International Trade Law News

The hearing hearing on policy considerations associated with the Export Administration Act that was to be held at 2 p.m. today by House Foreign Affairs Committee's Subcommittee on Terrorism, Nonproliferation and Trade has been postponed. The new hearing date has not yet been set.

The witnesses scheduled to appear at the hearing were:

• The Honorable John Engler, President and Chief Executive Officer of the National Association of Manufacturers
  

• Arthur Shulman, Esq., Senior Research Associate at the Wisconsin Project on Nuclear Arms Control

• Owen Herrnstadt, Esq., Director of Trade and Globalization Policy at the International Association of Machinists and Aerospace Workers

The Export Administration Act of 1979, which lapsed in August 2001, has not been renewed by Congress. The Export Administration Regulations have remained in effect pursuant to Executive Order 13222 issued on August 17, 2001 pursuant to the International Emergency Economic Powers Act and extended annually by the President.

Labels: EAA, Export Controls

The State Department's Directorate of Defense Trade Controls (DDTC) today published in the Federal Register the long-awaited final rule amending Category VIII of the U.S. Munitions List (USML) to clarify how the criteria of section 17(c) of the Export Administration Act should be applied in determining whether certain basic parts and components having a long history of use on both civil and military aircraft should be under the jurisdiction of the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulations.

The new rule amends USML Categories VIII(b) and (h) and adds an important new "Note" after Category VIII(h) which clarifies that any part or component that (a) is standard equipment; (b) is covered by a civil aircraft type certificate (including amended type certificates and supplemental type certificates) issued by the Federal Aviation Administration for civil, non-military aircraft (this expressly excludes military aircraft certified as restricted and any type certification of Military Commercial Derivative Aircraft); and (c) is an integral part of such civil aircraft, is subject to the Export Administration Regulations.

The public comments submitted to DDTC on the proposed rule can be found DDTC's website.

Update: In a press release, Marion Blakey, President and CEO of the Aerospace Industries Association American said today that this rule "will be a shot in the arm for the aerospace industry and American exports."

Labels: DDTC, EAA, Export Controls, ITAR

Because the Export Administration Act of 1979, which lapsed in August 2001, has not been renewed by Congress, President Bush has issued a notice stating that the national emergency caused by the lapse of the Export Administration Act of 1979 (EAA) will continue in effect for one year beyond August 17, 2008. As a result, the Export Administration Regulations will remain in effect pursuant to the International Emergency Economic Powers Act.

Renewing the EAA is a top priority for BIS senior management.

The text of the notice is reprinted below:

Notice: Continuation of Emergency Regarding Export Control Regulations

On August 17, 2001, consistent with the authority provided to me under the International Emergency Economic Powers Act (50 U.S.C. 170l et seq.), I issued Executive Order 13222. In that order, I declared a national emergency with respect to the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States in light of the expiration of the Export Administration Act of 1979, as amended (50 U.S.C. App. 2401 et seq.). Because the Export Administration Act has not been renewed by the Congress, the national emergency declared on August 17, 2001, must continue in effect beyond August 17, 2008. Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency declared in Executive Order 13222.

This notice shall be published in the Federal Register and transmitted to the Congress.

GEORGE W. BUSH

THE WHITE HOUSE,

July 23, 2008.

Labels: BIS, EAA

The National Council on International Trade Development's (NCITD) May 10th meeting will feature speakers on European export control issues and the renewal of the Export Administration Act.

Scott E. Sullivan, Vice President and Global Trade Counsel of Flowserve Corporation and
U.K.-based Stacey L. Lax of Ernst & Young LLP will discuss European export control and compliance issues.

Erik Heilman, Director of Congressional and Public Affairs, Bureau of Industry and Security, U.S. Department of Commerce, will discuss the proposed Export Enforcement Act of 2007, which would reauthorize the Export Administration Act.

For information on how to join NCITD or to attend the meeting, see www.ncitd.org or contact the NCITD Secretariat at 202-872-9280.

Labels: EAA, Export Controls

The Bureau of Industry and Security (BIS) has released the proposed text of the "Export Enforcement Act of 2007", which would renew the lapsed the Export Administration Act of 1979 (EAA). The proposed bill, which BIS hopes will be introduced in Congress in the near future, would renew the EAA for five years after the date of enactment. The Export Enforcement Act of 2007 would make no substantive changes to most of the EAA. Rather, the proposed bill would modify only certain law enforcement aspects of the EAA, including significantly increasing the civil and criminal penalties for violations of export control laws.

The proposed penalties represent a substantial increase over those contained in the EAA and the International Emergency Economic Powers Act (IEEPA). If passed by Congress, the Export Enforcement Act of 2007 would increase the maximum civil penalties for violations of the Export Administration Regulations from $50,000, as provided for in IEEPA, to $500,000. Criminal penalties on corporations would be increased to the greater of $5 million or ten times the value of the exports involved.

In addition, the Export Enforcement Act proposes to:

• Provide U.S. Immigration and Customs Enforcement and BIS Office of Export Enforcement Agents with expanded undercover authority and overseas investigative authority.
• Make permanent provisions protecting confidential business and other information protected by the EAA.
• Authorize BIS to participate in the Department of the Treasury's Asset Forfeiture Fund.
• Toll the statute of limitations in administrative cases where a related criminal case is ongoing.
• Expand the list of criminal violations upon which a denial of export privileges may be based.

The proposed text and section-by-section analysis of the Export Enforcement Act of 2007 can be found here (pdf) and here (pdf).

Labels: BIS, EAA