International Trade Law News

The National Council on International Trade Development (NCITD) has established a scholarship for students of international trade.

Scholarships awarded (minimum $1,000) will be paid directly to the institution, in the name of the awardee(s).

Awardee(s) will also receive a one-year NCITD membership and will be welcome to attend monthly meetings

Criteria for Eligibility:

Applicants must have at least "junior" status for 2010-2011 in an accredited U.S. college or university with at least a 3.0 Grade Point Average or equivalent "B" average.

Applicants must be currently enrolled and pursuing either an undergraduate or graduate degree in International Trade studies, such as political science, international relations, economics, international business, international law, international finance, etc. (including study abroad programs affiliated with a U.S. university).

Application Process:

Applicants must complete and submit:

* The NCITD Scholarship application form;

* A copy of the most current transcript from the college or university;

* A letter of recommendation from a sponsoring NCITD member; or from a work colleague or professor;

* A brief (2500 words or less) narrative from the applicant explaining his/her interest in international trade and why the applicant should be awarded this scholarship, including merit and financial need.

Criteria for Selection, in Order of Importance:

* Proven interest or experience in international trade, e.g., education, work or volunteering;

* Current academic standing and performance, including honors and extracurricular activities;

* Strength of the narrative submission and recommendations by NCITD member, professor or work colleague;

* Preference will be given to candidates sponsored by employees of NCITD member firms.

Selection Process:

For consideration for the 2010-2011 academic terms, all applications must be submitted by April 15, 2010.

The Application, transcript, recommendation and narrative essay should be mailed in a single package OR emailed to:

ATTN: Scholarship Applications
c/o Christina Filipovic
NCITD
1707 L Street N.W.
Suite 570
Washington, DC 20036
Email: christina@ncitd.org

The NCITD Scholarship Committee will select the winner(s) and determine the award no later than April 15, 2010.

The winner(s) will be notified by e-mail and letter.

The scholarship(s) will be presented at the June 9, 2010 Compliance Meeting in Washington, DC.

The scholarship application form is available here.

For information contact Christina Filipovic at the NCITD Secretariat at 202-872-9280.

Labels: Miscellaneous

The next meeting of the National Council on International Trade Development (NCITD) will take place on Wednesday, March 10, 2010 in Washington, DC and will feature the following speakers:

• Adam Szubin, Director, Office of Foreign Assets Control, Department of the Treasury. Topic: OFAC News and Update;

• Charles Shotwell, Director, Office of Defense Trade Controls Policy, Directorate of Defense Trade Controls, US Department of State. Topic: Commodity Jurisdiction: Trends, Statistics and Automation Update;

• Jamal El-Hindi, Associate Director, Regulatory Policy and Programs Division, Financial Crimes Enforcement Network, Department of the Treasury. Topic: FinCEN Enforcement Efforts and Updates.

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: Miscellaneous, OFAC

AP: Taiwan-based company assists Chinese firm in obtaining pressure transducers for Iran -- http://bit.ly/929Jcd

Follow-up from previous tweet: Certain pressure transducers are classified on U.S. Commerce Control List as ECCN 2B230 (NP and AT controls)

New Blog Post: Management Consultant Arrested and Charged With Violating Iran Embargo: http://bit.ly/79P0SX

It's official: DDTC Appoints Lisa Studtmann as Director of Office of Defense Trade Controls Compliance -- http://bit.ly/5Km9KX

Politico: Beth McCormick to be Deputy Ass't Secy at State Dept's Bureau of Political-Military Affairs (oversees DDTC) - http://bit.ly/7mo4lZ

RT @complianceweek: Poll says compliance budgets are faring better than you'd expect, considering economy . . . http://bit.ly/7ZVdOw

New Blog Post: Coalition for Security and Competitiveness Releases Detailed Export Control Recommendations: The Co... http://bit.ly/5q1FbK

House Foreign Affairs Committee to hold export controls hearing at Stanford University on January 15th. Details here: http://bit.ly/6ptLlb

New Blog Post: Philadelphia Area Chemical Engineer Sentenced to Four Years in Prison for Violating Iran Sanctions:... http://bit.ly/7Gnx11

Pakistan claims to be implementing "effective export controls in line with international obligations": http://bit.ly/61RuOX

The Hill's story on yesterday's CSC export control reform recommendations found here: http://is.gd/6bxHC

SEC Enforcement Division names Cheryl J. Scarboro as head of Foreign Corrupt Practices unit. Details at http://bit.ly/707aub

AP reports that North Korea will allow more American tourists -- http://bit.ly/6Y5Fk4

LA Times: 3 men charged in scheme to illegally export vacuum pumps and equipment to Iran via UAE -- http://is.gd/6fkmk

Politico: At meeting with defense company executives SecDef Gates pledges support for export control reforms - http://bit.ly/7S8u8z

DefenseNews reports on new Deputy Assistant Secretary of State who will oversee defense export control agency: http://bit.ly/6qRsfP

American Association of Exporters and Importers' export control reform recommendations to Congress can be found here: http://bit.ly/8abX2y

Op-Ed by Rep. Berman in San Jose Mercury News on today's export controls hearing being held at Stanford: http://bit.ly/8obtnz

Rep. Berman: You practically have to have a law degree or Ph.D. to keep from running afoul of increasingly complex export-controls regime.

BIS adds Chinese entity to list of parties eligible for Validated End-User (VEU) program: http://bit.ly/7Qp0v7

National Defense Magazine: Job Creation Argument May Prompt Congress to Move on Arms Export Controls Reform - http://bit.ly/8tlUlG

AP: North Korea plays sanctions card in nuclear standoff -- http://is.gd/6nvR6

Stanford president urges lawmakers to change export controls at export controls hearing (from Stanford News) http://bit.ly/4Kry4X

San Jose Mercury News' story on yesterday's export controls hearing at Stanford found here: http://bit.ly/5HIDYA

Labels: Export Controls, Miscellaneous, Sanctions; Iran, Twitter

Season's Greetings and Happy New Year to all of our loyal readers from around the world. See you in 2010.

