November 13–14, 2024
Hilton Towers Arlington Arlington, VA
ACI's 6th Conference on
CHINA TRADE CONTROLS
The Country’s Premier Gathering on Managing Complex Business Dynamics, Export Controls and Sanctions Risks
DISRUPTIVE TECHNOLOGY TASK FORCE UPDATES:
Kevin Kurland
Deputy Assistant Secretary, Bureau of Industry and Security
U.S. Department of Commerce
Eun Young Choi
Deputy Assistant Attorney General, National Security Division
U.S. Department of Justice
NEW BEST PRACTICES FROM:
Intel
Honeywell
Thermo Fisher Scientific
Biogen
Pfizer
Microsoft
SAP ɀ Barclays (Hong Kong) ɀ Northrop Grumman
Qualcomm
Keysight Technologies
L3 Harris ɀ WILO Group LLC ɀ Mitsubishi Logisnext Americas
Nidec Motor Corporation
Parsons
IBM
Applied Materials
MicroPort Orthopedics
OICTS INSIGHTS:
Elizabeth Cannon
Executive Director of the OICTS, Bureau of Industry and Security
U.S. Department of Commerce
THE BULK DATA EO AND NEXUS WITH CHINA TRADE:
Lee Licata
Deputy Section Chief for National Security Data Risk
U.S. Department of Justice
Sandvik Manufacturing Solutions
OUTBOUND INVESTMENT UPDATES:
Eric S. Johnson
Principal Deputy Chief, Foreign Investment Review Section
U.S. Department of Justice
ServiceNow
EXHIBITOR: ASSOCIATE SPONSOR:
As the only comprehensive, practical event of its kind, there has never been a more pressing time to address critical challenges, including:
Distinguished Faculty
GOVERNMENT FACULTY:
ç Post-Election China Trade Policy Outlook: Positioning Your Organization for What’s Ahead
ç Deciding If and How to Continue Business Operations in China: Aligning Decision-Making with Export and Sanctions Risk Management
ç Third-Party Management: Handling the Impact of Evolving Export Controls and Sanctions on Due Diligence and Monitoring
ç Making the Toughest Export Compliance Calls on China: de minimis, FDPR and the Interplay with Economic Sanctions
ç Integrating Export Controls and Sanctions for an Optimal Compliance Program: Revisiting Your Organization’s Risk Profile and Detecting Program Weak Spots
And much more!
Eun Young Choi
Deputy Assistant Attorney General, National Security Division
U.S. Department of Justice
Kevin Kurland
Deputy Assistant Secretary, Bureau of Industry and Security
U.S. Department of Commerce
Elizabeth Cannon
Executive Director of the OICTS, Bureau of Industry and Security
U.S. Department of Commerce
Lee Licata
Deputy Section Chief for National Security Data Risk
U.S. Department of Justice
Eric S. Johnson
Principal Deputy Chief, Foreign Investment Review Section
U.S. Department of Justice
Kit Conklin
Senior Advisor
U.S. House Select Committee on China
CONFERENCE CO-CHAIRS:
Rebecca Conover
Senior Director, Export Controls and Sanctions
Intel
Barb Secor
Vice President, Global Trade Compliance
Thermo Fisher Scientific
Ajay Kuntamukkala
Office Managing Partner
Hogan Lovells
KEY INSIGHTS AND BEST PRACTICES FROM:
Peter Harrell
Attorney
Former Senior Director, International Economics and Competitiveness, The White House; National Security Council; National Economic Council
Jeanette Chu
Vice President, National Security Policy National Foreign Trade Council; Former Senior Policy Advisor, Bureau of Industry Security (BIS), U.S. Department of Commerce
Elizabeth Fitzpatrick
Vice President and General Counsel, Global Trade Sanctions Honeywell
Irene Chiu
Senior Vice President & Chief Compliance Officer MicroPort Orthopedics
Sahra Park-Su
Lead Senior Legal Counsel, Global Export Controls and Trade Sanctions
SAP
Michaael DiPaula-Coyle
Head of International Trade Policy/ Director for Trade, Enterprise Risk and Supply Chain Resiliency IBM
Kelly Herman Corporate Counsel Northrop Grumman
Toochi Ngwangwa US Global Trade Counsel Sandvik Manufacturing Solutions
Bob Bowen
Export and Trade Compliance Counsel ServiceNow
Hena Schommer
Director, Trade Legal Applied Materials
Sasha Kalb
Director, Financial Crimes Legal Barclays (Hong Kong)
Hector Rivera
Senior Director, Export and Sanctions Compliance Qualcomm Technologies Inc.
