and other international business issues. Stanley represents, among others, numerous U.S., Canadian, and European companies on defense export control issues.

Stanley received his undergraduate degree from Emory University in 1975 and his law degree from Harvard Law School in 1978. He was elected in his junior year to Phi Beta Kappa. He currently serves as secretary-treasurer and a trustee of The Procedural Aspects of International Law Institute.

For more information about Stanley and his law firm, Global Legal Services, call him at +1 202-686-4854 or e-mail him at gstanley@glstrade.com.

 

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We hope this update proves helpful.  If you have questions about any of these developments, please do not hesitate to call us.  If you received this free newsletter from a colleague or friend and would like to subscribe directly, please just e-mail your name, title, company, and e-mail address to gstanley@glstrade.com.

 

Contact:
Gary L. Stanley
President
Global Legal Services, PC
5335 Wisconsin Avenue, N.W.
Suite 440
Washington, D.C. 20015
Tel. +1 (202) 686-4854
Fax +1 (202) 686-2624
Mobile +1 (202) 352-3059

E-mail gstanley@glstrade.com

  

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A daily Newsletter from Gary Stanley, Global Legal Services, PC.

Today's Items (click here for these items)

 
1. BIS Implements Wassenaar Arrangment’s Task Force on Editorial Issues Revisions
2. DoD/DSCA Notifies Congress of Possible FMS Sales to Jordan and Turkey
3. United States And Singapore Hold Fifth Annual Free Trade Agreement Review
4. Ambassador Kirk and Secretary Locke Welcome New Strategic Framework with Turkey
5. Commerce Dept. Amends BE-605 Quarterly Survey of Foreign Direct Investment in the U.S. – Transactions of U.S. Affiliate with Foreign Parent
6. Secretary Napolitano Announces the Creation of New Center to Ensure the Safety of Imported Goods
7. WTO Publishes Trade Policy Review on Georgia
8. National Science and Technology Council Schedules Meeting of Its Aeronautics Science and Technology Subcommittee on Jan. 7
9. President’s Council of Advisors on Science and Technology Schedules Public Meeting on Jan. 7
10. GAO Reports, Testimony, and Correspondence of Interest
11. U.S. Government Trade Forms and Other Information Collections Open for Public Comment

Other Headlines

 

12. Recession Elsewhere, but It’s Booming in China
13. USAF Eyes JSTARS Options
14. As Boeing Hits Turbulence, Uncle Sam Flies to Its Aid
15. Industry Urges Flexibility in Coming OCI Rule

 

Important Links:

Today's Items


1. BIS Implements Wassenaar Arrangment’s Task Force on Editorial Issues Revisions

 

 (74 Fed. Reg. 65662)  – The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) is amending the Commerce Control List and Part 774 of the Export Administration Regulations (EAR) to flow down revisions from the Wassenaar Arrangement’s Task Force on Editorial Issues (TFEI). The revisions clarify, remove extraneous test, or correct test appearing in Export Control Classification Numbers (ECCNs) on the Commerce Control List. The Wassenaar Arrangement agreed on the TFEI revisions (over 2,000) in December 2007. The WA implementation rules for 2007 and 2008 contain only the TFEI revisions that coincided with the revisions to ECCNs affected by the 2007 and 2008 WA agreements. This rule implements the remaining TFEI revisions.

 


2. DoD/DSCA Notifies Congress of Possible FMS Sales to Jordan and Turkey

 


The U.S. Department of Defense’s Defense Security Cooperation Agency (DoD/DSCA) has notified the Congress of the following possible Foreign Military Sales:

  • The Government of the Turkey has requested a possible sale of fourteen CH-47F CHINOOK Helicopters, 32 T55-GA-714A Turbine engines, 28 AN/ARC-201E Single Channel Ground and Airborne Radio Systems (SINCGARS), 14 AN/APR-39A(V)1 Radar Signal Detecting Sets, support equipment, special tools and test equipment, spare and repair parts, publications and technical documentation, site survey, personnel training and training equipment, ferry services, U.S. Government and contractor technical and logistics support services, and other related elements of logistics support. The estimated cost is $1.2 billion. The prime contractor will be the Boeing Company of Ridley Park, Pennsylvania.

