International Trade Law News

Published by Jacobson Burton Kelley PLLC

There was an important guest post for exporters published today on Global Reach, the blog of the U.S. Census Bureau's Foreign Trade Division.

The post by Chris Mead, Senior Vice President of the American Chamber of Commerce Executives, dealt with the accuracy of certificates of origin provided by U.S. companies to overseas customers.

The post notes that:

Certificates of origin are used to determine where products were made and thus can affect how much duty is levied on imports, whether imports are exceeding quotas or not, and whether the imports comply with local health and product safety regulations. The simple documents, usually just a page in length, can also affect the price of imports: many people overseas will pay more for items they think are made in the United States.

So the stakes are high on these seemingly innocuous documents. Around the world, they are treated with care. In the United States, people frequently handle outgoing certificates of origin with little attention and varying standards, even though U.S. Customs monitors incoming certificates of origin with vigilance.

Customers in foreign countries often request certificates of origin, which are intended to provide the "country of origin" of goods, be completed by local chambers of commerce in the U.S. Like all international trade-related documents, certificates of origin, which are typically based on a rule of origin involving the "substantial transformation" standard and are different than certificates of origin associated with Free Trade Agreements such as NAFTA, must be completed accurately.

As this post points out though, many persons and companies in the U.S. do not take the issuance of such documents seriously which casts doubt on the credibility of the documents and the underlying transaction.

This post serves as a useful reminder that U.S. exporters and their agents should take steps to ensure that all international trade-related documents presented to overseas customers and customs authorities are correct and accurate. This includes Certificates of Origin prepared for "origin's sake"; Certificates of Origin prepared for Free Trade Agreement purposes, such as NAFTA Certificates of Origin; Commercial Invoices (values and descriptions) and other related documents.

As this post correctly states, "the world’s importers should have confidence in the certificates issued in the United States. Let’s not let them down."

Labels: Exports

Congratulations to the 27 companies and organizations that received the prestigious 2011 Presidential “E” Awards for export excellence today. Secretary of Commerce Locke presented the awards to the recipients at a ceremony in Washington, DC.

The “E” Award, which is celebrating its 50th anniversary this year, is the highest U.S. government recognition any American entity may receive for supporting export activity.

The Presidential “E” Award was created by President John F. Kennedy in 1961, to recognize persons, firms, or organizations that contribute significantly to increasing United States exports. The Department of Commerce’s International Trade Administration manages the award program that has recognized more than 2,500 firms since its inception.

The 2011 “E” Award for Exports recipients are:

• Abaxis, Inc., Union City, Calif.
• Acrow Corporation of America, Parsippany, N.J.
• Advanced Protein Systems, Phoenix, Ariz.
• Aero Precision Industries, LLC, Livermore, Calif.
• Amarr Garage Doors, Winston-Salem, N.C.
• Blackboard, Inc., Washington, D.C.
• Brandt Holdings Company, Fargo, N.D.
• Codonics, Inc., Middleburg Heights, Ohio
• Combustion Associates, Corona, Calif.
• Cyanotech Corporation, Kailua-Kona, Hawaii
• Kenyon International Emergency Services, Inc., Houston, Texas
• Labcon North America, Petaluma, Calif.
• MagicTime International, Doral, Fla.
• Noni Biotech International, LLC, Haiku, Hawaii
• Rauland-Borg Corporation, Mount Prospect, Ill.
• Ruud Lighting, Inc., Racine, Wisc.
• Signature Fencing and Flooring Systems, LLC, New York, N.Y.
• Tiger Machinery Company, LLC, Birmingham, Ala.
• Unique Spectronix, Inc., Fullerton, Calif.; and
• Volk Optical, Inc., Mentor, Ohio.

