Archive for the ‘Export License’ Category

Former Managing Director of PPG Paints Trading (Shanghai) Co., Ltd., Charged with IEEPA and EAR Violations

Monday, August 29th, 2011 by admin

By Jennifer Kessinger, Esq., and Tammie Krauskopf, Esq.

On July 8, 2011, the Bureau of Security and Security (BIS) announced that Xun Wang, a former Managing Director of PPG Paints Trading (Shanghai) Co., Ltd., a wholly-owned Chinese subsidiary of U.S.-based PPG Industries, Inc., has been charged with conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR), and other related offenses.

A former Managing Director of PPG Paints Trading (Shanghai) Co., Ltd., a wholly-owned Chinese subsidiary of U.S.-based PPG Industries, Inc., has been charged with conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR),

Xun Wang, 51, is accused of conspiring to export and reexport, and exporting and reexporting specially designed, high-performance epoxy coatings to the Chashma 2 Nuclear Power Plant (Chashma II) in Pakistan, a nuclear reactor owned and/or operated by the Pakistan Atomic Energy Commission. This entity is on the list of prohibited end users under the EAR.

Wang was arrested on the indictment on June 16, 2011, at Atlanta Hartsfield-Jackson Airport and transferred to the District of Columbia. She is a Chinese national and lawful permanent resident of the United States. The United States is seeking to have her held without bond pending trial.

The indictment against Wang is related to the December 21, 2010, guilty plea of PPG Paints Trading (Shanghai) Co., Ltd. (PPG Paints Trading), to a four-count information in the U.S. District Court for the District of Columbia. Together, PPG Paints Trading and its parent company, PPG Industries, Inc., paid $3.75 million in criminal and administrative fines and over $32,000 in restitution. The combined amount of criminal and civil fines represented one of the largest monetary penalties for export violations in the BIS history.

According to the indictment against Wang, in January 2006, PPG Industries sought an export license for the shipments of coatings to Chashma II. In June 2006, the Department of Commerce (DOC) denied that license application. Following that denial, Wang and her co-conspirators agreed upon a scheme to export and reexport the high-performance epoxy coatings from the U.S. to Chashma II, via a third-party distributor in People’s Republic of China (PRC), without the required export license from the DOC.

The indictment further alleges that from June 2006 through March 2007, Wang and other co-conspirators intentionally concealed from PPG Industries that the paint would be delivered to Chashma II. Specifically, they falsely stated that the coatings were to be used at a nuclear power plant in China, the export of goods to which would not require a license from the DOC. The indictment alleges that, through these means, Wang and her co-conspirators took part in three shipments of coatings from the United States to Chashma 2 without the required license.

Source: Global Trader Newsletter

Reprinted with permission

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Posted in Export License, Violations & Fines, Violations & Fines | Comments Off

Change to ITAR Registration Payment Method: Going Virtual

Monday, August 29th, 2011 by Holly Thorne

Effective September 26, the Department of State will amend the International Traffic in Arms Regulations (ITAR) to change the method of payment to electronic submission of registration fees. This form of electronic registration will simplify the collection and verification of payments for the State, and hopefully also for registrants by eliminating the possibility of “lost” submissions and payments and ensure clarification in the process.

Formerly, ITAR required the respondent to provide separate correspondence via a transmittal letter to certify criminal history, eligibility, and foreign ownership. Often, this mandate was overlooked by the respondent, resulting in the return without action of the incomplete application. The revised DS-2032 incorporates these certifications within the form.

Companies registering on or after October 1, 2011 will be required to submit their payments electronically. Beginning August 2011, registration renewal letters will contain instructions for submitting registration fees electronically.

Individuals and companies engaged in the business of manufacturing, exporting, importing and/or brokering defense articles or services should register with the Directorate of Defense Trade Controls (DDTC) annually. With this change registrants will instead be required to submit registration fees electronically via Automated Clearing House (ACH) payable to the Department of State.