  • The Hashemite Kingdom of Jordan has requested a possible sale to establish a Material Management Program for repair and return of 61 F100-PW-220E engine modules, support and test equipment, spare and repair parts, publications and technical documentation, U.S. Government and contractor engineering and logistics personnel services, and other related elements of logistics and program support. The estimated cost is $75 million. The prime contractor will be Pratt & Whitney of East Hartford, Connecticut.

 


3. United States And Singapore Hold Fifth Annual Free Trade Agreement Review

 

The United States and Singapore held their fifth annual review of the implementation of their Free Trade Agreement (FTA) December 3, 2009. Assistant United States Trade Representative Barbara Weisel led the U.S. delegation and Deputy Secretary (Trade) Koh Lin-Net of the Ministry of Trade and Industry led the Singaporean delegation. During the review meeting, the two sides exchanged views on issues and concerns related to agricultural and textile market access, intellectual property rights, telecommunications and government procurement, and other issues. The two sides also reviewed the past year's activities under the Plan of Action for Environmental Cooperation, discussed additional opportunities for environmental cooperation and explored ways to intensify joint work on labor issues, including worker rights and human resources development. The two sides also discussed ongoing cooperative efforts and welcomed the continued robust growth in bilateral economic trade and investment since the FTA came into force in 2003. Since the U.S.-Singapore FTA came into force, U.S. goods exports have increased 68 percent and Singapore is now the United States' 16th largest goods trading partner, with goods exports totaling $28 billion in 2008. U.S. agricultural exports to Singapore totaled $485 million 2008. Trade in services also remained strong over the past year, with U.S. exports of $9 billion to Singapore in 2008, up 12.5 percent from the previous year. In 2008, Singaporean investment in the United States increased by nearly 9 percent and U.S. investment in Singapore increased by 12 percent.

 


4. Ambassador Kirk and Secretary Locke Welcome New Strategic Framework with Turkey

 

United States Trade Representative Ron Kirk and Secretary of Commerce Gary Locke have inaugurated a new process of engagement with the government of Turkey on economic and trade issues. The new policy structure, to be known formally as the "Framework for Strategic Economic and Commercial Cooperation" (Framework) was unveiled on the occasion of the visit of Turkish Prime Minister Recep Tayyip Erdogan to the White House. During a joint press conference with their new Turkish counterpart, Deputy Prime Minister Ali Babacan, Ambassador Kirk and Secretary Locke, who will co-chair U.S. participation in the Framework process, stated that the Framework aims to help enhance the already robust interaction that takes place between the two governments on economic issues. U.S. Government agencies currently work with Turkish counterparts in the economic arena through the bilateral Trade and Investment Framework Agreement, the Economic Partnership Commission and the Energy Working Group, as well as through numerous ongoing contacts between officials at all levels. The new Framework will ensure regular coordination and review of these many activities at a senior political level. Click  here   for further details.

 


5. Commerce Dept. Amends BE-605 Quarterly Survey of Foreign Direct Investment in the U.S. – Transactions of U.S. Affiliate with Foreign Parent

 

 (74 Fed. Reg. 65017)   – The U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) is amending its regulations at 15 C.F.R. 806 that set forth reporting reporting requirements for the BE-605 quarterly survey of foreign direct investment in the United States. The survey obtains quarterly sample data on transactions and positions between foreign-owned U.S. business enterprises (U.S. affiliates) and their ``affiliated foreign groups'' (i.e., their foreign parents and foreign affiliates of their foreign parents). BEA will discontinue the use of separate forms for banks. Beginning with the first quarter of 2010, both bank and nonbank U.S. affiliates will file Form BE-605. In conjunction with this change, BEA will change the title of Form BE-605. BEA will add and delete certain items on the survey form and change the reporting criteria. BEA will also collect identification information for affiliates filing Form BE-605 for the first time, and make changes to the BE-605 form and instructions to bring them into conformity with the recently revised annual and benchmark surveys of foreign direct investment in the United States. These changes become effective on Jan. 8, 2010.