The following companies and organizations have been awarded the 2011 President’s “E” Award for Export Service:

• California ETEC, Irvine, Calif.
• Edwards Global Services, Inc., Irvine, Calif.
• Le Centre International de Lafayette, Lafayette, La.
• Nance College of Business, Cleveland, Ohio
• Pennsylvania Center for Trade Development, Harrisburg, Pa.
• RF International/Ocean World Lines, Inc., Lake Success, N.Y.; and
• Trade Technologies, Inc., Austin, Texas.

Further information on the "E" Awards, including the application process, can be found here.

Labels: Exports

In describing the need for a more efficient federal government in the State of the Union (SOTU) address to Congress this week, President Obama said "there are 12 different agencies that deal with exports."

How did the White House come up with this number?

Depending on how one counts, there are more than 12 agencies that "deal with exports." The total number depends on how one defines "agency" and "deal with exports."

The Washington Post's SOTU Fact Checker columnist stated that:

The government's Export.gov lists 11 federal agencies that deal with exports: the Energy Department, Export-Import Bank, International Trade Association, the Foreign Agricultural Service, the U.S. Agency for International Development, the Overseas Private Investment Corporation, the Small Business Administration, the State Department, U.S. Trade and Development Agency, the Office of Foreign Assets Control and the U.S. Trade Representative.

While the U.S. Trade Representative, a cabinet level position, handles policy-related issues associated with free trade agreements and other issues that impact exports, they do not have a day to day role in regulating export activities. Similarly, the Trade and Development Agency and U.S. Agency for International Development are involved in overseas programs that lead to U.S. companies exporting goods and services. Should the Small Business Administration qualify as dealing with exports?

In reviewing USA.Gov's list of federal agencies one can come up with more than 12 agencies that "deal with exports" on a regulatory and policy level. Here is the list that I came up with. Can you think of any others? Please leave your comments below.

U.S. Agencies Dealing With U.S. Exports

--Direct Involvement With and Regulation of U.S. Exports

1. Bureau of Industry and Security (Department of Commerce)

2. Census Bureau (Commerce) (EEI/AES filings)

3. Office of Foreign Assets Control (Treasury)

4. Directorate of Defense Trade Controls (State)

5. Defense Technology Security Administration (Defense)

6. Customs and Border Protection (DHS)

7. Immigration and Customs Enforcement (DHS)

8. Food and Drug Administration (HHS)

9. Nuclear Regulatory Commission (Independent)

10. Food Safety Inspection Service (Agriculture)

11. Animal Plant Health Inspection Service (Agriculture)

12. National Nuclear Security Administration (Energy)

13. Export-Import Bank of the U.S. (Independent)

14. Defense Security Cooperation Agency (Defense)

15. Drug Enforcement Agency (Justice)

16. Bureau of Alcohol, Tobacco, Firearms and Explosives (Justice/Treasury)

17. Fish and Wildlife Service (Interior)

18. Environmental Protection Agency (Independent)

19. U.S. Patent and Trademark Office (Commerce)

20. National Security Agency (Defense) (Encryption issues)


--Other U.S. Agencies Involved With Export-Related Matters

• U.S. Trade Representative (Executive Office of the President)

• U.S. Trade and Development Agency (Independent)

• Agriculture Marketing Service (Agriculture)

• United States Citizenship and Immigration Services (Homeland Security) (now requires export control certification on I-129 form.

Should the Federal Maritime Commission qualify? How about the National Security Council, which is currently involved with export control reform efforts? The U.S. International Trade Commission primarily deals only with imports, although they often conduct studies on export issues.

Update: Thanks to a reader for mentioning DSCA, which deals with government to government transfers of defense articles under the Foreign Military Sales program.

Update 2: Thanks to the comments and other input received, I have updated the list to reflect several additional agencies.

Labels: Exports, Miscellaneous

The President's Export Council (PEC) will meet at 9:30 a.m. today in Washington to discuss topics related to the National Export Initiative (NEI). President Obama is scheduled to deliver remarks to PEC at 9:45 a.m. The meeting will be shown via live webcast on the White House's website.

