Q&A from the “Minimizing Exposure, Liability, and Risk in Trade Compliance” Webinar

Posted on August 16, 2013 by Sam Scordato

Amber Road would like to thank all of those who attended our Minimizing Exposure, Liability, and Risk in Trade Compliance webinar. The attendees asked some great questions, but unfortunately, we ran out of time and were unable to answer all of them. The presenters were kind enough to provide us with written responses to those questions. Here are a few:

As a senior compliance professional, do I need insurance similar to our C-level leadership?
One can make the case that Empowered Officials and senior trade compliance professionals should be covered the same way senior executives and others in the organization are (including the board of directors). To my knowledge there’s no separate insurance package or coverage available for EOs and senior trade compliance professionals. With the job’s level of responsibility it’s certainly a worthwhile consideration.

From an enforcement perspective are there cases where an Empowered Official or Responsible Authority went to jail?
I do not know of any case where an EO went to jail. I do know of cases where the EO (or other trade compliance professional) was put on administrative leave, fired, demoted, sued by the corporation for breach of contract, and investigated personally by Justice. There are many cases where senior staff (i.e. VPs and above) have gone to jail and suffered many other negative outcomes, including significant fines and debarment.

Don’t see the question you asked? Follow this link to see a full list of questions and answers.

Free Seminar in Miami: Deciphering Financial Returns & Complexities of Global Trade

Posted on June 11, 2013 by Emily Thornton

What: Live Seminar: Deciphering Financial Returns & Complexities of Global Trade

Where: Delano Hotel South Beach
1685 Collins Ave.
Miami Beach, Florida 33139

When: Tuesday, June 25, 2013 | 10am - 4pm EDT

Cost: FREE

Please join Amber Road and Sandler & Travis Trade Advisory Services, Inc. on Tuesday, June 25th, for a free seminar on Deciphering Financial Returns & Complexities of Global Trade.

Learn how to qualify and quantify projected business savings to create a compelling business case that will drive real value within your organization. Industry experts, including a former Commissioner of Customs, will address strategies for delivering financial return on your global trade management operations.

Industry speakers will include:

George Weise, Executive Vice President at Sandler & Travis Trade Advisory Services, Inc., and former commissioner of Customs
Lenny Feldman, Managing Member at Sandler, Travis & Rosenberg, P.A.
Dawn Olesky, Director, Drawback Operations at Sandler & Travis Trade Advisory Services, Inc.
Ty Bordner, VP of Product Management & Solutions Consulting at Amber Road

After a full day of sessions, attendees will enjoy a networking reception at this luxury urban resort in South Beach. Register to reserve your spot today!

Marianne Rowden Discusses Recent U.S. Regulatory and Legislative Updates

Posted on May 29, 2013 by Sam Scordato

At a recent seminar, Financial Returns of Global Trade, hosted by Amber Road and Sandler & Travis Trade Advisory Services, Inc., Marianne Rowden, President and CEO of the American Association of Exporters and Importers (AAEI), spoke on many of the recent U.S. legislative and regulatory updates. She covered topics including the Customs Re-authorization Bill, Simplified Entry, the effects of sequestration, the Export Control Reform Initiative, the status of mutual recognition agreements, and the Food Safety Modernization Act.

Two areas of particular focus for Rowden were Customs’ Centers of Excellence and Expertise (Centers), along with new C-TPAT proposed rules and their Privacy Act ramifications. These Centers will focus on industry specific trade issues and serve as an information resource for participating importers. By the end of 2013, ten Centers will be operational, including one for apparel, footwear, and textiles in San Francisco and a second for consumer products and mass merchandising in Atlanta.

“One of the goals of the Centers is to enhance enforcement and address industry risks,” explained Rowden, who noted that 40 percent of respondents from their most recent benchmarking survey said they would participate in a Center, and 50 percent said their participation depended on the benefits of joining.

Rowden also commented on two Federal Register notices published on March 13^th, one on a proposed records system for C-TPAT documents, and a second on Privacy Act exemptions to C-TPAT data. She expressed that the proposed records system “is not in the spirit of partnership. C-TPAT data is your proprietary data and the government has to respect the data. They have decided your data is not covered under the Trade Secrets act. The System of Records also violates the Safe Port Act.”

To learn more about these regulatory and legislative updates, please join Amber Road and Sandler & Travis Trade Advisory Services, Inc. at the 92^nd Annual AAEI Conference on Globalization: Policy & Practice.

Q&A from the “Export Control Reform Update: Preparing for Transition” Webinar

Posted on May 29, 2013 by Sam Scordato

Amber Road would like to thank all of those who attended Export Control Reform Update: Preparing for Transition, which was hosted by American Shipper on Tuesday, April 23. We had an amazing turn out, and the attendees asked some great questions. Unfortunately, we ran out of time and were unable to answer all of them. The presenters were kind enough to provide us with written responses to those questions. Here is a sneak peak:

Will Temporary Export Licenses exist under ECR such as we currently have with Dept. of State (DSP-73′s)?

ECR will not impact the issuance of temporary export licenses (DSP-73s) by the Directorate of Defense Trade Controls (DDTC). With respect to the EAR, BIS does not issue temporary export licenses. Upon the effective date of the initial implementation rule (October 15, 2013), all licenses issued by BIS will have a default validity period of four years, regardless of whether the transaction is a permanent or temporary export. Please note, however, that certain temporary exports, re-exports and transfers (in-country) may qualify for License Exception TMP (§ 740.9) if all relevant terms and conditions are met in §§ 740.2 and 740.9.

When the recently published final rule goes ‘active’ in October, will the revised ‘specially designed’ definition be applicable to the old existing USML/ECCN categories? Or is it only for use on the newly published categories and lists?

Upon the effective date, the definition of “specially designed” will apply to all instances where “specially designed” is used in the Commerce Control List (CCL). Thus, it will apply regardless of whether the item is a 600 series item or not, and regardless of whether the term is used as a control parameter or a decontrol parameter. With respect to the USML, the ITAR definition of “specially designed” will apply to USML Categories VIII and XIX upon the effective date. As subsequent revised USML categories are published in final form and become effective, the term “specially designed” will apply to those additional USML categories as well.

Don’t see the question you asked? Follow this link to see a full list of questions and answers.

Standard Chartered Expected to Pay $330 Million for Breaking Iran Sanctions

Posted on December 7, 2012 by Martijn van Gils

Yet another bank is being fined for violating U.S. sanctions by conducting business with Iran. According to Reuters, Asian-focused bank Standard Chartered is expected to pay $330 million to settle a case with U.S. regulators.

The Department of Financial Service (DFS), New York’s banking regulator, said Standard Chartered hid financial transactions with Iran. The bank agreed to pay the civil penalty after DFS issued a threat to revoke its license to do business in New York.

This case is a prime example of why even banks need to have a structured and automated approach to compliance. Whether or not they involve the actual exchange of goods, companies should screen all international transactions. This precaution not only safeguards brand reputation, but can also prevent the withdrawal of trading rights, which can result in a drop in stock price and profits.