1. State/DDTC Posts Updated Consolidated ITAR
The U.S. Department of State's Directorate of Defense Trade Controls (State/DDTC) has posted on its website an updated consolidated International Traffic in Arms Regulations (ITAR).
2. State/DDTC Posts Two New Name/Address Change Notices
The U.S. Department of State's Directorate of Defense Trade Controls (State/DDTC) has posted on its website the following two new name/address change notices:
• System Engineering Gesellschaft, Inc.'s Address Change
• SN Plus Fairfield Inc. Name Change
3. BIS Settles Export Control Case Against Humane Restraint, Inc., of Waunakee, WI
The U.S. Department of Commerce's Bureau of Industry and Security (Commerce/BIS) has announced that Humane Restraint, Inc. (HR), has agreed to pay a civil penalty of $465,000 ($50,000 payable in four semiannual installments and payment of the remaining $415,000 suspended for a period of two years and then waived if HR timely pays the aforementioned $50,000 and commits no further violations during the two-year probationary period) and to be placed on the Denied Persons List for two years to settle charges that it committed
• 27 violations of EAR § 764.2(a) (engaging in prohibited conduct by exporting various restraint devices classified under ECCN 0A982 and controlled for Crime Control Reasons from the United States to Germany, Greece, Hungary, Ireland, New Zealand, South Korea, Taiwan, and the United Kingdom without the required U.S. Government authorizations),
• 1 violation of EAR § 764.2(c) (attempting to export a strait jacket classified under ECCN 0A982 and controlled for Crime Control Reasons without the required U.S. Government authorization), and
• 4 violations of EAR § 764.2(e) (acting with knowlege of a violation). Specifically, on four occasions between on or about January 2, 2008, and on or about August 7, 2008, HR sold strait jackets and an ambulatory restraint kit, items classified under ECCN 0A982, controlled for Crime Control Reasons, and valued at approximately $1,818. These items were exported or to be exported from the United States to Australia, Germany, and Taiwan. According to Commerce/BIS, HR knew or should have known that a Commerce/BIS export license was required to export these items because, inter alia, on or about December 10, 2007, before these violations occurred, HR was informed of licensing requirements by U.S. Customs and Border Protection, which had stopped and later seized HR's November 28, 2007, attempted unlicensed export described in Charge 28.
Click here for a copy of the Settlement Agreement and related documentation.
4. U.S. Increases Sanctions Against the Government of Iran and Its Proliferation Networks
Yesterday, the United States imposed additional sanctions on Iran’s nuclear and ballistic missile proliferation networks, and also took additional steps to prevent the evasion of sanctions by publicly identifying a group of Iranian front companies and banks. These actions are part of the United States government’s dual-track approach of increasing pressure to convince Iran to engage seriously and address the international community’s concerns about its nuclear program. Since 2005, the United States has imposed a series of targeted, conduct-based sanctions under Executive Order (E.O.) 13382, “Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters,” on persons, firms and financial institutions involved in Iran’s nuclear and ballistic missile programs. The U.S. Departments of the Treasury and State yesterday designated 11 entities and four individuals under E.O. 13382. Many of the individuals and entities designated are part of a network of proliferators headed by Iran’s Ministry of Defense for Armed Forces Logistics (MODAFL) and its subsidiary, Aerospace Industries Organization (AIO). A number of additional designations are related to Iran’s national maritime carrier, Islamic Republic of Iran Shipping Lines (IRISL), and Iran’s Islamic Revolutionary Guard Corps (IRGC), both of which have been the target of a numerous sanctions actions by the United States and our partners around the world. many of the individuals and entities designated today are part of a network of proliferators headed by Iran’s Ministry of Defense for Armed Forces Logistics (MODAFL) and its subsidiary, Aerospace Industries Organization (AIO). The Treasury Department also acted yesterday to prevent the circumvention of international sanctions on Iran – including sanctions on oil trade with Iran – by publicly exposing numerous Iranian front companies, ships and banks that are part of the Government of Iran. Click here for the OFAC press release on these actions and here for a related Fact Sheet.
5. UK Parliament's Select Committees on Arms Export Controls Publishes Report on Strategic Export Controls
The U.K. Parliament's Select Committees on Arms Export Controls (CAEC) has published a report on U.K. strategic export controls finding that the U.K. Government should apply significantly more cautious judgements on the export of arms to authoritarian regimes which might be used for internal repression. The Committees conclude that the Government's review of its policies and practices on arms exports following the Arab Spring should not have been carried out merely as "an internal review" and should instead have been the subject of public consultation in accordance with the Government's stated policy of transparency on arms exports. The Committees further conclude that whilst the Government’s introduction of a new licence suspension mechanism is welcome, this is not sufficient to ensure that arms exported from the UK are not used for internal repression overseas because in many, if not most, cases the arms will have left the UK before suspension occurs. Click here for a copy of the report and here for further details.
