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Global Training Center News Items
BIS Dual-Use Licensing
By Catherine J. Petersen
A customer service representative recently approached me at a seminar and told me about a phone conversation she had with one of her U.S. customers who was looking to export a product they sell. Her customer asked if she had an ECCN for her product since it seemed to be a “dual use” item that might need an export license.
She needed help understanding what her customer meant. During the seminar, we talked about the Export Administration Regulations (EAR), part 730.3 and the meaning of the term ‘dual use’.
The term is often used to distinguish those products covered by the EAR from those that are covered by the regulations of other U.S. government departments and agencies with export licensing responsibilities. Dual use items:
1. can be used both in military and other strategic uses (e.g., nuclear) and commercial applications; and
2. can be used both in military and other strategic uses and in civil applications from those that are weapons and have a military-related use or design and are subject to the controls of the Department of State or subject to the nuclear related controls of the Department of Energy or the Nuclear Regulatory Commission; however,
3. may also refer to the entire scope of the EAR, since the EAR also applies to some items that have solely civil uses.
The Bureau of Industry & Security (BIS) is the agency responsible for administering export control laws and safeguarding U.S. national interests, including dual-use technologies.
The BIS maintains controls on exports from the United States and re-exports of U.S.-origin items from foreign destinations. The controls are on strategic commodities and technical data to prevent their diversion to hostile countries.
Case Study
Gumbo Rubber Company, 65531 Gumbo Road, Fremont, California, regularly exports a variety of rubber insulators and connectors for electric fencing, power lines and facilities. Some of their customers request specific modifications. These customers operate nuclear power plants.
If the item is to be used in a nuclear power plant, then the exporter must investigate the regulations that cover dual use items. These would include, but may not be limited to, the Export Administration Regulations, regulations under the control of the U.S. Nuclear Regulatory Commission, and the Department of Energy regulations.
It is important for each firm to develop an export compliance procedure and policy that all employees will follow to avoid violation of the regulations.
A Global Training Center seminar will introduce the regulations and explain in plain English why these regulations are important to you and your firm.
The United States participates in four multilateral control regimes that enhance the effectiveness of its export controls:
• Wassenaar Arrangement (e.g. conventional arms and related dual use items) - http://www.bis.doc.gov/wassenaar/wasspres3.htm,
• Nuclear Suppliers Group - http://www.state.gov/t/isn/58378.htm,
• Australia Group (e.g. chemical precursors and biological agents) -http://www.australiagroup.net/en/index.html, and
• Missile Technology Control Regime - http://www.mtcr.info/english/index.html.
BIS implements U.S. foreign policy controls such as crime control, antiterrorism and regional stability and is responsible for export controls on terrorist countries. BIS also administers export controls to protect the United States from the adverse impact of the unrestricted export of commodities in short supply (e.g. some crude oil, other petroleum products, and unprocessed western red cedar).
BIS partners with a number of agencies and laboratories including:
• Oak Ridge National Laboratory (ORNL) - http://www.ornl.gov,
• Argonne National Laboratory Policies & Procedures publishes a Guide to Exporting - http://www.library.anl.gov/manuals/export,
• Department of State (DOS) administers The International Traffic in Arms Regulations -http://www.pmddtc.state.gov/regulations_laws/itar.html,
• Treasury Department, Office of Foreign Assets (OFAC) regulates broad controls and embargo transactions with certain foreign countries - http://www.ustreas.gov/offices/enforcement/ofac/
• U.S. Nuclear Regulatory Commission (NRC) regulates the export and re-export of technology related to the production of special nuclear materials (10 CFR 110) - www.nrc.gov/reading-rm/basic-ref/glossary.html,
• Department of Energy regulations control the export and re-export of technology related to the production of special nuclear materials - www.ne.doe.gov,
• Patent and Trademark Office (PTO) regulations provide for the export to a foreign country of unclassified technology in the form of a patent application or an amendment, modification, or supplement thereto or division thereof (37 CFR 5) - www.uspto.gov,
• U.S. Customs & Border Protection is responsible for (1) monitoring exports at U.S. borders; (2) collecting duties (on imports); and (3) protecting national security - www.cbp.gov.
