Joe Sery, former owner and CEO of Tungsten Heavy Powder & Parts, pleaded guilty to conspiring to illegally export defense articles on the U.S. Munitions List to China, India and other countries without first getting a license from the State Department, the U.S. Attorney's Office for the Southern District of California announced June 9. Sery's actions violated the International Traffic in Arms Regulation, and he faces a maximum penalty of five years in prison and a $250,000 fine.
The Bureau of Industry and Security June 8 issued a temporary denial order for three U.S. companies for their involvement in illegally exported technical drawings and blueprints to China. BIS said it suspended the export privileges for Quicksilver Manufacturing, Rapid Cut and U.S. Prototype for 180 days after they illegally exported materials used to 3D print satellite, rocket and defense-related prototypes, which are subject to strict export controls because of their “sensitivity and importance to U.S. national security,” BIS said.
The State Department’s recent fine of a U.S. electro-optics equipment manufacturer (see 2202010058) highlighted a range of key takeaways for defense exporters, including the importance of the commodity jurisdiction process and recordkeeping, Torres Trade Law said in a June alert. The consent agreement also underscored the benefits of voluntarily disclosing violations, the firm said, which can significantly mitigate penalties.
The State Department’s Directorate of Defense Trade Controls this week posted the minutes and white papers from its April Defense Trade Advisory Group plenary (see 2204290032). The white papers include presentation information and recommendations from three DTAG working groups, including a recommendation for a new International Traffic in Arms Regulation exemption, recommendations for clarifications and corrections to certain ITAR definitions, and a report on ITAR-related challenges for controlled unclassified information.
The Bureau of Industry and Security soon will introduce a congressional notification requirement for certain firearm exports, the agency said in a final rule. The change, effective July 18, will add a new section to the Export Administration Regulations that will require congressional reporting for certain semiautomatic firearms shipments valued at $4 million or more and destined to certain countries. The requirement will apply to certain guns whose export control authority was transferred from the State Department to the Commerce Department in 2020 (see 2001170030).
The State Department’s Directorate of Defense Trade Controls recently posted two new frequently-asked-questions under its licensing and registration guidance pages.
The State Department’s Directorate of Defense Trade Controls posted the slide presentations from the April 28 Defense Trade Advisory Group plenary meeting (see 2204290032). The slides include presentations from several DTAG working groups, including a recommendation for a new International Traffic in Arms Regulation exemption, recommendations for clarifications and corrections to certain ITAR definitions, and a report on ITAR-related challenges for controlled unclassified information.
A federal government payment website, Pay.gov, will undergo “critical maintenance activity” from 6 p.m. to 10 p.m. EDT May 21 and may be unavailable to users, the State Department’s Directorate of Defense Trade Controls said. DDTC said the outage will affect users paying registration fees during that window. Questions or concerns should be directed to Pay.gov customer support at 800-624-1373 or pay.gov.clev@clev.frb.org.
The State Department’s Directorate of Defense Trade Controls should make several additional changes and clarifications to its first rule that reorganized its defense trade regulations, two commenters told the agency. The agency should include clearer definitions for end-use and end-user, a trade group said. An aerospace company urged DDTC to clarify sections of the International Traffic in Arms Regulations that could have “unintended consequences.”
The State Department’s Directorate of Defense Trade Controls will launch an updated licensing application this summer in the Defense Export Control and Compliance System, the agency said in a notice last week. DDTC is updating the application to work in a new software platform, “providing greater flexibility, security and administration of the application to the support team,” the agency said. The update is a “significant step in DDTC’s effort to continuously modernize the DECCS application suite.” DDTC will hold a webinar June 9 to discuss the update, including a demonstration of the application, an overview of how it affects DDTC partners and a timeline for its release.