Census, BIS Officials Discuss Census Voluntary Self-Disclosures
Census Bureau and Bureau of Industry and Security officials discussed voluntary self-disclosures at the September 13-16, 2009 National Customs Brokers & Forwarders Association of America Government Affairs Conference.
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The following are highlights of their comments:
Census Sends Copies of All Census VSDs to BIS, Notifies CBP and ICE
Census' mandatory Automated Export System (AES) final rule amended the Foreign Trade Regulations to add 15 CFR 30.74 on voluntary self-disclosures (VSDs), which states that the Census Bureau strongly encourages disclosure of any violation or suspected violation of the Foreign Trade Regulations (FTR, 15 CFR Part 30).
According to the regulations, VSDs should be submitted to the Census Bureau, which will then notify U.S. Customs and Border Protection, Immigration and Customs Enforcement, and BIS of the voluntary disclosure.
Census and BIS sources state that Census also sends copies of all VSDs submitted to Census to BIS to determine whether a license is involved. If BIS is already in the process of investigating the company and/or specific transaction, then it is not considered a VSD for Census (or BIS) purposes.
(The Census VSD regulations (15 CFR 30.74) only apply when information is received by Census for review prior to the time that Census, or any other agency of the U.S. Government, has learned the same or substantially similar information from another source and has commenced an investigation or inquiry in connection with that information.
VSDs are a mitigating factor in determining what administrative sanctions, if any, will be sought. Note that CBP issued its mandatory AES/FTR penalty mitigation guidelines in January 2009.)
Census Will Refer VSD Companies to CBP in Certain Situations
Census will refer companies to CBP for penalties only after it has received numerous VSDs over a 3-year timeframe and have made several attempts at informed compliance.
If a Census VSD Involves a Licensing Agency, a Separate VSD Should Also be Sent to That Agency
If the transaction that the Census VSD is being submitted for includes a BIS, State Department, or any other agency's export license, a VSD should be sent to that agency as well. Note that each agency may have different rules for VSDs that should be followed.
(See ITT's Online Archives or 06/05/08 news, 08060515, for Part II of BP's summary on Census' final rule on mandatory AES, which discusses VSDs.
See ITT's 01/08/09 news, 09010810, for BP summary of the mandatory AES/FTR penalty mitigation guidelines.)