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E6u—U.S. Exports Subject to Controls & Export Licensing Procedures for Freight Forwarders (In Depth)

Subscriber price: $249.00, Non-subscriber price: $320.00
Estimated total study time: 17 hours 50 minutes

This course covers:

• Freight forwarder management and supervision responsibilities for export compliance;
• Illegal shipment and suspicious shipper warning flags, and recommendations for pro-active shipment processing to detect and avoid handling such shipments;
• Concerns and tips when dealing with naive or suspicious exporters;
• Concerns and tips when handling in-transit cargo on behalf of a foreign freight forwarder or consolidator;
• Recognizing and dealing with restrictive trade practices, permissible and non-permissible actions a forwarder may take and reporting requirements;
• What to do when you discover export violations after-the-fact;
• How to handle requests for information and documents by Customs and other government representatives.

This course is designed for freight forwarding managers and supervisors at all levels who are responsible for supervision of export operations, company export compliance programs, and staff training in U.S. export requirements and procedures.

Introduction—Recognizing Shipments Which Are or May Be Controlled

Although the U.S. government does not restrict the free flow of exports of most products to most countries, certain exports are controlled for a variety of reasons based on product, destination country and parties to the transaction. This first lesson sets the stage in understanding these controls by surveying the purpose and type of controls an exporter and his forwarder must be aware of.

(Estimated study time: 1 hour 19 minutes)

• Introduction
• Recognizing Export Shipments that Are or May Be Controlled
  • Introduction
    • Will a Particular Export Require an Export License or Other Pre-authorization?
    • Challenges Faced by Agents Acting as Exporters on Behalf of Others
    • Challenges Faced by Freight Forwarders
  • General Prohibitions
  • Non-Controlled Exports
    • U.S. Territories and Possessions
    • Canada
    • Publicly Available Information/Technology

Application of U.S. Export Controls; first "Reason for Control" - Country Sanctions

This lesson addresses how U.S. export controls are applied and communicated to business parties and transactions, and how the USG communicates these controls. We then begin coverage of the various "reasons for control" of U.S. export shipments with destination country-based controls.

(Estimated study time: 44 minutes)

• Introduction
• General—Applicability of U.S. Export Controls
  • Objectives of This Segment
• General—How Export Requirements Are Communicated
• DOC (BIS) Export Controls Based on Destination Country
  • General
  • Unilateral Restrictions
  • U.N. & Multilateral Based Restrictions
  • Shipments in Support of Pre-Embargo Exports

"Reasons for Control"—National Security, Foreign Policy, Short Supply

In this lesson we address the rest of the BIS commodity-based "reasons for control" of U.S. exports National Security and Foreign Policy.

(Estimated study time: 44 minutes)

• Introduction
• Product-Based National Security Controls
  • Defense Articles (U.S. Munitions List)
  • Sophisticated Technology
  • Technical Data
• Unilateral Restrictions
• Short Supply Controls

Items Subject to U.S. Controlled Substances Act

In this lesson you will learn about the categories of "controlled substances" and the U.S. Drug Enforcement Administration (DEA) responsibility for regulating them, including the export and import of items subject to the U.S. Controlled Substances Act.

(Estimated study time: 1 hour 1 minute)

• Introduction
• Controlled Substances—General
• U.S. Drug Enforcement Administration (DEA)
• Items Subject to the Controlled Substances Act
  • Controlled Substances (Drugs and Other End Products)
  • Controlled Precursor Chemicals and Machines

Exporting Controlled Substances

This lesson addresses pre-export and export procedures for controlled substances, precursor chemicals and tablet-making machines.

(Estimated study time: 1 hour 6 minutes)

• Introduction
• DEA Requirements for Export of Controlled Substances
  • Registration with the DEA
  • Substances Requiring a DEA Export Permit
    • General—When Required
    • Permit Application
    • Permit Issuance and Distribution
  • Export Clearance of Goods Subject to a DEA Export Permit
  • Substances Subject to Prior Reporting Procedures
  • Completion of Export
• Export/Import Requirements for DEA-Regulated Precursor Chemicals & Machines
  • General
  • Declaration & Prior Notification of Controlled Chemical Exports
  • Declaration & Prior Notification of Controlled Chemical Imports
  • Reporting of Export/Import of Tablet-making and Encapsulating Machines

Exports Regulated by Bureau of Alcohol, Tobacco & Firearms (BATF)

This lesson introduces what forwarders should know and may need to do with respect to the range of products regulated by BATF, and particular export requirements for alcohol, tobacco and products made therefrom.