6. USITC Releases Annual Report on Recent Trends in U.S. Services Trade
The United States remained the world's largest services market and the world's leading exporter and importer of services in 2010, reports the U.S. International Trade Commission (USITC) in its publication Recent Trends in U.S. Services Trade, 2012 Annual Report. This year's report focuses on infrastructure services, such as banking and telecommunications, which are essential to a country's overall economic growth and development and are used by every firm regardless of economic sector. The report also includes separate chapters on specific industries (banking, insurance, logistics, retail, securities, and telecommunications). These chapters analyze global competitive conditions in the industry, examine recent trade performance, discuss non-tariff measures that affect trade, and summarize the industry's outlook. Click here for a report summary and here for the full report.
7. USITC Releases Report on Trade Facilitation in the East African Community
The U.S. International Trade Commission (USITC) yesterday released its report on trade facilitation in the East African Community (EAC), a regional governmental organization that includes Burundi, Kenya, Rwanda, Tanzania, and Uganda. The investigation, Trade Facilitation in the East African Community: Recent Developments and Potential Benefits, was requested by the U.S. Trade Representative. Click here for a report summary and here for the full report.
8. GAO Reports, Testimony, and Correspondence of Interest
Security Clearances: Agencies Need Clearly Defined Policy for Determining Civilian Position Requirements. GAO-12-800, July 12. http://www.gao.gov/products/GAO-12-800 Highlights - http://www.gao.gov/assets/600/592372.pdf
Trade Adjustment Assistance: USDA Has Enhanced Technical Assistance for Farmers and Fishermen, but Steps Are Needed to Better Evaluate Program Effectiveness. GAO-12-731, July 12. http://www.gao.gov/products/GAO-12-731 Highlights - http://www.gao.gov/assets/600/592321.pdf
Counterterrorism: U.S. Agencies Face Challenges Countering the Use of Improvised Explosive Devices in the Afghanistan/Pakistan Region, by Charles Michael Johnson, Jr., director, international affairs and trade, before the Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies, House Committee on Homeland Security. GAO-12-907T, July 12. http://www.gao.gov/products/GAO-12-907T
Foreign Assistance: U.S. Assistance to the West Bank and Gaza for Fiscal Years 2010 And 2011. GAO-12-817R, July 13. http://www.gao.gov/products/GAO-12-817R
Other Headlines
9. Defense Groups Eye Niche Buys in Quest for Growth
Reuters.com, July 11 - Arms makers are sizing up niche acquisitions in cyber security and commercial aerospace in the hunt for growth as uncertainty over military spending in the West has put larger-scale defense sector deals on hold - at least for now. Feeling the strain from shrinking defense budgets in the United States and Europe, weapons makers from Britain's BAE Systems (BAES.L) to U.S. group Raytheon (RTN.N) are eyeing companies with innovative technology or a strong position in a specialist market, executives at the Farnborough Airshow said.
10. BAE Takes on Lockheed for Billions In Global F-16 Upgrades
Aol Defense.com, July 12 - You can tell the U.S. defense budget is shrinking when one of the more interesting stories during an international air show centers on a plane, the F-16, first delivered in 1979. But BAE Systems' press conference focused on just that, providing upgrades to the worldwide fleet of some 2,500 airplanes in what the company's lead man on the upgrades, Floyd McConnell, called a market of "several billion."
11. BlackBerry Eschews China for Security Reasons
Washington Times.com, July 12 - BlackBerrys, the mobile devices favored by government agencies worldwide, are not manufactured in China because that would compromise their much-vaunted security advantage, according to the CEO of Research in Motion (RIM), which makes them. “Very frankly, that is why we are not building or manufacturing in China, as many of our competitors do, to really protect our [software] code and make sure the [intellectual property] of RIM is protected,” said Thorsten Heins, president and CEO of RIM at the company’s annual shareholder meeting in Waterloo, Ontario.
12. Frustrated by Iran Talks, Congress Presses for Harsher Sanctions
Washington Post.com, July 12 - Congress is moving to dramatically tighten economic sanctions against Iran as lawmakers from both major parties express impatience over U.S. efforts to halt the expansion of Iran’s nuclear program. House and Senate officials began crafting legislation this week that congressional leaders say will deepen the pain for Iran across multiple fronts, making it even harder for Iranian businesses to buy insurance, obtain foreign financing and export goods.
July 16-17 - American Conference Institute - 3rd Global Forum on Anti-Corruption Compliance in High Risk Markets - Washington, DC - Westin Gateway Hotel - Click here for more information.
July 17-19 - U.S. Dept. of Commerce/Bureau of Industry and Security - Update 2012: Conference on Export Controls and Policy - Washington, DC - Washington Hilton Hotel - Click here for more information.
