Export Compliance Daily is providing readers with the top stories for Sept. 8-11 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
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Four people, including a civilian employee of the Navy working as an engineer, were arrested for their involvement in a scheme to illegally download and sell export controlled technical drawings of U.S. military systems, the Department of Justice said Sept. 2. Navy engineer Mark Fitting of Berlin, New Jersey, allegedly worked with Lighthouse Point, Florida, resident Melony Erice to sell the drawings to Newport Beach, California-based Newport Aeronautical Sales Corp. (NASC), which later resold the documents to foreign customers, the agency said. Fitting and Erice allegedly sold at least 5,000 technical manuals and drawings to NASC, working with NASC employees George Posey and Dean Mirabal, both of Costa Mesa, California, who also were arrested.
The Bureau of Industry and Security ought to make available information that is more specific to university export compliance, the Association of University Export Control Officers said in a recent letter to BIS. The letter was prompted by a May Government Accountability Office report that similarly said more guidance for universities would be helpful (see 2005120053). “While it is possible for universities to glean some needed information from outreach materials and training geared toward industry, it can be difficult at times to interpret industry-focused guidance to the university environment,” the association said.
The State Department will implement a temporary waiver “of the policy of denial on the export, reexport, retransfer, and temporary import of non-lethal defense articles and defense services destined for or originating in the Republic of Cyprus,” the Directorate of Defense Trade Controls said in a Sept. 2 notice. The DDTC will temporarily amend the International Traffic in Arms regulations on Oct. 1 to allow for the waiver, which is a result of a State Department determination under the FY 2020 National Defense Authorization Act, it said. The U.S. policy won't change for “lethal defense articles and defense services destined for or originating” in Cyprus, it said.
The State Department seeks comments on its collections of information related to requests to change the end-user, end-use or destination of hardware, it said in a notice released Sept. 1. The requests, submitted via Defense Directorate of Trade Controls Form DS-6004, are used to seek DDTC approval prior to any sale, transfer, transshipment or disposal, whether permanent or temporary, of classified or unclassified defense articles to any end user, end use or destination other than as stated on a license or other approval. State expects 1,563 respondents will each take an hour to complete the form. Comments are due Nov. 2. After considering comments, State will submit the information collection to the Office of Management and Budget for reapproval.
Export compliance is never going to be perfect, panelists said, but with constant education, companies can ensure that their mistakes only warrant warning letters, not fines. The American Association of Exporters and Importers held a panel Sept. 1 about how export compliance plays out in the real world.
The State Department’s Directorate of Defense Trade Controls will hold a webinar Sept. 9 on using the Defense Export Control Compliance System licensing application, DDTC said in an Aug. 27 notice, which includes login information. The webinar will outline best practices and tips for accessing licenses and include a question-and-answer session at the end. The DDTC previously released a recording of its February webinar (see 2002280028).
Registration and licensing applications for the State Department’s Defense Export Control and Compliance System will be unavailable 6 a.m. to 8 a.m. EDT Aug. 24, an Aug. 20 notice said. The system will be down for scheduled maintenance, the State Department said, and users should save work in progress before the downtime commences.
The State Department’s Directorate of Defense Trade Controls issued a notice Aug. 19 to industry on payment methods in the Defense Export Control and Compliance System. New or renewal registrants must include the DDTC Account Number 1900000128 with their registration fee payment information when using the Automated Clearing House (ACH) debit payment method, DDTC said. The registrant “will experience a payment failure if the DDTC Account Number is not used,” the notice said.
The Department of Justice’s recent changes to its voluntary disclosure policies (see 1912130047) could lead to complications for companies and were met with backlash from other enforcement agencies, said Robert Clifton Burns, an export control lawyer with Crowell & Moring. The guidance, which outlined benefits for companies that disclose export control and sanctions penalties, can be interpreted as saying industry should first submit their voluntary disclosures to the Justice Department instead of to other agencies, Burns said.