And in the spirit of the holiday season we have reprinted below Tyler Brown's A Harmonized (Tariff) Christmas.

—Doug Jacobson

For this analysis, we assumed that the Lords, Ladies, maids, and entertainers are not performing defense services.  Articles and material would appear to all be EAR99.  Dealing only with the associated hardware, I propose the following HTS designations:

• Twelve drummers drumming: 9206.00.20 00 - Percussion musical instruments (for example, drums, xylophones, cymbals, castanets, maracas): Drums
• Eleven pipers piping: 9205.90.20.60 - Woodwind instruments:  Flutes and piccolos (except bamboo)
• Ten lords a-leaping: Since there are no hereditary Lords in the U.S., the Country of Origin of the Lords would need to be specified, and the leaping activity subjected to an analysis as to whether it constitutes a defense service.
• Nine ladies dancing: See above.
• Eight maids a-milking: Given a modern interpretation: 8434.10.00.00 - Milking machines and dairy machinery, and parts thereof: Milking machines
• Seven swans a-swimming: 0106.39.00.00 - Birds: Other 
• Six geese a-laying: (Assume the geese weigh over 185 gms.) 0105.99.00.00 - Live poultry of the following kinds: Chickens, ducks, geese, turkeys and guineas: Other, Other
  
• Five golden rings: Note: 9. For the purposes of heading 7113, the expression "articles of jewelry" means: (a) Any small objects of personal adornment (for example, rings, bracelets, necklaces, broaches, earnings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia); 7113.19.50.00 - Of other precious metal, whether or not plated or clad with precious metal: Other, other.
  
•  Four calling birds: Today when people sing that song they usually sing about calling birds. But actually many years ago they sang the song's old English words. They sang about colly, or collie, birds. Colly or collie means black, according to the British Broadcasting Corporation. It comes from an old word for coal. Wikipedia pins down colly bird even more: to the European blackbird. Common in parks and cities in Europe, it looks like a dusky version of its cousin, the American robin. Both belong to the thrush family. Like all thrushes, they sing (or call) beautifully.  0106.39.00.00 - Birds: Other
• Three French hens: Live poultry of the following kinds: Chickens, ducks, geese, turkeys and guineas: Chickens, Weighing not more than 185 g: 0105.11.00; Breeding stock, whether or not purebred: 10 Layer-type (egg-type), 20 Broiler-type (meat-type), 40 Other; Chickens, Weighing more than 185 g: 0105.94.00.00  (We actually spent some time worrying about whether the "French Hens" might be a re-export...)
• Two turtle doves: 0106.39.00.00 - Birds: Other
• A partridge in a pear tree: 0106.39.00.00 - Birds: Other;  0602.20.00.00 - Trees, shrubs and bushes, grafted or not, of kinds which bear edible fruit or nuts.
  
  And remember, any Christmas ornamentation falls under 9505.10: Festive, carnival, or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Articles for Christmas festivities and parts and accessories thereof.

Labels: Miscellaneous

@Reuters: U.S. contract worker detained in Cuba: report http://link.reuters.com/ved56g

@BreakingNews: U.S. secretly froze more than $2 billion allegedly held for Iran in Citigroup accounts in 2008 - http://bit.ly/8zCjsq

Newsweek: Obama Administration intends to target 'dozens' of IRGC front companies in effort to squeeze Iran http://bit.ly/8hJF9z

Dallas Morning News: Federal agents in Dallas ground helicopter believed to be destinedfor Iran via Italy -- http://bit.ly/5b3F2I

Reuters: Germany probes technology shipments to Iran -- http://bit.ly/53k4O2

FDA debars Virginia man convited of importing catfish from Vietnam with false labels to avoid antidumping duties: http://bit.ly/6aVyC3

State Dep't requests Senate to delay consideration of Comprehensive Iran Sanctions, Accountability and Divestment Act 2009 (S.2799)

Politico: U.S. sentences Iranian lured in sting to 5 years http://bit.ly/5yBNBW

U.S. House of Representatives just passed H.R. 4284, legislation to extend expiring GSP and ATPA programs until December 31, 2010.

RT @anticorruption: TI welcomes new EU mandate to fight corruption http://bit.ly/5KnxLO

Politico: New information in case of a USAID subcontractor who was detained in Cuba on December 5. http://bit.ly/65VnNK

Politico: Rep. Berman says Iran sanctions bill empowers Obama Iran policy and will not force its hand -- http://bit.ly/7avunX

DOJ: Virginia exec charged with conspiring to bribe former Panamanian government officials for maritime contract--http://bit.ly/6Ce7FY

@Politico- Twitter diplomacy: U.S. to relax certain software sanctions rules for Iran -- http://bit.ly/6fDwBQ

DOJ: Credit Suisse forfeits $536 million for violating IEEPA & New York law for transactions with Iran, Sudan, etc. http://bit.ly/7npTaq

RT @Ethical_Corp - Op/Ed: Facilitation Payments: A business integrity officer’s perspective... http://bit.ly/6towKk

Ways and Means Trade Subcommittee Chairman Levin (D-MI) and Ranking Member Brady (R-TX) have introduced the Miscellaneous Tariff Bill of 2009.