 


6. Secretary Napolitano Announces the Creation of New Center to Ensure the Safety of Imported Goods

 

U.S. Department of Homeland Security Secretary Janet Napolitano has announced the creation of the Import Safety Commercial Targeting and Analysis Center (CTAC)—a new U.S. Customs and Border Protection (CBP) facility designed to streamline and enhance federal efforts to address import safety issues. The Import Safety CTAC will combine the resources and manpower of CBP and other government agencies—including U.S. Immigration and Customs Enforcement, the Consumer Product Safety Commission, the Food and Drug Administration and the Food Safety Inspection Service—to protect the American public from harm caused by unsafe imported products by improving communication and information-sharing and reducing redundant inspection activities.

 


7. WTO Publishes Trade Policy Review on Georgia

 

The World Trade Organization (WTO) Secretariat has published a Trade Policy Review on Georgia. The report finds that Georgia’s recent economic policies have met with considerable success guided by reliance on the private sector for growth in a liberalized trade, investment and business environment, in what has been on of the world’s fastest reforming economies. Click here for a copy of the report.

 


8. National Science and Technology Council Schedules Meeting of Its Aeronautics Science and Technology Subcommittee on Jan. 7

 

  (74 Fed. Reg. 65173)   – The National Science and Technology Council has scheduled a meeting of its Committee on Technology’s Aeronautics Science and Technology Subcommittee to be held in conjunction with the 48th AIAA Aerospace Sciences Meeting at the Orlando World Center Marriott, 8701 World Center Drive, Orlando, Florida, on Thursday, January 7, 2010, from 1:00 p.m. to 3:30 p.m. in the Crystal Ballroom A. The Subcommittee will discuss the development of the National Aeronautics RDT&E Infrastructure Plan. Executive Order (E.O.) 13419--National Aeronautics Research and Development--signed December 20, 2006, calls for the development of this plan. The plan is guided by both the National Aeronautics Research and Development (R&D) Policy and the National Plan for Aeronautics Research and Development and Related Infrastructure that were developed by the NSTC in consonance with E.O. 13419. The draft National Aeronautics RDT&E Infrastructure Plan is to be completed in 2010.

 


9. President’s Council of Advisors on Science and Technology Schedules Public Meeting on Jan. 7

 

  (74 Fed. Reg. 655552)   – The President’s Council of Advisors on Science and Technology (PCAST) has scheduled a public meeting on January 7, 2010, 10:00 a.m. – 6:00 p.m., at the National Academy of Sciences, 2100 C Street, N.W., Lecture Room, Washington, DC. During this open meeting, PCAST is tentatively scheduled to hear presentations from representatives of the Office of Science and Technology Policy, the Department of Energy, the Department of Homeland Security, the Department of Agriculture, and the Department of Commerce, as well as an expert in healthcare policy. Speakers will address the following issues: Energy research, development, and demonstration; homeland security science and technology; agriculture research; science, technology, and innovation; and healthcare policy. Additional information and the agenda will be posted at the PCAST Web site at:   http://www.ostp.gov/cs/pcast   .

 


10. GAO Reports, Testimony, and Correspondence of Interest

 

International Trade: Observations on U.S. and Foreign Countries' Export Promotion Activities. GAO-10-310T, December 9.   http://www.gao.gov/cgi-bin/getrpt?GAO-10-310T   Highlights -   http://www.gao.gov/highlights/d10310thigh.pdf  

 

 


11. U.S. Government Trade Forms and Other Information Collections Open for Public Comment

 

  (74 Fed. Reg. 65543)   – Agency: U.S. Dept. of Homeland Security/Bureau of Customs and Border Protection – Title: Andean Trade Preferences – Agency Form No.: 449 – Abstract: The information is to be used by CBP officers to document preferential tariff treatment under the provisions of the Andean Trade Preferences Act and the Andean Trade Promotion and Drug Eradication Act (ATPDEA), as codified in 19 U.S.C. 3201 through 3206. CBP is adding form 449 to this collection of information so respondents can submit information under ATPDEA. Type of Review: Extension (without change) – Deadline for Public Comment: Feb. 8, 2010.

