The State Department published a final rule in the Federal Register this week to officially extend relaxed export restrictions for certain defense goods and services involving Cyprus. The agency announced last month that it planned to renew the measures (see 2308210013), which were first introduced in a September 2020 rule that amended the International Traffic in Arms Regulations to relax restrictions surrounding exports of nonlethal defense goods and services to Cyprus, and also eased restrictions on reexports, retransfers and temporary imports (see 2009020045). The agency has extended the rule each year since (see 2209190009 and 2211210028). The latest renewal, effective Oct. 1, expires Sept. 30, 2024.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The U.S. Census Bureau clarified who the ultimate consignee would be for certain scenarios, in a blog post on Sept. 7. The blog post includes a few scenarios wherein the Foreign Principal Party in Interest (FPPI) or foreign buyer is listed as the ultimate consignee, and two of those wherein "reseller/distributor" is listed as the Ultimate Consignee Type if they are reselling or distributing the goods.
A Torres Trade Law guide to maintaining registrations with the State Department’s Directorate of Defense Trade Controls is available on legal intelligence site JD Supra. It outlines how companies involved with the International Traffic in Arms Regulations should be updating their DDTC registrations when certain changes occur within the registered company, such as a change of control, a merger or a change in leadership. Even if no changes have occurred within the company, the law firm noted, ITAR registrations must be renewed annually.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
The U.S. shouldn’t be targeting American companies that exclude foreign applicants for job openings if those policies are meant to protect American sensitive technologies, Sen. J.D. Vance, R-Ohio, said in a letter to DOJ. Vance’s letter came after DOJ in recent enforcement actions targeted both SpaceX and General Motors for using export control laws to justify restrictive hiring practices, highlighting the risks facing companies looking to fill positions that involve export-controlled items, Barnes & Thornburg said in a recent client alert.
The State Department concluded an interagency review for a final rule that would amend certain export restrictions involving Cyprus within the International Traffic in Arms Regulations. The agency sent the rule to the Office of Information and Regulatory Affairs Aug. 17, and the review was completed Aug. 30. The agency earlier this month said it plans to again renew a measure that temporarily suspends restrictions on certain defense exports to Cyprus (see 2308210013).
The State Department fined a U.S.-based specialty chemicals supplier $850,000 for allegedly violating defense export regulations and failing to voluntarily disclose those violations, the agency announced in an order and settlement agreement this week. The Directorate of Defense Trade Controls said Island Pyrochemical Industries Corp. illegally acted as a broker between Brazilian and Chinese companies for shipments of chemicals used in explosives and made false statements on a license application to DDTC.
A pair of U.S. and Israeli 3D printing technology companies said they are submitting disclosures to both the Committee on Foreign Investment in the U.S. and the State Department ahead of their planned $500 million combination, Squire Patton said in an Aug. 24 post. Israeli-based Stratasys plans to acquire U.S.-based Desktop Metal, which was described in an August SEC filing as a “pioneering a new generation of additive manufacturing technologies” focused on the “volume production of end-use parts.” The companies said they submitted a “notice filing” to CFIUS in July and plan to submit a “notice filing” to the State Department “pursuant” to the International Traffic in Arms Regulations.
The State Department will again extend a September 2020 rule that temporarily suspended restrictions on certain defense exports to Cyprus, the agency said last week. The 2020 rule (see 2009020045) amended the International Traffic in Arms Regulations to relax restrictions surrounding exports of nonlethal defense goods and services to Cyprus, and also eased restrictions on reexports, retransfers and temporary imports. The agency has extended the rule each year since (see 2209190009 and 2211210028). The State Department plans to soon publish a Federal Register notice to reflect the renewal, which will apply for FY 2024, the Directorate of Defense Trade Controls said.