In advance of today's PEC meeting, this morning the Trade Promotion Coordinating Committee (TPCC) issued a report to the President that presents the Export Promotion Cabinet’s recommendations for doubling exports in five years. This report will be followed by the National Export Strategy which will detail the implementation of these recommendations and measure progress.

The TPCC consists of the Export Promotion Cabinet, which includes the Secretaries of Commerce, State, Treasury, Agriculture and Labor and the heads of all the trade-related government agencies.
In preparing the report, the TPCC Secretariat reviewed over 175 responses to a Federal Register notice requesting input to the National Export Initiative from small, medium, and large businesses; trade associations; academia; labor unions; and state and local governments.

The report notes that the administration’s efforts, through the NEI, are focused on five areas including: access to credit, especially for small and midsize firms; more trade advocacy and export promotion efforts; removing barriers to the sale of U.S. goods and services abroad; enforcement of trade rules; and pursuing policies that will increase global economic growth so that there’s a strong worldwide market for U.S. goods and services.

The report outlines ways the U.S. government can expand efforts to help U.S. businesses win more foreign government contracts, find buyers worldwide, participate in more trade missions and trade shows, receive more export financing, and learn new ways to sell products and services overseas. A central focus of the plan is providing additional assistance to small and medium-sized businesses.

Part I of the report, titled “The NEI in Context,” sets out eleven key factors and assumptions that form the basis of a plan to double exports, ranging from assessments of the U.S. and global economies and identification of priority markets, to determining the most promising and appropriate roles for the Federal Government in increasing exports.

Part II of the report, titled “Recommendations,” examines each of the eight NEI Priorities, describes the rationale underlying each Priority, and presents short- and long-term recommendations for the Federal Government to implement, consistent with the Executive Order that mandated the Report.

Finally, Part III presents conclusions, discusses the National Export Strategy that will be published later this year, and highlights suggestions for further advancing the NEI goals.

Key recommendations in the report include:

• Small and Medium-Sized Enterprises (SMEs): a National Outreach Campaign led by the SBA and other Trade Promotion Coordinating Committee (TPCC) agencies to raise awareness of export opportunities and government export assistance for U.S. small and midsize companies; a re-launch of export.gov, the Government’s export internet portal, with new export training opportunities to help companies learn how they can begin selling their products overseas or break into new markets if they’re already exporting.

• Federal Export Assistance: bring more international buyers to U.S. trade shows and encourage more U.S. companies to participate in major international trade shows. For the first time, implement a government-wide export promotion strategy for six newly designated “next tier” markets (Colombia, Indonesia, Saudi Arabia, South Africa, Turkey and Vietnam).

• Trade Missions: substantially increase the number of trade missions abroad, particularly those led by senior U.S. Government officials, and foreign buyer trade missions to the United States.

• Commercial Advocacy: level the playing field for companies bidding on projects abroad through improved coordination among government export promotion programs; formalize a path to escalate, for the first time ever, critical advocacy projects for direct White House and National Economic Council involvement where necessary.

• Increasing Export Credit: extend more export credit through existing trade finance agencies, increase awareness of credit products, focus on SMEs and companies from underserved sectors of the U.S. economy, expand the eligibility criteria for SME export finance lending, and streamline the application and review process for SME exporters.

The report notes that the Administration’s plans for export control reform are completely separate from the National Export Initiative, but that a by-product of this important reform process will allow for exporters in some of the most competitive industries to export products consistent with the new export control process.

The entire Report to the President on the National Export Initiative: The Export Promotion Cabinet’s Plan for Doubling U.S. Exports in Five Years can be found here.

Update: The text of the President's remarks made at the opening of today's President's Export Council meeting can be found here.

