As many seasoned trade compliance professionals have pointed out you need to be careful what you ask for. A good example of that is the proposed revision to Part 129 of the ITAR. If you have not read it carefully you most certainly should.
Additionally, if you want a right between the eyes assessment of its significant impact and implications, read the two articles in Jim Bartlett’s Ex/Im Daily Update from Clif Burns, Counsel, at Bryan Cave LLP’s Washington DC Office. The first titled “DDTC Releases New Proposed Brokering Rules” is in the Monday, December 19th, 2011, edition. The second: “And It Just Gets Worse and Worse“ is in yesterdays, December 21st edition.
If your organization or you are in any way affected by these changes, I strongly encourage you to take the time and make the effort to submit comments. They are due by February 17th, 2012. Do not expect the US Government to appreciate or understand the impact and implications, unless you tell them. In the context of changes like this or evolving Export Control Reform, you have got to speak up. If you do not, you deserve what you get. Remember: New does not necessarily mean better.
NOTE: If you are an Empowered Official or trade compliance professional at any level and you are not already on distribution for Jim Bartlett's Ex/Im Daily Update, you most definitely need to be! Make your request directly to Jim at James.Bartlett@NGC.com. I guarantee you will find it invaluable. Consider it a fitting Christmas present to yourself and your organization.
Thursday, December 22, 2011
Wednesday, November 23, 2011
SOUTHWEST AEROSPACE & DEFENSE TRADE COMPLIANCE FORUM, Las Cruces, New Mexico; April 4-5, 2012 - A Unique Outreach, Education and Training Opportunity!
This low-cost, high-quality, hands-on, practical-application and case study focused effort is hosted by the US Commercial Service and the New Mexico Economic Development Department. It includes a seminar, networking reception, workshops and a tour of Spaceport America.
Day one Seminar topics include: Overview and Update on US Export Controls; International Traffic in Arms Regulations (ITAR) HOT Topics: State Department Trends, Defense Service Exports, Export Control Reform Initiatives, Agreements, Brokering, Third-Country/Dual Nationals, D-Trade, Merger & Acquisition Due Diligence, and much more…; Automation & Software Essentials in Trade Compliance; Industry Panel - How to Successfully Navigate the ITAR Minefield; Enforcement Update and Latest Consequences of Non-Compliance with Important Case Studies and Lessons Learned. Day one ends with a Q&A session followed by a networking reception.
On day two attendees have two workshops to pick from.
TRACK 1 is “Challenges Facing Empowered Officials and Trade Compliance Professionals: Minimizing Exposure, Liability and Risk” and includes sessions on Investigations, Disclosures and Decision Making; What the Regulations Don’t Say and How to Prepare for What’s Ahead, Hands-on Interactive Case Studies and ends with a presenter Q&A period.
TRACK 2 is “Commercial Space and the ITAR” with sessions on What Every Commercial Space Entrepreneur Needs to Know; USML Categories IV, VIII and XV, as well as Relevant CCL Entries; Obstacles to Export; Interagency and Regulatory Conflicts Launch/Spaceflight Insurance Issues, Defense Services, etc.; Spaceports and the ITAR: Compliance Requirements for the Owner, Operators, Tenants, Suppliers, etc.; Hands-on Interactive Case Studies and also ends with a presenters Q&A.
In the afternoon of day two there is a special Spaceport America Tour.
For a flyer with additional details including hotel information, a complete agenda and registration link, go to http://www.scribd.com/doc/76317513/Southwest-Aerospace-Defense-Trade-Compliance-Forum-Flyer.
This program is intended for anyone who deals with global trade compliance (including exports, imports, customs, logistics, business development, marketing, procurement, engineering, operations, security, human resources, contracting, supply chain...) and related regulatory, compliance and enforcement issues.
Day one Seminar topics include: Overview and Update on US Export Controls; International Traffic in Arms Regulations (ITAR) HOT Topics: State Department Trends, Defense Service Exports, Export Control Reform Initiatives, Agreements, Brokering, Third-Country/Dual Nationals, D-Trade, Merger & Acquisition Due Diligence, and much more…; Automation & Software Essentials in Trade Compliance; Industry Panel - How to Successfully Navigate the ITAR Minefield; Enforcement Update and Latest Consequences of Non-Compliance with Important Case Studies and Lessons Learned. Day one ends with a Q&A session followed by a networking reception.
On day two attendees have two workshops to pick from.
TRACK 1 is “Challenges Facing Empowered Officials and Trade Compliance Professionals: Minimizing Exposure, Liability and Risk” and includes sessions on Investigations, Disclosures and Decision Making; What the Regulations Don’t Say and How to Prepare for What’s Ahead, Hands-on Interactive Case Studies and ends with a presenter Q&A period.