Politico: U.S. moves to isolate Iran from banks (more on Credit Suisse and sanctions)-- http://bit.ly/6aKzU3

NYT: Questions on Security Mar Foreign Investments (discusses CFIUS issues involving Virgin Galactic and other cases) http://bit.ly/7a6zpK

RT @complianceweek: More on OECD's complaints about facilitation payments allowed under Foreign Corrupt Practices Act. http://bit.ly/5hI6hZ

Aviation Week Editorial: Ratify Export Treaties With U.K., Australia http://bit.ly/8t2q0V

Labels: Miscellaneous

• At EU-China business summit today, China's Premier urged EU to relax export controls on high-tech products to China: http://is.gd/57LZh
• GAO issues report on DOJ's selection of corporate monitors in deferred prosecution and non-prosecution agreements: http://is.gd/57N8B
• Today marks 10th anniversary of infamous Seattle WTO Ministerial protests. Seattle Times follow-up story here: http://is.gd/56XUw
• In letter to President Obama, U.S. Chamber of Commerce (@chamberpost) advocates modernizing export controls http://is.gd/5agkX
• Presentations from the 2009 BIS Update Conference on Export Controls held earlier this year are now available at http://is.gd/5agrC
• Dallas Morning News: "A tiny Texas plane maker says exports make jobs soar" http://is.gd /5aKWc
• NYT: 6 former Siemens officials agree to pay total of 18 million euros in damages resulting from bribery scandal: http://is.gd/5bh6O
• RT @tradelawyer: Legal Alert - Key Developments in Canadian Trade Controls and Economic Sanctions During 2009 http://ow.ly/IkuG
• BBC News: North Korean designer jeans to go on sale in Sweden http://is.gd/5cmVu
• Follow-up to previous tweet: Goods of North Korean origin may not be imported directly or indirectly to US w/out approval letter from OFAC

Labels: Miscellaneous

For those exporters and others interested in letters of credit issues it is not too late to register for next week's 2009 Americas Annual Letter of Credit Survey conference that will be held March 26 and 27, 2009 in Charlotte, North Carolina.

The Annual Letter of Credit Survey is the premier letter of credit event in the U.S. The conference will be attended by bankers, exporters, lawyers, carriers, forwarders, etc. from around the U.S.

During the conference, speakers will discuss the leading U.S. and foreign reported LC court cases, regulatory issues and what is going on around the world in LCs.

The conference also provides a useful forum for the exchange of practical information and views on LCs.

The flyer for the program can be found here (pdf). Click here for more information and to register for the program.

Labels: Miscellaneous

In an interview with International Trade Law News, Frank Reynolds, the U.S. Delegate to the International Chamber of Commerce's (ICC) Incoterm's drafting committee, said that the revised version of Incoterms 2000 should be released in the fall of 2010. Once released, the new Incoterms will take effect on January 1, 2011.

The new version of the Incoterms will be known as Incoterms 3000 in order to avoid the expectation that they will be revised every ten years.

The ICC introduced the first version of Incoterms, short for "International Commercial Terms," in 1936. There are currently 13 Incoterms, including EXW (Ex works), FOB (Free on Board), CIF (Cost, Insurance and Freight), DDU (Delivered Duty Unpaid) and CPT (Carriage Paid To).

The Incoterms have been revised six times in order to reflect international trade developments.

Frank Reynolds is the author of Incoterms for Americans, a very useful publication for U.S. exporters.

Labels: Miscellaneous

For those of you following our Twitter feed, International Trade Law News is attending this week's International Trade Compliance Professionals annual conference in Anaheim, California.

In honor of all of the hard working trade compliance professionals out there I am posting the music and lyrics to "Compliance Blues", which was written a few years ago by Bruce Jackson, the "Trade Compliance Guy" and a well known export controls expert. Bruce wrote the song in 2002 and Bruce's friend Tim Birchard recently composed the music and recorded the song. The song can be heard here. (As you will see, some of the terms have changed since the song was written.)

Compliance Blues

Got a letter the other day
Came from a man at BXA
Said he’d like to come for a visit
Oh…man….this is it..

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes

When I messed up that SED
They put out an A.P.B.
Yeah, the CI and AWB were out of line
But that shady forwarder said I’d be just fine

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes

Senior Management was havin’ a fit
If only they could see it from where I sit
That enforcement agent with his slick RayBans
Was ready to toss me in the can

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes

I can quote the regs til I turn blue
Sales and shipping just do what they wanna do
Maybe one day justice will prevail
And BXA will send our CEO to jail

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes

As I soldier on through the compliance quagmire
I’ll trudge along till the last license expires
Cuz no matter what they may say
I ain’t got them blues as bad as ol’ Ken Lay

I’got those deep down compliance blues
I’got those deep down compliance blues
When you’d trade anything to be in someone else’s shoes
Yeah, I’got those deep down compliance blues

© By Bruce “BRJblues” Jackson February 2002

Labels: Miscellaneous

Effective today, March 2, 2009, I have moved my international trade law practice to the Washington, DC office of Sandler, Travis & Rosenberg, P.A., where I will be a member of the firm. With offices in numerous cities in the U.S. and abroad, Sandler, Travis & Rosenberg is an international trade and customs law firm concentrating in assisting clients with the movement of goods, personnel and ideas across international borders.

My new contact information will be as follows:

Douglas N. Jacobson
Sandler, Travis & Rosenberg, P.A.
1300 Pennsylvania Avenue, NW
Washington, DC 20004
Direct Dial: (202) 471-3236
E-Mail: djacobson(at)strtrade.com

I will still serve as editor of International Trade Law News, which is now in its sixth year of publication.

Sandler, Travis & Rosenberg also publishes an excellent daily e-mail newsletter called WorldTrade\INTERACTIVE™ which provides in-depth information and analysis on trade-related legislation, regulations, policies and procedures in the U.S. and around the world. Click here to register to receive WorldTrade\INTERACTIVE™.

Labels: Miscellaneous

While a great deal has been written on the "Buy American" provision in the stimulus bill (Section 1605 of H.R. 1) that covers iron, steel, and manufactured goods, it turns out that the bill also contains another "Buy American" provision that applies to uniforms, body armor and other textile products purchased by the Department of Homeland Security.

Section 604 of Title VI of H.R. 1, which covers the Department of Homeland Security (DHS), states that DHS may not procure certain "covered items" if they are not "grown, reprocessed, reused, or produced in the United States." The definition of covered items includes those "directly related to the national security interests" of the U.S. and covers a wide variety of items including clothing, bags, protective equipment (such as body armor), parachutes, bandages and any item of equipment manufactured from or containing "fibers, yarns, fabrics, or materials." While the provision contains some exceptions, such as when the items are not available in the U.S. or if the non-compliant fibers do not exceed 10% of the total purchase price, it requires any exceptions to be posted on the FedBizOpps.gov web site.