Labels: Exports

President's Export Council Chairman Jim McNerney and Vice Chairman Ursula Burns have announced that they plan to structure the group into the following five subcommittees:

1. Small and Medium Sized Business Engagement
2. Export Promotion and Advocacy
3. Global Competitiveness
4. Manufacturing, Services and Agriculture
5. Workforce Readiness

The first meeting of the President's Export Council is scheduled for September 16th.

The President's Export Council is the principal national advisory committee on international trade. The council advises the president of government policies and programs that affect U.S. trade performance; promotes export expansion; and provides a forum for discussing and resolving trade-related problems among the business, industrial, agricultural, labor, and government sectors.

The President's Export Council is comprised of 20 private-sector members; five U.S. senators; five U.S. representatives; the Secretaries of Commerce, Agriculture, Energy, Homeland Security, Labor, State, and Treasury; the Chairman of the Export-Import Bank of the United States; the U.S. Trade Representative; and the Administrator of the Small Business Administration.

Labels: Exports, Trade Policy

At the request of the U.S. Trade Representative, the U.S. International Trade Commission has published a report entitled "Small and Medium Sized Enterprises: U.S. and EU Export Activities, and Barriers and Opportunities Experienced by U.S. Firms".

The 300 plus page report summarizing the results of the ITC's investigation compares the exporting activities of SMEs in the United States with those of SMEs in the EU. The report also describes the barriers and trade costs associated with exporting, including strategies to reduce these barriers and costs. The ITC's report identifies the benefits to U.S. SMEs from improvements to the exporting environment resulting from free trade agreements and other trade arrangements.
Some of the ITC's major findings included:

*The share of SMEs in U.S. manufacturing activity—and total U.S. exports—is smaller than the share of SMEs in EU manufacturing activity and exports.

*According to U.S. SMEs, the top barriers to exporting include: insufficient access to finance, complex and sometimes nontransparent domestic and foreign regulations, rising and unpredictable transportation costs, the small scale of SME production, tariff and nontariff barriers, time consuming foreign customs procedures, language and cultural differences, and lack of knowledge of foreign markets.

*With respect to U.S. government regulations, SMEs reported that domestic regulations maintained by the U.S. federal and state governments—particularly export controls and visas for foreign nationals to visit the United States—also serve as barriers to exporting.

*Regarding export controls, although U.S. companies generally agree that such controls are necessary, they consider the paperwork and logistics associated with such controls to be cumbersome, and many companies are concerned about accidentally violating the regulations. Companies also expressed concern that too many
federal government agencies are involved and that the lines of authority between them are not clear. In addition, they stated that the U.S. practice of requiring licenses for particular components, rather than for integrated weapons systems or other final products, makes U.S. producers less competitive vis-à-vis foreign companies subject to export. SMEs noted that the cumbersome nature of the process and the list of products subject to export control regulations are poorly adapted to changing technologies, so that it takes too long for items to be removed from the lists when they no longer pose a threat. Some companies also reported losing sales to foreign competitors due to export licensing delays.

*Regarding foreign government regulations SME representatives reported that the costs of understanding and complying with foreign government regulations can be significant barriers to exporting. Factors that raise costs include the lack of standardized regulations across countries and the administrative costs of compliance.

* U.S. SMEs have developed a number of strategies to overcome some of the domestic and foreign barriers to exporting they identified. These include combining resources with other firms in the same industry, working with larger companies, brokers, or agents, and taking advantage of U.S. federal and state government support programs.

*Suggested policy changes to enhance the ability of SMEs to export include: (1) increase focus on free trade agreements and other trade agreements; (2) assist more with market access, particularly in India and China; and (3) offer more information, outreach, and educational opportunities related to exporting.

The PDF version of the ITC's report can be found here.

Labels: Export Controls, Exports, ITC

The U.S. Department of Commerce and the U.S. Postal Service (USPS) today announced the launch of the New Market Exporter Initiative (NMEI), an initiative intended to help boost U.S. exports.  The NMEI is intended to identify current USPS customers who are exporting their goods in an effort to help them expand their reach to additional international markets. 

