|
|
Greetings!
This month's import/export news highlights include: BIS' approval of a new China VEU, BIS' issuance of final rules with regard to thermal imaging cameras and jet trainer aircraft, recent import and export enforcement actions, DTrade 2 is now operational, and OFAC updates its list of terrorist supporting countries. As always, we would appreciate any comments or suggestions you may have to improve this newsletter either by email to info@globaltradeexpertise or via our feedback survey link in our left column.Thank you for reading! Jennifer Kessinger & Tammie Goldstein Krauskopf
globaltradeexpertise
|
|
BIS Issues Final Rule on Certain Thermal Imaging Cameras
Some License Requirements Imposed and Some Removed
 On May 22, 2009, the Bureau of Industry and Security (BIS) published a final rule in the Federal Register revising the license requirements and license exception eligibility for certain thermal imaging cameras and foreign made military commodities incorporating such cameras.
The rule imposes a license requirement for certain exports and reexports of military commodities manufactured outside the United States that are not subject to the International Traffic in Arms Regulations (ITAR), regardless of the level of U.S.-origin content, if those military commodities incorporate certain thermal imaging cameras that are subject to the Export Administration Regulations (EAR).
The rule also removes Commerce Control List (CCL) based export and reexport license requirements with respect to 36 destinations for certain thermal imaging cameras when they are not incorporated into military commodities and if they are not being exported or reexported to be embedded in a civil product. It imposes a semi-annual reporting requirement on the transactions from which it removes the CCL based license requirements.
The rule also imposes a license requirement for software used to increase the frame rate of certain cameras.
BIS states that it is making these changes in recognition of the emerging availability of these cameras around the world, the export licensing practices of other governments and the potential use of these cameras in military applications.
|
OFAC Updates its List of Countries Supporting Terrorism
 On May 18, 2009, the Office of Foreign Assets Control of the U.S. Department of the Treasury (OFAC) issued a final rule in the Federal Register amending the Terrorism List Government Sanctions Regulations.
The amendment removes Iraq, Libya, and North Korea from the list of countries designed as state sponsors of terrorism. Remaining on this list are Cuba, Iran, Sudan, and Syria. Except as authorized, U.S. companies may not engage in any financial transactions with the governments of those countries.
|
Exporter Sentenced in Arms Export Conspiracy
Five Year Sentence for Conspiracy to Export Arms
 On May 18, 2009, CBS News reported that Joseph Piquet, a 55-year old Port St. Lucie, Florida man, was sentenced to 5 years in prison followed by two years of supervised release for his participation in conspiracy to export arms.
Piquet was charged with seven counts of arms export violations arising from conspiracy to purchase military use electronic components from Northrop Grumman Corporation, and then ship those items to China and Hong Kong without obtaining the required export licenses under the Arms Export Control Act (AECA) and the International Emergency Economic Powers Act (IEEPA). A federal jury in Fort Pierce convicted Piquet on all counts on March 5th.
Among the items involved in the conspiracy were high power amplifiers designed for U.S. military use and low noise amplifiers that have a dual - commercial and military - use. The testimony showed that on several occasions in 2004 and 2005, Piquet purchased restricted electronic parts and submitted false End Use Certificates to the manufacturer to conceal the intended final destination for those exports.
|
DTrade 2 is Now Operational
New application must be used for licensing submissions
 The U.S. Department of State announced that, starting May 16, 2009, exporters must use the DTrade 2 application to submit all new license submissions. The State Department announced that licensing submissions will no longer be accepted via DTrade 1, and will be returned without action, directing the applicant to the DTrade2 application.
Exporters can still use DTrade 1 to track status and to attach data to pre-existing cases. Cases submitted to the Directorate of Defense Trade Controls (DDTC) via the DTrade 1 prior to May 16, 2009, will be processed until the review of the submission is complete.
The information about the new licensing application, new forms, and guidelines are available on the DTrade Information Center website.
|
Directive Permits Non-Metric Units on Packaging of Goods Destined for the EU
The Commerce Department has long been in negotiations with the European Union in an effort to allow U.S. exports to the EU to use both non-metric and metric labeling provisions on product packaging.
On May 15, 2009, following the EU's adoption of the new labeling directive, the Commerce Department announced that U.S. exporters may continue using non-metric units on packaging of goods destined for export to the European Union. Thus, the current dual-labeling provisions are extended indefinitely.
The new rule was published on May 7, 2009 in the Official Journal of the European Union, and will be fully enforced by the 27 EU Member States by January 1, 2010. The new labeling directive will permit U.S. exporters to adopt metric unit labeling according to their own schedule and without facing a major trade barrier in the EU.
|
BIS Issues Final Rule to Remove T 37 Jet Trainer Aircraft and Parts from CCL
DDTC Maintains Jurisdiction
 On May 6, 2009, the Bureau of Industry and Security (BIS) published a final rule in the Federal Register, which removes the T 37 jet trainer aircraft and specially designed parts from under the Department of Commerce's licensing jurisdiction on the Commerce Control List (CCL). In the final rule, BIS states that although the T 37 jet trainer aircraft appear on the CCL, the Department of State, Directorate of Defense Trade Controls (DDTC) reviews license applications for these aircraft and parts. Accordingly, BIS is removing the T 37 jet trainer aircraft from the CCL to "avoid potentially overlapping coverage and reduce the possibility of confusion by the public." |
BIS Approves Additional VEU
Aviza Technology China Approved
On April 29, 2009, the Bureau of Industry and Security (BIS) published a final rule in the Federal Register, which adds a name to the list of end-users for the Peoples' Republic of China (PRC) approved to receive exports, reexports, and transfers of certain items under the authorization Validated End-User (VEU). The rule also amends the Export Administration Regulations (EAR) to add and revise eligible items and destinations for existing VEU authorizations.
