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OPEN SESSION
Keith Melchers, Chair – Welcome and Introductions
Matt Borman – BIS Update
January 22 Export Control Reform Directives circulated (one dual-use, one munitions):
Intra-company transfer license exception – transfers within the corporate structure based on a tight internal control program
Final expanded Entity List – partly resulting from General Orders, which can be difficult for exporters to screen
De minimis – based on the President’s direction to address reexports
Encryption simplification – to interagency review in the next week or so
Transparency: Posting advisory opinions on the website and looking into publication of commodity classifications
Commerce Control List (CCL) review: Internal task force working on it – rule for other agencies by end of the month – some issues will require multilateral review
Deemed Export Advisory Committee (DEAC) proposals: Notice of inquiry on country of affiliation/narrowing universe of technologies subject to control for deemed exports
Emerging Technology and Research Advisory Committee: To look at emerging technologies that are pre-commercial, universe of deemed exports, and impact of deemed export rule on research
To the Federal Register today: Notice of inquiry on crime control – universe of items and country scopes
Drafting amendment to add Kosovo to Export Administration Regulations
Working with State and Defense on clarifying application of section 17(c) of the Export Administration Act
Hillary Hess – Published Regulations
2/28/08 Expanded Authorization for Temporary Exports and Reexports of Tools of Trade to Sudan
2/5/08 Wassenaar Arrangement ’06 changes to CCL
12/12/07 Expansion of Eligible Items under License Exceptions TMP and BAG
Kevin Delli-Colli – Export Enforcement
Voluntary Self-Disclosures (VSDs) are still coming in despite higher penalties (about 180/yr)
Of closed VSDs, 97% merited a warning letter or no action (not all closed)
(Discussion of procedures for requesting authorization in connection with items that were the subject of a VSD, the backlog of those requests, and the possibility of narrowing the scope of those items)
Bill Bostic & Dale Kelly – Census/Automated Export System (AES)
Publication of Foreign Trade Regulations is imminent
Coming out with regs: notice to carriers, US principal parties in interest, freight forwarders; broadcast message; video
AES newsletter
AES compliance review visits – extensions for companies to get into compliance
FTR: 30-day effective date; 90-day informed compliance; to ports on 91st day to stop paper from coming in
Training video for Customs agents to try to make interpretations consistent from port to port
(In response to question on Option 4 post-departure filing) Can’t really talk about it, but short answer: no changes at this point
(In response to question on enforcement authorities) Penalties after 91st day; arrangements signed with BIS and Customs
(In response to question on errors vs. violations) Fatal errors must be corrected – system may generate a compliance alert
15-month sliding correction period – some corrections could lead to violations
Informed compliance before referrals are made
WORK GROUPS
Ed Bond – Encryption
Commented on draft encryption rule
Keith Melchers – Technology Controls
Commented on draft ICT rule, follow-up comments
Julie LaCross & John Nieberding – Policies and Procedures
Advance Notice of Proposed Rulemaking on reporting requirements
Will take up Customs list/Option 2 issue
Ben Flowe – Compliance and Enforcement
Ongoing dialogue with EE
Comments on mitigation guidelines
Keith Melchers – Multilateral Controls
Nothing to report
Keith Melchers
Solicited public comments or papers (none)