Every Monday we post the highlights out of last week’s FCC Export/Import Daily Update (“The Daily Bugle”). Send out every business day to approximately 6,500 readers of changes to defense and high-tech trade laws and regulations, The Daily Bugle is a free daily newsletter from Full Circle Compliance, edited by James E. Bartlett III, Alexander P. Bosch, Vincent J.A. Goossen, and Alex Witt.
We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations. Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items. To subscribe, click here.
Last week’s highlights of The Daily Bugle included in this edition are:
- Commerce/BIS: “Mohan L. Nirala of Laurel, MD,Denied Export Privileges for 10 Years”; The Daily Bugle; Monday, 1 Apr 2019, Item #4;
- German BAFA Publishes Annual Report 2018; The Daily Bugle; Tuesday, 2 Apr 2019, Item #8;
- EU Publishes Correction to EU Dual-Use Regulation; The Daily Bugle; Wednesday, 3 Apr 2019, Item #5;
- UK DIT/ECJU: “UK Company Fined More Than £80,000 For Illegal Exports”; The Daily Bugle; Wednesday, 3 Apr 2019, Item #6;
- Commerce/Census: “The Automated Export System (AES) Compliance Review Program”; The Daily Bugle; Thursday, 4 Apr 2019, Item #3;
1. Commerce/BIS: “Mohan L. Nirala of Laurel, MD, Denied Export Privileges for 10 Years”
(Source: Commerce/BIS, 26 Mar 2019.)
* Respondent: Mohan L. Nirala, Laurel, MD
* Charges: On March 13, 2017, in the U.S. District Court for the Eastern District of Virginia, Mohan L. Nirala (“Nirala”) was convicted of violating Section 793(e) of the Espionage Act (18 U.S.C. 792-799 (2012)) (“the Espionage Act”). Nirala was convicted of having unauthorized possession of a document relating to the national defense, namely, a forty-seven page classified document containing emails, exhibits, and PowerPoint slides, each individually marked as being classified, and willfully retaining the document and failing to deliver it to the officer and employee of the United States entitled to receive it. Nirala was sentenced to twelve months and one day in prison, supervised released for one year and an assessment of $100.
* Debarred: Denied export privileges for ten years from the date of Nirala’s conviction, until 13 March 2027.
* Date of Order: 25 Mar 2019.
2. German BAFA Publishes Annual Report 2018
(Source: German BAFA, 2 Apr 2019.)
The German Federal Office for Economic Affairs and Export Control (BAFA) published its Annual Report for the year 2018.
The Annual Report 2018 provides a good overview of the work of the BAFA in 2018 in the areas of foreign trade, energy, business and SME promotion, and the auditor oversight body APAS.
Regarding export control, the Annual Report 2018 covers the following topics in detail:
– The Chemical Weapons Convention (CWC)
– Test Procedures for Visiting Scientists dnd Proliferation Risks
– Cross-Border Movement of Radioactive Materials
– Satellite Data Security
– Vessel Security and Patrol
The Annual Report can be downloaded here(In German).
3. EU Publishes Correction to EU Dual-Use Regulation
(Source: Official Journal of the European Union, 3 Apr 2019.)
* Corrigendum to Commission Delegated Regulation (EU) 2018/1922of 10 October 2018 amending Council Regulation (EC) No 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items ( OJ L 319, 14.12.2018)
4. UK DIT/ECJU: “UK Company Fined More Than £80,000 For Illegal Exports”
(Source: UK ECJU, 3 Apr 2019.)
The UK Export Control Joint Unit (ECJU) of the Department of International Trade (TID) has published notice to exporters 2019/05:
Her Majesty’s Revenue & Customs (HMRC) recently issued a compound penalty of £82,152.33 to a UK exporter. This related to unlicensed exports of military goods controlled by The Export Control Order 2008.
Export control legislation is enforced by HMRC, working with the Crown Prosecution Service. Where appropriate, HMRC can use their powers to offer a compound penalty in lieu of prosecution. …
5. Commerce/Census: “The Automated Export System (AES) Compliance Review Program”
(Source: Global Reach Blog, 3 Apr 2018.) [Excerpts.]
The AES Compliance Review Program is our annual outreach effort to visit noncompliant companies and provide filing resources, training and expertise tailored to those companies who need it most.
The goals of the program are to:
– Help noncompliant companies understand the export reporting requirements.
– Work with companies to develop and implement best practices to ensure compliance and reporting accuracy.
– Help companies avoid costly encounters with government enforcement agencies due to noncompliance.
– The AES Compliance Review Program’s proactive approach is designed to combat noncompliance with the Foreign Trade Regulations (FTR), which can result in fines, penalties, seizures or cargo delays at the port.
How Are Companies Identified as Noncompliant?
Noncompliance can be caused by many factors. With that in mind, companies can be identified as noncompliant for a multitude of reasons. The justifications include but are not limited to:
– Poor Filing Practices — Low monthly AES compliance rate, late filing or failing to resolve fatal errors.
– Misclassification — Filing incorrect Schedule B or Harmonized Tariff Schedule (HTS) numbers, filing with foreign currency, filing with incorrect units of measure, or failing to verify information with a commodity analyst.
– Violating the FTR — Failure to file a Voluntary Self-Disclosureis noncompliance with the FTR.
Impact on AES Compliance
The AES Compliance Review Program works to correct compliance problems before intervention from enforcement agencies, while providing companies direct contact with subject-matter experts. As a result, companies are able to determine who to work with and how to resolve their issues quickly, leading to an increase in their AES compliance rate. While not all factors are incorporated into its calculation, a 100 percent AES compliance rate should be a standing goal for all AES filers. The historical data below illustrates this program’s direct impact on AES compliance rates. …