Debbie Shaffer
Senior Manager, Global Trade Compliance L3 Harris Technologies
Mark Jones
Export Compliance Manager WILO Group LLC
Sarah O’Hare O’Neal
Deputy General Counsel, International Trade Law Microsoft
Michael Bermudez
Vice President, International Trade Compliance Parsons
Heather Ludwig
Trade Compliance Counsel, Director Nidec Motor Corporation
Bryce Bittner
Managing Counsel, International Trade Legal McKinsey & Company
Ted Murphy Partner
Sidley Austin LLP
David A. Ring Partner
Wiggin and Dana LLP
Dr. Chris Timura Partner
Gibson, Dunn & Crutcher LLP
Jahna Hartwig Partner
Wilson Sonsini Goodrich & Rosati
Paul Marquardt Partner
Davis Polk & Wardell LLP
Mollie Sitkowski Partner
Faegre Drinker Biddle & Reath LLP
Yan Luo Partner
Covington & Burling LLP
Benjamin G. Joseloff Partner
Cravath, Swaine, & Moore LLP
Nathaniel B. Bolin Partner
K&L Gates LLP
Elissa Alben
Vice President and Head, Global Innovation and Trade Policy and Government Relations
Pfizer
Erika Vidal-Faulkenberry
Global Head, Trade Compliance
Biogen
Rod Menas
Director, Export Compliance
Keysight Technologies
PRE-CONFERENCE WORKSHOP
Tuesday,
November 12, 2024
WORKSHOP A 9:00 am–12:30 pm (Registration opens at 8:30 am)
An In-Depth, Updated Compliance Roadmap to the Advanced Computing and Semiconductor Rule: Demystifying the Latest Updates, TGLs, Impacted ICs, Gap Analysis-and New Lessons Learned
Advanced semiconductor rule compliance is essential for maintaining market access and your competitive advantage. This workshop will assure you have critical points in place, taking risk mitigation to the next level. Instructors will employ hypothetical scenario planning and case study examples, and provide post-workshop take-away materials, all in a closed-door, collaborative setting. Bring your questions!
Topics will include:
• Determining what is restricted and where: Focus areas
» Sales restrictions
» Sales education
» Factory operations
» Consumers
• Compliance implementation and practices
» Classification reviews and product surveys:
Review the new ECCNs
3A090, 3A001.z, 3A991.p, 4A003.z, 4A004.z, 4A005.z, 4A090, 4A991.i, 5A002.z, 5A004.z, 5A992.z, 5D002.z, 5D992.z
Confirming the classification of items, including items that previously might have been classified as EAR99 or subject to only anti-terrorism (AT) controls
Assessing whether foreign made items are subject to the EAR under the de minimis and FDPR
Companies that procure these items as components need to confirm status with suppliers
» Evaluate licensing requirements:
Determining exports and services requiring authorization to Country Groups D:1, D:4 and D:5, as well as companies headquartered or parented in these countries
Considering whether new licensing requirements will eliminate or delay their ability to obtain certain critical items subject to the EAR for manufacturing operations
Evaluating options and strategies for use of NAC/ACA and the TGL
License Exception NAC: When you need prior notification to and authorization from BIS — compliance protocols to manage this process and build-in lead times
Hector Rivera Senior Director, Export and Sanctions Compliance Qualcomm Technologies Inc.
B. Bolin Partner
LLP
• Due diligence
» Due diligence “headquarters”
Defining the concept of “headquartered in”
Developing reasonable approaches to this issue, due diligence procedures, and documentation of their review
Diligence for private companies in China where ownership information is not transparent or for companies owned by private equity funds or other complex structures where owner headquarters location is not easily identified
Options for obtaining certifications and representations from customers concerning end use, location, headquarters/location
» U.S. person support, where “support” includes “facilitating” a shipment, transmission, or transfer
Reviewing US person involvement in semiconductor and supercomputerrelated activities, including those of senior management outside the US
Other touchpoints for “support” where you are not exporting an item subject to the EAR, but providing a specific service
• Temporary General License
» Language and translation challenges
» Testing control tools: Is test and validation a separate restricted end use?
