The Department of Defense has issued an interim rule, effective December 20, 2011, to implement a section of the National Defense Authorization Act for Fiscal Year 2011. The section provides that photovoltaic devices to be utilized in performance of any covered contract shall comply with the Buy American statute, subject to the exceptions provided in the Trade Agreements Act of 1979 or otherwise provided by law. Comments are due by approximately February 20, 2012.
The U.S. Attorney's Office for the Northern District of Ohio has announced that EO System Company, Ltd., a corporation located in South Korea, and three South Korean citizens have been indicted for illegally knowingly and willfully exporting, defense articles on the U.S. Munitions List (USML) to South Korea.
On December 20, 2011, the Treasury Department announced the designation of ten shipping and front companies based in Malta and one individual, which are affiliated with the Islamic Republic of Iran Shipping Lines (IRISL), an entity facing international sanctions for its involvement in Iran’s efforts to advance its missile programs and transport military cargoes. Treasury states that the action is being taken as IRISL and its subsidiaries have increasingly relied upon multiple front companies and agents to overcome the impact of U.S. and international sanctions and increased scrutiny of their behavior.
Export.gov has announced a series of international trade shows that are scheduled for January through November 2012.
The Bureau of Industry and Security has announced that due to heavy call volume, a number of people were unable to participate in its December 14 and 19 export reform teleconferences. BIS states that it has corrected the technical difficulties to allow for more participants to join the call and asks participants to call a new number -- 1-888-455-8218 with participant code: 6514196. The weekly teleconferences will continue on Wednesdays at 2:00 p.m. to 3:00 p.m. and any questions should be emailed to oesdseminar@bis.doc.gov with the subject line of "Teleconference questions". (See ITT's Online Archives 11121207 for summary of BIS' launch of the weekly teleconferences.)
Census has posted to its Web site, its schedule for its upcoming meetings and presentations on the Automated Export System and other export issues.
The Directorate of Defense Trade Controls has posted the United Kingdom's (here) and Canada's (here) implementation guidelines regarding ITAR section 126.18 for intra-company, intra-government, and intra-organization transfers of defense articles to dual or third-country national employees. DDTC began allowing applicants to submit TAAs and MLAs incorporating the new policy on section 126.18 on August 15, 2011.
The State Department is transmitting 41 letters on the certification of proposed amendments to manufacturing license agreements (MLAs) for the manufacture of significant military equipment abroad and the export of defense articles, including technical data, and defense services abroad in the amount of $1 million to $50 million or more. The transactions described in the certifications involve the export of defense articles, including technical data, and defense services to support the manufacture and sale of various goods in certain countries. The U.S. Government is prepared to license the export of these items having taken into account political, military, economic, human rights, and arms control considerations. See letters for respective effective dates.
The Bureau of Industry and Security has posted an "advisory opinion" guidance document for the public to use when preparing commodity classification (“CCATS”) requests for information pertaining to the development or production of carbon fiber organic matrix composite items. BIS states that it hopes to begin building a public collection of carbon fiber organic matrix composite-related classification determinations that will be the foundation for common understandings between industry and government.
The State Department has issued a proposed rule to amend 22 CFR Parts 120, 122, 126, 127 and 129 of the International Traffic in Arms Regulations regarding the definitions of broker and brokering activity and related provisions. The proposed revisions are intended to clarify the scope of brokering activities, registration, prior approval and guidance, requirements and exemptions, reporting and recordkeeping, etc. The State Department is also proposing certain revisions to the DS-2032 form, the annual brokering report, and the brokering prior approval application.