The Commerce Department’s Bureau of Industry and Security (BIS) initiated an administrative proceeding with Amplifier Research Corporation over 51 violations of the Export Administration Regulations that include U.S.-origin amplifier exports to end users in China, India, Russia, Hong Kong, Singapore, Malaysia, Taiwan, Korea and Thailand, the agency said. Amplifier Research Corporation lacked the required licenses to complete the exports, according to the Dec. 27 order. BIS is assessing a $500,000 civil penalty on Amplifier Research Corporation. The company is also forced to hire a third-party consultant to conduct an internal audit of its export controls compliance program.
The Commerce Department’s Bureau of Industry (BIS) and Security and the State Department’s Directorate of Defense Trade Controls (DDTC) made corrections to the BIS-DDTC July 8, 2013 final rule that transferred dual use items from the U.S. Munitions List (USML) to the Commerce Control List (CCL). The July 8 rule revised USML Categories VI (Vessels of War and Special Naval Equipment), VII (Tanks and Military Vehicles), XIII (Auxiliary Military Equipment) and XX (Submersible Vessels, Oceanographic and Associated Equipment). The July 8 rule will take effect on Jan. 6, along with this correction. The BIS correction (here) revises the July 8 rule to exclude code of federal regulations part 744, adds headings and preambles and makes clarifications to particular terminology in the text. The DDTC correction (here) revises punctuation, provides exact effective dates for the paragraphs regarding developmental articles and revises part 126 of the code of federal regulations.
The Census Bureau updated, effective Dec. 31, the Schedule B and Harmonized Tariff Schedule (HTS) tables in the Automated Export System (AES) to accept changes to 2014 codes. AES will accept shipments with outdated 2013 codes during a 30-day grace period following the Dec. 31 expiration date. Reporting an outdated 2013 code after the 30-day grace period will generate a fatal error. The AESDirect program has also been updated with the 2014 codes and will accept shipments with outdated 2013 codes during the grace period as well. All AESPcLink users must update their AESDirect code tables to reflect the 2014 changes in Schedule B and HTS. AESDirect users who file via the website at aesdirect.census.gov will have their code tables updated via the program automatically. Census published online the 2014 Schedule B and HTS codes (here) and the current list of HTS codes that are not valid for AES (here). For more information, contact the Census AES branch at (800) 549-0595, option 1 for AES, askaes@census.gov and online at www.census.gov/trade or http://globalreach.blogs.census.gov.
Oregon LNG said it was pleased with a three-month stay agreement between Oregon LNG and the Oregon Department of Land Conservation and Development on its completed Coastal Zone Management Act application. Oregon LNG has proposed a $6-plus billion liquefied natural gas (LNG) export terminal and associated pipeline near the mouth of the Columbia River in Warrenton, Ore. Oregon LNG CEO Peter Hansen said the project "remains on track to receive most of its federal permits by the end of 2014."
The Bureau of Industry and Security and the State Department each issued concurrent final rules related to the implementation of transfers from State’s U.S. Munitions List to the BIS Commerce Control List as part of export control reform.
The Bureau of Industry and Security is removing a Russian entity, as well as two entries for that entity in Germany and Taiwan, from the Entity List based on a removal request. Effective Dec. 31, BIS said it will remove from the Entity List Russia-based entity T-Platforms, as well as T-Platforms GmbH of Germany and T-Platforms (aka Platforms Solutions Development Limited) of Taiwan. The removal eliminates additional licensing requirements under Supplement No. 4 to Part 744 of the Export Administration Regulations, but it doesn’t affect obligations under other parts of the EAR, Commerce said.
Effective Jan. 1, the Automated Export System (AES) will generate a fatal error back to filers that use Export Control Classification Numbers (ECCNs) 1C351, 1C352, 1C353 and 1C354 with AES License Codes C32 or C33 designated for No License Required (NLR), the Census Bureau said on Oct. 23. The decision restricts filing electronic export information through AES for shipments of certain chemical and biological items. The referenced ECCNs are controlled and subject to a Bureau of Industry and Security (BIS) license requirement for all destinations, including Canada.
The U.S. export of military goods increased from $8.3 million in 2002 to $18.8 million in 2012, the Census Bureau said in a Dec. 18 blog post. The majority of the military goods, which do not include those sent to the U.S. military overseas, went to Asia, primarily Japan and South Korea, according to Census. In 2012, military aircraft constituted 70 percent of U.S. military exports, including fighter jets, helicopters, engines, launching gear. The export value for military aircraft parts, however, exceeded the export value for intact aircraft, according to Census. Export Control Reform revised U.S. military aircraft controls in its Oct. 15 implementation rule (see 13110705).
The U.S. should secure the comprehensive elimination of tariff and non-tariff barriers in a final Trans-Pacific Partnership (TPP) pact in order to boost U.S. pork exports to TPP nations by 50 percent over the next decade, said 31 Senators in a letter to U.S. Trade Representative Michael Froman and Department of Agriculture Secretary Tom Vilsack. Pacific Rim countries are implementing “highly restrictive” barriers that are preventing the growth of U.S. pork exports, said the Senators. “Japan, for example, maintains a complex system of tariffs that reduces the price and quality advantages of U.S. pork,” said the letter. “Vietnam, in addition to having burdensome administrative requirements, continues a reference price scheme on imported pork that raises the cost to import certain pork cuts above the market price. Furthermore, despite an existing bilateral trade agreement, Australia still uses non-tariff barriers to limit U.S. exports to either processed pork or frozen, boneless pork for further processing.” U.S. pork exports contribute a $5 billion annual surplus to the overall U.S. trade balance, they said.
The Bureau of Industry and Security is asking for comments by Jan. 13 on the impact that implementation of the Chemical Weapons Convention (CWC) has had on commercial activities involving “Schedule 1” chemicals during calendar year 2012. Information collected will be used by BIS to prepare its annual certification to Congress, which is required by the 1997 Senate Resolution giving its advice and consent to the ratification of the CWC.