{"id":376,"date":"2020-01-17T23:59:11","date_gmt":"2020-01-17T23:59:11","guid":{"rendered":"http:\/\/exportcompliancesolutions.com\/blog\/?p=376"},"modified":"2020-01-17T23:59:11","modified_gmt":"2020-01-17T23:59:11","slug":"january-export-compliance-updates-ddtc-bis","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2020\/01\/17\/january-export-compliance-updates-ddtc-bis\/","title":{"rendered":"January Export Compliance Updates &#8211; DDTC, BIS, and More!"},"content":{"rendered":"<p>Following the big Christmas vacation announcement of the new International Traffic in Arms Regulations (ITAR) <a href=\"http:\/\/exportcompliancesolutions.com\/blog\/2019\/12\/27\/ddtc-issues-long-awaited-itar-cloud-rule\/\">cloud rule<\/a>, even more changes have materialized for export compliance.<\/p>\n<p><strong>DECCS is Coming<\/strong><\/p>\n<p>In a January 14<sup>th<\/sup> webinar, the Department of State, Directorate of Defense Trade Controls (<a href=\"https:\/\/www.pmddtc.state.gov\/ddtc_public?id=ddtc_public_portal_homepage\">DDTC<\/a>) announced another long-awaited change: DDTC\u2019s cloud-based Defense Export Control and Compliance System (DECCS) will launch licensing and registration applications in February.\u00a0 The target date is currently February 3<sup>rd<\/sup> with deployment anticipated no later than February 17<sup>th<\/sup>.\u00a0 The DTrade licensing application will be taken offline for data migration prior to the DECCS launch.<\/p>\n<p>DECCS will feature:<\/p>\n<ul>\n<li>An updated DS-2032 registration form with a new payment process and no request for Social Security numbers<\/li>\n<li>Current license forms from DTrade<\/li>\n<li>Access to existing, unexpired DTrade licenses<\/li>\n<li>New GC forms for brokering and retransfer requests<\/li>\n<li>More digital certificate options (DTrade ACES certificates will work with DECCS until their July 2020 expirations)<\/li>\n<\/ul>\n<p>Users can enroll now, but will not be able to view or use the new features until the upgrade is deployed.\u00a0 Visit the DECCS Industry Portal for more information or to begin the enrollment process: <a href=\"https:\/\/deccspmddtc.service-now.com\/deccs\">https:\/\/deccspmddtc.service-now.com\/deccs<\/a><\/p>\n<p><strong>DDTC Releases Defense Services FAQs<\/strong><\/p>\n<p>DDTC released a series of <a href=\"https:\/\/www.pmddtc.state.gov\/ddtc_public?id=ddtc_public_portal_faq_cat&amp;topic=6acdbfe8db3bc30044f9ff621f96197e&amp;subtopic=6d00203bdbca80d05564ff1e0f9619e3#6d00203bdbca80d05564ff1e0f9619e3\">FAQs on the provision of defense services by U.S. persons abroad<\/a>.\u00a0 The FAQs are intended to assist with determining whether an authorization is required for a U.S. person to assist a foreign entity with defense articles, technical data, or military training and to outline for process for requesting approval.\u00a0 Notably, when authorization is required for such services, the request should be submitted as a General Correspondence (GC) request under ITAR \u00a7126.9(b).<\/p>\n<p><strong>Commerce Controls Geospatial Imagery Analysis Software<\/strong><\/p>\n<p>On January 6, 2020, the Department of Commerce, Bureau of Industry and Security (BIS) \u00a0published an interim final rule (<a href=\"https:\/\/www.govinfo.gov\/content\/pkg\/FR-2020-01-06\/pdf\/2019-27649.pdf\">85 FR 459<\/a>) controlling \u201csoftware specially designed to automate the analysis of geospatial imagery\u201d under the Export Administration Regulations (EAR) Export Control Classification Number (ECCN) 0D521.<\/p>\n<p>ECCN 0D521 controls \u201cAny software subject to the EAR that is not listed elsewhere in the CCL, but which is controlled for export because it provides at least a significant military or intelligence advantage to the United States or for foreign policy reasons\u201d and requires a license for export or reexport to all countries other than Canada.\u00a0 Items in the 0Y521 series (0A521, 0B521, 0C521, 0D521, and 0E521) are specified in <a href=\"https:\/\/www.bis.doc.gov\/index.php\/documents\/regulations-docs\/2345-774-10-24-18\/file\">Supplement No. 5 to Part 774<\/a> of the EAR.<\/p>\n<p>The rule was effective January 6, 2020 and comments will be accepted through March 6, 2020.\u00a0 Please refer to the <a href=\"https:\/\/www.govinfo.gov\/content\/pkg\/FR-2020-01-06\/pdf\/2019-27649.pdf\">Federal Register Notice<\/a> for how to submit comments.<\/p>\n<p><strong>Commerce Seeks Technical Advisory Committee Representatives<\/strong><\/p>\n<p>BIS also <a href=\"https:\/\/www.govinfo.gov\/content\/pkg\/FR-2019-12-31\/pdf\/2019-27629.pdf\">announced<\/a> that it is recruiting representatives from industry, academia, and the U.S. government to serve on one of seven Technical Advisory Committees (TACs).