The State Department is amending the International Traffic in Arms Regulations to make changes to its licensing exemption for transfers made by or for an agency of the U.S. government. The scope of the revised exemption is now expanded to allow for permanent exports and retransfers, as well as transfers by third parties acting for the U.S. government. The final rule takes effect April 19.
The Directorate of Defense Trade Controls has deactivated International Traffic in Arms Regulations "exemption code 22 CFR 126.5C," CBP said in an April 16 message. That section of the federal code only says "reserved." The exemption code "will not be accepted in Electronic Export Information" submissions effective immediately, CBP said. "Appendix O of the Automated Export System Trade Interface Requirement" will also be updated to remove the code, it said.
A Justice Department settlement with Honda Aircraft Company after Honda allegedly discriminated against non-U.S. citizens to try to comply with U.S. export laws serves as a cautionary tale for U.S. employers, according to an April 3 report from Covington & Burling. The case, announced in a Feb. 1 press release, resulted in a nearly $45,000 settlement payment from Honda Aircraft after it wrote in job postings that candidates were required to have a “specific citizenship status,” the press release said. The postings were based on the company’s “misunderstanding” of the International Traffic in Arms Regulations and the Export Administration Regulations, the Justice Department said. Honda Aircraft was ordered to remove all “specific citizenship requirements from current and future job postings.”
Export Compliance Daily is providing readers with some of the top stories for March 25-29 in case they were missed.
The Directorate of Defense Trade Controls has opened its Defense Export Control and Compliance System (DECCS) Commodity Jurisdiction Application for testing, it said in an update on its website. Industry participants may now begin testing the electronic form here, and can provide feedback by clicking a button in the application. The testing period will end April 3, DDTC said.
Michael Stashchyshyn, who owned a freight forwarder company in Parsippany, New Jersey, pleaded guilty March 20 to one charge of "conspiracy to violate the Arms Export Control Act," the Justice Department said in a March 21 news release. "In connection with the guilty plea, the court was advised that Stashchyshyn conspired with others to export night sighting equipment, firearm parts, and ammunition to Ukraine without the requisite license issued by the State Department," said the U.S. Attorney’s Office for the Western District of Pennsylvania. The items were bought in the U.S. and sent to Stashchyshyn, who "then shipped the items to an individual in Ukraine in violation of U.S. law and regulations. The items shipped are contained on the Federal Munitions List and are controlled by the International Traffic in Arms (ITAR) regulations. They are illegal to ship without a license from the State Department, which the defendant and his co-conspirators did not have."
Testing for commodity jurisdiction requests in the State Department’s Defense Export Control and Compliance System (DECCS) won’t begin until the week of March 25, the Directorate of Defense Trade Controls said in an updated message on its website. The message had previously said testing would begin March 20 (see 1903200046). “Another announcement will be posted when the system is available for testing,” DDTC said.
Testing for the State Department’s new system for commodity jurisdiction (CJ) requests began March 20, according to a recent post on the Directorate of Defense Trade Controls website. “The application incorporates the existing web-based system into the updated [Defense Export Control and Compliance System] platform, while maintaining user ability to submit CJ requests electronically. The system will be open through March 26th to collect user feedback,” DDTC said. Questions may be directed to the IT Modernization Team at PM_DDTCProjectTeam@state.gov, DDTC said.
The Bureau of Industry and Security seeks comments on the burden of its collection of information on defense offset agreements, it said in a notice. By law, U.S. companies must tell Commerce about offset agreements worth more than $5,000,000 associated with sales of weapons defense equipment to foreign countries or firms. Offsets, which are “required by most major trading partners when purchasing U.S. military equipment,” are industrial or commercial compensation practices in sales of defense articles or services under the Arms Export Control Act and the International Traffic in Arms regulations. Comments on the burden and ways to improve the information collection are due May 13.
The State Department seeks comments by May 7 on a proposed change to its procedures for submitting voluntary disclosures of violations of the Arms Export Control Act. “Historically, respondents to this information collection submitted their disclosures to [the Directorate of Defense Trade Controls (DDTC)] in writing via hard copy documentation. However, as part of an IT modernization project designed to streamline the collection and use of information by DDTC, a discrete form has been developed for the submission of voluntary disclosures. This will allow both DDTC and respondents submitting a disclosure to more easily track submissions,” it said. As it sends the new information collection procedure to OMB for approval, State seeks comments on whether the information collection is necessary, how it can be improved, and how the burden on industry can be reduced.