Source: https://www.learnexportcompliance.com/blog/2015/
Timestamp: 2019-02-19 18:22:41
Document Index: 526050640

Matched Legal Cases: ['§ 742', '§ 748', 'art 774', '§122', '§122', '§122', '§126', '§124', '§122', '§124', '§124', '§126']

2015 – Export Compliance Training Institute
Oy, 521! X-Ray Stealth Now EAR Controlled and More Changes on Wing Folding Systems
Oy, another 521! On November 16, 2015 BIS added XBS Epoxy System to the List of 0Y521 Series. The Epoxy system is designed to obfuscate critical technology components against X-ray and terahertz microscopy imaging attempts. This seems to be the stuff that you could spray on that oversized jug of body cream or your Swiss army knife so they would not be detected by airport x-ray machines. Oy, TSA!
The 0Y521 Series was established in April 2012 for items for which there is no ECCN but that should be controlled for export because they provided at least a significant military or intelligence advantage to the US, or because foreign policy reasons justify its control. 0Y521 controls are temporary controls that allow BIS to impose controls on a temporary basis while it sorts things out—including making sure the controls are justified and attempting to get other countries to impose similar export controls.
This rule classifies XBS Epoxy System (ECCN 0C521) to be controlled for regional stability (RS) Column 1 reasons. The only license exception available for these items is for exports, reexports, and transfers (in-country) made by or consigned to a department or agency of the US Government. The license requirements and policies for ECCN 0Y521 series appear in § 742.6(a)(7) of the EAR.
License applications for this item may be submitted through SNAP–R in accordance with § 748.6 of the EAR. Exporters are directed to include detailed descriptions and technical specifications with the license application, and identify the item as 0C521.
In this rule, BIS has also removed technology and software related to aircraft wing folding systems from the 0Y521 Series List. The following changes have been made:
Entries No. 3 0D521 and No. 2 0E521, respectively, in Supplement No. 5 to part 774 are obsolete because, in accordance with procedure established in the April 13, 2012, final rule, the U.S. Government adopted a control through the relevant multilateral regime(s), which determined an appropriate longer-term control over the item. The wing fold system ‘‘software’’ is now controlled by ECCN 9D001, and the ‘‘technology’’ is controlled by ECCN 9E003.j on the CCL
As always, BIS is encouraging you to submit your comments on these changes. You may submit comments by any of the following methods:
Federal eRulemaking Portal: www.regulations.gov. The identification number for this rulemaking is BIS– 2015–0043.
By email directly to: publiccomments@bis.doc.gov. Include RIN 0694–AG70 in the subject line.
By mail or delivery to Regulatory Policy Division, Bureau of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN 0694–AG70.
Michael Rithmire, Electronics and Materials Division, Office of National Security and Technology Transfer Controls by phone at (202) 482–6105 or by email at Michael.Rithmire@bis.doc.gov.
Posted in BIS, Commerce Dept, Export License
BIS Posts Update 2015 Speeches and Presentations
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has posted on its website speeches and presentations given at its Update 2015 conference that took place earlier this week in Washington, DC.
DDTC Updates GC’s for Amendments and Adds Time Restrictions
DDTC has posted an updated guidance that will simplify the authorization matrix and spreadsheets and add a new time restriction for amending the General Correspondence (GC) for Amendments of Existing ITAR Authorizations. They will also clarify who may submit the GC and will take comments from industry after they implement the update. Contact Pete Walker at walkerwp@state.gov, 202-663-2806 with questions and comments.
§122.4 states that a registrant must notify DDTC of all material changes to their registration file. These include:
Merger/acquisitions and/or
Registration code consolidations and combinations thereof
Per §122.4(c)(3), the licenses affected by these changes must be identified to DDTC via a spreadsheet/matrix attached to a General Correspondence letter. Any license not identified will be considered invalid. Per §122.4(c)(4), affected agreements require an executed amendment for a US entity name change within 60 days of notification. Any agreements not so amended will be considered invalid.
GC requests are applicable regardless of the number of authorizations involved and will cover approval of both DSP licenses and agreements. NEW CHANGE:
The GC request must be submitted within 60 days after DDTC approval or acknowledgment of the change.
DDTC will entertain name/address changes or registration code change amendments up to 180 days after the date of the approved GC
DDTC general policy will be to RWA amendments to GCs that fall outside of the 180 day time frame (they will review these on a case-by-case basis)
If the GC amendment is RWA (Return without Action), the applicant will have to individually replace any remaining licenses, and amend any agreements pursuant to 124.1(c)
Name or Registration Change:
When requesting a name or registration code change the following documentation must be included in with the submitted GC for the US entity:
A letter identifying the requested changes;
A §126.13 certification letter;
A copy of the DTCC’s letter acknowledging the requested change(s), if issued, and;
A matrix/spreadsheet containing the authorizations to be transferred.
