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JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

6165 Barfield Road
Atlanta GA, 30328
United States
Tel: +1 (770)688-1206
Fax: +1 (770)688-1229

August 2016

Regulation Changes Coming
August 24, 2016

Did you know that per 15 CFR 758.6, a destination control statement is required on the invoice, bill(s) of lading or other export control documents accompanying shipments from US origin?  This is required for all exports of items on the Commerce Control List that are NOT classified as EAR99, unless the export can be made under a license exception (BAG-baggage or GFT- Gifts as defined in part 740 of the EAR).

Currently, the statement must say at a minimum: “These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations.  Diversions contrary to U.S. law is prohibited” (15 CFR 758.6).

These regulations have been revised and the requirement will change.  The new changes to 15 CFR 758.6 will be effective on November 15, 2016.  According the Federal Register published on August 17, 2016, the final rule implements changes which were proposed on May 22, 2015.  The stated goal of these revisions is “Harmonization of the Destination Control Statements.”  Per the summary of the Federal Register entry, “This final rule revises the destination control statement in 758.6 of the Export Administration Regulations (EAR) to harmonize the statement required for the export of items subject to the EAR with the destination control statement in 22 CFR 123.9(b)(1) of the International Traffic in Arms Regulations" (ITAR).

The revised regulation clearly states “The exporter must incorporate the following information as an integral part of the commercial invoice whenever items on the Commerce Control List are shipped (i.e., exported in tangible form), unless the shipment (i.e., the tangible export) may be made under License Exception BAG or GFT (see part 740 of the EAR) or the item is designated as EAR99.”  Yes it is similar to what we have already discussed in the opening paragraph.  However, note the language is specifying that the “exporter” must action this requirement.

The new statement as defined in revised 15 CFR 758.6 effective November 15, 2016 is: “These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified.  They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.”

Are you ready to meet this requirement?  JAS Forwarding USA Inc. Compliance Team is working to ensure that our bill of lading’s language has been adjusted to comply with these revised regulations.  We can help you too.  Contact us today and let’s work on some risk management together!

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JAS' Commitment to Training
August 17, 2016

JAS Forwarding USA Inc. was excited to host all of our USA Customs Brokerage Managers at our Atlanta, GA Corporate Campus last week.  For two days, key licensed brokers from JAS Forwarding USA branch locations sat in a room together with our Corporate Compliance team and discussed current topics in the industry.  This was an exciting time of interactive learning.  Our group was eager to discuss and learn from each other on some very timely topics such as antidumping/countervailing duties, auditing strategies, training entry writers, reporting and many other topics our clients are facing.

The risks in the import sector continue to increase and Customs is ramping up information requests, actions, and enforcement.  Education is an important part of compliance with US Customs regulations protecting the interests of the United States and ultimately our clients.  JAS Forwarding USA Inc. Compliance Team is an advocate for continued education opportunities and is committed to assisting our internal team members in achieving excellence.

Did you know that JAS Forwarding USA Inc. Compliance Team can do external training too?  We are prepared and equipped to educate our clients and assist in training to ensure excellence in compliance and risk management.  Want to know more?  Contact us and let’s learn together.

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Exports, BIS, and Entity Lists
August 10, 2016

To many people, BIS sounds like many other government acronyms.  BIS stands for Bureau of Industry and Security.  The mandate of BIS is extremely important and worth taking a closer look at.

The BIS mission statement is to “Advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership.” That is quite a mission!  Think of each of the key words in this mission statement and realize the impact this mandate has.

Exporting certain items from the U.S. to certain places in the world may present a national security risk.  Items used for weapon production can be turned around and used against the U.S. both domestically and abroad.  These concerns drive the creation and updating of the Entity Lists.  It is worth re-iterating that the entity list exists because the BIS and other U.S. Government agencies have found cause to believe that somehow, those on the list may be a risk or related to something that poses a threat to our national security.

It is also important to note that just because a person/group/organization is on the entity list, it doesn’t necessarily prohibit trade with them.  However, it does raise the flag and compel the trade professional to ensure that due diligence is exercised in vetting the person/group/organization and determining what regulatory steps should be taken and appropriate authorization obtained in order to legally proceed to trade with those on the entity list.