Consistent wiht the language added to the "Buy American" provision in section 1605 of the the stimulus bill, section 604(k) states that this provision "shall be applied in a manner consistent with United States obligations under international agreements."

Interestingly, the provision requires the Secretary of Homeland Security to "ensure" that DHS employees that acquire textile products receives training in FY 2009 on this new requirement and that any new training programs includes "comprehensive information" on this new requirement.

This provision, which will require uniforms worn by employees of the Transportation Security Administration, U.S. Customs and Border Protection, the U.S. Border Patrol, the Coast Guard and other DHS units, was sponsored by recently elected Congressman Larry Kissell (D-NC).

While this "Buy American textiles" language was included in the House version of the stimulus billl, it was not included in the version of the bill passed by the Senate. The language was included in the final version of the bill that was agreed to by the Conference Committee and signed today by the President.

The text of section 604 can be found on page 126 of Section A of the PDF version of H.R. 1 that can be found here: http://thomas.loc.gov/home/h1/Recovery_Bill_Div_A.pdf (this is a large file).

Labels: Congress, Miscellaneous

The Government of Brazil has announced that it has suspended its short-lived electronic import licensing program that was implemented earlier this week by Brazil's Ministry of Development, Industry and Foreign Trade.

Under the import licensing program, importers in Brazil were required to obtain an electronic import license prior to importing products included in 24 chapters of the Harmonized Tariff Schedule. Import licenses were supposed to be issued with 10 days from the application date, but Brazil's Secretariat of Foreign Trade (SECEX) had up to 60 days to approve or disapprove the application.

The stated purpose of the program was to monitor Brazilian import statistics, but the program was widely criticized as a protectionist non-tariff trade barrier.

Labels: Miscellaneous

The National Foreign Trade Council (NFTC) and USA*Engage have filed an amicus curiae brief with the U.S. Court of Appeals for the Eleventh Circuit in support of the plaintiffs in the case of Faculty Senate of Florida International University vs. the State of Florida.

The case involves the Florida Travel Act, a law passed by the Florida legislature in 2006 intended to restrict academic travel from Florida to Cuba and other countries designated by the U.S. State Department as sponsors of international terrorism.

In August 2008, a judge in the U.S. District Court for the Southern District of Florida overturned most of the Florida Travel Act on grounds that the "Travel Act's restrictions on the use of "nonstate" sourced funds . . . is an impermissible sanction on the designated countries and serves as an obstacle to the objectives of the federal government."

The brief states that federal actions including the Trading With the Enemy Act, the Cuban Democracy Act and the Cuban Assets Control Regulations preempt the Florida Travel Act, but also contends, “even beyond the preemptive effect of the existing federal statutory and regulatory regime, the Florida Travel Act represents an impermissible effort by Florida to adopt its own distinct foreign policy.”

“The Constitution leaves little doubt as to which level of government was to address issues of ingress and egress with respect to our national borders,” reads the NFTC brief. “While states have the authority to adopt policies with incidental effects on foreign travel, there is nothing indirect or incidental about the Florida Travel Ban. It is an avowed effort to do the federal government one better when it comes to travel to state sponsors of terrorism. Under the constitutional scheme, Florida’s rejection of the national policy is plainly impermissible.”

The NFTC and USA*Engage also argue that though the Florida Travel Act was intended to address Cuba-related foreign policy concerns, the law has a broader, more intrusive impact, as it applies to all state sponsors of terrorism, who are subject to varying federal regulatory and legal regimes.

Labels: Cuba, Miscellaneous, Sanctions; Iran

The Department of Homeland Security (DHS) has announced that former Arizona governor Janet Napolitano was sworn in today as the third Secretary of DHS. Announcements on other nominees for DHS leadership posts, including Commissioner of U.S. Customs and Border Protection, are expected in the coming weeks.

Announcements on leadership changes at State, Commerce and Treasury won't take place, of course, until the various cabinet secretaries are confirmed by the Senate (or renominated by the President in Commerce's case).

For news and information on new nominees and appointees in the foreign policy, national security and intelligence communities, see Laura Rozen's blog at ForeignPolicy.com.

Update: The Senate just confirmed Senator Hillary Clinton to be the 67th Secretary of State by a vote of 94-2.

Labels: CBP, Miscellaneous

Registration is still open for the International Compliance Professionals Association's (ICPA) 2009 compliance conference that will be held March 8-12, 2009 in Anaheim, California.

ICPAs annual compliance conference is unlike any offered in the international trade compliance community and is geared to a wide range of international trade compliance professionals.

The 2009 conference will feature four tracks: imports, exports, boot camp and general topics.

Click here for the conference registration website and be sure to check out the unique brochure for the 2009 ICPA conference here.

Labels: Miscellaneous

This week marks the 40th anniversary of the Apollo 8 mission that led to the famous "Earthrise" photo taken by astronaut William Anders. Apollo 8 was the first manned mission to orbit the moon.

Below is NASA's summary of Apollo 8's Christmas eve live television broadcast. To listen and view the broadcast, click here.

---

Apollo 8, the first manned mission to the Moon, entered lunar orbit on Christmas Eve, December 24, 1968. That evening, the astronauts; Commander Frank Borman, Command Module Pilot Jim Lovell, and Lunar Module Pilot William Anders did a live television broadcast from lunar orbit, in which they showed pictures of the Earth and Moon seen from Apollo 8. Lovell said, "The vast loneliness is awe-inspiring and it makes you realize just what you have back there on Earth." They ended the broadcast with the crew taking turns reading from the book of Genesis.

William Anders:

"For all the people on Earth the crew of Apollo 8 has a message we would like to send you".

