President Obama's videotaped remarks will be delivered to the Department of Commerce tomorrow, during their annual export control conference. He will outline the foundation of our new export control system, "including what we control, how we control it, how we enforce those controls and how we manage our controls." The goal in reforming our current system is to strengthen national security by focusing on controlling the most critical products and technologies.

While surfing the web, I found this article on the Daily Green about shipping containers that have been converted into homes: Amazing Homes and Offices Built from Shipping Containers. It features lots of cool photos of shipping containers that have been revamped in very creative ways. Enjoy!

Join Management Dynamics at this year's CSCMP Annual Global Conference, in San Diego, September 26 - 29. In addition to ample networking opportunities with supply chain professionals from 33 different countries, this year's conference will feature tracks on the latest issues in supply chain metrics, sustainability, and new trends and technology with hundreds of sessions to choose from.

According to our export compliance research, 14.6% of compliance professionals believe that their company’s executive management is not aware of trade compliance. Global trade regulations are more complex than ever, and your company is required to be compliant. If it isn't, major fines (and even prison time) can result. So, how do you get executives in your company to support your compliance initiatives?

Join American Shipper and Management Dynamics for an upcoming educational webinar, “Bringing Compliance into the Boardroom.” The webinar will feature a panel of global trade experts that will discuss how to get your voice heard when speaking to c-level executives. This 60 minute roundtable discussion will take place on September 15, 2010 at 2PM ET, and will feature the following expert panelists:

• Beth Peterson, President of BPE
• Nathan Pieri, SVP of Marketing & Product Management for Management Dynamics
• Virginia Thompson, Director of Import/Export Operations and Int. Trade Compliance for Crate and Barrell

On the heels of Xe Services' (formerly Blackwater) recent $42 million fine for export violations; Barclays has also been hit with a whopping $298 million fine.

American Shipper is reporting that a private security contractor, Xe Services (formerly known as Blackwater), has been fined $42 million for violating arms export control laws. The State Department contends that the company committed 288 violations of the International Traffic in Arms Regulations (ITAR), including the "unauthorized export of defense items and provision of defense services to foreign-end users in multiple countries from 2003 to 2009." While no sensitive technologies were involved, the items do require a license before they can be exported. Interestingly enough, many of the violations occurred while Xe was under contract to provide services to the State and Defense departments, as well as other U.S. government agencies.

Dustin Hoffman received excellent advice in the movie The Graduate: "Just one word...plastics." Every recent college graduate is looking for something similar - that one piece of advice that will provide them will all the answers, and make the future they've dreamed of one step closer to reality. I hate to disappoint, but my advice probably won't be the key to your future. It will, however, at least give you something to think about it. I've got one word you: trade.

Here is a webinar that may be of interest: 3PL Update: What makes a winning 3PL relationship? A panel of experts from Georgia Institute of Technology, Capgemini Consulting, and the Supply Chain Management Review will discuss the results of their 14th Annual Third Party Logistics survey, and will provide insight on the following key points:

Are you attending this year’s BIS Update Conference, Aug. 31 – Sept. 2 in Washington, DC? If so, Management Dynamics invites you to join us for a Meet and Greet Reception at Gordon Biersch (just a few blocks from the Hyatt), on Wednesday Sept. 1 at 7pm. We’ll be serving cocktails and heavy hors d’oeuvres.

If you’re interested in attending, RSVP via our event page on LinkedIn, or send an email to emilythornton (at) managementdynamics (dot) com - We hope to see you there!

While this blog is devoted to discussing supply chain management best practices, Management Dynamics has other solutions that will help you streamline all facets of global trade:

With new Iran sanctions taking effect September 29, the Treasury Department’s Office of Foreign Assets Control (OFAC) has published a document providing guidance on the import prohibitions concerning Iranian-origin goods and services, which are a result of the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010. As described in 31 CFR Part 560 of the bill, no one will be allowed to import commercial goods originating from Iran. As a result, OFAC cannot authorize general or specific licenses for the importation of such goods on or after September 29, 2010. According to World Trade\INTERACTIVE, "the general license in section 560.534 of the Iran Transaction Regulations will therefore be eliminated by Sept. 29 and any such goods for commercial importation into the U.S. must be entered for consumption before that date."