 


Other Headlines

 


12. Recession Elsewhere, but It’s Booming in China

 

  New York Times   , Dec. 10 - For the first time, Chinese will buy more cars this year than Americans. Demand is so high that drivers put their names on long waiting lists for the most popular models. . . . And it is not just cars. For more and more consumer goods, China is surpassing the United States as the world’s biggest market — from cars to refrigerators to washing machines, even desktop computers. The Chinese market is “on full tilt — booming is an understatement these days,” said John Bonnell, the director of Asia vehicle forecasting at J.D. Power & Associates. China is pulling ahead at this particular moment partly because Americans, debt-laden and worried about their jobs, are pulling back. After decades of gorging on consumption, Americans are saving. And the Chinese, whom economists thought were addicted to saving, are spending more. Among China’s 1.3 billion people, rising incomes are finally making large

 


13. USAF Eyes JSTARS Options

 

  DefenseNew.com   , Dec. 9 - The U.S. Air Force this week confirmed that is looking at various options to continue the critical ground surveillance mission performed by its 40-year-old E-8 Joint Surveillance Targeting Attack Radar System (JSTARS) jets. Acknowledging the critical role the aging planes play in monitoring wide swaths of insurgent territory, the Air Force has kicked off two interrelated efforts aimed at finding the best way to "continue supporting the JSTARS mission," reads a Dec. 8 e-mail from Air Combat Command (ACC) officials. . . . The ACC study will look at everything from upgrading the E-8s to replacing the fleet with a new aircraft and radars including the multiplatform radar insertion program known as MP-RTIP. The powerful active electronically scanned array was originally developed by Northrop Grumman and Raytheon for use on the now-canceled E-10 surveillance plane. A smaller version of that radar is now being put on the Block-40 version of the RQ-9 Global Hawk.

 


14. As Boeing Hits Turbulence, Uncle Sam Flies to Its Aid

 

  Wall Street Journal   , Dec. 10 - Airlines are struggling amid the global recession. Boeing Co., meanwhile, is churning out jetliners at its fastest clip in years. Executives at the aerospace giant say their factories are so busy due in large part to one man: Bob Morin, a federal employee who stumps the globe to rally sales for America's biggest exporter. More than one in four airliners Boeing delivers this year will be funded thanks to Mr. Morin's efforts. Mr. Morin is vice president of transportation at the U.S. Export-Import Bank, created in 1934 to help fight the Great Depression. The bank's long history and recent experience suggest how government programs thrown together to battle the current economic crisis may alter the fabric of commerce for years to come. Ex-Im Bank is developing new funding tools and signing deals at a dizzying pace to fulfill its mandate of supporting American employment.

 


15. Industry Urges Flexibility in Coming OCI Rule

 

  DefenseNews.com   , Dec. 8 - The Pentagon heard from industry representatives Dec. 8 on an issue that has many contractors concerned and has already led to one major divestiture - an anticipated rule on organizational conflicts of interest that is part of the acquisition reform law enacted earlier this year. DoD is set to come out with the exact wording for the rule next year, and executives at the public comment session hosted by DoD urged the Pentagon to make sure the rule allows for flexibility and discretion in certain cases. But at the same time, several said, the current practice of addressing potential conflicts varies widely, creating inconsistency, confusion and even unnecessarily excluding companies from competing for contracts in some cases.

 


 

 

Upcoming Export Control and Other Trade Compliance Conferences


Dec. 8 - Society for International Affairs - Electronic Agreements Webinar - 1:00 p.m. Maj Kristofer Eggehorn, DTC Licensing, will provide an overview on the new Electronic Agreements Processing. LTC Ron Kellar and LCDR Jeremy Clauze, DTC Licensing, will also be available to assist with questions. – Click here for more information.

 


Dec. 8 - Society for International Affairs - 2009 SIA Holiday Party - 6:30 p.m. to 9:30 p.m. EST - Washington, DC - JW Marriott Hotel. – Click here for more information.

 


Export Controls Division of Foreign Affairs and International Trade Canada & Controlled Goods Directorate of Public Works and Government Services Canada - Export Control Seminar - Montreal, Quebec, Canada - Hotel Intercontinental Montreal - – Click here for more information.