While things are constantly changing these days it is imperative that we remain vigilant and attuned to all the changes going on around the world.  BIS is a key U.S. Government Agency charged with being an integral instrument of protecting the United States.  The JAS USA Inc. Compliance Team understands the BIS mandate and are always willing to assist.  Contact us and we will help!

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Brazil Welcomes ATA Carnets
August 4, 2016

Brazil has recently started accepting ATA Carnets for professional equipment, exhibitions and fairs!  This is right in time for the 2016 Olympics that are being held in Rio this year.  Every year, Brazil hosts tons of international cultural, political, sporting events, conferences and shows.  Brazil is making it easier for U.S. Exporters to participate and exhibit at these events, by using the ATA Carnet system.

From the original article:

​"Brazil and United States engage on a number of trade and investment initiatives. In 2011 President Obama and President Rousseff signed the Agreement on Trade and Economic Cooperation to trade and investment between the Western Hemisphere’s two largest economies. Brazil’s acceptance of the ATA Carnet system only furthers this trade relationship and facilitates growth through easing temporary entries."

Read The Original Article

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EPA Protects Public From Certain Wood Products
August 4, 2016

The U.S. Environmental Protection Agency (EPA) has moved to reduce the exposure to formaldehyde vapors from certain wood products produced domestically or imported into the United States.  The agency worked with the California Air Resources Board to ensure that the final national rule is consistent with California requirements for composite wood products.  The EPA is also setting testing requirements to make sure that products comply with the standards set and to affirm eligibility requirements for third party certifiers.  The new rule includes set exceptions for products made with ultra-low formaldehyde or no-added formaldehyde resins.  

From the EPA:

“We are carrying out important measures laid out by Congress to protect the public from harmful exposure of this widely used chemical found in homes and workplaces," said Jim Jones, EPA’s assistant administrator for the Office of Chemical Safety and Pollution Prevention. “We have worked with the state of California as a partner to help ensure consistency in our requirements. The new rule will level the playing field for domestic manufacturers who have a high rate of compliance with the California standard and will ensure that imported products not subject to California’s requirements will meet the new standard and thus, not contain dangerous formaldehyde vapors.”

Read The Whole Story

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Training Tidbits August 2016
August 4, 2016

Is there a difference between the Incoterms DDU and DAP?

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DAP is the short form for “Delivered at Place” that was introduced in 2010.  It is a term of agreement between a buyer and a seller much like DDU.  DDU was removed from Incoterms 2010 and replaced with DAP; however, many traders continue to use DDU in their business documents.  As a result, if traders use the terms in their business documents it is mandatory to mention “as per Incoterms 2000.”  Otherwise, DAP terms are applicable.

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Webinars & Events August 2016
August 4, 2016

2nd Annual Global Trade Education Conference (G-Tec)

Date:  August 8-9, 2016

Location:  Atlanta, GA

The NCBFAA Educational Institute is proud to invite all global logistics professionals to the Second Annual Global Trade Educational Conference (G·TEC).  This two-day event during beautiful summertime in Atlanta, GA will give customs brokers, freight forwarders, NVOCCs, OTI, service providers, importers, exporters and all global logistics professionals an opportunity to update themselves on industry developments and connect with colleagues new and old.  The JAS Compliance Team will be in attendance!  Be sure to stop by and say hello!

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Update 2016 Conference on Export Controls & Policy

Date:  October 31 – November 2, 2016

Location:  Washington, DC

The Bureau of Industry and Security (BIS) is preparing for the 29th annual Update Conference on Export Controls and Policy in Washington, D.C.  This major outreach activity draws business and government representatives from around the world to learn and exchange ideas about export control issues.  It is one of the Department’s most notable international trade events.  

Read More

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Amendments to Registration of Food Facilities
August 4, 2016

The FDA has made amendments to the registration of food facilities. A final rule was issued that states new provisions have been added to the current rules, in order to codify specific provisions of FSMA that were self-implementing and effective upon enactment of FSMA. These provisions include that one must require an email address for registration, required renewal of registration every two years, and that all food facility registrations must contain an assurance that the FDA will be permitted to inspect the facility at the times and in the manner permitted by the Federal Food, Drug and Cosmetic Act.