Today's post is courtesy of Nathan at GTMBestPractices.org. Enjoy!

Remember the Obama Administration plan to double exports as a way to rebuild the US economy? Well it looks like the one part vision and a pinch of desire to change is not enough. The New York Times has analyzed the progress so far, with mixed results, and highlights the many barriers to achieving the goals of the National Export Initiative (NEI).

A Federal Register notice published on Wednesday announced that the U.S. State Department has proposed to amend the International Traffic in Arms Regulations (ITAR). Their plan is to "update policies regarding end-user employment of dual nationals and third-country nationals," according to an American Shipper article. The article went on to explain:

The Treasury Department has announced a set of designations targeting the government of Iran for supporting terrorism and terrorist organizations, including Hizballah, Hamas, Palestinian Islamic Jihad (PIJ), the Popular Front for the Liberation of Palestine-General Command (PFLP-GC) and the Taliban, pursuant to Executive Order 13224. All transactions involving the designees and any U.S. person are prohibited, and any assets the designees may have under U.S. jurisdiction are frozen. In a recent press release, Treasury also identified 21 entities in Iran's banking, insurance and investment, mining, and engineering industries that were determined to be owned or controlled by the government of Iran, with which transactions are prohibited under the Iranian Transactions Regulations.

The following US restricted party lists have been updated:

Companies who use a manual system to select freight carriers could be paying thousands more than they need to be, and not even realize it. Carriers' delivery estimates and prices from published rating guides can sometimes be inaccurate. Representatives at the company may have certain carriers that they favor, but those may not necessarily be the least expensive. Not to mention it's a very tedious task to review all of those carrier contracts.

Trade Planner 3.0 scenario-based planning solution optimizes sourcing and distribution
decisions based on total landed costs and trade regulation risk

Management Dynamics has announced the release of Trade Planner 3.0, a scenario-based planning tool that helps supply chain teams quickly and accurately evaluate alternative sourcing and distribution strategies to optimize total landed cost while assessing the impact of trade regulations.

Trade Planner 3.0 scenario-based planning solution optimizes sourcing and distribution
decisions based on total landed costs and trade regulation risk

According to a recent survey done by Tompkins Supply Chain Consortium, companies are now more likely to have executive-level supply chain leaders. Nearly half of the retail and manufacturing companies who responded have a supply chain leader at the executive vice president level or above (the chart below shows a breakdown by industry.)

I can't tell you how many times people come to our website with product classification questions. I found a webinar that just might be able to help. On August 17, Deborah Stern will give a presentation entitled, "Isn't a Part of a Part Still a Part?! The Challenges of Classifying Parts and Accessories under the HTSUS."

Here's a description of the webinar:

Are you attending this year's BIS Update Conference, Aug. 31 - Sept. 2 in Washington, DC? If so, Management Dynamics invites you to join us for a Meet and Greet Reception at Gordon Biersch (just a few blocks from the Hyatt), on Wednesday Sept. 1 at 7pm. We'll be serving cocktails and heavy hors d'oeuvres.

If you're interested in attending, RSVP via our event page on LinkedIn, or send an email to emilythornton@managementdynamics.com. We hope to see you there!

CBP and the Treasury Department have carefully reviewed the comments submitted in response to the rules of origin proposal. In particular, the agencies have heard concerns expressed about the impact that an extension of the rules of origin to non-NAFTA countries may have on the trade community. These matters are still under consideration within the agencies as part of the official rule-making process; however, CBP expects to soon be publishing a notice on this matter in the Federal Register. (In July 2008, CBP issued a proposed rule to use uniform tariff shift and other rules for CBP determinations of the country of origin of imported merchandise, etc. CBP subsequently extended the comment period and reopened the comment period on the proposed rule.)

Remember the plan to double exports as a way to rebuild the US economy? The New York Times has analyzed the progress so far, with mixed results, and highlights the many barriers to achieving the goals of the National Export Initiative (emphasis mine):

I ran across this report from Management Dynamics. Check it out.

Benchmark Report: Export Compliance Management

This report profiles export compliance programs of large, small, & medium-sized enterprises in many industries to reveal challenges companies face in managing export compliance. Receive a copy of the Export Compliance Benchmark!