Nathaniel
K&L Gates
Tuesday, November 12, 2024
WORKSHOP B 1:30 pm–5:00 pm (Registration opens at 1:00 pm)
Third Party and Supply Chain Due Diligence and Resilience: Revisiting Export, UFLPA and Sanctions Risk Assessments, Compliance and Monitoring
Third party risk management in China is increasingly critical due to the complexities of operating in China’s evolving regulatory environment and the reliance on extensive supply chains and partnerships. As companies engage with local vendors, suppliers, and other third parties, they must navigate a complex web of risks.
Building on the previous workshop, this session will discuss how to re-evaluate your organization’s risk profile and program as geopolitical and compliance challenges continue to mount. Topics will include:
• Third-party and supply chain risk ranking: Developing a due diligence model that stratifies your risk based on third parties — and how to perform due diligence accordingly
• US sanctions on mainland China and Hong Kong — and evolving due diligence and monitoring in response to changing sanctions
» Sanctions on Xinjiang Production and Construction Corps (XPCC) and implications for compliance
» China’s countermeasures: Understanding China’s Countering Foreign Sanctions Law
» Special status of Hong Kong in U.S. legislation
Toochi Ngwangwa
US Global Trade Counsel
Sandvik Manufacturing Solutions
Bryce Bittner
Managing Counsel, International Trade Legal McKinsey & Company
• Re-Assessing sanctions risks associated with each tier of your supply chain: Evaluating your risk profile and tolerance
• Working with verified entities – How much due diligence is enough?
• How to conduct a sanctions risk assessment as part of your compliance program
• UFLPA
» Requirements and expectations for due diligence
» How far do you need to go at the due diligence phase
» The scope of documentation and more items that are required to rebut the presumption of forced labor
» How AI and open-source research can be used to conduct global supplier due diligence
» Types of secondary due diligence (e.g., transaction testing, deeper-dive due diligence reports, forensic testing)
• Export controls and third-party audits and assessments
» Updating questionnaires regarding export compliance programs and practices — and dealing with uncooperative third parties
» Strengthening compliance clauses: Ensuring contracts include specific clauses requiring third parties to comply with all applicable export laws and regulations
» Addressing the hurdles to exercising third party audit rights
» To what extent you can require training — and the pros and cons of providing training
» What to do with information uncovered during the vetting process: How to evaluate suspected or actual issues
U.S.
10:45 CASE STUDIES
Deciding If and How to Continue Business Operations in China: Aligning Decision-Making with Export and Sanctions Risk Management
Through a series of real-world, hypothetical scenarios, the speakers will walk through high stakes, sensitive and complex challenges.
Topic will include:
• What are the impacts of China’s US export control/sanctions countermeasures on businesses in China? The relationship between The Anti-Foreign Sanctions Law, Unreliable Entity List and the Blocking Order
• Leveraging joint ventures to maintain select China operations
• What are the business and risk thresholds for maintaining China operations?
• Completing the factual and legal due diligence and analysis needed to achieve clarity about the future of your business
Sarah O’Hare O’Neal
Deputy General Counsel, International Trade Law
Microsoft
Elizabeth Fitzpatrick
Vice President and General Counsel, Global Trade Sanctions
Honeywell
Elissa Alben
Vice President and Head, Global Innovation and Trade Policy and Government Relations
Pfizer
11:45 STRATEGY SESSION #1 (Hypothetical Scenarios and Audience Polling)
Making the Toughest Export Compliance Calls on China: de minimis, FDPR and the Interplay with Economic Sanctions
Using hypothetical scenarios and audience feedback, this session will delve into the most vexing grey areas and compliance pain points.
• Avoiding key pitfalls when applying the Foreign Direct Product Rule (FDPR)/advanced computing export controls rules
• The finer points of de minimis threshold decision-making:
» Resolving vexing dilemmas, including:
Impacts of the FDPR rule: How do you tighten up compliance oversight around third-party due diligence procedures?
