International Trade Law News

The online version of Vanderbilt University's student newspaper reports how the recent conviction of University of Tennessee professor J. Reece Roth of violating U.S. export control laws" has spurred fellow academics, including those at Vanderbilt, to more closely examine their collaborations with the international scientific community."

The article notes:

"We haven’t had any problems like Professor Roth’s in the past. Now there is more tension about the topic because it is closer to home. But I think it is possible to happen anywhere,” said Director of the Office of Sponsored Research John Childress. “The law is the law and it covers you no matter which institution you are part of.”

A separate article, entitled "Research Community has Strict Rules" reports on Vanderbilt's policies associated with dealing with export controlled research.

Labels: Deemed Exports, Export Controls

The Bureau of Industry and Security today announced that the inaugural meeting of the Emerging Technology and Research Advisory Committee (ETRAC) will be held in Washington, DC on September 23, 2008.

The ETRAC was established earlier this year to advise BIS on technical questions that affect export controls on dual-use research and development and other emerging technology activities, including those related to deemed exports.

The names of the ETRAC members have not yet been announced.

Labels: BIS, Deemed Exports, Export Controls

The Bureau of Industry and Security (BIS) has announced that Ingersoll Machine Tools of Rockford, Illinois has agreed to pay a $126,000 civil penalty ($15,750 per violation) to settle allegations that it committed eight unlicensed deemed exports to Italian and Indian foreign nationals in violation of the Export Administration Regulations.

According to BIS, the allegations involved deemed exports of production and development technology for vertical fiber placement machines and production technology for five axis milling machines to Indian and Italian nationals between November 2003 and January 2007. The technology was controlled for National Security and Missile Technology reasons to Italy and India. In addition, the technology was also controlled to India for Nuclear Non-Proliferation reasons.

Pursuant to the deemed export rule in section 734.2(b)(ii) of the EAR, the release of controlled technology to a foreign national in the U.S. is deemed to be an export of the technology to the person's home country and a deemed export license must be obtained if the transfer of the same technology to the foreign national's home country would require an export license.

Labels: Deemed Exports

It seems that export control-related stories are everywhere these days and export controls have now even made the business magazines.

The latest edition (July 21, 2008) of Forbes Magazine contains a story on how "deemed exports" controls have "gotten a new push from the government, largely because of security concerns about China." The story, entitled "The Spy in the Lab" discusses a number of recent enforcement cases involving violations of the deemed export rule.

Labels: Deemed Exports

The Commerce Department's Bureau of Industry and Security (BIS) recently imposed a $31,500 penalty on TFC Manufacturing Inc., a Lakewood, California-based aerospace fabrication facility, for violating the "deemed export" rule.

According to the Settlement Agreement and Proposed Charging Letter, BIS alleged that between March and April 2006, TFC engaged in the unlicensed released in the U.S. of technology for the production of aircraft parts (classified under ECCN 9E991) to an employee who was a national of Iran. Pursuant to the deemed export rule in section 734.2(b)(ii) of the Export Administration Regulations (EAR), the release of technology to a national of Iran is deemed to be the export of the technology to Iran and is prohibited without a license.

This penalty was imposed under the increased penalty provisions of the IEEPA Enhancement Act.

Labels: BIS, Deemed Exports

On March 6, 2008, the American Association of Exporters and Importers (AAEI) will hold a seminar in Washington, DC on the Deemed Export Advisory Committee's Report. The speakers at the program will include representatives of the Bureau of Industry and Security, the Deemed Export Advisory Committee (DEAC), the private sector and the legal community.

For more information and to register, click here.

The full text of the Deemed Export Advisory Committee's report, entitled "The Deemed Export Rule in the Era of Globalization" can be found here.

AAEI's Annual Conference will take place in New York City from June 1-3, 2008. Registration for the conference will begin in mid-March.

Labels: Deemed Exports, Export Controls

Twelve trade-related business organizations today sent a letter to U.S. Secretary of Commerce Carlos Gutierrez expressing their concerns with several recommendations contained in the Deemed Export Advisory Committee's (DEAC) December 20, 2007 report. The letter also warned of the significant negative impact on U.S. technological leadership if certain recommendations contained in the DEAC's report were adopted.

The organizations agreed with the DEAC report findings regarding the difficulty of controlling the global flow of technological knowledge, particularly through the use of unilateral U.S. export control regulations. The organizations also endorsed the report's call for limiting the scope of deemed exports. However, the letter criticized the DEAC report for a lack of guidance in addressing either of these issues.

The letter concluded by urging the Commerce Department to "go back to the drawing board and work closely with industry in developing an approach that will produce a more balanced result."

On February 6th, BIS announced that it completed its review of the DEAC's report and has started working with the Departments of Defense, State and Energy to consider the report's analysis and recommendations as a basis for reforming current deemed export policy. On that same date BIS also announced that it would create an Emerging Technologies Advisory Committee to make recommendations to BIS regarding emerging technologies and improve outreach and engagement efforts to the academic and technology communities about deemed export policies.

The letter sent to Secretary of Gutierrez can be found here .

The full text of the DEAC report, entitled "The Deemed Export Rule in the Era of Globalization" can be found here.

Labels: BIS, Deemed Exports

The Bureau of Industry and Security (BIS) announced today that it has completed its review of the Deemed Export Advisory Committee's (DEAC) December 20, 2007 report and has started working with the Departments of Defense, State and Energy to consider the report's analysis and recommendations as a basis for reforming current deemed export policy.

While certain proposals under active consideration will require interagency review and support, Under Secretary Mario Mancuso has directed BIS to immediately:

• Create an Emerging Technologies Advisory Committee, composed of representatives from leading research universities, government research labs and industry to make recommendations to BIS regarding emerging technologies on a regular basis; and

• Improve outreach and engagement efforts to the academic and technology communities about the progress and scope of the deemed export policy efforts.

Other recommendations in the DEAC report, such as creating a category of "Trusted Entities", performing an annual "sunset review" of technologies contained on the Commerce Control List and expanding the determination of the national affiliation of potential licensees will require regulatory changes to implement.

The full text of the DEAC report, entitled "The Deemed Export Rule in the Era of Globalization" can be found here.

Labels: BIS, Deemed Exports

The Bureau of Industry and Security (BIS) announced in today's Federal Register that the next meeting of the Deemed Export Advisory Committee (DEAC) will take place on September 10, 2007 in Washington, DC. The DEAC will meet in open session from 9 a.m.-11 a.m., followed by a session closed to the public. Details on the meeting agenda and location can be found here.

The DEAC's objective is to make recommendations for possible improvements to policies on the transfer of technology or source code subject to the Export Administration Regulations and to advise the Secretary of Commerce on deemed export licensing policy.

Labels: BIS, Deemed Exports

The Bureau of Industry and Security (BIS) announced in Monday's Federal Register that the Deemed Export Advisory Committee (DEAC) is soliciting speakers for its meeting in Boston, Massachusetts on June 19, 2007. The DEAC is seeking speakers from industry, academia and other backgrounds to address the DEAC members on issues related to deemed exports and, in particular, their organizations' perspectives and concerns related to U.S. deemed export control policies. Speakers must notify BIS of their interest to appear at the DEAC meeting by May 30, 2007.

Labels: BIS, Deemed Exports