The VEU authorization is a mechanism to facilitate increased high-technology exports to companies in the PRC and India that have a record of using such items responsibly. VEUs may obtain eligible items on the Commerce Control List (CCL) without having to wait for their suppliers to obtain export licenses from BIS. In addition to U.S. exporters, VEU authorization may be used by foreign reexporters, and does not have an expiration date.
The final rule amends Supplement No. 7 to Part 748 of the EAR to identify an additional company with eligible facilities in the PRC as a VEU and to identify the items that may be exported, reexported, or transferred under Authorization VEU. The new entry is for Aviza Technology China and lists Export Control Classification Numbers (ECCNs) 2B230, 3B001.c.1.a. and 3B001.e.
|
Deadline Set for Importers to Request Duty-Free Treatment under GSP
Petitions must be submitted by June 24
 On May 28, 2009, the U.S. Trade Representative (USTR) issued a notice in the Federal Register announcing it has set June 24 as the deadline for its 2009 Annual Generalized System of Preferences (GSP) Product and Country Practices Eligibility Review. During the Annual Review, USTR assesses petitions to modify the list of products and countries that receive duty-free treatment under the GSP.
By utilizing GSP, which provides duty-free treatment to a range of products from over 100 developing and lesser developed countries, U.S. importers can better control the cost of inputs.
Interested parties must submit petitions to modify the GSP products and country status by June 24, 2009. Petitions for products to continue receiving GSP treatment will be accepted starting June 24 and November 17, 2009.
|
Importer Sentenced For Customs Fraud
On May 15, 2009, the U.S. Department of Justice announced that Paul Kotsakos of Biloxi, Mississippi, was sentenced to nine months in prison and ordered to pay restitution in the amount of $10,403 and $3,000 fines for customs fraud.
In January, Kotsakos pleaded guilty to a 16-count indictment, charging him with conspiracy to commit customs violations and wire fraud. Kotsakos operated an import company PK Promotions, Inc., in Biloxi. The company provided promotional items to casinos, restaurants, sports teams, and wholesalers, and imported items, including bags, beads, cups, and shirts from China.
According to the indictment, Kotsakos submitted fraudulent invoices to U.S. Customs and arranged to give parts false HTS classifications. In furtherance of the conspiracy, Kotsakos e-mailed the foreign manufacturers to request that they prepare fraudulent invoices reflecting a lower price for goods sold or different classification of the goods. By requesting falsified invoices and wrong classifications for the imports, Kotsakos sought to avoid paying the full amount of duty on imported goods.
After his release, Kotsakos will have to serve three years of supervised release.
|
Who's Hiring?
A Summary of Current Trade Job Opportunities
 As a service to the international trade community, Global Trade Expertise compiles links to trade job opportunities from many different sources. New trade job listings are posted frequently on our website.
To sort the job opportunities by region, fields, or levels, click on the appropriate category or tag in the right column on our Trade Jobs webpage. |
|
Calendar of Events
Upcoming Trade Events & Seminars
 Our website has a comprehensive listing of import and export conferences held throughout the country, as well as Customs training, EAR training, ITAR training, and other training. Below is a small sampling of what's available in June:
Complying with U.S. Export Controls - Bureau of Industry and Security (BIS) & The Trade Development Alliance of Greater Seattle
June 10 - 11, 2009 - Seattle, WA - $350
China Summit on Anti-Corruption - American Conference Institute
June 15 - 17, 2009 - Shanghai, China - $1895
How to Develop An Export Management and Compliance Program - BIS & International Business Institute Austin Community College
July 21 - 22, 2009 - Austin, TX - $375/$400
In-House Seminar - Directorate of Defense Trade Controls (DDTC)
June 23, 2009 - Washington, DC - $1895
Complying with U.S. Export Controls - BIS & The Utah District Export Council
June 25 - 26, 2009 - Salt Lake City, UT - $325
How to Develop An Export Management and Compliance Program - BIS & San Diego District Export Council & the San Diego State University's Center for International Business Education & Research
June 25 - 26, 2009 - San Diego, CA - $455
|
|
|
|
|
|
Thanks again for your interest in our newsletter!
Sincerely,
|
Jennifer Kessinger & Tammie Krauskopf
Attorneys & Consultants
jk@globaltradeexpertise.com
Tel. 925.876.1381 (Jennifer Kessinger)
tk@globaltradeexpertise.com
Tel. 708.707.4087 (Tammie Krauskopf)
www.globaltradeexpertise.com
|
 |
|
|
