The Aerospace Industries Association asked the Commerce Department for more time before it sets space-related export control regulations, in order to allow for its member companies to have "open discussions with the government," in comments filed in a Bureau of Industry and Security proposed rulemaking regarding the Commerce Control List for munitions. The trade group said it lacked an "industry consensus" on multiple changes being considered. The comments were solicited by State and Commerce after both requested public comments on a proposal for items listed on the U.S. Munitions List in categories IV and XV: launch vehicles and spacecraft. The proposal is part of a broader effort by the Trump administration to revive the National Space Council and review space-related export controls (see 1904180014). Comments were due April 22
The Automated Export System Trade Interface Requirements was updated to reflect the State Department's changes involving International Traffic in Arms Regulations for U.S. government transfers (see 1904180024), CBP said in a CSMS message.
The State Department's update to the International Traffic in Arms Regulations for U.S. government transfers (see 1904180024) marks "a huge and long awaited improvement," Arent Fox lawyers said in a blog post. Still, when exporting to countries on behalf of the U.S. government goods that will be received by someone outside the U.S. government, "you will still need to get a license or other approval in most cases," the firm said. According to Crowell Moring lawyers, the most significant change is "the government’s expanded use of contractor personnel in supporting [U.S. government] missions often involving foreign parties," according to a firm alert. "The exemption now expressly covers defense services and other exports by 'persons or entities in a contractual relationship with the U.S. Government' where use of the defense article or performance of the defense service is within the scope of such contract and where any one of three specified conditions exist and assure government control and oversight of the transfer."
A New Jersey defense contractor pleaded guilty to a charge of conspiracy to violate the Arms Export Control Act in U.S. District Court for the District of New Jersey, the Department of Justice said in a news release. Oben Cabalceta owned two New Jersey companies, Owen's Fasteners Inc. and United Manufacturer LLC. Cabalceta admitted to defrauding the Department of Defense by "providing military equipment parts that were not what he had contracted to provide and illegally accessing technical information because he was not a United States citizen," the DOJ said.
Officials from the State and Commerce departments underscored the importance of open communication and urged industry leaders to submit public comments as the two begin a review of space-related export controls under a Trump administration directive. At the April 17 public meeting at the Department of Commerce, several officials, including Commerce Secretary Wilbur Ross, said they were seeking public comments on an advanced notice of proposed rulemaking for both State and Commerce, specifically surrounding items listed on the U.S. Munitions List regarding categories IV and XV: launch vehicles and spacecraft, respectively. The notices were issued March 8; comments are due April 22.
The State Department is seeking Office of Management and Budget approval of the information it will collect through an “online case management system” that will consolidate several Directorate of Defense Trade Controls licensing forms, it said in a notice. The new DS-7788 will be used to review and adjudicate requests to export or temporarily import defense articles, defense services and related technical data. After the new system is implemented, DDTC will discontinue the use of several forms consolidated into the new DS-7788: the DSP-5, DSP-6, DSP-85, DSP-73, DSP-61, DSP-62, DSP-74, DS-6004 and DS-4294. Comments are due to State by June 18.
The State Department is amending the International Traffic in Arms Regulations to make changes to its licensing exemption for transfers made by or for an agency of the U.S. government. The scope of the revised exemption is now expanded to allow for permanent exports and retransfers, as well as transfers by third parties acting for the U.S. government. The final rule takes effect April 19.
The Directorate of Defense Trade Controls has deactivated International Traffic in Arms Regulations "exemption code 22 CFR 126.5C," CBP said in an April 16 message. That section of the federal code only says "reserved." The exemption code "will not be accepted in Electronic Export Information" submissions effective immediately, CBP said. "Appendix O of the Automated Export System Trade Interface Requirement" will also be updated to remove the code, it said.
A Justice Department settlement with Honda Aircraft Company after Honda allegedly discriminated against non-U.S. citizens to try to comply with U.S. export laws serves as a cautionary tale for U.S. employers, according to an April 3 report from Covington & Burling. The case, announced in a Feb. 1 press release, resulted in a nearly $45,000 settlement payment from Honda Aircraft after it wrote in job postings that candidates were required to have a “specific citizenship status,” the press release said. The postings were based on the company’s “misunderstanding” of the International Traffic in Arms Regulations and the Export Administration Regulations, the Justice Department said. Honda Aircraft was ordered to remove all “specific citizenship requirements from current and future job postings.”
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