The Commerce Department entered into a similar partnership with UPS earlier this year.

Under the partnership agreement signed today Postmaster General John Potter and Commerce Secretary Gary Locke, the two organizations will work to provide foreign market expertise to small and medium-sized enterprises interested in expanding into new markets, providing simplified access to the free resources and tools available through the U.S. Commercial Service.

According to a joint press release, in the first phase of the partnership efforts will focus on those businesses currently shipping to one foreign market through the USPS. In subsequent phases, they efforts will focus on small and medium-sized enterprises to identify key markets, build market entry strategies and provide the guidance needed to take products and services from the U.S. to additional markets.

Labels: Exports

Today President Obama provided a progress report on the National Export Initiative (NEI), the President’s goal of doubling exports and supporting several million new jobs over five years. In addition, the President introduced the members of the President's Export Council (PEC), a group of business and labor leaders who will offer advice from outside of the Administration.

The Chair and Co-chair of the PEC are James McNerney, Chairman, President and CEO, the Boeing Company and Ursula Burns CEO, Xerox, who will serve along with 18 other Presidential appointees (full lists below).

Highlights of the NEI progress report (full PDF version here) include:

• Improved advocacy efforts on behalf of U.S. exporters: The Department of Commerce has coordinated 18 trade missions with over 160 companies participating in 24 countries.

• Increased access to export financing: Ex-Im has more than doubled its loans to support American exporters from the same period last year, helping to support nearly 110,000 jobs.

• Reinforced efforts to remove barriers to trade: In March, the United States reached an agreement with China to reopen the Chinese market to U.S. pork and pork products. In June, the United States agreed with Russia to reopen the Russian market to U.S. poultry exports. These steps are worth more than $1 billion.

• Enforcement of trade rules:  Last week the WTO ruled that European governments subsidized Airbus’s large civil aircraft.   This ruling is expected to sustain and even restore jobs to American aerospace workers by leveling the playing field for the U.S. aerospace industry. 

• International promotion of policies leading to strong, sustainable and balanced economic growth: These last 18 months have been the most effective period of international economic cooperation in generations with global growth replacing economic contraction.

The 18 additional members of the President's Export Council named today are:

• Mary Vermeer Andringa - President and Chief Executive Officer of Vermeer Corporation.

• Stephanie A. Burns - Chairman, President and CEO of Dow Corning Corporation. 

• Scott Davis - Chairman and Chief Executive Officer of UPS.

• Richard L. Friedman - President and Chief Executive Officer of Carpenter & Company, Inc.

• Gene Hale  - President and Founder of G&C Equipment Corporation. 

• C. Robert Henrikson - Chairman, President and Chief Executive Officer of MetLife, Inc. 

• William Hite - General President of United Association

• Robert A. Iger  -President and Chief Executive Officer of The Walt Disney Company.

• Charles R. Kaye - Co-President of Warburg Pincus.

• Jeff Kindler - Chairman and Chief Executive Officer of Pfizer.

• Andrew N. Liveris - President, Chairman and Chief Executive Officer of The Dow Chemical Company

• Robert A. Mandell - Past Chairman and Chief Executive Officer of Greater Properties.

• Alan Mulally  - President and Chief Executive Officer of Ford Motor Company.

• Raul Pedraza - Founder and President of Magno International L.P.

• Ivan Seidenberg - Chairman and Chief Executive Officer of Verizon.

• Glenn Tilton -  Chairman, President and Chief Executive Officer of UAL Corporation and Chairman and Chief Executive Officer of United Air Lines.

• James S. Turley - Chairman and Chief Executive Officer of Ernst & Young  

• Patricia A. Woertz - Chairman of the Board, Chief Executive Officer and President of Archer Daniels Midland Company.