For further information contact: Lisa V. Aguirre, Director, Office of Defense Trade Controls Compliance, Directorate of Defense Trade Controls, Department of State, 2401 E Street, NW, SA-1, Room H1200, Washington, DC 20522-0112; telephone 202-632-2798 or fax 202-632-2878; or e-mail through DDTCResponseTeam@state.gov, with the subject line, “Electronic Payment of Registration Fees.”

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Posted in Defense Trade Controls, Export License, ITAR, Software, State Dept | Comments Off

BIS Update 2011 Conference Remarks of Kevin J. Wolf, Assistant Secretary for Export Administration

Monday, August 29th, 2011 by Holly Thorne

At the Update 2011, Assistant Secretary for Export Administration Kevin Wolf gave remarks on his three general priorities since joining BIS: Ensuring aggressive compliance with the laws and regulations that we have now; addressing the biggest problems that exporters face on a day-to-day basis, such as unnecessary impediments on trade with close allies, becoming more reliable and predictable suppliers generally; and dealing with the (real or imagined) overlap between the U.S. Munitions List (USML) and the Commerce Control List (CCL). Wolf noted that his long-term priority is to address the compliance burden faced by exporters subject to the U.S. export control system.

After reviewing two recent changes to BIS regulations that address burdensome dual-use controls, Wolf turned his attention to getting “into the tall grass of the next step in the reform effort,”- the structure for how militarily less significant defense articles eventually moved from the USML (US Munitions List) will be controlled on the CCL (Commerce Control List).

A newly structured USML and “Commerce Munitions List” within the CCL is being proposed for national security, “It’s that simple,” Wolf said.

Wolf paraphrases former Secretary of Defense Gates, with his belief that our national security will be strengthened if (i) our export control system allows for more interoperability with our NATO and other close allies, (ii) our industrial base is enhanced by, for example, reducing the current incentives for foreign companies to design out or avoid U.S.-origin content, and (iii) our resources are more focused on controlling or prohibiting, as needed, the items that provide at least a significant military or intelligence advantage to the United States.

Wolf calls his goal finding “that sweet spot between facilitating trade to trusted end users and ensuring that sensitive items do not find their ways into the hands of entities and nation states that seek to undermine our national security.”  Wolf calls all interested stakeholders – exporters, export counselors, licensing officers, enforcement agents, and prosecutors – to make our system effective.

The Federal Register notice describing the background, process, and the content of the plan can be found here. The BIS will accept comments through September 12, 2011 on this proposed ruling.

Click here for complete conference remarks.

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Posted in BIS, Denied & Restricted Parties, Export License, State Dept, USA Regulations | Comments Off

When Will They Ever Learn?

Monday, August 29th, 2011 by admin

By R. Clifton Burns, Esq.

Late last week, the Bureau of Industry and Security (“BIS”) released documents relating to an agreement by Toll Global Forwarding (USA), Inc. to pay $200,000 to settle charges that it had aided and abetted nine unlicensed exports of EAR99 items to companies on BIS’s Entity List. The company also agreed to conduct an external audit of its export controls compliance program.

The violations at issue were committed by Baltrans Logistics prior to its acquisition by Toll Global Forwarding in 2008. The exports in question were to Bharat Dynamics Ltd. and Solid State Physics Laboratory, both government-owned entities in India which have since been removed from the Entity List.

It is hard to work up much sympathy for companies engaged in this kind of violation by failing to consult an easily accessible list on the BIS website. And in this instance, it wasn’t an isolated failure but instead nine separate failures. Worse yet, this wasn’t Baltrans’s first time at the rodeo. In 2007 Baltrans agreed to pay a $6,000 fine to settle charges of an unlicensed export to another Indian company on the Entity List. Moreover, one of the unlicensed exports in the current case occurred after Baltrans agreed to pay the earlier fine. That might explain the high fine in this case as well as the external audit requirement.