"In the beginning God created the heaven and the earth.
And the earth was without form, and void; and darkness was upon the face of the deep.
And the Spirit of God moved upon the face of the waters. And God said, Let there be light: and there was light.
And God saw the light, that it was good: and God divided the light from the darkness."

Jim Lovell:

"And God called the light Day, and the darkness he called Night. And the evening and the morning were the first day.
And God said, Let there be a firmament in the midst of the waters, and let it divide the waters from the waters.
And God made the firmament, and divided the waters which were under the firmament from the waters which were above the firmament: and it was so.
And God called the firmament Heaven. And the evening and the morning were the second day."

Frank Borman:

"And God said, Let the waters under the heavens be gathered together unto one place, and let the dry land appear: and it was so.
And God called the dry land Earth; and the gathering together of the waters called he Seas: and God saw that it was good."

Borman then added, "And from the crew of Apollo 8, we close with good night, good luck, a Merry Christmas, and God bless all of you - all of you on the good Earth."

----------------------------------

Season's Greetings and Happy New Year. See you in 2009.

--Doug Jacobson

Labels: Miscellaneous, NASA

The year-end edition of The Economist contains an interesting article on Viktor Bout, the notorious arms-dealer dubbed the "Merchant of Death" and "Lord of War", who was arrested earlier this year in a sting set up by DEA agents in Bangkok, Thailand.

The AP reports that Bout testified on Monday in an extradition hearing in Bangkok.

Labels: Miscellaneous

By Tyler Brown, Senior Export Technical Representative, Jet Propulsion Laboratory, Office of Export Compliance

For this analysis, we assumed that the Lords, Ladies, maids and entertainers are not performing defense services. Articles and material would appear to all be EAR99. Dealing only with the associated hardware, I propose the following HTS designations:

* Twelve drummers drumming: 9206.00.2000 - Percussion musical instruments (for example, drums, xylophones, cymbals, castanets, maracas): Drums

* Eleven pipers piping: 9205.90.20.60 - Woodwind instruments: Flutes and piccolos (except bamboo)

* Ten lords 'a-leaping: Since there are no hereditary Lords in the U.S., the Country of Origin of the Lords would need to be specified, and the leaping activity subjected to an analysis as to whether it constitutes a defense service.

* Nine ladies dancing: See above.

* Eight maids a-milking: Given a modern interpretation: 8434.10.00.00 - Milking machines and dairy machinery, and parts thereof: Milking machines

* Seven swans a-swimming: 0106.39.00.00 - Birds: Other

* Six geese a-laying: (Assume the geese weigh over 185 gms.) 0105.99.00.00 - Live poultry of the following kinds: Chickens, ducks, geese, turkeys and guineas: Other, Other

* Five golden rings: Note: 9. For the purposes of heading 7113, the expression "articles of jewelry" means: (a) Any small objects of personal adornment (for example, rings, bracelets, necklaces, broaches, earnings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia); 7113.19.50.00 - Of other precious metal, whether or not plated or clad with precious metal: Other, other.

* Four calling birds: Today when people sing that song they usually sing about calling birds. But actually many years ago they sang the song's old English words. They sang about colly, or collie, birds. Colly or collie means black, according to the British Broadcasting Corporation. It comes from an old word for coal. The Internet Wikipedia pins down colly bird even more: to the European blackbird. Common in parks and cities in Europe, it looks like a dusky version of its cousin, the American robin. Both belong to the thrush family. Like all thrushes, they sing (or call) beautifully. 0106.39.00.00 - Birds: Other

* Three French hens: Live poultry of the following kinds: Chickens, ducks, geese, turkeys and guineas: Chickens, Weighing not more than 185 g: 0105.11.00; Breeding stock, whether or not purebred: 10 Layer-type (egg-type), 20 Broiler-type (meat-type), 40 Other; Chickens, Weighing more than 185 g: 0105.94.00.00 (I actually spent some time worrying about whether the "French Hens" might be a re-export...)

* Two turtle doves: 0106.39.00.00 - Birds: Other

* A partridge in a pear tree: 0106.39.00.00 - Birds: Other; 0602.20.00.00 - Trees, shrubs and bushes, grafted or not, of kinds which bear edible fruit or nuts

And remember, any Christmas ornamentation falls under 9505.10: Festive, carnival, or other entertainment articles, including magic tricks and practical joke articles; parts and accessories thereof: Articles for Christmas festivities and parts and accessories thereof.

Editor's Note: Thanks to Tyler Brown for permission to publish "A Harmonized (Tariff) Christmas." Happy Holidays!

Labels: Miscellaneous

The next meeting of the National Council on International Trade Development (NCITD) will take place on Thursday, December 11, 2008 in Washington, DC and will feature the following speakers:

• Matthew Borman, Assistant Secretary for Export Administration, Bureau of Industry and Security, U.S. Department of Commerce. Topic: Export Controls Developments.

• Candace Goforth, Division Chief, Training and Quality Assurance, Directorate of Defense Trade Controls. Topic: DDTC update.

• Satoshi Miura, Counselor, Embassy of Japan. Topic: Japanese Export Controls.

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: Miscellaneous

Advance member's only registration is now open for the sixth annual conference of the International Compliance Professionals Association (ICPA). This year's conference will be held March 8-12 in Anaheim, California. Last years conference sold out quickly and ICPA had a waiting list of more than 150 people.

ICPAs annual conference is unlike any offered in the international trade compliance community and is geared to a wide range of international trade compliance professionals. The 2009 conference will feature four tracks: imports, exports, boot camp and general topics.

Be sure to check out the unique brochure for the 2009 conference here.

Labels: Miscellaneous

The next meeting of the National Council on International Trade Development (NCITD) will take place on Wednesday, November 12, 2008 in Washington, DC and will feature the following speakers:

• Janice Owens, Export/Import Licensing Officer, Office of International Programs, U.S. Nuclear Regulatory Commission

• Steven Clagett, Director Missile and Nuclear Technology, Bureau of Industry and Security, U.S. Department of Commerce

• Mario Mancuso, Under Secretary for Industry and Security, U.S. Department of Commerce
  

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: BIS, Miscellaneous

Today marks the fifth anniversary of International Trade Law News.

