The State Department is seeking public comments on an information collection related to Part 130 of the International Traffic in Arms Regulations, which deals with political contributions, fees and commissions relating to sales of defense articles and defense services. Under the ITAR, defense exporters shipping certain goods worth more than $500,000 to a foreign armed service, international organization or others must notify the Directorate of Defense Trade Controls about certain political contributions or fees associated with the sale, the agency said. Comments are due July 28. DDTC last year saw an uptick in Part 130 violations (see 2109290056).
The Commerce Department published its spring 2022 regulatory agenda for the Bureau of Industry and Security, including two new mentions of rules that could result in new emerging technology export controls.
The State Department’s Directorate of Defense Trade Controls reminded industry that its Defense Export Control and Compliance System registration and licensing applications will be unavailable due to a system upgrade (see 2206140014). The application will be down from 2 p.m. EDT June 24 through 8 a.m. EDT June 27 as the agency releases its updated Licensing 2.0 application.
The State Department’s Directorate of Defense Trade Controls will release its updated Licensing 2.0 application to the Defense Export Control and Compliance System on June 24, the agency said this week. The updates will “provide greater flexibility and security for users and system administrators,” DDTC said, calling it a “significant step in DDTC’s effort to continuously modernize the DECCS application suite.” To make the change, DECCS Registration and Licensing will go offline at 2 p.m. EDT June 24 and resume June 27 at 8 a.m. EDT.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
Joe Sery, former owner and CEO of Tungsten Heavy Powder & Parts, pleaded guilty to conspiring to illegally export defense articles on the U.S. Munitions List to China, India and other countries without first getting a license from the State Department, the U.S. Attorney's Office for the Southern District of California announced June 9. Sery's actions violated the International Traffic in Arms Regulation, and he faces a maximum penalty of five years in prison and a $250,000 fine.
The Bureau of Industry and Security June 8 issued a temporary denial order for three U.S. companies for their involvement in illegally exported technical drawings and blueprints to China. BIS said it suspended the export privileges for Quicksilver Manufacturing, Rapid Cut and U.S. Prototype for 180 days after they illegally exported materials used to 3D print satellite, rocket and defense-related prototypes, which are subject to strict export controls because of their “sensitivity and importance to U.S. national security,” BIS said.
The State Department’s recent fine of a U.S. electro-optics equipment manufacturer (see 2202010058) highlighted a range of key takeaways for defense exporters, including the importance of the commodity jurisdiction process and recordkeeping, Torres Trade Law said in a June alert. The consent agreement also underscored the benefits of voluntarily disclosing violations, the firm said, which can significantly mitigate penalties.
The State Department’s Directorate of Defense Trade Controls this week posted the minutes and white papers from its April Defense Trade Advisory Group plenary (see 2204290032). The white papers include presentation information and recommendations from three DTAG working groups, including a recommendation for a new International Traffic in Arms Regulation exemption, recommendations for clarifications and corrections to certain ITAR definitions, and a report on ITAR-related challenges for controlled unclassified information.
The Bureau of Industry and Security soon will introduce a congressional notification requirement for certain firearm exports, the agency said in a final rule. The change, effective July 18, will add a new section to the Export Administration Regulations that will require congressional reporting for certain semiautomatic firearms shipments valued at $4 million or more and destined to certain countries. The requirement will apply to certain guns whose export control authority was transferred from the State Department to the Commerce Department in 2020 (see 2001170030).