The State Department is seeking comments on an information collection related to notifications submitted to the agency concerning changes in registration information, according to a notice. The information collection applies to companies registered with the Directorate of Defense Trade Controls involved in “producing or marketing” goods controlled under the International Traffic in Arms Regulations. The collection also applies to companies who may be involved in a merger, acquisition or divestiture of a company that deals in ITAR-controlled items. Comments are due June 1.
Export Compliance Daily is providing readers with some of the top stories for March 23-27 in case you missed them.
The Directorate of Defense Trade Controls issued a new frequently asked question designed to help users of the recently released encryption rule (see 2003260005) better understand the “provision of access information to foreign persons,” the agency said in a March 27 notice. The DDTC said violations can occur under this provision if a “regulated person” provides access information to a foreign person who is able to access the encrypted technical data in an “unencrypted form” but is “not authorized to have the technical data.”
The Directorate of Defense Trade Controls is suspending pickup and drop-off courier services to comply with the government’s guidance to “maximize” social distancing, the DDTC said in a March 26 notice. The agency will instead send documents to companies through the U.S. Postal Service, and said companies should continue to mail documents to DDTC “as they have done in the past.” Certain “special requirements” may apply if sending or receiving classified documents, DDTC said. Questions about classified documents should be directed to EisenbeissBK@state.gov and DiggsYM@state.gov.
The Directorate of Defense Trade Controls issued a reminder that its interim final rule that revised the International Traffic in Arms Regulations to provide definitions for activities that are not exports, re-exports, retransfers or temporary imports took effect March 25 (see 1912230052), the agency said in a notice. DDTC also reissued a guidance for the rule (see 2002210019), which makes significant changes to encrypted data controls (see 1912300024 and 2002280050).
All license and agreement request transfers will be sent once a day, effective March 23, according to a notice from the Directorate of Defense Trade Controls. The transfers will occur at 6 a.m. daily EDT, the notice said, but that is subject to change depending on the number of submissions or “technical concerns.” The DDTC said it will inform users of any “significant delays.” The agency added that licenses or agreements to be sent to CBP will be transferred at 9 a.m. daily. Questions should be directed to the DDTC Help Desk.
Industry should expect delays in licensing processing and commodity jurisdiction requests due to reduced staffing amid the COVID-19 outbreak, the Directorate of Defense Trade Controls said March 19. The DDTC is also urging industry to submit disclosures through email to DTCC-CaseStatus@state.gov. All “email material” should be submitted on company letterhead in a PDF format. DDTC is not requiring duplicate hard copies but will accept physical mail if a disclosure cannot be submitted through email.
The Department of Commerce denied Zimo Sheng’s export privileges after Sheng was convicted of violating the Arms Export Control Act, Commerce said in a March 16 order. Sheng attempted to illegally export to China the “upper assembly” for a Glock 48 pistol, which is listed on the U.S. Munitions List. Sheng was convicted Dec. 13, 2018, and sentenced to 40 months in prison and a $200 fine. After the sentencing, Commerce said Sheng left the U.S. and his “current whereabouts are unknown” to the Bureau of Industry and Security. Commerce revoked Sheng’s export privileges for 10 years from his date of conviction.
The Automated Export System will add 13 new Export Control Classification Numbers to its reference table to allow exporters to report electronic export information in the wake of the transfer of export controls over firearms from the State Department to the Commerce Department (see 2001170030 and 2003090029), the Census Bureau said in a notice emailed March 11. The notice contains instructions for determining which new ECCNs are eligible for certain license types. Census also clarified that by using any of the license exceptions or “No License Required,” exporters “are certifying that the terms, provisions, and conditions described in the [Export Administration Regulations] have been met.”
Export Compliance Daily is providing readers with some of the top stories for March 2-6 in case you missed them.