The Commerce Department’s Bureau of Industry and Security (BIS) today published a Federal Register notice seeking comments on best practices guidelines to help companies minimize the risk of sensitive exports being diverted illegally to countries or end-users of concern.
BIS developed these draft best practices as part of the Commerce Department’s Transshipment Country Export Control Initiative (TECI) – a multi-pronged initiative designed to reduce the risk of illegal diversion of controlled items through major global transshipment hubs. Prepared with input from BIS’s Regulations and Procedures Technical Advisory Committee, these best practices further TECI’s commitment to work with industry to minimize the risk of diversion of sensitive items.
Targeted at U.S. exporters, foreign re-exporters of U.S. products, and “trade facilitators” (including freight forwarders, cargo carriers, and customs brokers), the best practices set forth a series of activities such as screening of all parties in a transaction, obtaining confirmation of receipt of controlled items, and reporting suspicious transactions. The notice indicates that demonstrated compliance with these best practices, while not a defense to liability, would constitute a significant mitigating factor in any administrative enforcement action against a company.
The deadline for public comments on the Federal Register notice is July 16, 2003. A complete set of the best practices are available on this Web site. Federal Register Notice