Conducting a gap analysis: Updating your compliance program protocols to make sure legal, engineering, and trade compliance are all in the loop
What constitutes “controlled content”
Determining if your item is ineligible for de minimis
Standardized methodologies of calculations, documentation, recordkeeping and communication
• Employee training and monitoring
» Working with all teams involved including development, fulfillment, logistics, finance and IT
Mark Jones
Export Compliance Manager
WILO USA LLC
Heather Ludwig
Trade Compliance Counsel, Director
Nidec Motor Corporation
12:45 Networking Luncheon
2:00 OICTS FIRESIDE CHAT
The Office of Information and Communications Technology and Services (OICTS): Restriction Priorities and Expectations
Elizabeth Cannon Executive Director of the OICTS, Bureau of Industry and Security U.S. Department of Commerce
2:30 Navigating ICTS Supply Chain Rules: How Industry is Screening Technology Transactions Amid Increased OICTS Oversight
Businesses will need to keep a closer eye on their digital supply chains as the U.S. government introduces measures to secure the information and communications technology (ICTS) infrastructure from exploitation by foreign adversaries. The latest ANPRM now also brings connected vehicles (CVs) technology under the ICTS microscope.
How is industry screening, or preparing to screen, such transactions out of their existing supply chains?
3:30 Networking Break
Michael Bermudez Vice President, International Trade Compliance Parsons
Bob Bowen Export and Trade Compliance Counsel ServiceNow
Dr. Chris Timura Partner Gibson Dunn
3:45 THE BIG PICTURE OF RISK How Senior Corporate Leadership is Evaluating and Ranking Trade, Cyber, Data Privacy and Supply Chain Risks
This session will feature corporate executive insights into current supply chain risks amid increased cyber hazards, the Bulk Data EO, evolving advanced computing restrictions, as well as increased technological restraints in a tense geopolitical environment.
Irene Chiu Senior Vice President & Chief Compliance Officer MicroPort Orthopedics
Michaael DiPaula-Coyle Head of International Trade Policy/Director for Trade, Enterprise Risk and Supply Chain Resiliency IBM
4:30 HYPOTHETICAL SCENARIOS AND AUDIENCE POLLING
MEU, MIEU and CCMC Rules: New Enforcement Risks and the Hidden Lessons for Updating Compliance and Licensing Practices
• How industry is updating screening, compliance policies and procedures around MEU, MIEU and CCMC regulations: What are best practices?
• Getting previous Returned Without Action (RWA) notices approved:
» HYPOTHETICAL SCENARIO: What do you do if a customer’s subcontractor ends up on the MEU list, even if they have no military intent? How do you prove to BIS that this subcontractor will avoid military activities to get your RWA approved?
• License applications, approvals, and denials: What are the lessons learned from ever-evolving trends?
• CMMC, MEU, MIEU tools:
» Development of a Heat Map to focus on risk-based compliance
» Preparing questionnaires to help the business flag risk areas
» Leveraging relationships in countries where business opportunities are likely to arise
• Beneficial owner screening:
» Screening for the customer and any entity with a 50% or greater ownership interest
Sahra Park-Su
Lead Senior Legal Counsel, Global Export Controls and Trade Sanctions
SAP
Debbie Shaffer
Senior Manager, Global Trade Compliance L3 Harris Technologies
Jahna Hartwig Partner
Wilson Sonsini Goodrich & Rosati
» Best practices around screening all significant shareholders (5% or more) and the company’s Directors and Officers
• Resources beyond screening:
» Open-source research: Conduct searches of each end-user to verify and confirm business relationships and dealings
» Questionnaires
Inquiring about the use of products, requests for org charts and end use certificates
End Use Certification: Customer confirmation of their anticipated end use of the product
End User Questionnaire: Conducting due diligence to determine an entity’s ownership, business background and intended use of product
5:15 Close of Day One
Networking Cocktail Reception
Rebecca Conover Senior Director, Export Controls and Sanctions Intel
Vice President, Global Trade Compliance Thermo Fisher Scientific Ajay Kuntamukkala Office Managing Partner Hogan Lovells
Deputy Assistant Secretary, Bureau of Industry and Security U.S. Department of Commerce
Deputy Assistant Attorney General, National Security Division U.S. Department of Justice
Managing Cross-Border Data Transfers Under the Proposed Bulk Data EO Regulations: Aligning EO and Export Risk Mitigation
• How are multinationals preparing for anticipated enforcement around the Bulk Data EO?