\u00a0 These committees advise the Department of Commerce on the technical parameters and administration of dual-use export controls.<\/p>\n<p>The TACs advise on the following areas:<\/p>\n<ol>\n<li>Information Systems: Categories 3 (electronics), 4 (computers), and 5 (telecommunications and information security);<\/li>\n<li>Materials: Category 1 (materials, chemicals, microorganisms, and toxins);<\/li>\n<li>Materials Processing Equipment: Category 2 (materials processing);<\/li>\n<li>Sensors and Instrumentation: Category 6 (sensors and lasers);<\/li>\n<li>Transportation and Related Equipment TAC: Categories 7 (navigation and avionics), 8 (marine), and 9 (propulsion systems, space vehicles, and related equipment);<\/li>\n<li>Emerging Technology: identification of emerging and foundational technologies; and<\/li>\n<li>Regulations and Procedures: Export Administration Regulations (EAR) and EAR implementation.<\/li>\n<\/ol>\n<p>TAC members must obtain secret-level clearances prior to their appointment.\u00a0 See their Federal Register Notice (<a href=\"https:\/\/www.govinfo.gov\/content\/pkg\/FR-2019-12-31\/pdf\/2019-27629.pdf\">84 FR 72292<\/a>) for more information.<\/p>\n<p><strong>Civil Monetary Penalties Adjusted for Inflation<\/strong><\/p>\n<p>Inflationary adjustments to civil monetary penalties were issued by both the Department of Commerce (<a href=\"https:\/\/www.govinfo.gov\/content\/pkg\/FR-2020-01-03\/pdf\/2019-27864.pdf\">85 FR 207<\/a>) and the Department of State (<a href=\"https:\/\/www.govinfo.gov\/content\/pkg\/FR-2020-01-14\/pdf\/2020-00443.pdf\">85 FR 2020<\/a>).\u00a0 Maximum penalties depend on the specific kind of violation.<\/p>\n<p>The ITAR \u00a7127.10 civil penalties were amended as follows:<\/p>\n<ul>\n<li>\u00a7 127.10(a)(1)(i) increased from $1,163,217 to $1,183,736.<\/li>\n<li>\u00a7 127.10(a)(1)(ii) increased from $845,764 to $860,683 (or five times the amount of the prohibited incentive payment, whichever is greater).<\/li>\n<li>\u00a7 127.10(a)(1)(iii) increased from $1,006,699 to $1,024,457.<\/li>\n<\/ul>\n<p>The Department of Commerce increased the maximum penalty for a violation of the Export Control Reform Act of 2018 from $300,000 to $305,292.<\/p>\n<p><strong>New CFIUS Regulations Issued<\/strong><\/p>\n<p>On January 13, 2020, the Department of the Treasury issued regulations to implement changes to the Committee on Foreign Investment in the United States (CFIUS) required by the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA).\u00a0 One notable development is the definition of excepted investors which, subject to some restrictions, starts with persons and entities from Australia, Canada, and the United Kingdom.<\/p>\n<p>Please refer to the <a href=\"https:\/\/home.treasury.gov\/policy-issues\/international\/the-committee-on-foreign-investment-in-the-united-states-cfius\">CFIUS website<\/a> for the new regulations, fact sheets, and FAQs.<\/p>\n<p><strong>Watch this Space \u2013 USML Categories I-III Reforms Moving Again<\/strong><\/p>\n<p>After even longer review than the ITAR cloud rule, the Departments of State and Commerce are moving forward with reforms to USML Categories I-III (firearms, guns, and ammunition).\u00a0 We will have a summary of the new rule and what it means for manufacturers and exporters.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following the big Christmas vacation announcement of the new International Traffic in Arms Regulations (ITAR) cloud rule, even more changes have materialized for export compliance. DECCS is Coming In a January 14th webinar, the Department of State, Directorate of Defense Trade Controls (DDTC) announced another long-awaited change: DDTC\u2019s cloud-based Defense Export Control and Compliance System [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[7,9],"tags":[],"class_list":["post-376","post","type-post","status-publish","format-standard","hentry","category-all","category-licensing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>January Export Compliance Updates - DDTC, BIS, and More! - Export Compliance Solutions<\/title>\n<meta name=\"description\" content=\"DECCS to launch in February, defense service FAQs issued, Geospatial Imagery Analysis Software controlled, Commerce seeks Technical Advisory Committee members, civil monetary penalties adjusted for inflation, new CFIUS regulations issued.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exportcompliancesolutions.com\/blog\/2020\/01\/17\/january-export-compliance-updates-ddtc-bis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"January Export Compliance Updates - DDTC, BIS, and More! 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