(Estimated study time: 48 minutes)

• Introduction
• General
• Taxable Alcohol (Alcohol, Alcoholic Beverages, Perfume)
  • Taxation is Primary BATF Mission
  • Importers, Exporters and Others Require BATF Permit
  • BATF Export Requirements/Procedures for Taxable Alcohol
  • State Agency Regulation of Alcohol; California Example
• Tobacco and Related Products

BATF Regulation of Export of Firearms and Ammunition

This lesson addresses BATF export and transportation carrier requirements for firearms and explosives.

(Estimated study time: 45 minutes)

• Introduction
• Firearms & Ammunition
  • BATF Firearms Responsibilities
  • BATF vs. Directorate of Defense Trade Controls (DDTC) Export Controls
  • BATF Business License Requirement
  • NFA Firearms: Transfer Tax & Export Permits
  • Transportation Carrier Requirements

Additional Items Subject to Export Controls and/or Special Requirements

This lesson addresses involvement by several additional U.S. agencies in particular types of exports.

(Estimated study time: 1 hour 0 minutes)

• Introduction
• Additional U.S. Agencies with Export Jurisdictions—General
• Endangered Species (U.S. Department of the Interior)
• Precursor Chemicals (BIS vs. DEA)
• Drugs and Biogenics
  • Regulated or Prohibited Exports under the Controlled Substance Act (DEA)
  • Controlled Exports, Reason for Control AT, CB or CW (BIS)
  • Exceptions for Medical Items to Country-Based Sanctions (OFAC)
  • Certificates Needed for Importation into Destination Country (FDA)
• Used Propelled Vehicles (U.S. CBP)
• Other Commodities/Items
• Enforcement of Other USG Agency Export Requirements

Export Restrictions Based on Parties and Circumstances

Here we address exports that are restricted by party or the circumstances of the prospective export.

(Estimated study time: 1 hour 33 minutes)

• Introduction
• Restrictions Based on Transaction Parties/Circumstances
  • General—Party-based Restrictions Applicable to All U.S. Exports
  • Restrictive Trade Practices
  • Denied/Restricted Parties
    • Why Denied/Restricted Parties?
    • DOC-BIS Denied Persons List
      • Overview of the Denied Persons List
      • Effect of a Denial Order
      • Accessing BIS Denied Persons List and Details of the Violation
    • BIS "Entity List"
    • BIS Unverified Parties List
    • Debarment by U.S. Directorate of Defense Trade Controls
    • OFAC Administered Export Sanctions
      • General-OFAC Targets Financial Assets
      • OFAC Operates Multiple Sanction Programs
      • Country-Based OFAC Sanctions
      • OFAC Sanctions Against Individuals and Organizations
      • How a U.S. Exporter and Forwarders Can Avoid Violating Sanctions
    • Export Compliance Screening for Denied/Sanctioned Parties
      • The Challenge—Too Many Places and Lists to Check
      • Help from the U.S. International Trade Administration (ITA)
      • Commercial Export Screening Services
  • Other Illegal Exports Based on Criminal Acts

Using the EAR to Determine if an Export is Controlled

This section offers a step-by-step explanation of the overall EAR process, which should be understood before attempting to make any particular shipment determination.

(Estimated study time: 1 hour 31 minutes)

• Introduction
• Determining Specific Export Requirements; Export Licenses
  • General—Using the Export Administration Regulations ("EAR")
    • Process Steps
  • The Ten General Prohibitions
    • Decision Tree (EAR Chart)
• Using the Commerce Control List (CCL)
  • Product-Based Export Controls are Found in the Commerce Control List
  • Key EAR Sections for Use in the CCL
  • Locating an Applicable ECCN
    • Determining the CCL Category
    • Determining the Group within the Category
  • ECCN Numbers Following the Group Letter
  • Reason(s) for Control
  • Numbers Following Third Digit
  • Understanding Information under Each ECCN (Training Aid)
  • Step-by-Step ECCN Determination—An Example
  • Using the Commerce Country Chart
  • CCL Not Always Conclusive
  • CCL Interpretation Requires Technical Expertise

EAR Export License Exceptions and Symbols

This lesson addresses various "license exceptions" that an exporter may be in a position to use for a transaction that would otherwise require an export license.

(Estimated study time: 1 hour 29 minutes)

• Introduction
• EAR License Exceptions & Symbols
  • What are License Exceptions?
  • Frequently Used License Exceptions
    • GBS
    • LVS
    • Additional Frequently Used License Exceptions
  • Specialized License Exceptions
  • Effect of Wassenaar Arrangement
  • Restrictions on Use of All License Exceptions
• No License Required (NLR)

Export License Application Responsibilities and Concerns

This lesson is about export license applications in general and issues that arise with particular agencies.