Source: Bryan Cave LLP, Wash DC, 202-624-3949
Export Law Blog

Reprinted by permission.

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Posted in BIS, Export License, Uncategorized | Comments Off

Reminder for U.S. exporters and freight forwarders

Monday, August 29th, 2011 by Holly Thorne

In order to export items under License Exception STA and other license exceptions, the appropriate license exception code should be reported in the Electronic Export Information (EEI) filing in the Automated Export System (AES).

The Census Bureau has recently updated the AES system to add a new License Exception code for STA shipments. The Census Bureau has also indicated that new reporting requirements should be followed when using C59 to prevent the return of fatal errors from AES:

- In addition to reporting C59 in the AES License Type field, also report STA in the license number field.

- The Export Control Classification Number (ECCN) field is required. Refer to §740.20 of the Export Administration Regulations for those items that are ineligible for BIS license exception STA.

- Report Export Information Codes OS, OI, CH or CI.

A complete list of all of the AES License Type codes and reporting instructions found at<http://www.cbp.gov/linkhandler/cgov/trade/automated/aes/tech_docs/aestir/june04_intro/appendices/apndx_f.ctt/apndx_f.doc>, which has been updated to include the code for License Exception STA.

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Posted in AES, Export License, USA Regulations | Comments Off

AES Advice for STA Exports in the Shadow of the First STA Export

Monday, August 29th, 2011 by Holly Thorne

The first U.S. export made under License Exception STA took place in July and included products controlled under Category 6 (sensors and lasers), and arrived without incident to its European destination. This transaction would have previously required an export license from BIS if License Exception STA would not have been available.

License Exception STA authorizes exports of items in specific Export Control Classification Numbers (ECCNs) on the Commerce Control List without a license to the following 36 countries:

Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.

For certain ECCNs involving less sensitive items, software and technology, the following eight additional countries are eligible for license exception STA shipments:

Albania, Hong Kong, India, Israel, Malta, Singapore, South Africa, and Taiwan.

http://www.tradelawnews.com/; dnj@djacobsonlaw.com)

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Posted in BIS, Export License, Licensing, USA Regulations, USA Regulations | Comments Off

Guidelines Updated for DSP-73 and DSP-61 License Applications

Wednesday, July 13th, 2011 by Anna Barone

The following guidance was effective May 12, 2010, any submission not meeting these requirements is subject to Return Without Action. This guidance was updated effective June 23, 2011. Revisions are bolded below.
(more…)

Posted in DSP, Export License | 1 Comment »

7 Persons and 5 Companies Indicted for Conspiring to Export Military Aircraft Parts to Iran

Wednesday, July 13th, 2011 by Anna Barone

Seven individuals and five corporate entities based in the United States, France, the United Arab Emirates (U.A.E.) and Iran have been indicted in the Middle District of Georgia for their alleged roles in a conspiracy to illegally export military components for fighter jets and attack helicopters from the United States to Iran.  One of the defendants and his company were sentenced on June 22, 2011, with the individual receiving nearly five years in prison. Another defendant and his company have admitted their illegal conduct and also pleaded guilty in the investigation.

(more…)

Posted in Denied & Restricted Parties, Export License, Iran, Violations & Fines | 9 Comments »

Sales Manager Fined $500,000 by BIS for One Export

Wednesday, July 13th, 2011 by Anna Barone

By John Black

Here is one for your in-house training of your sales staff.

The Bureau of Industry and Security (“BIS”) just released settlement documents announcing that Curtis Hickcox, a regional sales manager at PPG, agreed to a $500,000 penalty for exporting EAR99 epoxy paint without a license.  Hickcox also received a 15-year membership on the Denied Parties List and is required to take an export compliance training class.
(more…)

Posted in BIS, Export License, Violations & Fines | 1 Comment »

Available Customer Service/Export Compliance Position

Tuesday, July 5th, 2011 by Danielle McClellan
Basic Purpose

Responsible for the administration of customer service issues, customer communications and customer requests and orders on a daily basis. Maintain and ensure integrity of all customer data in the business systems, including customer property, orders and associated dollars.  Assure that all customer requests for quotes are properly managed in the PTS system. Responsible for maintaining and ensuring accurate backlog, orders, and market segmentation data.