Labels: Exports

• President Obama will deliver remarks tomorrow morning at the White House on export promotion and the President's Export Council. He is also expected to name Ford Motor Co.'s President and CEO to the President's Export Council.

•  Reuters: "Iran says planes get fuel; EU bans some for safety" (refutes earlier reports that U.S. sanctions were causing countries not to refuel Iranian commercial aircraft)

• An Iranian-Canadian has been convicted of violating Canadian laws for attempting to export goods to Iran that could be used in nuclear technology. Case marks first time that someone in Canada has been prosecuted for violating Canadian laws implementing U.N. sanctions. Canadian Government press release on this conviction can be found here.
  

• New York Times' lead Op/Ed today: Waiting for a Trade Policy from Obama Administration

• Reuters: China denounces new unilateral U.S. sanctions on Iran

• Heritage Foundation Report- "Unfinished Business: The U.S.-U.K. Defense Trade Cooperation Treaty"
  

Labels: Export Controls, Exports, Sanctions; Iran

The American Association of Exporters and Importers (AAEI) has isssued a policy paper entitled “The Innovation Economy for America.” The paper, which was sent to all members of Congress last week, contains a series of ideas that, if adopted, would according to AAEI "greatly increase the likelihood that the next great company with innovative technology and products will be created in the United States and thrive in the global marketplace."

"Our leaders need to better understand what innovation really is," said AAEI President and CEO Marianne Rowden, who authored the document. "Innovation can take many forms now, from new products to new processes. If Congress can improve the business environment for our cutting-edge innovators, then it will have tilled the soil from which new ideas can propel the future of our economy."

The document describes the following four policy areas that will foster innovative thinking and invention:

1. Creating an Environment that is Conducive to and Protects Innovation

2. Implementing These Small and Medium Size Business Enterprises Initiatives and Priorities

• Completing Free Trade Agreements with Colombia, Panama and Korea
• Help Small and Medium Size Business Navigate U.S. Export Controls by providing assistance through the U.S. Small Business Administration and the U.S. Department of Commerce
• Expand Export Financing Opportunities for SMEs

3. Promoting Exports by

• Enacting Duty Drawback Simplification
• Streamlining Export Controls

4. Lower Transaction Costs for Business by

• Passing the Miscellaneous Trade Bill (H.R. 4380)
• Finishing the Automated Commercial Environment (ACE) and International Trade Data System (ITDS)
• Economizing Homeland Security Costs (including C-TPAT, CCSP)
• Harmonizing and Recognizing Authorized Economic Operator Programs
• Promoting International Standards Setting Bodies
• Enacting an Exclusive Forum for Trade-Related Disputes by passing a bill to expand the jurisdiction of hte U.S. Court of International Trade
• Eliminating and Reducing User Fees

Labels: Export Controls, Exports, Free Trade Agreements

Here is the video from today's White House chat session that Commerce Secretary Gary Locke held following the President's speech on the National Export Initiative. Questions were submitted via Twitter (@seclocke), Facebook and email. 

Labels: Exports

NEI Executive Order

Labels: Exports

In a speech today at the Export-Import Bank of the United States' annual conference in Washington, DC, President Obama provided more details on the National Export Initiative (NEI) and his goal of doubling U.S. exports in the next five years that was announced in his State of the Union Speech in January.

The following is a summary the important points made in today's speech:

• Four aims of NEI are (1) increasing export financing; (2) increasing export advocacy; (3) providing assistance for American businesses to locate, set up shop, and win in new markets; and (4) focusing on making sure American companies have free and fair access to those markets, including enforcing existing trade agreements.

• Signed an Executive Order instructing the federal government to use every available federal resource in support of that mission. That order created an Export Promotion Cabinet, made up of the Secretaries of State, Treasury, Agriculture, Commerce and Labor, along with our U.S. Trade Representative, Small Business Administrator, the Export-Import Bank President, and other senior U.S. officials whose work impacts exports. That cabinet will convene its first meeting in April. 