Export Classes Remaining for 2010
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Are Letters of Credit for You? by Paul Patterson
“An Order That Isn’t Paid For Is Nothing But a Gift”
As we see our exports increasing, our international accounts receivable balances are increasing too. Many exporters fear the many mysteries and risks associated with selling their goods to foreign buyers, including those mysterious international banks. How do we insure that we will receive payment for all of those shipments? How can we get paid faster and with lower bank fees? Just what is the difference between a Documentary Collection and a Documentary Credit? Is a Letter of Credit really a “guaranteed” payment?
As your export business grows, these questions will become more and more important. How can you ensure that you are making the correct decisions about the credit terms that are offered to your foreign customers? One great way to gain confidence in those decisions is to attend a Global Training Center seminar, covering topics that will lead to faster and less expensive payments. Our instructors can explain the intricacies of international movement of funds; explain the potential gains/losses of foreign exchange fluctuations; clarify those mysterious documentary requirements found on those pesky Letters of Credit; and explain those numerous banking fees associated with international payments.
Sign up now for the next seminar provided in your area. Or, even better, contact Global Training Center to schedule a seminar especially designed for your company and presented at your location. |
Incoterms® 2010 Will you be ready?
New International Commericial Terms rules will be announced September 15, 2010. These changes will be effective January 1, 2011. Will you be ready? International traders will have a large task ahead of them as they evaluate which term or terms will work best for their situation with upcoming changes.
Who should attend? Exporters, Importers, Sales Managers, Purchasing Managers, Forwarders, Customs Brokers, Carriers, Credit Professionals, Insurers, Trade Consultants, International Bankers, and Attorneys.
Global Training Center will be ready with 1/2 day seminars and webinars to prepare your staff for 2011. Cost is $295 per person and includes reference manual 'U.S. Domestic Terms of Sale and Incoterms® 2010' a $69 value.
| Anaheim, CA |
Thursday, November 04, 2010 |
| Atlanta, GA |
Friday, November 12, 2010 |
| Charlotte, NC |
Friday, December 17, 2010 |
| Chicago, IL |
Friday, November 12, 2010 |
| Cincinnati, OH |
Friday, October 22, 2010 |
| Cleveland, OH |
Tuesday, November 09, 2010 |
| Houston, TX |
Friday, December 10, 2010 |
| Las Vegas, NV |
Thursday, November 18, 2010 |
| Miami, FL |
Friday, October 15, 2010 |
| Milwaukee, WI |
Friday, October 22, 2010 |
| Minneapolis, MN |
Tuesday, December 07, 2010 |
| Philadelphia, PA |
Friday, November 05, 2010 |
| San Diego, CA |
Thursday, October 28, 2010 |
| Webinars |
Thursday, October 21, 2010 |
| Webinars |
Thursday, November 11, 2010 |
| Webinars |
Thursday, December 02, 2010 |
®"Incoterms" is a trademark of the International Chamber of Commerce.
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The ICC Announces Updates to It's Incoterms® Rules
So Long DDU, DES, DEQ and DAF! It’s Been Good To Know You!
Since the International Chamber of Commerce (ICC) devised them in 1936 INCOTERMS® trade terms have assisted international traders in structuring their commercial transactions. The terms define obligations and responsibilities between the buyer and the seller in critical areas such as:
- Routing of cargo
- Insurance
- Transfer of risks
- Delivery
- Division of costs
- Customs formalities etc.
The trade terms have become one of the fundamental tools buyers and sellers use to define each party’s obligations within an international contract. Indeed they have become a necessity that helps streamline commercial contracts and removes some of the ambiguity that can develop, particularly when parties speak different languages. The terms have earned global acceptance and have become the standard.
