DDTC Seeks Comments on Export/Import Licenses, Agreements, Reports, and Record Maintenance Requirements
Application/License for Permanent Export of
Unclassified Defense Articles and Related
Unclassified Technical Data;
• DSP-61: Application/License for Temporary Import of Unclassified Defense Articles;
• DSP-73: Application/License for Temporary Export of Unclassified Defense Articles;
• DSP-83: Non-Transfer and Use Certificate
• DSP-85: Application/License for Permanent/Temporary Export or Temporary Import of Classified Defense Articles and Classified Technical Data;
• DSP-94: Authority to Export Defense Articles and Services Sold under the Foreign Military Sales (FMS) Program;
• DSP-6, DSP-62, DSP-74, DSP-84, DSP-119: Application for Amendment to License for Export or Import of Classified or Unclassified Defense Articles and Related Technical Data;
• Request for Approval of Manufacturing License Agreements, Technical Assistance Agreements, and Other Agreements;
• Statement of Political Contributions, Fees, or Commissions in Connection with the Sale of Defense Articles or Services; and
• Maintenance of Records by Registrant.
Comments are due to the Department of State within 60 days from June 30, 2011 or by August 29, 2011.
This rule also makes corresponding revisions to License Exception APP, the de minimis rule, and post shipment verification reporting requirements in the EAR.
Additionally, this rule moves Albania and Croatia from Computer Tier 3 to Computer Tier 1 in the section of the EAR dedicated to export control requirements for high performance computers. The Administration believes Albania and Croatia are eligible to be treated as Computer Tier 1 countries because their governments have made the necessary reforms to allow the countries to join the North Atlantic Treaty Organization, and have adopted accepted global standards in export controls.
This rule is effective on June 24, 2011.
ITA seeks comments on the following possible types of cooperative regulatory activities between the United States and the European Union: Information-sharing agreements; technical assistance; memoranda of understanding, mutual recognition agreements; collaboration between regulators before initiating rulemaking proceedings; agreements to align particular regulatory measures; equivalency arrangements; and accreditation of testing laboratories or other conformity assessment bodies.
These comments will serve as a basis for discussion with the European Union on regulatory cooperation activities to undertake which will support the President's National Export Initiative and serve as a basis for discussion within the U.S.— EU High-Level Regulatory Cooperation Forum.
Comments are due August 8, 2011.
One of the defendants and his company were sentenced on June 22, 2011, with the individual receiving almost five years in prison. Another defendant and his company have admitted their illegal conduct and also pleaded guilty in the investigation.
The indictment alleges that the defendants conspired to export components for attack helicopters and fighter jets to Iran without the required U.S. export licenses. These components included military parts for the Bell AH-1 attack helicopter, the UH-1 Huey attack helicopter, as well as the F-5 and F-4 fighter jets.
One of the defendants and his company in the U.A.E. are alleged to have placed orders and purchased military aircraft parts, including those for the Bell AH-1 attack helicopter, from a defendant and his company in the U.S., who then exported the aircraft parts to the U.A.E.
One defendant in Illinois is alleged to have placed orders and purchased U.S. aircraft parts from another defendant in Georgia on behalf of an Iranian national and his company in Iran. The charges specify that the defendant in Georgia and other defendants exported the aircraft parts to Iran via defendants in France.
A conspiracy charge carries a maximum penalty of five years in prison. A maximum penalty for an AECA violation is 20 years in prison, and an IEEPA violation carries a maximum penalty of 20 years. Money laundering carries a maximum 20 years in prison, while making false statements carries a maximum of five years in prison.
The instructions provide that if a preference claim is not made at the time of importation, post-importation preference claims can be made within one year from the date of importation. This statutory provision does not allow for other changes and/or amendments to an entry summary, therefore importers and brokers must use existing regulatory provisions to make corrections to an entry summary.
CBP instructions also state that, “when a post-importation preference program claim under 19 USC 1520(d) is presented on an unliquidated entry which also requires a Harmonized Tariff Schedule of the United States (HTSUS) classification change, the tariff change should be presented as a Post Entry Amendment (PEA) or Post Summary Correction (PSC) in the Automated Commercial Environment (ACE), simultaneously with the 520(d) submission.”
PSC functionality was deployed in ACE effective June 4, 2011. Therefore, 520(d) claims should reference any PSC filed in ACE to ensure any classification changes are taken into account prior to the processing of the 520(d). For ACE entry summaries importers or filers should also add language to the PSC Filing Explanation Record that confirms the filing of the 520(d) claim.