July 23-25 - Society for International Affairs - Summer Back to Basics Conference - Arlington, VA - Crystal Gateway Marriott Hotel - Click here for more information.
NEW - July 24 – NextLabs, SAP and GE - Free webinar entitled Protect Intellectual Property, Provide Data Security & Enable Compliance -1:00 p.m. – 2:00 p.m. EDT - Click here for more information.
July 24-25 - American Conference Institute - DCAA Audits Boot Camp - San Diego, California - Hotel TBD - Click here for more information.
July 24-25 - American Conference institute - 7th Advanced Forum on ITAR Compliance - Washington, DC - Fairmont Washington Hotel - Click here for more information.
July 24-25 - American Conference Institute - Advanced China Tax Summit - Shanghai - Hotel TBD - Click here for more information.
July 24-25 - U.S. Dept. of Commerce/U.S. Census Bureau & Association of Small Business Development Centers - Automated Export System Compliance Seminar and AESPcLink Training - Virginia Beach, Virginia - Holiday Inn VA Beach - Click here for more information.
NEW - July 31 - NextLabs and EntryPoint Consulting - Free Webinar entitled Controlling Exports of Physical Goods and Technical Data with SAP GTS and NextLabs - 11:00 a.m. - 12:00 p.m. EDT - Click here for more information.
Aug. 1-2 - U.S. Dept. of Commerce/U.S. Census Bureau & Association of Small Business Development Centers - Automated Export System Compliance Seminar and AESPcLink Training - Boston, Massachusetts - Crown Plaza Boston - Click here for more information.
Aug. 8-9 - U.S. Dept. of Commerce/Bureau of Industry and Security & The District Export Council of Southern California - Complying with U.S. Export Controls - Los Angeles, CA - Sheraton Gateway Hotel Los Angeles - Click here for more information.
Aug. 21-22 - U.S. Dept. of Commerce/U.S. Census Bureau & Association of Small Business Development Centers - Automated Export System Compliance Seminar and AESPcLink Training - Baltimore, Maryland - Hilton Baltimore North Hotel - Click here for more information.
Aug. 22-24 - Partnership International, Inc. - 3rd Annual "Partnering for Compliance™" West Coast - San Jose, California - Sainte Claire Hotel - Click here for more information.
Aug. 22-24 - Partnership International, Inc. - 3rd Annual "Partnering for Compliance™" West Coast - San Jose, California - Sainte Claire Hotel - Click here for more information.
Aug. 27 - U.K. Government/Export Control Organisation - Export Control - Beginners Workshop - Glasgow - Hilton Hotel - Click here for more information.
Aug. 28 - U.K. Government/Export Control Organisation - Export Control - Beginners Workshop - Glasgow - Hilton Hotel - Click here for more information.
Aug. 29 - U.K. Government/Export Control Organisation - Export Control - Beginners Workshop - Aberdeen - Aberdeen Marriott Hotel - Click here for more information.
Aug. 29-30 - U.S. Dept. of Commerce/Bureau of Industry and Security & North Texas District Export Council, Inc. - How to Develop an Export Management and Compliance Program and Multi-Agency Compliance Conference - Irving, Texas - Sheraton DFW Airport Hotel - Click here for more information.
Aug. 30 - U.K. Government/Export Control Organisation - Export Control - Marking Better License Applications - Aberdeen - Aberdeen Marriott Hotel - Click here for more information.
Sept. 4 - U.K. Government/Export Control Organisation - Export Control - Beginners Workshop - Birmingham - Hilton Garden Hotel, Brindley Place - Click here for more information.
Sept. 5 - IDEEA, Inc. - ComDef 2012 - 25th Anniversary: Understanding the Past to Inform the Future - Washington, DC - National Press Club - Click here for more information.
Sept. 5 - U.K. Government/Export Control Organisation - Export Control - Intermediate Workshop - Birmingham - Hilton Garden Hotel, Brindley Place - Click here for more information.
Sept. 6 - U.K. Government/Export Control Organisation - Export Control - Control List Classification and Using the Checker Tools: Dual-Use Goods - London - 1 Victoria Street - Click here for more information.
Sept. 7 - U.K. Government/Export Control Organisation - Export Control - Marking Better License Applications - London - 1 Victoria Street - Click here for more information.
Sept. 11-12 - U.S. Dept. of Commerce/U.S. Census Bureau - Automated Export System Compliance Seminar and AESPcLink Training - New Orleans, Louisiana - Hilton New Orleans Riverside - Click here for more information.
Sept. 12 - U.S. Dept. of Commerce/International Trade Administration - Webinar - NAFTA Series: Solution Scenarios: Inbound Warehouses, Trading Companies, Sending Samples to Mexico - 3:00 p.m. EDT - $25 - Click here to register.