I have been overwhelmed by the support, kind words and favorable comments received from clients, colleagues, government officials and other members of the international trade community on how useful they find International Trade Law News. Wherever I go I end up meeting readers and subscribers who mention how they like the practical and useful trade-related information provided in this site. I very much appreciate all of your support, as well as the tips and other valuable information and ideas received from readers.

The number of readers of International Trade Law News has grown dramatically over the past five years and the site has a large number of readers that subscribe to our e-mail service, RSS and Twitter feeds. Beyond, the subscribers readers from around the world find the site by conducting internet searches on international trade-related topics; this year alone International Trade Law News has had readers from 166 countries and territories. Many of the posted articles are picked up and republished by other sources and I often receive requests to republish content.

I am also pleased that International Trade Law News has been selected by the U.S. Library of Congress for inclusion in its historic collections of Internet materials related to Legal Blawgs. In the future, the Library of Congress will make this collection available to researchers onsite at Library facilities and plans to make the collection available to offsite researchers by hosting the collection on the Library's public access Web site.

-- Doug Jacobson

Labels: Miscellaneous

President Bush today signed into law S. 906, the "Mercury Export Ban Act of 2008," which amended the Toxic Substances Control Act (TSCA) to:

1. Prohibit Federal agencies from transferring elemental mercury to government or private entities;
2. Prohibit all exports of mercury from the U.S. on January 1, 2013; and
   
3. Require the Department of Energy to designate and manage an elemental mercury long-term disposal facility.

The bill provides that persons may petition the EPA for an exemption from the export ban in certain circumstances.

The U.S. is currently a net exporter of mercury. European Union member countries are the largest source of mercury exports. The European Commission has proposed to ban exports of elemental mercury from the European Union by 2011.

Labels: Miscellaneous

Join us for the following export and FCPA compliance training programs. See the links below for further details and registration information:

1. October 22, 2008, San Antonio, Texas - Complying with the International Traffic in Arms Regulations (ITAR) in the Invigorated Enforcement Environment. Hosted by the U.S. Commercial Service in San Antonio and co-presented by JPMorgan and Strasburger & Price, LLP.

2. October 23, 2008, Webcast - Addressing FCPA Risks with Automated Controls Monitoring, Presented by Compliance Week, Strasburger & Price, LLP and Approva.

3. November 5, 2008, Las Vegas, Nevada - Focusing on Export Compliance and Enforcement, Presented by OCR Services, Inc. Speakers include Mike Turner, former director of BIS's Office of Export Enforcement and Doug Jacobson, partner, Strasburger & Price, LLP.

4. November 20, 2008, Houston, Texas - Hot Topics in Export Controls and Enforcement. Co-Sponsors: Kewill, Oracle and Strasburger & Price, LLP.

Labels: Miscellaneous

The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) will host a public meeting on October 14, 2008 to discuss the new declaration requirement established by recent revisions to the Lacey Act. The meeting will be held in the Jefferson Auditorium at USDA’s South Agriculture Building, 1400 Independence Ave., S.W., from 10 a.m. to 12 p.m.

The Lacey Act was amended by Congress in May to make it illegal to import, export, transport, sell, receive, acquire or purchase in interstate or foreign commerce, any plant--with limited exceptions--to be taken or traded in violation of domestic or international laws. The amended Act now covers a broad range of plants and plant products, including timber deriving from illegally harvested plants. In addition, the Lacey Act was amended to require importers to submit a declaration at the time of importation for certain plants and plant products. The declaration requirements of the Lacey Act become effective on December 15, 2008.

APHIS published a notice in today's Federal Register with details on the declaration requirement and the plans to phase-in enforcement. During the October 14th meeting APHIS will provide further information about the declaration requirement and the proposed phase-in plan for its enforcement, along with the scope of the requirements and other related issues.

Labels: Miscellaneous

In a significant development, the U.S. Department of Justice (DOJ) announced today that it has revoked the December 2006 McNulty Memorandum and issued new corporate charging guidelines applicable to the criminal prosecution of business organizations. These new charging guidelines will have a significant impact on the criminal prosecution of companies alleged to have violated export control laws, the U.S. Foreign Corrupt Practices Act and other federal criminal laws.

As discussed below, these new guidelines contain significant policy changes to safeguard the attorney-client privilege and work-product doctrines.

These new charging guidelines will be included in the U.S. Attorney’s Manual, rather than an internal legal memorandum as DOJ has done in the past. A PDF version of the revised "Principles of Federal Prosecution of Business Organizations" that will be included in the U.S. Attorney's Manual can be found here (5 MB). These new guidelines are effective immediately.

The following is a summary of the most significant changes contained in DOJ's new guidelines and policies:

1. Credit for cooperation will not depend on whether a corporation has waived attorney-client privilege or work product protection, or produced materials protected by attorney-client or work-product protections. Rather, it will depend on the disclosure of facts. Corporations that timely disclose relevant facts may receive due credit for cooperation, regardless of whether they waive attorney-client privilege or work product protection in the process. Corporations that do not disclose relevant facts typically may not receive such credit.

2. Prior DOJ policy allowed federal prosecutors to request, under certain conditions, that a corporation disclose non-factual attorney-client privileged communications and work product, such as internal legal advice and attorney work-product (previously designated “Category II” information). The new policy forbids prosecutors from asking for such information, with only limited exceptions.

3. The new policy instructs prosecutors not to consider whether a corporation has advanced attorneys’ fees to its employees, officers, or directors when evaluating cooperativeness. Under previous guidance, DOJ reserved the right to consider such payments negatively in deciding whether to assign cooperation credit to a corporation. That is no longer the case. A corporation’s payment of or advancement of attorneys’ fees to its employees will be relevant only in the rare situation where it, combined with other circumstances, would rise to the level of criminal obstruction of justice.