TRACK 2 is “Commercial Space and the ITAR” with sessions on What Every Commercial Space Entrepreneur Needs to Know; USML Categories IV, VIII and XV, as well as Relevant CCL Entries; Obstacles to Export; Interagency and Regulatory Conflicts Launch/Spaceflight Insurance Issues, Defense Services, etc.; Spaceports and the ITAR: Compliance Requirements for the Owner, Operators, Tenants, Suppliers, etc.; Hands-on Interactive Case Studies and also ends with a presenters Q&A.
In the afternoon of day two there is a special Spaceport America Tour.
For a flyer with additional details including hotel information, a complete agenda and registration link, go to http://www.scribd.com/doc/76317513/Southwest-Aerospace-Defense-Trade-Compliance-Forum-Flyer.
This program is intended for anyone who deals with global trade compliance (including exports, imports, customs, logistics, business development, marketing, procurement, engineering, operations, security, human resources, contracting, supply chain...) and related regulatory, compliance and enforcement issues.
Sunday, October 16, 2011
FY-2010 and 2011 State Department Enforcement Statistics - Is an Organization You Know or Work with Included?
Glenn Smith, Chief of the Enforcement Division, Office of Defense Trade Controls Compliance (DTCC), Directorate of Defense Trade Controls (DDTC), Bureau of Political-Military Affairs, U.S. Department of State was a speaker on Wednesday, October 12, 2012 at the monthly meeting of the National Council on International Trade Development in Washington DC.
During his very well done and informative informal remarks, he reviewed and discussed DDTC DTCC compliance, enforcement and settlement statistics and trends for FY-2010 and 2011. He approved public release and distribution of the data.
The one page document is available online at http://www.scribd.com/doc/68891888/DDTC-DTCC-Disclosure-Stats-101211.
During his very well done and informative informal remarks, he reviewed and discussed DDTC DTCC compliance, enforcement and settlement statistics and trends for FY-2010 and 2011. He approved public release and distribution of the data.
The one page document is available online at http://www.scribd.com/doc/68891888/DDTC-DTCC-Disclosure-Stats-101211.
Tuesday, October 11, 2011
Supreme Court Denies Dr. Roth Appeal - CASE CLOSED!
The appeals for indicted Dr. John Reece Roth, former University of Tennessee Professor, that have dragged out for years have now come to a final conclusion. On October 3, 2011, the US Supreme Court decided not to hear his case.
Roth, now 73, will likely serve his four-year sentence in a minimum security prison close to his family near Knoxville, TN. He is eligible for early release after serving 86% of his term. Additionally, he may be allowed to spend the last 6 months of his sentence in a halfway house.
According to prosecutors Jeff Theodore and Will Mackie, Roth repeatedly and arrogantly ignored warnings because he disagreed with the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR) restrictions. Roth and his lawyers countered he was merely ignorant of the law and that the AECA and ITAR only applied to finished products and not to those in research and development.
If your organization does any work with academic institutions and/or research and development facilities, you need to be well up-to-speed on what happened here. Dr. Roth has been and remains “the example” to point to regarding knowing and willful violations of the AECA and ITAR in the academic arena and what ultimately happens to those who intentionally violate the law.
An updated version of the one-page Indictment Summary is available on my Linked in Homepage in the “View Full Profile” mode at http://www.linkedin.com/in/johnpriecko. Scroll down to SlideShare Presentations and click on “October 10th Dr. John Reece Roth Updated Indictment Summary.” A copy is also available online at http://www.scribd.com/doc/68421595/Dr-John-Reece-Roth-Updated-Indictment-Summary-101011.
Roth, now 73, will likely serve his four-year sentence in a minimum security prison close to his family near Knoxville, TN. He is eligible for early release after serving 86% of his term. Additionally, he may be allowed to spend the last 6 months of his sentence in a halfway house.
According to prosecutors Jeff Theodore and Will Mackie, Roth repeatedly and arrogantly ignored warnings because he disagreed with the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR) restrictions. Roth and his lawyers countered he was merely ignorant of the law and that the AECA and ITAR only applied to finished products and not to those in research and development.
If your organization does any work with academic institutions and/or research and development facilities, you need to be well up-to-speed on what happened here. Dr. Roth has been and remains “the example” to point to regarding knowing and willful violations of the AECA and ITAR in the academic arena and what ultimately happens to those who intentionally violate the law.