In order for the terms to remain current with practices in international trade the ICC undertakes periodic updates and amendments to them. In September, 2010 the ICC will release its latest revision of the terms in a publication entitled INCOTERMS®2010. ICC rules for the use of domestic and international trade terms. The updated terms are scheduled to go into effect in January 2011.
The revision includes a number of notable changes.
- Removal of the terms DDU, DES, DEQ and DAF
- Addition of the terms Delivered At Place (DAP) and Delivered At Terminal (DAT)
- Guidance for selecting the appropriate rule relative to the mode of transit
- Advice for using electronic procedures
- Discussion of security related clearances
- Inclusion of INCOTERMS® trade terms within domestic contracts
Users of the INCOTERMS® trade terms must act quickly to incorporate changes into their business practices. There are a number of resources available to assist.
Publications:
The ICC offers its INCOTERMS® 2010 technical rules publication at its website: http://www.iccwbo.org. The book represents the official interpretation of the INCOTERMS® 2010 trade terms and is a must for any international trade library. Like any technical document it has its limitations. Readers may still be left seeking guidance on how to apply specific terms within their businesses.
To bridge that gap we recommend obtaining a copy of U.S. Domestic Terms of Sale and INCOTERMS® 2010 by Petersen and Primus, available through Global Training Center. This publication contains a variety of case studies demonstrating proper usage of the trade terms and contrasts them with U.S. commercial contract terminology.
Seminars:
Global Training Center is offering a series of seminars nationwide.
Anaheim, CA Thursday, November 04, 2010
Atlanta, GA Friday, November 12, 2010
Charlotte, NC Friday, December 17, 2010
Chicago, IL Friday, November 12, 2010
Cincinnati, OH Friday, October 22, 2010
Cleveland, OH Tuesday, November 09, 2010
Houston, TX Friday, December 10, 2010
Las Vegas, NV Thursday, November 18, 2010
Miami, FL Friday, October 15, 2010
Milwaukee, WI Friday, October 22, 2010
Minneapolis, MN Tuesday, December 07, 2010
Philadelphia, PA Friday, November 05, 2010
San Diego, CA Thursday, October 28, 2010
Webinars Thursday, October 21, 2010
Webinars Thursday, November 11, 2010
Webinars Thursday, December 02, 2010
GTC seminar attendees will obtain a copy of the book U.S. Domestic Terms of Sale and INCOTERMS® 2010. Like the book the seminar will take a practical approach to discussing the use of both domestic and INCOTERMS® 2010 trade terms. Attendees will not only learn about the various terms but learn how they work within the greater context of their businesses.
Global Training Center also has the ability to travel to your business location and customize presentation materials to meet your specific business requirements. For larger groups this represents an economical alternative to the individual registration.
INCOTERMS® is a registered trademark of the International Chamber of Commerce. Global Training Center is not affiliated with the International Chamber of Commerce. The ICC has not reviewed, approved or endorsed publications or seminars offered by Global Training Center.
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Suddenly Responsible for Import & Export Departments
Have you found yourself suddenly responsible for the import and export departments in your company?
Like most companies you have likely had to make the tough decision to reorganize your staff, including laying off key individuals. If you chose to lay off your international logistics and trade compliance staff you may have discovered, too late, that these folks were critical to the success of your import/export programs and they provided you a much-needed safety net against regulatory intervention. Now they are gone and suddenly your company expects you to fill in the void.
And while your company was busy downsizing the US authorities responsible for export and import regulation were busy upsizing. During 2008 and 2009 the US Government implemented more sweeping regulatory changes with enhanced penalties than in the previous decade. Ignorance of the law is no longer a valid excuse for non-compliance!
What are you going to do?
Don’t panic! Stay calm! Get educated!
Your first responsibility is to identify what you don’t know about importing and exporting. That is where Global Training Center can help. With a proven track record and experienced instructors we can help you identify the critical components of an import or export trade compliance and logistics program and help put you back on the road to success!
John D. Goodrich
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