Sept. 12-13 - U.S. Dept. of Commerce/U.S. Commercial Service and Arizona District Export Council - 2nd Annual Arizona Export Compliance Summit - Tucson, Arizona - Westward Look Wyndham Grand Resort & Spa - Click here for more information.
Sept. 12-14 - MarcusEvans - 4th Practical Ensuring Compliance and Fighting Fraud in Russia and CIS - Moscow, Russia - Click here for more information.
Sept. 12-13 - U.S. Dept. of Commerce/Bureau of Industry and Security & The Professional Association of Exporters and Importers - Complying with U.S. Export Controls - Milpitas, California - Crowne Plaza San Jose-Silicon Valley Hotel - Click here for more information.
Sept. 18-19 - C-5 Group - 2nd Forum on Anti-Corruption Southern Africa - Cape Town, South Africa - Hotel TBD - Click here for more information.
Sept. 19-20 - C-5 Group - 2nd Advanced Forum on European Export Controls - Amsterdam - Radisson Blu Hotel - Click here for more information.
Sept. 26-27 - C-5 Group - 2nd Forum on Customs Compliance in Russia & CIS - Moscow - Hotel TBD - Click here for more information.
Oct. 1-2 - SMi Group - Defence Exports 2012 - Amsterdam - Mövenpick Hotel Amsterdam City Centre Hotel - Click here for more information. Gary Stanley, Editor of Defense and Export-Import Update, will deliver a presentation at the conference entitled Export Compliance and Post-Approval License Management and will moderate the annual Panel Discussion featuring senior U.S. Government and industry representatives, including DDTC Managing Director Bob Kovac, Ass’t. Secretary of Commerce for Export Administration Kevin Wolf, and Acting DoD/DTSA Director James Hursch.
Oct. 2-3 - American Conference Institute - Industry Forum on Government Subcontracting Management, Compliance & Enforcement - Arlington, Virginia - DoubleTree by Hilton Hotel - Click here for more information. See also Oct. 1 Pre-Forum Wolring Groups on "The Ins and Outs of Crafting a Small Business Subcontracting Plan under the Small Business Jobs Act and FAR Part 19 How to Reduce Penalties for False Certifications, Fraud and Non-Compliance with Set-Aside Requirements" and "Implementing the Most Contentious Mandatory Flowdown Provisions: From Data Rights to Defective Pricing."
Oct. 3-4 - U.S. Dept. of Commerce/U.S. Census Bureau - Automated Export System Compliance Seminar and AESPcLink Training - Denver, Colorado - Small Business Development Center, 1445 Market St. - Click here for more information.
Oct. 10 - U.S. Dept. of Commerce/International Trade Administration - Webinar - NAFTA Series: Compliance, Standards and Regulations to Exporting Goods to Mexico - 3:00 p.m. EDT - $25 - Click here to register.
Oct. 23-24 - American Conference Institute - ITAR Boot Camp - Chicago, IL - Millennium Knickerbocker Hotel - Click here for more information. See also Oct. 21 Pre-Conference Working Groups on "ITAR Licensing" and "IT Management of ITAR Compliance."
Nov. 8-9 - Society for International Affairs - 2012 Fall Conference - Arlington, VA - Crystal Gateway Marriott Hotel - Click here for more information.
Nov. 14 - U.S. Dept. of Commerce/International Trade Administration - Webinar - NAFTA Series: Complying with Value Declaration Requirements - 3:00 p.m. EDT - $25 - Click here to register.
Nov. 14-15 - American Conference Institute - 4th National Forum on DCAA Audits - Arlington, VA - Hotel TBD - Click here for more information.
Nov. 14-15 - American Conference Institute - 2nd National Summit on Industrial & National Security Compliance - Arlington, Virginia - Hilton Hotel - Click here for more information.
Nov. 27-28 - American Conference Institute - 7th National Forum on International Technology Transfers & Deemed Export Compliance - Washington, DC - Hotel TBD - Click here for more information.
Dec. 12 - U.S. Dept. of Commerce/International Trade Administration - Webinar - NAFTA Series: Rules in Setting Up Agents, Distributors and a Direct Employee Present in Mexico - 3:00 p.m. EDT - $25 - Click here to register.
Jan. 9 - U.S. Dept. of Commerce/International Trade Administration - Webinar - NAFTA Series: How to Handle Problems with Mexican Customs - 3:00 p.m. EDT - $25 - Click here to register.
Jan. 30-31 - 2nd Industry Forum on U.S. Export & Re-Export Compliance for Canadian Operations - Toronto, ON - Hotel TBD - Click here for more information.
Feb. 6 - U.S. Dept. of Commerce/International Trade Administration - Webinar - NAFTA Series: NAFTA Labeling Requirements for Exported Goods - 3:00 p.m. EDT - $25 - Click here to register.
