1. Export Compliance Update and Utilizing ACE to Manage Compliance
MODERATOR:
Paulette Kolba
DSV Air & Sea Inc.
NCBFAA Export Compliance Chair
PANELISTS:
Gerry Homer
Omari Wooden
Richard DiNucci
Director, Office of Technology Evaluation, Bureau of Industry and Security
Assistant Division Chief Trade Outreach & Regulations, International Trade Management Division, U.S. Census
Executive Director, Cargo Conveyance and Security, Office of Field Operations, Customs and Border Protection

2. Omari Wooden Assistant Division Chief
Economic Outreach and Trade Regulations
International Trade Management Division
Charles will do the introductions for presenters, then turn the presentation over to Jon Kent

3. Census Updates FTR Rewrite
On hold with Regulatory Freeze
Concurrence received
Routed Export Transaction - Notice of inquiry
Drafted, internal review
Looking for feedback and recommendations
Revamped ACE Compliance Seminar
Added ACE Export Reports as a topic
Considering inclusion and expansion for other agencies on the agenda

4. NOTE: Consider how goods were imported
Census Updates
Proper Reporting for Repairs
Repair – exporting the original item
USE: and report value of repair, including parts and labor
Proper Reporting for Replacements
Replacement – exporting “another” item, replacing the original item
USE: Actual Schedule B number and the value of the replacement product
NOTE: Consider how goods were imported

5. Trade Outreach Branch 1-800-549-0595 option 5 exportreports@census.gov
Census Updates
Follow up from ACE Reports
Missing data or problem with accessing ACE Export Reports
Shipment information is incorrect
Intermediate Consignee
FTR 30.1 “The person or entity in the foreign country who acts as an agent for the principal party in interest with the purpose of effecting delivery of items to the ultimate consignee. The intermediate consignee may be a bank, forwarding agent, or other person who acts as an agent for a principal party in interest”
General questions about the vetting process, export reports access and outreach activities
Trade Outreach Branch option 5
Technical questions about ACE Accounts and Reports
CBP ACE Service Desk , option 1, then option 2

6. Utilizing ACE to Manage Export Compliance
Gerard Horner
Director, Office of Technology Evaluation
Bureau of Industry and Security
U.S. Department of Commerce
Opening Remarks

7. Discussion Topics
Using ACE Data to Measure the Effectiveness of Export Controls
Performance Measures
Change of Export Policy
Change of Country Trade Policy
Exporters Compliance with the Export Administration Regulations
Agenda Topics
Provides a snap shot of what BIS does
Informs Policy Decisions and studies/evaluates impacts of Policy Decisions
Informs specific country policy decisions
Indirect result of studying data is measuring compliance

8. Measure BIS mission
Note the following:
Decrease of ITAR agreements from 2013 to present
Increase of License Exception Use
Exceptions are eligible for many items that transitioned from the USML to CCL
Increase of NLR exports covered by an ECCN
NLR for exports to Canada of items that transitioned from the USML to the CCL
Increase in licensed exports (not including oil)
Many items the transitioned from the USML to the CCL are now licensed by BIS
Reduction in licensed exports of Crude Oil
In December 2015, the license requirement for Crude Oil was lifted.

9. 14.3% of the $1.5 trillion in exports are covered by an ECCN – BIS controlled items exported. Another 3.3% are State DDTC controlled items and another 0.5 other government agencies controlled items. This makes controlled exports 18.1% of total trade or $271 billion.

10. Calendar Year Exports 2015-2016
In 2016, AES collected transactions on
29.9 million export shipments worth $1.5 trillion of which 2.7 million (9.0%) worth $208.0 billion (14.3%) were covered by an ECCN
Using ACE data, we compare last year to this year.
Why did licensed exports drop?

11. 600-series and 9x515 Exports: CY16
Likely the increase of licensed items to exports is the high value of cat VIII stuff that transferred from USML to CCL.
This shows to our outreach staff in our Munitions Control Division that a lot of exporters are not utilizing the eligible license exceptions, such as STA to ship the defense articles that were previously controlled under the USML of the ITAR.

12. BIS Licensing – CY
License applications: 31,398 processed (10.3% drop)
Average Processing Time: 23 days (1 day increase)
This shows the increase in license applications given the move of thousands of items from the USML to the CCL.
If we dig deeper into this licensing data is also shows that overall license applications fell because of changes to the controls of microorganisms under 1C351, drops in rifle scopes exported to Russia, and the removal of license applications because of the removal of the Crude oil license requirement.

13. What’s driving the increase in license exceptions STA, RPL and GOV.
Decontrol of certain items controlled for national security reasons from a license requirement to a license exception allowance for civil end uses shows in the increase of exports by value under license exception Civil End Use.

14. Country Trade Policy Changes
CUBA

15. Source: U.S. Census Bureau

16. Source: U.S. Census Bureau

17. Measuring Exporters’ Compliance with the Export Administration Regulations
Failing to address a License Requirement can cause:
Delays in exporting
Fatal errors on your compliance record
Violations of the EAR and FTR, incurring administrative or criminal penalties

18. What’s Wrong with These Transactions?

19. AES EEI for Export under List Based License Exception
$2600
2B351
C35 - LVS
LVS
Destined to Vietnam

20. AES EEI, License Valued at $50,000
$95000
3A001
C30 – BIS LICENSE D
$95000

21. AES EEI for Export
3A001
C33 - NLR
NLR
Destined to China

22. AES EEI for Export Helicopter, military 8802110015 $1040500 C33 - NLR

23. AES EEI for Export
$7500
3A001
C35 - LVS
LVS
Destined to Germany

24. Contact Information
U.S. Department of Commerce
Bureau of Industry and Security
Office of Technology Evaluation
1401 Constitution Ave., NW
Room 1093
Washington, DC
(office)
(fax)

25. Managing Export Compliance
Data Driven Compliance

26. Analyzing AES Data U.S. Government Agencies are using AES data
Our customers are running ACE reports to measure filer compliance
Forwarders should be using their system reports and/or ACE reports to evaluate their own compliance

27. What can we measure? Late filings
Mode of transportation compared to Port of Export
Vessels do not sail from Port Huron, Detroit, Chicago, etc.
Carrier vs. Port of Export
Delta does not fly internationally from Dallas
Activity to restricted and embargoed countries
Licensed transactions
Inconsistencies
Why is a USPPI/Consignee showing sometimes as related and other times not related

28. Example – Customized Report

29. Example – Customized Report
LATE FILING REPORT

30. Manager, Export Compliance
Paulette Kolba
Manager, Export Compliance