 


Dec. 8-9 - American Conference Institute - Economic Sanctions - Frankfurt, Germany - Radisson Blu Hotel - Also See Exclusive Workshop on Dec. 9 – The Fundamentals of Compliance with U.S. Economic Sanctions Laws. – Click here for more information.

 


Dec. 17 - – National Customs Brokers & Forwarders Association of America, Inc. (NCBFAA) Educational Institute – Webinar: The Agencies and Organizations Other Than Customs That Can Affect Your Supply Chain - Import and Export – Noon to 1:30 p.m. EST. Click here for more information.

 

Jan. 25-26 – American Conference Institute – Global Forum on Export Finance – New York, NY – Helmsley Park Lane Hotel – Click here for more information.

 

Jan. 26-27 – American Conference Institute – 4th FCPA Boot Camp Houston Edition – Houston, TX – J.W. Marriott Hotel – Click here for more information.

 

Jan. 26-27 – U.S. Dept. of Commerce/Bureau of Industry and Security & The Arizona District Export Council - Complying with U.S. Export Controls - Phoenix, Arizona -Orange Tree Golf Resort. Click here for more information.

 

Jan. 28-29 – American Conference Institute – 5th National Forum on Export Enforcement & Investigations – Washington, DC – The Madison Hotel – Click here for more information.

 


Feb. 8-9 – C5 Group Inc. - 4th Forum on Export Controls – Brussels, Belgium – Le Meridien Brussels Hotel – Click – Click here for more information. Also see In-depth post-conference workshop Using Technology to Overcome Operational Challenges in Your Day-to-Day Export Controls Administration and Compliance on Feb. 10.

 


Feb. 22-23 – Society for International Affairs – 2010 Winter Back to Basics Conference – San Antonio, TX – Hotel TBD. Click here for more information. Also see 3rd Day Workshop – A Hands-on Approach to Applying the ITAR in the Real World on Feb. 24.

 

Feb. 22-23 – U.S. Dept. of Commerce/Bureau of Industry and Security – Fifth Annual Export Control Forum – Irvine, California – Hyatt Regency Hotel – More information to follow as it becomes available. 

 

March 18-19 – U.S. Dept. of Commerce/Bureau of Industry and Security & The San Diego District Export Council – Complying with U.S. Export Controls – Del Mar, California – Hilton San Diego Hotel – Click here for more information.

 

April 7-8 - U.S. Dept. of Commerce/Bureau of Industry and Security & The Rocky Mountain World Trade Center Institute - Complying with U.S. Export Controls - Denver, Colorado - The Brown Palace Hotel - Click here for more information.

 

April 26-27 - Society for International Affairs – 2010 Spring Conference – Las Vegas, Nevada – Hotel TBD. Click here for more information.

 

May 20-21 – U.S. Dept. of Commerce/Bureau of Industry and Security & Nevada District Export Council – Complying with U.S. Export Controls – Las Vegas, Nevada – Alexis Park Resort Hotel. Click here for more information.

 

June 13-15 – International Compliance Professionals Association (ICPA) – ICPA EU Conference – Amsterdam, The Netherlands – Hilton Hotel – More information to follow as it becomes available.


 

 

 

 

 

 

 

 

 

 

 

Intellectual Property: Enhancements to Coordinating U.S. Enforcement Efforts, by Loren Yager, director, international affairs and trade, before the Subcommittee on Government Management, Organization, and Procurement, House Committee on Oversight and Government Reform. GAO-10-219T, December 9.   http://www.gao.gov/cgi-bin/getrpt?GAO-10-219T  

 

State Department: Challenges Facing the Bureau of Diplomatic Security. GAO-10-290T, December 9   http://www.gao.gov/cgi-bin/getrpt?GAO-10-290T  

 

State Department: Diplomatic Security's Recent Growth Warrants Strategic Review. GAO-10-156, November 12.   http://www.gao.gov/cgi-bin/getrpt?GAO-10-156   Highlights -   http://www.gao.gov/highlights/d10156high.pdf