From the FDA:

"Food facilities that manufacture/process, pack or hold food for consumption in the United States are required to register with the FDA, and this final rule adds new provisions to the current regulations to codify certain provisions of FSMA that were self-implementing and effective upon enactment of FSMA. Those provisions include the requirement of an email address for registration, required renewal of registration every two years, and that all food facility registrations must contain an assurance that the FDA will be permitted to inspect the facility at the times and in the manner permitted by the Federal Food, Drug and Cosmetic Act."

Read the Whole Story

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U.S. and Brazil Hold Meeting
August 3, 2016

Washington, DC - During the ministerial session, held in March, the Ministers held in-depth discussions on Brazil and US respective approaches to trade and investment negotiations, which provided an invaluable opportunity to exchange information and identify points of convergence.

Brazil is the United States’ 12th largest goods trading partner, and two-way goods trade was $59 billion in 2015. The U.S. goods trade surplus with Brazil was $4.3 billion in 2015.  Two-way goods and services trade totaled approximately $95 billion in 2015.

Minister Mauro Vieira highlighted the importance of the U.S. market for Brazilian exports, in particular of manufactured goods, which "clearly demonstrate the competitiveness of the Brazilian industry and the integration of value chains between our two countries." Industrial goods answered for over 60% of our 2015 exports to the U.S. – a noted improvement vis-à-vis the 53% reached in 2014.  The Minister stressed that "notwithstanding the importance of traditional agriculture exports to the United States – which we certainly like to expand significantly, with more exports of meat, sugar and fruits, for instance – our first three main exports to the US are Machinery, Airplanes, and Iron and Steel products."

“The United States and Brazil have a large and dynamic trade and investment relationship, and we have the potential to do even more together to stimulate economic growth and create more jobs in both our countries,” Ambassador Froman stated.

The next meeting of the Commission will be held in Brasília in 2017.

Sources:

(Source One no longer available).

Source Two

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Brazilian Minister Advances Relationship with U.S.
August 3, 2016

Brasilia (June 14th, 2016) - In a meeting with the US ambassador, Liliana Ayalde, the Brazilian Minister of Industry, Trade and Services, Marcos Pereira affirmed interests in advancing business relationships.

The meeting purpose was to ensure the continuity and strengthening of trade relations between the two countries, especially through the MDIC-DoC dialogue (Department of Commerce) and the US-Brazil CEO Forum.

This dialogue was created in 2006 and relaunched in 2010 and has been one of the priority mechanisms MDIC the last four years, which allows for cooperation in economic and commercial matters, with positive results through various exchanges, technical visits and semi-annual meetings.

The Minister, also expressed to the ambassador the willingness to carry out the edition 2016 of the CEO Forum (Brazil-US Forum of Senior Managers Companies), which had been canceled. Formed by twelve large companies in each country, the Forum, created in 2007, aims to facilitate discussions and make recommendations for economic development. The American presidential election could derail this year's edition.

Liliana highlighted the breadth and long-lived partnership between the two countries, with about $ 100 billion in trade, and interest in further advance. Minister Marcos Pereira gave a brief account of the current political situation in the country with an impeachment process in progress, but assured that the Brazilian institutions are strong and work well. "Although still interim, the government works as if it were definitive," he said.

Sources:

Source One - Portuguese

Source Two - English

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Regulatory Changes = New Business Risk
August 3, 2016

Today’s business world moves at great speed.  Although regulatory organizations do not always move with great speed, there are many of them out there making the rules.  With all of these organizations comes what sometimes feels to the trade community like lots of changes in short periods of time.

While not all changes are earth shaking, some are.  Some are so far reaching that they require the trade community to plan accordingly way ahead of time.  How should the trade community keep up?

There are many ways to keep up.  Newsletters, webinars and good old fashioned research are the most typical avenues.  These are all good.  There’s also the more intensive method of attending trade seminars.  Physical seminars are invaluable in many ways including the classroom style presentation of content, and the simple truth that the opportunity to network in the trade community is often a pathway to great knowledge.

JAS Forwarding USA Inc. Compliance Team is excited to be one of the sponsors of this year’s Second Annual Global Trade Educational Conference (G-TEC).  This is a two day intensive training event in Atlanta, Georgia starting on August 8 and ending August 9, 2016.  This is an exceptional opportunity for trade professionals including importers and exporters to interactively bring themselves up to date on relevant and well-timed content related to the trade community.

Join us at G-TEC and let’s get to know each other and learn together.

Click Here For More Information on G-TEC

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