{"id":386,"date":"2020-03-20T01:52:02","date_gmt":"2020-03-20T01:52:02","guid":{"rendered":"http:\/\/exportcompliancesolutions.com\/blog\/?p=386"},"modified":"2020-03-20T01:52:02","modified_gmt":"2020-03-20T01:52:02","slug":"four-cs-export-compliance-updates-covid-19-cloud-country-groups-cfius","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2020\/03\/20\/four-cs-export-compliance-updates-covid-19-cloud-country-groups-cfius\/","title":{"rendered":"Four Cs of Export Compliance Updates \u2013 COVID-19, Cloud, Country Groups, and CFIUS"},"content":{"rendered":"

DDTC Open and Accepting Electronic Disclosures<\/strong><\/p>\n

On March 9, 2020, the Department of State, Directorate of Defense Trade Controls (DDTC<\/a>) announced that it remains open, but will be making staffing and other adjustments in response to the Coronavirus Disease 2019 (COVID-19) pandemic.<\/p>\n

Electronic licensing and registration processes are operating as normal, but may be subject to additional processing delays.\u00a0 The same applies to Commodity Jurisdiction (CJ) and General Correspondence (GC) requests.<\/p>\n

Most notable, disclosures submitted pursuant to ITAR \u00a7127.12 may now be submitted by email.\u00a0 Disclosures and related information should be emailed in pdf format on company letterhead to DTCC-CaseStatus@state.gov<\/a>.\u00a0 Duplicate hard copies are not required, but hard copies may continue to be submitted if necessary.<\/p>\n

Please monitor the DDTC website<\/a> for additional announcements.<\/p>\n

ITAR Cloud Rule Almost Here<\/strong><\/p>\n

The new International Traffic in Arms Regulations (ITAR) cloud rule<\/a> is scheduled to go into effect March 25, 2020.\u00a0 DDTC has release a two-page pdf handout<\/a> summarizing the changes.<\/p>\n

Commerce Changes Country Groups for Russia and Yemen<\/strong><\/p>\n

On February 24, 2020, the Department of Commerce, Bureau of Industry and Security (BIS) published a rule (85 FR 10274<\/a>) revising the Country Chart and Country Groups for Russia and Yemen in the Export Administration Regulations (EAR).\u00a0 A subsequent rule (85 FR 13009<\/a>) made a minor correction.<\/p>\n

The rule removes Russia from more favorable treatment under Country Groups A:2 (Missile Technology Control Regime) and A:4 (Nuclear Suppliers Group) and adds it to Country Groups D:2 and D:4 to reflect nuclear and missile technology proliferation concerns.\u00a0 It also adds an \u201cX\u201d in the \u201cNP 1\u201d column of the Commerce Country Chart for Russia, establishing a license requirement for items controlled for those purposes.<\/p>\n

The rule removes Yemen from more favorable treatment under Country Group B and adds it to Country Group D:1 based on national security concerns.<\/p>\n

Under these changes, certain license exceptions are no longer available for Russia and Yemen.\u00a0 For transactions that would previously have been authorized under a license exception, a BIS license will be required (exports, reexports, and transfers of certain controlled items).<\/p>\n

CFIUS Filing Fees Proposed<\/strong><\/p>\n

On March 9, 2020 (85 FR 13586<\/a>, corrected in 85 FR 14837<\/a>), the Department of the Treasury issued a proposed rule to establish a filing fee for voluntary notices submitted for by the Committee on Foreign Investment in the United States (CFIUS).\u00a0 The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) provided for, but did not immediately require, filing fees.<\/p>\n

The proposed rule adds implementing regulations including the following fee schedule:<\/p>\n