An updated version of the one-page Indictment Summary is available on my Linked in Homepage in the “View Full Profile” mode at http://www.linkedin.com/in/johnpriecko. Scroll down to SlideShare Presentations and click on “October 10th Dr. John Reece Roth Updated Indictment Summary.” A copy is also available online at http://www.scribd.com/doc/68421595/Dr-John-Reece-Roth-Updated-Indictment-Summary-101011.
Wednesday, August 17, 2011
1st ARIZONA EXPORT COMPLIANCE SUMMIT - September 7th & 8th, 2011
REMINDER: This two-day high-quality low-cost program is at the Scottsdale Resort and Conference Center, 7700 East McCormick Parkway, Scottsdale AZ 85258.
Further details and registration are available at http://www.regonline.com/azexportsummit or from contact Sally Chambers, 480-884-1658 or sally.chambers@trade.gov, U.S. Commercial Service, Arizona. Registration discounts are available for ICPA members and there is a special rate at the hotel for attendees.
For a two-page flyer on the program go to: http://www.scribd.com/doc/62509935/1st-ARIZONA-EXPORT-COMPLIANCE-SUMMIT-Flyer-September-7th-8th-2011; and for a Detailed Agenda: http://www.scribd.com/doc/62510410/1st-ARIZONA-EXPORT-COMPLIANCE-SUMMIT-Detailed-Agenda-September-7th-8th-2011.
Further details and registration are available at http://www.regonline.com/azexportsummit or from contact Sally Chambers, 480-884-1658 or sally.chambers@trade.gov, U.S. Commercial Service, Arizona. Registration discounts are available for ICPA members and there is a special rate at the hotel for attendees.
For a two-page flyer on the program go to: http://www.scribd.com/doc/62509935/1st-ARIZONA-EXPORT-COMPLIANCE-SUMMIT-Flyer-September-7th-8th-2011; and for a Detailed Agenda: http://www.scribd.com/doc/62510410/1st-ARIZONA-EXPORT-COMPLIANCE-SUMMIT-Detailed-Agenda-September-7th-8th-2011.
Monday, August 15, 2011
October 20th ESSENTIALS of US EXPORT CONTROLS and TRADE COMPLIANCE for Practitioners and Counterparts in the Maryland, Virginia and Washington DC Area
Are you looking for an outstanding full day program of high-quality, low cost and unique hands-on practical application-oriented session focused on small and medium size organizations new to international trade or those considering business expansion globally? If so, this program will tell you exactly what you need to do and know to abide by the letter and spirit of the law in our demanding, dynamic and very competitive international marketplace.
This engaging, instructive and interactive program is a MUST ATTEND if you: Think your organization’s exports are not regulated; Are not sure your organization’s exports are regulated; Are certain your organization’s exports are regulated.
The agenda includes: An Overview of US Export Controls: the Essential Players, Policies and Processes, the Critical Importance of Jurisdiction, Consequences of Non-Compliance, Related Hot Topics and Case Studies, Export Control Reform: Impact and Implications, Interactive Trade Compliance Automation and Software Workshop, a local area Industry Panel with three representatives from diverse small, medium and large companies who will share best practices, lessons learned and how to most effectively navigate the demanding and regulation driven minefield. Q&A is included with each session and periodically during the program to ensure all your questions are addressed.
In the afternoon there are also free 30-minute individual sessions with the presenters to discuss your issues of interest. Sign-up for these (first-come first-served) when you register online. Do not miss this unique opportunity!
This valuable education and training is hosted by the US Commercial Service and the Virginia-Washington DC District Export Council and jointly sponsored by: Trade Compliance Solutions (TCS), Management Dynamics Inc (MDI), the law firm of Jones Day (JD), Northern Virginia Technology Council (NVTC), Virginia Economic Development Partnership, (VEDP), The Export Practitioner and International Compliance Professionals Association (ICPA).
A copy of the one-page flyer is available at http://www.scribd.com/doc/62284732/Oct-20th-Export-Essentials-Flyer. For more information, please contact: Emily Thornton, Phone: 404-418-5490, Email: emilythornton@managementdynamics.com. Register now at http://bit.ly/usexportcontrol. There are discounts for DEC, NVTC and ICPA members.
This engaging, instructive and interactive program is a MUST ATTEND if you: Think your organization’s exports are not regulated; Are not sure your organization’s exports are regulated; Are certain your organization’s exports are regulated.
The agenda includes: An Overview of US Export Controls: the Essential Players, Policies and Processes, the Critical Importance of Jurisdiction, Consequences of Non-Compliance, Related Hot Topics and Case Studies, Export Control Reform: Impact and Implications, Interactive Trade Compliance Automation and Software Workshop, a local area Industry Panel with three representatives from diverse small, medium and large companies who will share best practices, lessons learned and how to most effectively navigate the demanding and regulation driven minefield. Q&A is included with each session and periodically during the program to ensure all your questions are addressed.
