The Bureau of Industry and Security (BIS) published the Regulations and Procedures Technical Advisory Committee (RPTAC) September 14, 2010 meeting minutes.
John Sonderman of the BIS Office of Enforcement summarized the voluntary self-disclosure (VSD) enforcement program:
· In Fiscal Year (FY) 2009, BIS closed 109 cases with an average processing time of 17 months;
· In FY2010, the processing time decreased to 16 months;
· In 2010, 21 cases have been closed as of May 2010 with an average 6 week processing time. A notable change for this time period is that BIS officers located at headquarters replaced field officers as point of contact;
· In FY 2009 - 163 cases or 71% of VSDs resulted in a warning letter; 9 cases resulted in sanctions;
· In FY2009, 67% of VSDs resulted in a warning letter; 13 cases resulted in sanctions.
According to Mr. Sonderman, misclassification remains the biggest factor in VSD submissions.
As for recent and upcoming BIS regulations, Hilary Hess of BIS Regulatory Policy Division stated that:
· On September 7, 2010, BIS published new rules regarding the revised Wassenaar Arrangement's list that affects most CCL categories except for Category 3. The new rules do not include some items on Category 6 as they are covered under the Directorate of Defense Trade Controls (DDTC) jurisdiction. Category 5, Part 2 will be covered separately as part of an encryption rule;
· BIS recently updated its statement of legal authority outlined under the International Emergency Economic Powers Act (IEEPA);
· BIS amended the licensing process for commodities: the new process does not require determination of commodity jurisdiction;
· BIS amended its Foreign Product Rule to require a license on all foreign products using U.S. components destined for D1 list and Terrorist Supporting countries beyond Cuba;
· BIS revised CCL to cover crime control items potentially used for human rights violations. Items covered by the revision will generally be denied; infrasound sensors will be moved from the munitions list to the CCL; and
· BIS issued a Notice of Proposed Rule Making that concerns transshipment guidelines (not a rule).
Finally, Dale Kelly of Foreign Trade Division Bureau of the Census (Census) stated that the Foreign Trade Division (FTD) continues to work on revising the Automated Export System (AES) regulations and is waiting on concurrence from Department of Homeland Security (DHS) and Customs Border Protection (CBP). There is no indication as to when this may occur.