• Re-launched the President’s Export Council, the principal national advisory committee on international trade. Named Jim McNerney, the President and CEO of Boeing, as its chair; and Ursula Burns, the CEO of Xerox, as vice chair (White House announcement on these appointments here).

• Export promotion efforts will extend throughout the Administration. Secretary Locke is issuing guidance to all senior government officials who have foreign counterparts on how they can best promote our exporters. Secretary Clinton is mobilizing a commercial diplomacy strategy, directing every one of our embassies to create a Senior Visitor Business Liaison who will manage our export advocacy efforts locally.

• Will unleash a battery of comprehensive and coordinated efforts to promote new markets and new opportunities for American exporters. Will bring together the Ex-Im Bank, the SBA, the Departments of Commerce and Agriculture, and the Trade Development Agency to set up one-stop-shops across the country and in the 250 embassies and consulates abroad, to help American businesses gain a foothold in the fastest-growing markets with the most demand. And we’ll provide a comprehensive toolkit of services – from financing to counseling to promotion – to help potential exporters grow and expand.

• Will increase funding for existing promotion efforts, including International Trade Administration at the Department of Commerce, and strengthen the USDA’s ability to connect farmers with new customers overseas.

• Working to reform the U.S. Export Control System for strategic, high-tech industries, which will strengthen our national security. Will concentrate our efforts on enforcing controls on the export of our most critical technologies, making America safer while enhancing the competitiveness of key American industries. Have conducted a broad review of the Export Control System, and Secretary Gates will outline our reform proposal within the next couple weeks.

• Regarding exports, the President announced two specific changes in export control laws that the Administration will work to implement:

1. A new one-time online review process for products containing encryption that is intended to reduce the current 30 to 60 day review process to "30 minutes".
2. Will eliminate unnecessary obstacles for exporting products to companies with dual-national and third-country-national employees by harmonizing the EAR and ITAR standards, making it easier for American and foreign companies to comply with U.S. export control requirements without diminishing national security. 

The video of the speech is below:

Labels: BIS, Exports, ITAR

Finding a Willing Buyer Only One Part of the Export Process

Exporters Looking to Boost Business Need to Mind Rules and Regulations Too

The Obama administration is launching a government-wide effort to double U.S. exports over the next five years as part of a plan to increase domestic employment and boost the U.S. economy. However, companies looking to take advantage of the new National Export Initiative to break into new markets should be aware that shipping goods overseas comes with potential perils as well as opportunities.

As part of the NEI, the federal government plans to increase its trade advocacy efforts, including educating U.S. companies about opportunities overseas, directly connecting them with new customers and advocating more forcefully for their interests. The NEI will also include a focus on improving access to export financing and helping to remove barriers that prevent U.S. companies from getting access to foreign markets. Only a very small percentage of U.S. companies currently export their products, and of those that do, 58% export to only one country. The Obama administration is looking to increase these figures in the expectation that doing so will also increase employment.

However, warns Doug Jacobson, head of Sandler, Travis & Rosenberg’s export controls practice group, while increasing the number of U.S. companies that export and increasing trade promotion assistance are laudable goals, U.S. exporters must be aware that finding a willing buyer is only the first step in the exporting process.

“In addition to taking the necessary steps to ensure they are paid for their goods, U.S. exporters must be aware of the wide range of U.S. regulatory and legal issues applicable to exports,” Jacobson said. “The benefits of exporting can be great for U.S. companies, but the penalties for violating export laws and regulations can be severe. ST&R often represents exporters in enforcement actions that learn of their export compliance obligations only after they receive an administrative subpoena from the Bureau of Industry and Security or the Office of Foreign Assets Control. Many of those violations could have been avoided if the exporters understood their export compliance obligations in advance.”

Examples of the important compliance-related issues that U.S. exporters should be aware of when selling goods overseas include the following.

