The May 24, 2013 Proposed Rules introduced by the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) and the U.S. State Department’s Directorate of Defense Trade Controls (“DDTC”), a part of the on-going Export Control Reform (“ECR”) initiative, are consistent with the previous changes made as part of the initiative. BIS: http://www.gpo.gov/fdsys/pkg/FR-2013-05-24/pdf/2013-11986.pdf DDTC: http://www.gpo.gov/fdsys/pkg/FR-2013-05-24/pdf/2013-11985.pdf They introduce substantive changes to the rules to reduce unnecessary, outdated, or disproportionate regulation, and clarify the current rules to reduce confusion about their interpretation. The broad objective of ECR is to replace existing catchalls with more targeted standards for those items controlled by the International Traffic in Arms Regulations (“ITAR”), which are listed on the United States Munitions List (“USML”). Many articles are being moved from the more restrictive USML, regulated by DDTC under the ITAR, to BIS’ Commerce Control List (“CCL”).
Posted in Export Administration Regulations, Export Control, Export Control Reform Initiative, International Traffic in Arms Regulations, ITAR
Tagged BIS, CCL, DDTC, EAR, ECR, ITAR, USML
EXPORT CONTROL REFORM CHANGES OF APRIL 16, 2013:
FOR BETTER OR FOR WORSE FOR THE U.S. ECONOMY?
President Obama’s Export Control Reform (ECR) initiative has taken a significant step forward with the final rule changes published by the U.S. State Department and U.S. Department of Commerce on April 16, 2013. State: http://www.gpo.gov/fdsys/pkg/FR-2013-04-16/pdf/2013-08351.pdf Commerce: http://www.gpo.gov/fdsys/pkg/FR-2013-04-16/pdf/2013-08352.pdf. ECR began in 2009, and new rule changes are expected throughout 2013. The first set primarily deals with aircraft and associated parts – changes in regulation of other defense articles are likely later this year. The total export value of the items affected by the recent rule changes exceeds $20 billion annually. Continue reading
Posted in Export Administration Regulations, Export Control, Export Control Reform Initiative, International Trade, ITAR
Tagged BIS, CCL, DDTC, EAR, ECR, ITAR, USML
The Department of Energy is extending the deadline for industry feedback on its Energy Savings Performance Contracts (“ESPC”) to May 17, 2013.
The Department of Energy website explains ESPCs as follows:
On January 29, 2013, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued Directive No. 306: “Complying with Non-Discrimination Provisions: Criminal Records Restrictions and Discrimination Based on Race and National Origin.” The directive advises federal government contractors and subcontractors that hiring policies and practices that exclude workers with criminal records may violate employment discrimination laws because of racial and ethnic disparities that exist in the criminal justice system. The OFCCP cautions that hiring policies “that exclude people from employment based on the mere existence of a criminal history record and that do not take into account the age and nature of an offense . . . are likely to unjustifiably restrict the employment opportunities of individuals with conviction histories. Due to racial and ethnic disparities in the criminal justice system, such policies are likely to violate federal anti-discrimination law.”
To read the full article, click HERE.
The Committee on Foreign Investment in the United States (CFIUS) released December 20, 2012, the unclassified version of its Annual Report to congress for CY 2011. For the first time CFIUS made a finding that the U.S. Intelligence Community “judges with moderate confidence that there is likely a coordinated strategy among one or more foreign governments or companies to acquire U.S. companies involved in research, development, or production of critical technologies for which the United States is a leading producer.” The “critical technologies” at issue are defined with reference to U.S. export control regulations, and include (1) defense goods and services controlled on the U.S. Munitions List; (2) certain items on the Commerce Control List that are controlled for reasons of national security, chemical and biological weapons proliferation, nuclear nonproliferation, or missile technology, as well as those that are controlled for reasons of regional stability or surreptitious listening; (3) specially designed nuclear equipment, technology, software, etc.; and (4) select agents and toxins. CFIUS views a “coordinated activity” as “a plan of action reflected in directed efforts developed and implemented by a foreign government, in association with one or more foreign companies, to acquire U.S. companies with critical technologies. CFIUS does not consider the efforts of a single company in pursuit of business goals (such as entry into the U.S. market; increased market share; increased sales; access to new technologies; and diversification out of mature industries), absent indications of specific government direction, to be a coordinated strategy. Continue reading