• The concept of “controlled” to include bulk sensitive data that might not traditionally fall under the EAR or ITAR
• How the proposed rule aligns with export control restrictions that focus on preventing the transfer of critical technologies and sensitive information
• Reviewing transactions involving bulk sensitive data with foreign adversaries
• How both the EO and export controls use similar criteria to assess national security risks, including the potential use of data for surveillance or intelligence activities
Hena Schommer Director, Trade Legal Applied Materials Yan Luo Partner Covington & Burling LLP
Barb Secor
Kevin Kurland
Eun Young Choi
Integrating Export Controls and Economic Sanctions for an Optimal Compliance Program: Revisiting Your Organization’s Risk Profile and Detecting Program Weak Spots
Panelists will describe the evolution of their economic sanctions and export compliance programs, lessons learned, what tools they have used, and other hallmarks of a best-in-class program.
Topics will include:
• Key components and solutions that companies have integrated within their current processes
• Using root cause analysis to identify recurring problems and improve compliance efficiencies
• Industry specific challenges – Semiconductor, telecom, aerospace & defense, life sciences, automotive, etc.
» Program differences and similarities between industries
• Integrating evolving export controls into your policies, systems and third party and supply chain management
» Assessing the benefits of self-disclosure amid a possible violation
• Getting buy-in for compliance efforts from the top down
11:15
BREAKOUT ROUNDTABLES
Barb Secor
Vice President, Global Trade Compliance
Thermo Fisher Scientific
Mollie Sitkowski
Partner
Faegre Drinker Biddle & Reath LLP
During this session, attendees will be invited to select the table of their choice. Each roundtable will discuss industry-specific risks and challenges
Export, Sanctions, JV and M&A Transaction Risk Management in China: How the Financial Community is Re-Assessing Their Risk Tolerance and Decision-Making
• How are financiers changing their risk assessments and what have the impacts been on those making investments?
• Screening supply chains for compliance and revisiting contractual obligations for risk mitigation
• Leveraging joint ventures to maintain select China operations
• What are the business thresholds for maintaining China operations?
• What are the impacts of China’s US export control/sanctions countermeasures
Sasha Kalb Director, Financial Crimes Legal Barclays (Hong Kong)
Paul Marquardt Partner Davis Polk & Wardell LLP
Much like CFIUS, the outbound investment screening program jurisdiction hinges on three elements—a covered foreign person, a U.S. person, and a transaction. What transactions meet these criteria? And how do you best conduct counterparty diligence and mitigate sources of investment risk prior to these regulations becoming effective?
Eric S. Johnson Principal Deputy Chief, Foreign Investment Review Section U.S. Department of Justice
Benjamin G. Joseloff Partner Cravath, Swaine, & Moore LLP
• Exporting UFLPA detained/excluded merchandise (when/how/where)
• Should economic sanctions and export compliance tools be applied to UFLPA — and, if so, to what extent?
• Overlap between UFLPA Entity List and BIS Entity List for human rights violations
• Shared Government Agencies participating in the FLETF and End-User Review Committee
Kelly Herman Corporate Counsel Northrop Grumman
Ted Murphy Partner Sidley Austin LLP
Erika Vidal-Faulkenberry Global Head, Trade Compliance Biogen
4:15 NIGHTMARE SCENARIOS
The Unwritten Lessons for Reputational Risk and Crisis Management: Recent Examples of Hits and Misses
• How reputational risks have evolved for exporters doing business in China
• Rethinking China-centric reputational risk management amid geopolitical shifts, a rise in shareholder activism, public pressures and enforcement developments
• The evolving role of legal and compliance in managing reputational risk
• Managing the reputational aftermath of an enforcement action
• Implementing new Board and Audit Committee priorities, including anti-bribery, ESG and emergency preparedness
David A. Ring Partner
Wiggin and Dana LLP
Rod Menas
Director, Export Compliance
Keysight Technologies
5:30 Close of Conference
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