In the afternoon there are also free 30-minute individual sessions with the presenters to discuss your issues of interest. Sign-up for these (first-come first-served) when you register online. Do not miss this unique opportunity!
This valuable education and training is hosted by the US Commercial Service and the Virginia-Washington DC District Export Council and jointly sponsored by: Trade Compliance Solutions (TCS), Management Dynamics Inc (MDI), the law firm of Jones Day (JD), Northern Virginia Technology Council (NVTC), Virginia Economic Development Partnership, (VEDP), The Export Practitioner and International Compliance Professionals Association (ICPA).
A copy of the one-page flyer is available at http://www.scribd.com/doc/62284732/Oct-20th-Export-Essentials-Flyer. For more information, please contact: Emily Thornton, Phone: 404-418-5490, Email: emilythornton@managementdynamics.com. Register now at http://bit.ly/usexportcontrol. There are discounts for DEC, NVTC and ICPA members.
Friday, July 1, 2011
Condensed Version of the US Department of State Settlement with BAE Systems plc--Intriguing Food for Thought...
For a one-page overview and Settlement Summary of the May 16, 2011, Directorate of Defense Trade Controls (DDTC), Consent Agreement with BAE Systems plc (BAES) go to http://www.scribd.com/doc/59079036/BAE-Systems-Plc-051611-Settlement-Summary-with-the-US-Department-of-State-as-of-070111. This follows a March 2010 Department of Justice (DOJ) action against BAES that resulted in a guilty plea and $400 million dollar criminal fine, one of the largest penalties in history.
This template summary is a factual overview of the two-thousand five-hundred and ninety-one alleged violations of the Arms Export Control Act and International Traffic in Arms Regulations for BAES unauthorized brokering of US defense articles and services. The overall case and details make for “very interesting reading.”
NOTE: In my experience in putting these summaries together for the last 8 years, this is one of the most convoluted and inconsistent settlements ever. When carefully scrutinized, one has to wonder what the message from DDTC is. Clearly there were no winners here, but the obvious disconnects between the facts stated and in the settlement documents and actions taken, do not track.
To really appreciate all this, you must carefully read the entire settlement package on the DDTC website and then start comparing the text in different sections and with the consequences. I recommend you do just that and see what conclusions you come to and what you take away. Add your candid comments to this discussion thread.
This summary consolidates material from the Proposed Charging Letter, Consent Agreement and Order. It is a much more concise and consistent summary in a format that is particularly useful for C-level executives and trade compliance professional’s education/training at all levels.
Thoroughly reading settlements and monitoring various US Government enforcement and compliance resources should be an integral part of any trade compliance professional’s reading and an essential element in any comprehensive Trade Compliance Program. One-page summaries like these help get the word out in a bite-size way and allow readers to more quickly digest and compare individual cases.
This settlement summary is also available on my LinkedIn home page in the “View Full profile” mode at http://www.linkedin.com/in/johnpriecko. Scroll down to the SlideShare Presentations portion and then click on the graphic “BAE Systems plc Settlement Summary.”
This template summary is a factual overview of the two-thousand five-hundred and ninety-one alleged violations of the Arms Export Control Act and International Traffic in Arms Regulations for BAES unauthorized brokering of US defense articles and services. The overall case and details make for “very interesting reading.”
NOTE: In my experience in putting these summaries together for the last 8 years, this is one of the most convoluted and inconsistent settlements ever. When carefully scrutinized, one has to wonder what the message from DDTC is. Clearly there were no winners here, but the obvious disconnects between the facts stated and in the settlement documents and actions taken, do not track.
To really appreciate all this, you must carefully read the entire settlement package on the DDTC website and then start comparing the text in different sections and with the consequences. I recommend you do just that and see what conclusions you come to and what you take away. Add your candid comments to this discussion thread.
This summary consolidates material from the Proposed Charging Letter, Consent Agreement and Order. It is a much more concise and consistent summary in a format that is particularly useful for C-level executives and trade compliance professional’s education/training at all levels.
Thoroughly reading settlements and monitoring various US Government enforcement and compliance resources should be an integral part of any trade compliance professional’s reading and an essential element in any comprehensive Trade Compliance Program. One-page summaries like these help get the word out in a bite-size way and allow readers to more quickly digest and compare individual cases.
This settlement summary is also available on my LinkedIn home page in the “View Full profile” mode at http://www.linkedin.com/in/johnpriecko. Scroll down to the SlideShare Presentations portion and then click on the graphic “BAE Systems plc Settlement Summary.”
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