When a entity is presented with the question of whether a good or service falls under the Commerce Control List (“CCL”) or the United States Munitions List (“USML”) they may proceed for a commodity jurisdiction request (“CJ”). The U.S. government applies different licensing procedures and policies depending on above jurisdiction.
The Bureau of Industry and Security (“BIS”) is the licensing agency for exports subject to the Export Administration Regulations (“EAR”) containing the CCL. The Department of State Directorate of Defense Trade Controls (“DDTC”) is the licensing agency for exports subject to the the Arms Export Control Act (“AECA”) and the International Traffic in Arms Regulations (“ITAR”); the ITAR contains the USML.
Once a CJ is submitted the DDTC will make a determination as to its licensing authority. This determination is not a license or approval to export an item or perform a service; one must still gain the appropriate approval from BIS or DDTC prior to export. The timetable for the processing of a CJ varies depending on the complexity of the request and the recommendations of the reviewing agencies. However, the DDTC estimates that requests should be answered within 60 days.
Proper export control determination is a fundamental and vital step in export compliance. The consequences for an incorrect jurisdiction may result in large fines and a list of mandated remedial export compliance control measures. Moreover, a wrong CJ puts the United States’ national security at risk. Thus, it is important to identify potential issues and if unsure as to the CJ, ASK QUESTIONS. Steps should be taken to ensure that your company has written procedures in place to alleviate risk. Moreover, a company should ensure that it has proper record keeping methods in place because one is required to retain records of exports for the previous five (5) years. Finally, experts should be consulted to confirm that the information your company possess is accurate and comprehensive. As the saying goes, ‘An ounce of prevention is worth a pound of cure.‘
You may contact us at 347-512-9007 for any questions or concerns regarding export compliance.
Namely, in 2014 the first campaign was conducted and then found an avalanche-like character.
However, it is always worth remembering the Howey test and how your tokens and cryptocurrency looks exactly in the eyes of the SEC (Securities and Exchange Commission).
If they consider that these are securities, your choice will be clearly deprived of one country less – the US and their investors.
This test includes four characteristics:
d) solely from the efforts of third parties.
According to Reuters statistics, about half the population of Singapore is covered by activities related to finance.