4. Under the new policy, federal prosecutors may not consider whether the corporation has entered into a joint defense agreement in evaluating whether to give the corporation credit for cooperating.

5. Prior guidance allowed prosecutors to consider whether a corporation disciplined or terminated employees for the purpose of evaluating cooperation. That is no longer permitted. Prosecutors may only consider whether a corporation has disciplined employees that the corporation identifies as culpable, and only for the purpose of evaluating the corporation’s remedial measures or compliance program.

Labels: Miscellaneous

The National Foreign Trade Council (NFTC) recently released a new study entitled "Connecting the Dots: The Global Economy and Supply Chain Management" that analyzes the trade and investment environments of 117 countries based on data from OECD and the World Bank, among others.

The NFTC's study is an extremely valuable tool for companies to use in evaluating and structuring their supply chain.

Structured as a country-by-country analysis of supply chain performance, each country was evaluated in comparison to benchmark nations and "exemplars." The study evaluated countries based on the following six criteria:

1. National policies for openness in trade and markets
2. Best practices for international trade
3. Infrastructure for a global economy
4. Financial services for cross-border commerce
5. Human capital
6. Effective legal and enforcement systems

The top ten highest scoring countries were Singapore, Luxembourg, the United Kingdom, the Netherlands, Sweden, Switzerland, Canada, the United States, New Zealand and Norway. The lowest scoring nations were Angola, Burkina Faso, Zambia, Rwanda, Burundi, Guinea, Mali, Venezuela, Algeria and Benin.

In addition to a detailed country analysis, the study also contains a regional analysis.

The PDF version of the NFTC's study can be found at the following link:
www.nftc.org/default/trade/Final%20Country%20Index.pdf.

Labels: Miscellaneous

London-based legal publisher Cameron May is presenting a conference entitled "Commercial and Investment Arbitration in Latin America: New Challenges for Governments, Corporations and Practitioners" from November 29, 30 in Quito, Ecuador.

The program will cover the latest developments in commercial and investment arbitration in different Latin American jurisdictions and will include over thirty panelists from law firms, universities, international corporations with long‐term presence in the region and government representatives.

For more information see the conference brochure or contact Mr. Christophe Landais at christophe@cameronmay.com.

Labels: Miscellaneous

The controversial bill (SB 974) that would have imposed a $30 per twenty foot equivalent unit (TEU) user fee on container cargo imported and exported through the ports of Long Beach, Los Angeles and Oakland has been withdrawn by its sponsor in the California Assembly after Governor Arnold Schwarzenegger threatened to veto the measure. The author of the bill, California State Senator Alan Lowenthal (D-Long Beach), has vowed to reintroduce the bill next year.

In a joint statement, Governor Arnold Schwarzenegger and Senator Alan Lowenthal (D-Long Beach) said:

“Our ports are an integral component of goods movement in and out of California. I support the concept of SB 974 and want to work together with Senator Lowenthal on the bill so it addresses the future of goods movement while also reducing environmental impacts. I look forward to working during the fall recess with the Senator, his fellow legislators and all interested parties to craft a solution that will protect California’s air quality and also facilitate the goods movement through California,” said Governor Schwarzenegger.

“I am pleased that the Governor understands the need to fund air quality improvements and rail infrastructure, especially grade separations. I accept the Governor’s offer to work together and make SB 974 a reality,” stated Lowenthal.

SB 974, which was approved by California Senate's Appropriation Committee in July, would have imposed a "user fee" on all container cargo going in and out of the ports of Los Angeles, Long Beach and Oakland. It is estimated that more than $500 million would be collected annually from the fee and would fund projects intended to alleviate pollution of containerized cargo moved to and from these ports and improve the movement of cargo in California.

The California Legislature passed a similar bill last year (SB 927) to that would impose user fees on containers moving through he ports of Long Beach and Los Angeles. However, California Governor Arnold Schwarzenegger vetoed the bill. In his veto statement, the Governor said that the bill was "flawed in its construction" and was drafted "to include only two ports and applies only to goods shipped in containers, ignoring all other forms of shipping and ports of entry." Governor Schwarzenegger also stated that the bill would have a negative impact on the "the sale and delivery of goods grown and manufactured in California." SB 974 addressed one of the Governor's concern by expanding the scope of the user fee to include the port of Oakland.

The container fee has been strongly opposed by many trade groups on grounds that the user fee will hurt California's ports, is anti-consumer and is likely to be unconstitutional.

Labels: Miscellaneous, Ports

Like Congress, we have been on a bit of a hiatus during the past few weeks (a blogging hiatus, but not a work hiatus). However, we will be resuming our regular posts, which will include important customs and export control-related news from the past weeks.

In addition, we are pleased to welcome a new contributor to International Trade Law News. Laura Martino, a newly hired international trade associate in Strasburger & Price's Washington, DC office, will be posting regular updates on customs and export-related matters. Laura's first post can be found below.

Laura is a 2003 a graduate of the American University's Washington College of Law and handled import and export issues at two prominent law firms before joining Strasburger. While in law school Laura served as a Legal Intern at the Office of the United States Trade Representative, where she assisted with bilateral and multilateral trade negotiations.

Labels: Miscellaneous

Tuesday's online edition of the Wall Street Journal contains an interesting story and graphic on the shortage of high-tech fasteners facing the commercial aircraft industry. The article notes that:

During a briefing Sunday on the eve of the Paris Air Show, Boeing Commercial Airplanes President and Chief Executive Scott Carson described the fastener shortage as one of the biggest short-term challenges the industry is facing. "Fasteners are just aggravating as hell," he said, noting that such hardware is usually treated as a commodity that is readily available.

On a related note, officials from BIS and the DoD are presenting dual-use and ITAR export control seminars at the Paris Air Show later this week.

