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An Executive order in 2009 directed a broad-based federal interagency Defense Export initiative titled Export Control Reform (ECR). The plan was designed to protect America's most sensitive defense technologies, while reducing unnecessary restrictions on exports of less sensitive items. The practical outcome was significant regulatory changes effecting the Export and Repair & Return programs in the Defense Manufacturing and Technology sectors. Categories of the United States Munition List (USML) were revised, commodities shifted jurisdictional control from Department of State to the Department of Commerce and substantial new licensing policies introduced.

To support these regulatory changes a new agency was introduced to provide an enforcement system - Export Enforcement Coordination Center (E2C2). Companies found to be in violation or non-compliance of ECR regulations faced penalties and fines amounting to millions of dollars: Raytheon $8,000,000, United Technologies Corp $55,000,000 and BAE Systems $79,000,000. Understandably International Trade in Arms (ITAR) compliance has become the primary focus of the defense sector manufacturer.

To keep on top of these change JAS’ Government Logistics Services (GLS) staff attended training seminars and classes provided by organizations like the Society for International Affairs (http://www.sia.org) and Department of State Directorate of Defense Trade Control (http://www.pmddtc.state.gov/). In addition to accessing government sponsored sites like Webflis to conduct commodity research JAS subscribed to a logistic information search tool (LogiQuest) that accesses multiple government sponsored sites for fast retrieval of requisite export data.

This allows JAS’ GLS group to converse knowledgeably with our client’s Compliance departments on their products and services. Ensuring their products are exporting lawfully and safely. We can anticipate new initiatives to be introduced with the next Executive administration so the learning process will continue. Our team is always available to research and discuss your Defense related export challenges.

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