DDTC Adjusts to Social Distancing
As we noted recently on this blog, the Department of State, Directorate of Defense Trade Controls (DDTC) remains open, but will be making adjustments in response to the Coronavirus Disease 2019 (COVID-19) pandemic. This includes an electronic process for submitting disclosures to the office of Defense Trade Controls Compliance (DTCC).
Since that announcement, DDTC has:
- Cancelled its Wednesday, April 29 In-House Seminar
- Suspended pick-up/drop off courier services while continuing to send and accept U.S. mail
- Indicated that it is considering a one-time temporary reduction in registration fees for “certain categories of DDTC registrants”
- Implemented procedures to send DSP-85 and General Correspondence (GC) responses by email when possible
- Began accepting FMS Part 130 reports via email at DDTC-Part130Notices@state.gov
- Moved to electronic submissions of Congressional Notifications.
DDTC has also provided extensions as follows:
- Temporarily extended ITAR registrations expiring on February 29 through June 30, 2020 for two months from the original date of expiration
- Extended licenses expiring “between March 13, 2020 and May 31, 2020 for six (6) months from the original date of expiration”
- Granted an additional 30 days for responses to request-for-information letters related to DTCC disclosures.
Finally, DDTC made the following announcements to address remote working and expedited licenses:
- Suspended “the requirement that a regular employee, for purposes of ITAR § 120.39(a)(2), work at the company’s facilities, to allow the individual to work at a remote work location, so long as the individual is not located in Russia or a country listed in ITAR § 126.1” through July 31, 2020.
- Suspended a similar requirement for regular employees of licensed entities working under a TAA, MLA, or exemption.
- Reissued guidance for requests submitted in support of U.S. Operations (USOP) (exports in support of U.S. and coalition forces that are deployed or scheduled to be deployed within 90 days).
Please monitor the DDTC website for additional announcements.
OFAC Publishes Pandemic Guidance
On April 20, 2020, the Department of the Treasury, Office of Foreign Asset Control (OFAC) released a statement on compliance concerns during the COVID-19 pandemic.
The announcement addresses exemptions and authorizations that allow humanitarian assistance to countries subject to OFAC sanctions. It specifically addresses the Iran, Venezuela, North Korea, Syria, Cuba, and Ukraine/Russia sanctions programs.
OFAC also requests anyone affected by the pandemic to contact OFAC as soon as practicable if delays associated with OFAC’s regulatory requirements (e.g., various reporting requirements and responding to administrative subpoenas).
OFAC has also established an e-mail account for electronic submission of disclosures at OFACdisclosures@treasury.gov. OFAC has previously published specific guidance on how to organize and submit electronic correspondence.
Finally, OFAC acknowledged that the pandemic “can cause technical and resource challenges for organizations” that will be evaluated as a factor in potential violations on a case-by-case basis.
Compliance During the Pandemic – ECS Can Help
The U.S. government offices are making efforts to alleviate some difficulties in dealing with them, but this is not an excuse to ignore export compliance. Enforcement may be hampered now, but any compliance problems left to fester are just going to get worse for when they are back to “normal.”
We continue to offer training, with live streaming two-day seminars and an eight-part webinar series currently in progress. Click here for more on ECS training options.
Our consulting practice continues to operate remotely and can assist with license drafting and review, Technical Assistance Agreements (TAAs), product classifications, risk assessments, and any other assistance you may need to keep your compliance program in order and business moving along.