Ultimate Destination. U.S. export restrictions and licensing requirements vary by the country of destination. Some countries are subject to comprehensive embargoes, while others are subject to targeted sanctions directed at certain individuals and companies.

Jurisdiction and Classification of Goods. Proper jurisdiction and classification of goods under the Export Administration Regulations or the International Traffic in Arms Regulations is required to determine export licensing requirements and end-use and end-user restrictions for all products being exported from the U.S. In addition, the proper export classification is required to be declared in the Electronic Export Information filing that must be transmitted via the Automated Export System.

Know Your Customer. To avoid engaging in transactions with parties that have been denied export privileges or are subject to U.S. sanctions, exporters should screen all customers and parties involved in the export against the government’s various restricted party lists.

Anti-boycott Compliance. Boycott requests, which often contain the words “boycott” or “blacklist” or provisions prohibiting the importation of goods from certain countries, are often found in documents involving sales to the Middle East, including purchase orders, tenders, contracts, shipping requests and letters of credit. Certain boycott requests must be reported to the Bureau of Industry and Security.

Foreign Corrupt Practices Act. The FCPA prohibits U.S. persons and their agents from making prohibited payments to foreign government officials to obtain and keep business.

For more information on these issues please contact Doug Jacobson at (202) 431-2407.

Labels: Export Controls, Exports, Sanctions

The PowerPoint presentations from the 2009 National District Export Council (DEC) Conference that was held in Washington, DC from November 3-5 have now been posted on the DEC Conference's website here.

The 2010 DEC Conference will be held in Detroit, Michigan and Windsor, Ontario from October 24 - 27, 2010.

Labels: Exports

The next meeting of the National Council on International Trade Development (NCITD) will take place on December 9, 2009 in Washington, DC and will feature the following speakers:

Labels: CBP, Exports, Incoterms

Congratulations to the 21 companies and organizations that received the prestigious 2009 Presidential “E” and “E Star” Awards for export excellence today during a ceremony at the National District Export Council Conference at the Department of Commerce. Secretary of Commerce Locke presented the awards to the recipients.

The “E” Award, which was created by President John F. Kennedy in 1961, is the highest U.S. government recognition any U.S. entity may receive for supporting export activity.

The Presidential “E Star” Award, which was authorized by the Secretary of Commerce in 1969, recognizes continued superior performance in increasing or promoting exports. Only previous recipients of the "E" Award are eligible.

The 2009 “E” Award recipients are:

• Automation International Ltd., Houston, Texas;
• Capstone Turbine Corporation, Chatsworth, Calif.;
• Falcon Waterfree Technologies, Los Angeles, Calif.;
• J.R. Potter & Associates, Inc., Cleveland, Ohio;
• Kanawha Scales & Systems, Inc., Poca, W.Va.;
• Lexington International, LLC, (HairMax), Ft. Lauderdale, Fla.;
• MacNeil Automotive Products, Ltd., Downers Grove, Ill.;
• Medtronic Inc., Minneapolis, Minn.;
• Otis McAllister, San Francisco, Calif.;
• Rust-Oleum Corporation, Vernon Hills, Ill.;
• Sioux Corporation, Beresford, S.D.;
• Southwest Windpower, Flagstaff, Ariz.;
• The Produce Connection, Miami, Fla.;
• Turbine Air Systems, Houston, Texas;
• California Chamber of Commerce, Sacramento, Calif.;
• Illinois SBDC and NAFTA Opportunity Centers, Peoria, Ill.;
• West Virginia Development Office, International Division, Charleston, W.Va.

The following companies are the 2009 “E Star” Award winners:

• Dometic Environmental Corp., Pompano Beach, Fla.;
• Valmont Industries, Inc., Omaha, Neb.;
• BDP International, Philadelphia, Pa.;
• Enterprise Florida, Orlando, Fla.

Further information on the "E" and "E Star" Awards, including the application process, can be found here.

Labels: Exports