(Estimated study time: 47 minutes)

• Introduction
• Export License Responsibilities and Concerns
  • General—Our Focus Herein
  • Moving from Theory to Practice
  • Applicant Responsibility and Qualifications
    • Responsibility for Determining and Fulfilling U.S. Export Requirements
    • Applicant Required to Be Subject to Jurisdiction of United States
      • Application by U.S. Exporter
      • Application by U.S. Agent of Foreign Consignee
      • Application for Re-export of Licensable Items
    • License Application by an Agent/Freight Forwarder
    • Agencies that Require Export License Applicants to be Pre-Registered or Licensed
  • Support Documents

BIS License Application—Getting Started; Support Documents

This lesson is about the process of applying for an export license from the Department of Commerce, which is the agency responsible for licensing of most U.S. controlled exports.

(Estimated study time: 1 hour 18 minutes)

• Introduction
• Export Licensing Requirements—Commerce Department/BIS
  • Preliminary Requirements, Procedures
    • Determining Requirements and Licensing Agency
    • License Applications Must Be for Actual Transactions
    • Obtaining Assistance and Advice from the BIS
      • General
      • Classification Requests
      • Advisory Opinions and EAR Applicability Determinations
    • Dual Use Items
  • General
  • Support Documents—DOC Export License Application
    • Support Document Requirement
    • Types of Support Documents
    • Support Document Steps
    • Import Certificate—Delivery Verification Procedure
      • Import Certificate (End-User Certificate)
      • Delivery Verification Procedure

DOC Export License Application Preparation and Processing; Special Comprehensive Licenses

This lesson addresses the filing of a DOC export license application and processing by BIS. We also look at the circumstances under which a Special Comprehensive License may be of interest to a regular exporter, together with the additional requirements involved.

(Estimated study time: 32 minutes)

• Introduction
• DOC License Application Preparation and Submission
  • Internet Application Procedure (SNAP-R)
  • Paper Form Application Procedure (BIS-748P)
• BIS License Application Processing
  • General—Processing Time & BIS Steps
  • Other Agency Input to DOC License Decisions
  • Application Tracking and Status
  • Emergency Procedures
  • DOC License Validity Period

DOC License Record-Keeping, Disposition and Re-Exports

This lesson covers an exporter's responsibilities under a DOC export license after completing shipments thereunder.

(Estimated study time: 36 minutes)

• Introduction
• DOC Export License Record-Keeping Requirements
  • Requirements
  • Accounting for Shipments Against an Export License
• DOC License Disposition
• Re-Exports—A Challenging Responsibility
  • EAR/Other Regulatory Requirements
  • Fulfilling Responsibility as a U.S. Exporter

Defense Articles—Determining License Requirements

This lesson addresses U.S. Department of State control and licensing of "defense articles" (military weapons, ammunition, equipment and certain supplies).

(Estimated study time: 42 minutes)

• Introduction
• General
• What Are Defense Articles?
• Additional Procedure/Requirement for "Significant Military Equipment"
• Export Licensing of Defense Articles
  • Export Control Reform Initiative (ECRI)
  • Determining ITAR/USML License Requirement
    • The U.S. Munitions List
    • When in Doubt about Whether an Item is a Defense Article; Dual-Use Items
    • When in Doubt about Whether a DOS License will be Granted—Advisory Opinion
  • Exporter Registration

DOS Export License Application Procedures; Export Clearance & Record Keeping

This lesson addresses requirements for a DOS license application, export thereunder and record-keeping.

(Estimated study time: 1 hour 5 minutes)

• Introduction
• DOS License Application Procedures (Defense Articles)
  • License Application Must be Based on a Real Transaction
  • Transaction Information
  • Support Documents—DOS Export License Application
    • Purchase Order
    • Non-Transfer and Use Certificate
    • Import Certificate/Delivery Verification Procedure
  • Designated Forwarder
  • DOS License Application Processing and Issuance
    • General
    • Application Forms
    • Electronic Licensing System—D-Trade
    • Application Processing Time
• Export Clearance & Disposition of DOS License
  • Automated DOS License Authentication via AES
  • Reporting Exports under a DOS License Covering Technical Data, Manufacturing and Technical Assistance
• DOS License Disposition & Record Keeping

Export License Application by Freight Forwarders

This final lesson addresses the pros and cons of an export license application by a freight forwarder acting as an agent of either the U.S. exporter or, more typically, on behalf of the foreign consignee.

(Estimated study time: 50 minutes)

• Introduction
• License Application by Freight Forwarder/Agent
  • General
  • Full Legal Responsibility
  • Risk vs. Reward
  • DOS Registration
    • General Requirement for Exporters and Brokers
    • Registration Exception for Forwarders and Customs Brokers
  • Consistency of License Information and Export Transportation Documents
  • Recordkeeping