Labels: Export Controls, Miscellaneous

The National Council on International Trade Development's (NCITD) will celebrate its 40th Anniversary with two events on June 14, 2007. The first event, which will take place from 9 a.m. to 12 noon, will feature a program on developments in nuclear export controls and a speaker from the Directorate of Defense Trade Controls (DDTC). The second event will be a 40th Anniversary cocktail reception from 6 p.m. to 8 p.m.

The speakers at the NCITD meeting include:

• Steve Clagett, the Bureau of Industry and Security's Director of the Nuclear and Missile Technology Division;
• Richard Goorevich of the Department of Energy's National Nuclear Security Administration; and
• Janice Owens, U.S. Nuclear Regulatory Commission
  

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.

Update: Mario Mancuso, who was recently confirmed as Undersecretary of Commerce for Industry and Security will make an appearance at the meeting.

Labels: Export Controls, Miscellaneous

The California Senate's Appropriation Committee last week approved SB 974, a bill that would imposes a $30 per twenty foot equivalent unit (TEU) user fee on container cargo imported and exported through the ports of Long Beach, Los Angeles and Oakland. The revenues from the user fee would be used to develop infrastructure projects to reduce congestion and to mitigate the air quality impacts associated with the movement of freight in and out of the three ports. The bill was previously approved by the California Senate's Transportation and Housing and Environmental Quality Committees.

The California Legislature passed a similar bill last year (SB 927) that would impose user fees on containers moving through he ports of Long Beach and Los Angeles. However, California Governor Arnold Schwarzenegger vetoed the bill. In his veto statement, the Governor said that the bill was "flawed in its construction" and was drafted "to include only two ports and applies only to goods shipped in containers, ignoring all other forms of shipping and ports of entry." Governor Schwarzenegger also stated that the bill would have a negative impact on the "the sale and delivery of goods grown and manufactured in California."

The bill introduced in this session of the California Legislature addresses one of the Governor's concern by expanding the scope of the user fee to include the port of Oakland.

Last year's bill was opposed by many trade groups, including the California Chamber of Commerce, Los Angeles Area Chamber of Commerce, National Retail Federation, Retail Industry Leaders Association, California Manufacturers and Technology Association, Waterfront Coalition, Wine Institute, California Farm Bureau, California Trade Coalition, and Pacific Merchant Shipping Association. These groups are likely to oppose this year's version of the container user fee bill as well.

Labels: Miscellaneous

Congratulations to the following recent President's "E" Award and "E" Star Recipients for excellence in exporting:

• Kathryn Dye, Sign-a-Rama, Inc., West Palm Beach, Fla.
• Antonio Ceballos, Numonics Corporation, Montgomeryville, Pa.
• Jayne Woodword, Hydra Platforms Manufacturing, Inc., Rock Hill, S.C.
• Sharon Bongiovanni, Gerber Technology, Tollant, Conn.
• Bill Burwell, Maryland Port Administration, Baltimore, Md.
• Susan Whitney, Nylonge Company, Elyria, Ohio
• David Spann, Mallory Alexander International Logistics, Memphis, Tenn.
• Ray Riggs, Hytrol Conveyor Company, Inc., Jonesboro, Ark.
• Carmela Mammas, Pharmaceutical Innovations, Newark, N.J.
• Tom Strauss, Georgia Department of Economic Development, Atlanta, Ga.
• Susan Whitney, Lincoln Electric Holdings, Inc., Cleveland, Ohio

The President's "E" Award was created by Executive Order of the President on December 5, 1961, to afford suitable recognition to persons, firms, or organizations which contribute significantly in the effort to increase United States exports.

The President's "E Star" Award, which was authorized by the Secretary of Commerce on August 4, 1969, affords continuing recognition of noteworthy export promotion efforts.

Labels: Miscellaneous

While I do not normally cover tax-related topics, I wanted to bring to your attention a unique and off beat tax-related article entitled The Art of Taxation - Joseph Hemard's Illustrated Tax Code, which was written by my law partner Farley Katz. The article, which was recently published in the Tax Lawyer, the American Bar Association's tax law journal, discusses The Code Général desImpôts Directs et Taxes Assimilées (General Code of Direct and Related Taxes), illustrated by the French book illustrator Joseph Hémard and published in a limited edition in Paris in 1944.

Here is an excerpt from the beginning of the article, which also contains numerous illustrations from the book:

Tax codes are notoriously dull reading. They are devoid of interest to anyone but professionals trained in the arcane language of the tax laws who, even then, never actually consult them except when required by a specific task at hand. The idea of a lengthy, commercially published tax code, profusely illustrated with humorous cartoon-like drawings full of puns and whimsy, with illustrations beautifully hand printed in color, seems almost unimaginable. But such an incredible book exists! Add to this the facts that the book was printed in occupied Paris near the end of World War II and that it contains numerous risqué and decidedly antiauthoritarian images, and one begins to appreciate how truly fantastic this book is.

Even if you have no interest in tax law, but are interested in art and history, it is worth taking a look at this fascinating article, which can be found in PDF format here.

Labels: Miscellaneous

After a brief blogging hiatus, which was due to an ever-expanding caseload and lots of interesting overseas travel (including a trip to Zimbabwe), we have returned to the blogosphere. Thanks to all of our loyal readers, including the hundreds of subscribers, for the notes asking when we planned to resume our posts and other kind words. It's gratifying to know how many people actually read our posts and rely on International Trade Law News for news and information on international-trade related topics. In the coming weeks we hope to add additional contributors to ensure that the information on this site is updated as often as possible. As always, your comments and suggestions on topics of interest are always welcome.

Labels: Miscellaneous

A beautiful outdoor reception along the banks of the Miami River this evening was a great way to mark the beginning of the International Compliance Professionals Association's (ICPA) Fourth Annual Conference. The ICPA has come a long way in a very short period of time, and more than 500 trade compliance professionals are attending this year's sold-out conference. We look forward to attending the many interesting and informative import and export-related programs that will take place over the next few days. We also look forward to seeing many of our readers and subscribers in the coming days.

Labels: Miscellaneous