Archive for the ‘Commerce Dept’ Category

Stop Using License Exception TSR Now!: You Need to Get a New TSR Written Assurance

Tuesday, September 7th, 2010 by John Black

BIS Expands Controls on Foreign-Made Products and Changes TSR Written Assurance

In the July 30, 2010, Federal Register the Bureau of Industry and Security (BIS) published a revision to the Export Administration Regulations (EAR) that does two things.  First, it changes the requirements for what has to be in the written assurance for exports and reexports under License Exception TSR.  Second, it changes the destination countries for which the EAR asserts jurisdiction for foreign-made direct products of US technical data or software. (more…)

Posted in BIS, CCL, Commerce Dept, Commerce Dept, Cuba, EAR, Export License, Iran, North Korea, Sudan, Syria | Comments Off

BIS Says: “BIS Has No Authority to Determine Whether an Item is on the CCL”

Tuesday, September 7th, 2010 by John Black

As most of you already know, the Commerce Department Bureau of Industry (BIS) does not have the authority to issue an official ruling as to whether an item is on the Commerce Control List or the US Munitions List.  The Directorate of Defense Trade Controls in the State Department is the only government agency that has the authority to determine whether an item is on the CCL or the USML.  DDTC issues Commodity Jurisdiction Determinations (CJ) (or lesser known GJs) to provide an official determination as to whether something is on the USML or the CCL.

In fact, even if the CCL specifically says it controls an item, the CCL actually might not control that item.  For example, ECCN 1A001 paragraph c says it controls parts that are specially designed for missiles.  In fact, you will find that those 1A001 items specially designed for missiles are usually in Category IV(h) of the USML.

In the August 2, 2010, Federal Register BIS published a notice clarifying these facts stating that commodity classifications and advisory opinions that BIS issues may not be relied upon as determinations as to whether an item is subject to the Export Administration Regulations (EAR) or on the CCL. (more…)

Posted in BIS, CCL, Commerce Dept, Commerce Dept, DDTC, Defense Trade Controls, EAR, Export License, ITAR, State Dept, State Dept | Comments Off

The Check’s in the Mail (Export Control Reform [Again])

Wednesday, June 9th, 2010 by John Black

Editorial Analysis by John Black

I am old.  I can’t even count the number of times I have heard well intentioned high level government officials tell us that they plan to make significant reforms in the US export control system.  Some government officials have told me that they are going to make the system so transparent and user friendly that they will put consultants like me out of business.

It’s been 26 years for me in this business and numerous government pledges to make things better.  As far as I can tell, I am still here and there is still a huge demand for assistance in dealing with the infinite number of problems that US export controls create for companies who try to comply with the rules.  Yes, this reform could be different.

So, I apologize (for a change) in advance for being the cynic as a good number of my peers spout enthusiastically about Defense Secretary Gates’ call for comprehensive reform to the US export control system.  Reform certainly makes sense.  Comprehensive reform could both promote national security and make compliance a bit easier for companies.

Comprehensive reform is highly unlikely.  Adjustments to certain aspects of US export controls might be the better-than-nothing result we should hope for.  And, changes to the current system that will create a lot of extra work for us without actually improving anything is what we should fear.   (Well, this last scenario will probably be a gold mine for my seminar and consulting businesses.) (more…)

Posted in BIS, CCL, Commerce Dept, DDTC, DOD, DOJ, Defense Trade Controls, Defense Trade Controls, EAR, Export License, State Dept, State Dept, USA Regulations | Comments Off

Eric Hirschhorn Finally Gets BIUS Under Secretary

Wednesday, June 9th, 2010 by John Black

Long time export compliance expert Eric Hirschhorn is now the Under Secretary of Commerce Department’s Bureau of Industry and Security.  Exporters should welcome this; Eric brings with him an extremely impressive resume and a recognized reputation as an experienced export compliance expert.  His appointment was delayed by Congress for reasons relatively unrelated to his competence.

Besides extensive experience as a trade control lawyer, he also served as the Executive Secretary of the Industry Coalition on Technology Transfer (ICOTT), an association that sought to influence US trade control rules and policies.  He also served as the Deputy Assistant Secretary for Export Administration from 1980 to 1981.

It’s nice to see that President Obama has staffed the upper level of the Commerce Department with a solid team of leaders who have extensive export compliance experience.

Posted in BIS, Commerce Dept, Jobs/Careers | Comments Off

BIS Replaces the STELA Telephone Voice Based Application Status System with e-STELA

Wednesday, June 9th, 2010 by John Black

All good things must come to an end, and it’s the same for the BIS STELA voice status system.  In its early days, the STELA system which gives a  voice status on pending license applications was ahead of its time.  Gone are the days when you can hear a computer generated voice tell you that your application has been pending in the Department of Energy since April 3.

The new STELA is a web-based status system.  Just go to http://www.bis.doc.gov/licensing/stela4u.htm and enter your application case number.

STELA is dead!  Long live STELA.

It all rolls into one and nothing comes for free,
There’s nothing you can hold for very long
And when you hear that song come crying like the wind
it seems like all this life was just a dream
STELA Blue

Posted in BIS, Commerce Dept, Export License | Comments Off

BIS Announces Elimination of Issuance of Certain Paper Document

Wednesday, June 9th, 2010 by John Black

The Bureau of Industry and Security announced that it will no longer issue paper versions of most export/reexport licenses, application denial notices, return without action notices, product classification notices, encryption review requests, and License Exception AGR notification results.  In certain special circumstance BIS will continue to issue paper documents.  For more information go to:  http://www.access.gpo.gov/bis/fedreg/ear_fedreg.html

Posted in BIS, Commerce Dept, Export License | Comments Off

GM Daewoo in Korea Pays $88,500 for Antiboycott Violations

Friday, April 16th, 2010 by John Black

GM  Daewoo Auto & Technology Company (“GMDAT”), a company incorporated under the laws of the Republic of Korea, agreed to pay an $88,500 penalty for 59 antiboycott violations that it voluntarily disclosed to the Department of Commerce.  The 59 violations of 760.2(d) of the Export Administration Regulations (“EAR”) involved GMDAT furnishing information about its business relationships with boycotted countries or blacklisted persons related to the export of products from South Korea to Libya through an Egyptian distributor. (more…)

Posted in Antiboycott, BIS, Commerce Dept, Export License, Libya, Violations & Fines | Comments Off