After losing an appeal in British courts, Christopher Tappin was extradited from the U.K. and brought to the U.S. on February 24th. Mr. Tappin, a British businessman, faces charges in connection with a scheme to illegally export parts used in Hawk surface-to-air missile systems to Iran. On March 5th, a United States federal grand jury indictment was handed down. Mr. Tappin was charged with one count each for: conspiracy to illegally export defense articles, aiding and abetting the illegal export of defense articles, and conspiracy to conduct illegal financial transactions. If convicted, Mr. Tappin faces up to 20 years in prison.
Mr. Tappin was investigated by The Bureau of Immigration & Customs Enforcement (ICE), which is an agency within the U.S. Department of Homeland Security. ICE established a front company for the purpose of detecting potential illegal exports. U.S. authorities allege that an associate of Mr. Tappin dealt with the front company to purchase items which were then exported to Iran via the Netherlands.
To read more about this case, click here.
This case illustrates the extent to which the U.S. government will go to convict people (and companies) that commit export violations. It further demonstrates that anyone can be extradited and charged for violations of U.S. export control laws, regardless of their place of residency, and even if there are no equivalent laws in their country of citizenship.
Ensuring compliance with government export rules and regulations is a complex process. Effectively screening against restricted party lists, determining license requirements, and generating the necessary documentation for a shipment is often a challenge for exporters.
Learn how your company can automate (and simplify) these complex processes. Check out Amber Road’s Trade Export brochure.
President Obama recently signed an executive order, establishing the Interagency Trade Enforcement Center (ITEC) within the U.S. Trade Representative (USTR). The Obama administration is aimed at doubling exports by the year 2015, and this new agency will help facilitate that goal.
According to Ron Kirk, Ambassador of USTR, the ITEC is among the most significant commitment of resources and expertise since the establishment of the USTR. The purpose of the Interagency Trade Enforcement Center will be to coordinate U.S. trade rights under international agreements, monitor unfair trade practices, as well as identify and eliminate foreign trade barriers. These tasks will hopefully curb the production of counterfeit and unsafe goods and improve market access for U.S. exporters. The ITEC will also strengthen trade enforcement of intellectual property laws.
Chairman of the House Trade Working Group, Rep. Mike Michaud (D-Maine), said, “Signing this order brings us one more important step closer to the level of trade enforcement we need to counter the predatory practices of countries like China.”
Based on the signed executive order, the mission and function of The Interagency Trade Enforcement Center will be to:
(a) serve as the primary forum within the Federal Government for USTR and other agencies to coordinate enforcement of U.S. trade rights under international trade agreements and enforcement of domestic trade laws;
(b) coordinate among USTR, other agencies with trade related responsibilities, and the U.S. Intelligence Community the exchange of information related to potential violations of international trade agreements by our foreign trade partners; and
(c) conduct outreach to U.S. workers, businesses, and other interested persons to foster greater participation in the identification and reduction or elimination of foreign trade barriers and unfair foreign trade practices.
New Name Marks Continued Growth and Evolution for Global Trade Management Leader
Management Dynamics, a leading provider of Global Trade Management solutions, today announced that it has changed its name to Amber Road. The name change comes during a year of rapid expansion, marked by a 40% growth in employees, a 325% increase in European bookings, and the opening of a flagship office in Tysons Corner, Virginia. This breakout year is anchored by a 33% compound annual growth rate (CAGR) in overall revenue for the past decade.
“Today, our SaaS-based solutions span fourteen software products that include global transportation management, import/export compliance, supplier management, supply chain visibility and a content knowledgebase covering trade regulations and tariffs for more than 120 countries, “ said Jim Preuninger, CEO.
Enhanced Restricted Party Screening and License Determination and Management among New Features
Management Dynamics today announced the release of Export On-Demand 1.2, its export compliance solution for small and medium-sized exporters. The new release provides for enhanced compliance screening and management of export licenses. Easily configured and deployed in a SaaS-based model, Export On-Demand can be implemented in a modular fashion without the cost and expense of an on-premise solution.
“This latest release of Export On-Demand improves support for global exporters with enhanced embargo and restricted party screening, as well as a new license determination and management module,” stated Nathan Pieri, senior vice president, marketing and product management for Management Dynamics. “The modularity of Export On-Demand allows our clients to first establish a foundation by managing product compliance and screening parties, then adding successive capabilities such as global license management, document generation and filing.”
To learn more about the features available in Export On-Demand 1.2, read the full press release.
The Bureau of Industry and Security (BIS) recently published proposed changes to US export law in the Federal Register and asked for public comment. The changes primarily deal with the fact that the US has two lists for items that require export control and licensing: the US Munitions List (USML) administered by the State Department, and the Commerce Control List (CCL) maintained by the Commerce Department.
The current export control statute, written in 1979, reflects its Cold War heritage and hasn’t adapted to the rapid pace of technological change since then. Many items on the USML that were once considered high risk to national security are now widely available or low risk.
A key aspect of the proposed reform legislation would remove those items from the USML and move them to the CCL where exemptions to licensing are more flexible. This would allow the government to focus its limited resources on controlling transactions that need the highest level of scrutiny.
The details of the reform are available here. Of course, Management Dynamics will continue to monitor the changes proposed to the export control rules and numbering system. Once enacted, our classification and license determination products will accurately reflect the changes. For now, we support the efforts of our legislators to update and streamline the export control lists so they are more in line with today’s technologies.