Position Specification
Education/Experience

  • An Associates or Bachelors degree with a minimum of 5 years related industry work experience.
  • Solid understanding of military and commercial export compliance regulations.
  • Demonstrated ability to effectively and professionally communicate with all levels in the organization, vendors and customers.
  • Understanding of pricing models.
  • Proven negotiation skills.
  • Strong verbal and written communication skills.
  • Strong computer skills with working knowledge of MS Office and Access.
  • Proven team-work capabilities and experience.
 Additional Requirements

  • Understanding of the Fourth Shift or Syteline ERP system.
  • Able to handle and resolve customer complaints and problems and escalate when required.
  • Willing and able to develop long-term relationships internally and externally.
  • Attention to detail.
Functional Scope

The Customer Service Representative provides support to both the internal and external customers of the company.  This position plays an active role in the maintenance and management of the various business systems. Success in this role will require a proactive approach and the ability to create and implement process improvements to ensure that the systems and processes are as robust as possible to provide superior service to the customers.
Duties and Responsibilities

  • Responsible for the accurate and timely management of all sales order activity.
  • Ensure all sales data is accurate and complete in order to maintain order, market and backlog reporting integrity including schedule and associated dollars.
  • Responsible for raising export compliance concerns to the DECA or DECA backup when required.
  • Serves as a central point of contact for customer inquiries. Provides customers with updated order and delivery status.
  • Responsible for inputting data (RFQs, pricing, status, etc) into the PTS (Proposal Tracking System) and ensuring that all data is accurate and complete and up to date.
  • Provides engineering with request for quote information required to initiate estimating process.
  • Performs contract review and order acceptance process. Controls and maintains master contracts/ purchase order files.
  • Assists with the configuration control process.
  • Performs the EDI transaction conversion to the business system. Tracks changes in delivery dates, prices and handles terminations.
  • Maintains customer information in the various business systems.
  • Responsible for disseminating Terms and Conditions, special shipping instructions, configuration changes and quality requirements throughout the organization.
  • Assists accounting with invoicing and collection issues.
  • Review Customer Scorecards.
  • Perform other duties as required by the business and as instructed by supervisor.
Essential Functions of Position

Interpersonal Skills

  • Must be able to communicate clearly and effectively with all levels of personnel within the organization and the customer.
  • Must be able to communicate orally and/or in writing as to work requirements, work in progress, and/or work completion
  • Must be able to follow complex instructions and/or directions. May require ability to decide on a course/sequence of action

Schedule and Planning

  • Must be able to schedule and organize time effectively to satisfactorily complete assigned tasks and functions.

Physical Effort

  • Minimal physical effort
  • May be required to travel occasionally to customer premises or corporate office.
  • Operate personal computer.

Working Conditions

  • Primarily work in office areas with exposure to shop floor.
  • Generally responsible for the safety and clean up of own work area.

Disclaimer

  • The above information on this job description has been designed to indicate the general nature and level of work performed by employees within this classification. It is not designed to contain or be interpreted as a comprehensive inventory of all duties, responsibility and qualification required of employees assigned to this job.

Contact Pamela R. Daly regarding this position at:

Barnes Aerospace

169 Kennedy Rd

Windsor, CT 06095

P: 860-687-5270

F: 401-228-0823

pdaly@barnesaero.com

Posted in BIS, Commerce Dept, DDTC, Defense Trade Controls, EAR, Export License, Jobs/Careers, Jobs/Careers, OFAC, Sanctions, State Dept, State Dept, USA Regulations | Comments Off

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