The Treasury’s Office of Foreign Assets Control left out several key components of an effective compliance program in its recent sanctions compliance guide, according to a May 6 report from law firm Paul Hastings. The report said the guide should have included descriptions and instructions for “a confidential reporting process,” an "investigations process,” “disciplinary measures for employees which fail to follow the program” and “an emphasis” on mid-level employees stressing the importance of compliance instead of just senior management. The report said these components “appear in guidance documents in other areas” and "it is not clear why OFAC chose to omit these nuances … but no doubt practitioners will seek further clarification from OFAC in the weeks and months to come.” The guide, published May 6, represented an escalating step in OFAC’s effort to disseminate information about effective compliance programs, potentially allowing the agency to more successfully prosecute compliance cases (see 1905030055). The guide provides details of compliance programs that are “now all but mandatory in OFAC’s opinion,” the report said.

The Directorate of Defense Trade Controls' Defense Export Control and Compliance System (DECCS) Commodity Jurisdiction application is live, the State Department said in a May 6 notice. The new system allows users to save commodity jurisdiction applications as drafts and return to them later. Users can also now download a PDF version of the submitted form for record keeping, State said. Commodity jurisdiction determinations allow users to determine whether a product or service is covered by the U.S. Munitions List and subject to International Traffic in Arms Regulations export controls, State said. All “DTrade Super Users with valid email addresses” were automatically enrolled in DECCS, the notice said.

Export Compliance Daily is providing readers with some of the top stories for April 29 -May 3 in case they were missed.

The recent Global Conference on the future of the Harmonized System for tariffs and trade held by the World Customs Organization resulted in some broad policy recommendations, the WCO said in a news release. Those recommendations will now be sent to the WCO Policy Commission for consideration. The event, which took place May 2-3 at the WCO, included "over 300 participants from Member Customs administrations, partner international organizations, industry associations, trade professionals, import/export companies and academia," it said.

Namibia will launch a new customs and tax agency in October as part of a broader trade facilitation effort underway in the country, according to a report in the Namibia Economist. The new Namibia Revenue Agency (NAMRA) "aims for faster clearance times for legitimate trade and increased transparency in regulatory processes and decision-making,” said Acting Customs Commissioner Thandi Hambira, according to the report. Namibia will also create a “Customs Information Centre,” which will “offer online declaration of cargo to be accessed from the clients office as well as pre-arrival processing for perishables, medicaments, ship spares” along with other goods, she said. “Although the client reserves freedom of transit, container inspections at client, importer and exporter premises will also be carried out.” NAMRA will replace the Customs & Excise and Inland Revenue departments in the Ministry of Finance, the report said.

The African Continental Free Trade Area looks set to take effect in July during the next African Union Summit, according to a report in The East African. A total of 22 countries must ratify the agreement and submit their instruments of ratification, and 20 have done so, while another two have ratified but not yet submitted the paperwork. “The AfCFTA brings together a continental single market, which is expected to increase intra-African trade by 52 per cent come 2022, remove tariffs on 90 per cent of goods, liberalise services and tackle other barriers to intra-African trade,” the report said.

The Canada Border Services Agency updated the Regulated Commodities Data Element Matching Criteria Tables for use with Integrated Import Declarations, the CBSA said in a May 6 email. Effective May 6, the agency said it updated the tables for headings covered by Transport Canada, Natural Resources Canada, Health Canada, the Canadian Food Inspection Agency, Global Affairs Canada, and Environment and Climate Change Canada. The update will appear on CBSA's website, though the agency notes that the website is still being updated.

A mutual recognition arrangement between Singapore and Australia on authorized economic operator programs takes effect May 15, Singapore Customs said in a May 6 circular. Under the MRA, members of trusted trader programs in Singapore and Australia -- Secure Trade Partnership and Australian Trusted Trader, respectively -- will now receive “facilitated customs clearance” in the other country. Singapore companies that are non-members of STP but are exporting to or importing from ATT companies, and Australian companies that are non-members of ATT but are exporting to or importing from STP companies, may still receive benefits if they include their business partner’s AEO code on their export or import declaration.

The Treasury’s Financial Crimes and Enforcement Network issued an update to its advisory on Venezuelan attempts to “steal, hide or launder money” in the wake of U.S.-imposed sanctions, FinCEN said in a May 3 press release. The 15-page advisory -- described as a guide for “chief risk officers,” chief compliance officers,” “sanctions analysts” and “legal departments,” among others -- provides an overview of U.S. sanctions against Venezuela and details the country’s attempts to avoid them. The guide also provides “financial red flags” to help companies report “suspicious activity that may be indicative of corruption by Venezuelan senior political figures.”

Regulations of U.S. export controls have recently become “more difficult to apply,” according to a study released May 6 by the U.S.-China Economic and Security Review Commission. The study, which focuses broadly on methods that Chinese companies use to transfer technology from the U.S., said regulators are facing more difficulty predicting which “early-stage technologies developed for commercial purposes” could be used for future military purposes. The study also briefly touched on the Foreign Investment Risk Review Modernization Act, signed into law in 2018, which allows the Committee on Foreign Investment in the U.S. to review transactions by foreign entities in the U.S. to determine their impact on national security. The study said FIRRMA leaves some methods of Chinese technology transfers “unaddressed,” including “investments in U.S. critical technologies based outside” the U.S.