Export Compliance Just Got More Complicated (Here are Links to Make it Easier)

Normally, the consolidated screening list is found on export.gov; but now that entire website simply returns the message “Due to the lapse in government funding Trade.gov and Export.gov and all associated online activities will be unavailable until further notice.”  For exporters who rely on the consolidated screening list as a compliance tool, this is a significant problem.

Interestingly enough, export enforcement – the ongoing conduct of criminal investigations, and prosecutions, and coordination with other law enforcement and intelligence agencies – has been deemed to be an essential service for the Commerce Department so even though compliance resources are missing, export enforcement will still be available to punish anyone who makes a mistake because of the missing resources.

Due to the lapse in government funding
Trade.gov and Export.gov
and all associated online activities
will be unavailable until further notice

So how do we ensure continued compliance for our exports?  If you’ve been to one of ASA’s export workshops, then you know that the consolidated list is supported by separate iterations of the lists that are consolidated. Some of these lists are still available for review.  Here are some that are particularly useful for civil aircraft parts transactions:

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New ITAR Export Reporting Requirements Now in Effect

For those who may have missed it over the busy holiday season, a new method for submitting export and temporary import reporting information for ITAR-controlled articles went into effect as of December 31, 2016.  This change was part of the DDTC’s efforts to conform reporting requirements to the International Trade Data System “single window” administered by  U.S. Customs and Border Protection in accordance with the SAFE Port Act and Executive Order 13659.

Readers should already be familiar with the “single window,” better known as the Automated Commercial Environment (“ACE”) that has subsumed AESDirect for the purpose of most of your export filings.  Exporters will have been using ACE for their export filings for several months now, so the change to your systems and procedures should be minimal.  The revision to the ITAR effective December 31 harmonized those regulations by removing references to AESDirect and replacing them with references to CBP electronic filings and systems.

In theory this should make filing the appropriate reports for export of ITAR-controlled articles easier. Using the single window, an exporter of ITAR-controlled goods reports the required information to CBP via ACE, and CBP relays the relevant and necessary information directly to the DDTC. There is no need for the exporter to notify DDTC directly. This should help to eliminate confusion as to which reports must go to which government entity, and also eliminate the cost and burden of duplicative reporting requirements.

Exporters should note, however, that this does not eliminate all your requirements to correspond with the DDTC. You will still need to ensure you are obtaining the appropriate licenses for your ITAR-controlled exports, and ensuring your registration remains current. The new rule also did not amend any part of 22 CFR part 130, so your reporting requirements related to fees and commissions remains unchanged, for now.

As always, when in doubt, consult your export compliance attorney to ensure you are acting in accordance with the ITAR and all other export compliance laws and regulations.

 

Treasury Department is Updating Internet Security – Check Your Export Compliance Links to Ensure they Continue to Work Properly

Many ASA members have established automated systems to check their business partners against US sanctions and restricted parties lists.  This is to ensure their continued compliance with US export laws.

For those who have established such automatic protocols, you may need to know that the the Treasury Department will be implementing new computer security protocols that could impact the way that your own software interfaces with Treasury Department restriction lists.

A 2015 White House Office of Management and Budget (OMB) mandate required internet security and recommended reliance on HTTPS protocols.  In accordance with this mandate, the Treasury Department will be implementing HTTP Strict Transport Security (HSTS) headers on the Treasury.gov website on Thursday, January 12 during an evening maintenance window.

There is no anticipated downtime associated with this change; however, the change affects multiple domains and sub-domains, and will force users to the HTTPS site, as opposed to allowing browsers to redirect from HTTP to HTTPS.  This has the potential to impact scripts that users may have developed to poll Treasury.gov for data, like OFAC compliance lists (e.g. specially designated nationals).  The integrity of these scripts should be verified (or updated) to ensure that they continue to work properly after the change.

In addition to this change, the Treasury Department will also be updating the HTTPS certificate it uses for the Treasury.gov domain during the aforementioned maintenance window.   Treasury warns that users may have to reinstall the root certificate for the site if they experience connection problems.  Treasury has stated that the root certificate (the G3 certificate) can found at the following URL:

https://www.geotrust.com/resources/root-certificates/index.html

Please contact OFAC technical support at 1-800-540-6322 Option #8 or O_F_A_C@treasury.gov with any questions that you may have about this change.

ASA Fall Workshop Series

The dates and locations for the Fall ASA Workshop have been published:

  • Sep 29, 2015 – Miramar, FL Workshop – Hilton Garden Inn-Ft. Lauderdale/SW Miramar
  • Nov 02, 2015 – Singapore Workshop  – Hilton Singapore
  • Nov 19, 2015 – Chicago, IL Workshop – Hilton Garden Inn-Chicago O’Hare Airport
  • Dec 01, 2015 – Seattle, WA Workshop – Courtyard By Marriott Seattle/SEATAC

This workshop is designed for YOU – we typically develop the program based on the input of members and based on the issues that appear to be important to members.  We expect this Fall’s domestic workshops to address issue that continue to generate calls among our members, like recent changes in US export compliance, changes in the FAA’s SUPs program, and changes to the accreditation advisory circular.  The current agenda for the Fall Workshop looks like this:

Time Topic
9:00 – 10:00 Approved Parts in the US and Europe
10:15 – 11:00 Traceability Documentation: What Documents Does the FAA Recommend? What Documents Does EASA Recommend?
11:15 – 12:00 Building Your C of C: Customizing from a SPEC 106 Template or from a Narrative Format – What Should You Include? What Pitfalls Should You Avoid?
12:00 – 13:00 LUNCH
13:00 – 14:30 Export Compliance – the Rules and Exceptions that Apply to Aircraft Parts
14:45 – 15:30 Hazmat Awareness: Identifying Hazmats in Your Inventory
15:45 – 16:30 Magic Words: Drafting Your Commercial Documents to Promote Your Own Commercial Advantage

The Singapore workshop will be a little different, as it will include issues that are important to non-US companies that are doing business with the US and Europe.

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