When a post-importation preference program claim under 19 USC 1520(d) is presented on a liquidated entry which also requires a HTSUS classification change, the tariff change should be presented as a 19 USC 1514, protest, simultaneously with the 520(d) submission.”
To use the STA license exception, parties to the transaction must exchange notifications and statements designed to provide assurance against diversion of such items to other destinations. The exception is only relevant to exports, reexports, and transfers for which a license is required under the EAR. Thus, if the EAR do not impose an obligation to apply for and receive a license before exporting, reexporting, or transferring an item subject to the EAR, STA is not relevant to the transaction.
STA license exception is expected to facilitate exports between the U.S. and partner countries while enhancing the competitiveness of U.S.’s key industrial base sectors.
The final rule is effective June 16, 2011.
Analysts pursued the lead, piecing together information about a Mexican manufacturer who appeared to be involved in the alleged illegal scheme where the hangers were shipped form China to the U.S., sent to Mexico, and then imported back into the U.S. as products of Mexico. The 55-count indictment in the Southern District of California included conspiracy, entry of goods by means of false statements, false statement, wire fraud, and money laundering.
The filing resulted in the sentencing of the responsible individual from Tijuana, Mexico, to 70 months in federal prison and an order to pay more than $3 million in restitution to the U.S. government as well as a forfeiture of more than $4 million in proceeds gained through the illegal transshipment scheme.
BIS Revokes the Suspension of a $2M Penalty and Accelerates Payment of Outstanding $5.2 Penalty for Balli Group
BIS and the Treasury Department’s Office of Foreign Assets Control (OFAC) had entered into an agreement with Balli Group PLC and Balli Aviation Ltd. (collectively “Balli&rdquo in February 2010, with civil penalties totaling $15M, originally suspending $2M, regarding allegations that Balli conspired to export or reexport commercial aircraft from the United States to Iran in violation of the Export Administration Regulations (EAR) and the Iranian Transactions Regulations (ITR). This case represented the largest civil penalty ever imposed by BIS.
In his revocation order, BIS Assistant Secretary Mills stated: "[Balli] failed in my judgment to arrange its business and financial affairs in such a manner as to ensure compliance with its civil penalty payment obligations – obligations that were imposed, moreover, as a result of Balli’s egregious conduct that violated U.S. export control laws and provided support to Iran and its proliferation efforts."
BIS previously had charged that between 2005 and 2008 Balli conspired with an Iranian airline to export or reexport U.S.-origin Boeing 747 aircraft to Iran without the required U.S. Government authorization. Specifically, three of the aircraft were flying on routes in and out of Iran using Iranian flight numbers while under the operational control of the Iranian airline. Balli allowed the aircraft to continue to be operated contrary to U.S. export control laws, despite warnings from BIS and the manufacturer. Additionally, Balli misled and concealed information from BIS regarding the role the Iranian airline played in the acquisition and financing of the aircraft via funds from the Iranian Foreign Exchange Reserve Fund.
BIS also had charged that from July 2008, through September 2008, Balli took actions prohibited by a BIS order temporarily denying its export privileges. Balli conducted negotiations with persons, including another person subject to the Temporary Denial Order, concerning financing, receiving and/or using three additional U.S.-origin aircraft that had been exported from the United States and are subject to the EAR.
CBP Seeks Comments on Petition for Remission or Mitigation of Customs Forfeitures and Penalties Incurred
CBP Form 4609, the Petition for Remission of Forfeitures and Penalties Incurred, is completed and filed with the CBP Port Director by individuals who have been found to be in violation of one or more provisions of the Tariff Act of 1930, or other laws administered by the CBP. Persons who violate the Tariff Act are entitled to file a petition seeking mitigation of any statutory penalty imposed or remission of a statutory forfeiture incurred. This petition is submitted on CBP Form 4609 and used by CBP personnel as
a basis for granting relief from forfeiture or penalty.
Comments are due by August 12, 2011.
The Revenue Division will provide copies of recently approved continuous bond submissions at no charge if a valid request is received from a principal associated with the bond as follows:
- Requests must be
made by the principal via email
• The request must be received within 30 calendar days of the bond transaction approval. Requests received after 30 calendar days may use the Freedom of Information Act (FOIA) process.
• The request must identify the specific documentation being requested, such as a copy of a new bond, rider, or termination paperwork. The request must reference the applicable 9-digit CBP bond number and the principal’s importer number.
• These email requests must use an email subject line that begins with the words “Bond Copy Request”.
The Revenue Division will only provide requested copies as an email ‘reply’ to received requests which fully satisfy all of the above conditions. In addition to the above, principals continue to have the option of obtaining copies of continuous bond paperwork via the Freedom of Information Act (FOIA) process at any time.