Mergers & Acquisitions Changes:
For these, the GC must come from the acquiring party and if the GC does not come from the acquirer the GC will likely be RWA’d. The GC must contain the following:
A subject line clearly indicating that the GC will amend export authorizations as a result of a corporate restructuring, merger/acquisition and/or registration code consolidation or any combination thereof.
Concise description of the proposed transaction, in particular the
Acquirer and acquiree’s registrant codes (i.e., the “before and after” registration codes.)
The request must reference the submitted documentation and, if applicable, provide an attached DTCC approval letter.
The following statement MUST be included: “Modifications to the existing agreements submitted as part of this letter are specifically limited to a change to the registration code and/or to the U.S. entity name as a result of an approved merger or acquisition, and are signed by the new U.S. entity, the former U.S. licensor and the foreign licensee(s). Any other modifications will be requested through a proposed amendment in accordance with §124.1(c) or (d).” If no executed amendment is required (such as registration code change only) then this statement is not necessary.
The spreadsheet/matrix of authorizations to be transferred must include all existing and pending authorizations. Only those authorizations identified in the list will be amended. Any authorization not included will be considered invalid and a new authorization must be obtained. The spreadsheet/matrix must include the following information for each authorization:
License or agreement number; (Note: §122.4(c)(3) states that registrants shall advise DDTC of all approvals on which unshipped balances will be shipped under the surviving registration code. However, registrants should also consider referencing exhausted licenses in order to retain access to such licenses in DTrade;)
Disposition of authorization (Approved or Pending Approval);
Date of Authorization Expiration;
New registration number and/or company name (if applicable), and;
State Y or N if an executed amendment is required (for agreements only.)
For expeditious review, the applicant should filter the spreadsheet as follows: registration #/new name/existing authorizations/pending authorizations.
Agreements Changes
DDTC will annotate affected agreements in its database.
Changing the Registration Code for Agreements:
Submit a GC request
US Entity Name Change for Agreements issued thru DTrade:
Upload executed “minor amendment” (defined by §124.1(d)) into DTrade case file
US Entity Name Change for Paper Agreements:
The following documents must be sent via separate cover letters
Upload a cover letter citing GC case number in the body
Third Parties Affected by Change
A third-party is a US entity other than the license holder who has submitted the GC request. Third party licenses affected by a US entity name change does not require a DSP amendment for he affect DSP license. The DDTC issues web notice of name change serves as approval for the change. This notice should be attached to all affected licenses.
Agreements affected by US entity name changes will require the agreement holder to amend the agreement. The executed amendment will serve as a minor amendment (§124.1(d)). The agreement holder must upload the re-executed agreement to the relevant DTrade Case. Any applicants with a pending agreement or amendment must notify the respective DDTC Agreement or Licensing Officer of the upload of a revised executed agreement.
For Company Address Changes Only:
If the US registrant changes address (i.e. address change only, no change in company name or registration code) the following must be submitted:
A letter identifying the requested changes to the company address;
A §126.13 certification letter, and;
A copy of the DTCC’s letter acknowledging the requested change(s), if issued.
DDTC will issue an acknowledgement letter to the US registrant regarding the address change and issue a web notice to alert the US applicants of the address change and provide guidance.
View DDTC’s full notice here: http://pmddtc.state.gov/licensing/documents/gl_GCsMandA.pdf
Posted in DDTC, Defense Trade Controls, Export License
(Source: census@subscriptions.census.gov, 18 Nov 2015)
To help you resolve AES Fatal Errors, here are some tips on how to correct the most frequent errors that were generated in the AES for this month.
Fatal Error Response Code: 132
Narrative: Port of Export Must Be A Road Port
Reason: The Port of Export reported is not allowed for road shipments
Resolution: The Port of Export Code reported must accommodate the Mode of Transportation indicated in your shipment. See Appendix D – Export Port Codes for a list of acceptable Port of Export Codes and their corresponding Modes of Transportation. Verify the Port of Export Code and Mode of Transportation Code combination, correct the shipment and resubmit.
Fatal Error Response Code: 623
Narrative: Schedule B/ HTS Number Unknown
Reason: The Schedule B/ HTS Number reported is not valid in AES
Resolution: A valid Schedule B/HTS Number must be reported when adding or replacing a commodity line item, unless Export Information Code HH for shipments of household goods is reported. Verify the Schedule B/ HTS Number, correct the shipment and resubmit.
It is important that AES filers correct Fatal Errors as soon as they are received in order to comply with the Foreign Trade Regulations. These errors must be corrected prior to export for shipments filed pre-departure and as soon as possible for shipments filed post-departure, but not later than five calendar days after departure.
– Blog: http://blogs.census.gov/globalreach
Posted in AES
Posted in FTS/Census