Vol. 0715-2005

REGULATORY COMPLIANCE NEWSLETTER

NEWS:

The Bureau of Industry and Security (BIS) issued a final rule that revises certain entries controlled for national security reasons in Categories 1, 2, 3, 4, 5 Part I (telecommunications), 6, 7, 8, and 9, and Definitions in the Export Administration Regulations (EAR) to conform with changes in the Wassenaar Arrangement's List of Dual-Use Goods and Technologies and Statements of Understanding maintained and agreed to by governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (Wassenaar Arrangement). The purpose of the final rule is to make the necessary changes to the CCL, definitions of terms used in the EAR, and Wassenaar reporting requirements to implement Wassenaar List revisions that were agreed upon in the December 2004 Wassenaar Arrangement Plenary Meeting. In addition, this rule adds Slovenia to the list of Wassenaar member countries in the EAR. The rule also adds or expands unilateral U.S. controls on certain items consistent with the amendments made to implement the Wassenaar Arrangement's decisions. Effective Date: This rule is effective July 15, 2005.

The Department of State (DOS) amended and/or clarified the content of the International Traffic in Arms Regulations (ITAR). The affected part of the ITAR is: Part 126--Policies and Provisions. Two changes were made to the International Traffic in Arms Regulations (ITAR) Part 126--General Policies and Provisions. The first change affects 22 CFR 126.5. The changes to are designed to clarify for exporters the range of defense articles, related technical data, and defense services that will continue to require a license issued by the Directorate of Defense Trade Controls for export to or temporary import from Canada. The second change is a new section that  implements Section 1225 of Public Law 108-375 regarding ``Bilateral Exchanges and Trade in Defense Articles and Defense Services Between the United States and the United Kingdom and Australia.'' Effective Date: July 12, 2005.

The Department of Defense (DoD) is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to address requirements for preventing unauthorized disclosure of export-controlled information and technology under DoD contracts. The proposed rule contains a new DFARS Subpart 204.73, Export-Controlled Information and Technology at Contractor, University, and Federally Funded Research and Development Center Facilities, and an associated contract clause. The proposed subpart provides general information on export control laws and regulations and requires contracting officers to ensure that contracts identify any export-controlled information and technology. The proposed clause is prescribed for use in solicitations and contracts for research and development or for services or supplies that may involve the use or generation of export-controlled information or technology. The clause requires the contractor to--

• Comply with all applicable laws and regulations regarding export-controlled information and technology;

• Maintain an effective export compliance program;

• Conduct initial and periodic training on export compliance controls; and

• Perform periodic assessments.

• This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

Comments on the proposed rule should be submitted in writing to the following on or before September 12, 2005, to be considered in the formation of the final rule.

• Federal eRulemaking Portal: http://www.regulations.gov.

• Defense Acquisition Regulations Web Site: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm.

• E-mail: dfars@osd.mil. Include DFARS Case 2004-D010 in the subject line of the message 

• Fax: (703) 602-0350;

• Mail: Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062.

• Hand Delivery/Courier: Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402.

The Office of Foreign Assets Control (OFAC), Department of Treasury announced revisions to their watch list on July 14, 2005. Entities have been added in the notice and information on existing parties on the watch list has been updated with new addresses and branch offices.

The Bureau of Customs and Border Protection (CBP) issued a proposed rulemaking that would amend the Department of Homeland Security's Regulations pertaining to the Bureau of Customs and Border Protection's field organization by conditionally establishing a new port of entry at New River Valley, Virginia, and terminating the user-fee status of New River Valley Airport. The new port of entry would consist of all the area surrounded by the continuous outer boundaries of the Montgomery, Pulaski and Roanoke counties in the state of Virginia, including New River Valley Airport, which is currently operated as a user-fee airport. These changes will assist the Bureau of Customs and Border Protection in its continuing efforts to provide better service to carriers, importers and the general public. Comments must be received on or before September 6, 2005.

DENIED PERSON UPDATE:

The following entities were added to the Denied Persons List .The full list of changes can be accessed at the OCR web site

• FARMATODO S.A., Bogota, COLOMBIA, AKA/DBA: RODRIGUEZ MONDRAGON, Jaime; a.k.a. BLANCO PHARMA S.A.; a.k.a. CORPORACION DEPORTIVA AMERICA; a.k.a. D'CACHE S.A.; a.k.a. DEPOSITO POPULAR DE DROGAS S.A.; a.k.a. DISTRIBUIDORA DE DROGAS CONDOR LTDA.; a.k.a. DISTRIBUIDORA DE DROGAS LA REBAJA S.A.; a.k.a. FDISTRIBUIDORA MIGIL LTDA.; a.k.a. FLEXOEMPAQUES LTDA.; a.k.a. GRACADAL S.A.; a.k.a. INVERSIONES MONDRAGON Y CIA. S.C.S; a.k.a. LABORATORIOS BLAIMAR DE COLOMBIA S.A.; a.k.a. LABORATORIOS KRESSFOR DE COLOMBIA S.A.; c/o MARIELA DE RODRIGUEZ Y CIA. S. EN C.; a.k

• BATARJEE, Adel Abdul Jalil, 2 Helmi Kutbi Street, Jeddah, SAUDI ARABIA, AKA/DBA: a.k.a. AL-BATTARJEE, Adil; a.k.a. BATARJI, Adil Abd al Jalil; a.k.a. BATTERJEE, Adel
  Privileges affected: DOB 1 Jul 1946; POB Jeddah, Saudi Arabia; citizen Saudi Arabia; Phone #: 682-2816 (presumed Saudi Arabia); Email: adelb@shabakah.net.sa
  Effective date: 12/21/04, Expiration date: UNTIL RESCINDED

• MOVEMENT FOR ISLAMIC REFORM IN ARABIA, Safiee Suite, EBC House, Townsend Lane, London NW9 8L, UNITED KINGDOM, AKA/DBA: a.k.a. AL-HARAKAT AL-ISLAMIYAH LIL-ISLAH; a.k.a. AL-ISLAH; a.k.a. ISLAMIC MOVEMENT FOR REFORM; a.k.a. MIRA; a.k.a. MOVEMENT FOR REFORM IN ARABIA
  Privileges affected: UK Company Number 03834450 (United Kingdom).
  Effective date: 07/14/05, Expiration date: UNTIL RESCINDED

• Salafist Group for Call and Combat, AKA/DBA: a.k.a. Salafist Group for Preaching and Combat; a.k.a. GSPC; a.k.a. Groupe Salafiste pour la Predication et le Combat.
  Privileges affected: The Secretary of State, in consultation with the Secretary of the Treasury and the Attorney General, redesignates, effective March 22, 2004,this organizations as foreign terrorist organizations.
  Effective date: 03/22/04, Expiration date: UNTIL RESCINDED
  F.R. Date: 03/22/2004, Citation: 69 FR 13347

CONFERENCES:

BIS Seminars

Title: Intro to Export Management Systems
Date: August 5, 2005
Location: Washington, DC

SIA Seminar

Title: Summer Back-To-Basics Conference
Date: July 18-19, 2005
Location: Arlington, VA

Title: Fall Advanced Conference
Date: November 7-8, 2005
Location: Washington, DC

SUPPORT:

For support with ViaNet Solutions, please call 1-800-333-7864 X: 24 (Cantwell Walsh)

Disclaimer:

This newsletter is not intended to provide legal guidance. Adherence to this decision does not relieve the exporter of the statutory responsibilities of complying with the applicable statutes, regulations, policies and procedures of the U.S. Government

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