In existence since 1913, IFFCBANO is a professional association comprised of licensed international freight forwarders, licensed custom brokers and transportation service providers located in the Southeastern United States with expertise in providing international transportation services nationwide. Working closely with all U.S. government agencies involved in international shipping, the Association works to ensure the rights and interests of importers, exporters and members are protected. As an affiliate of the National Custom Brokers and Forwarders Association of America (NCBFAA), our members work in conjunction with our national leaders in Washington to ensure the impact of new trade legislation on the trade community is positive.
Actively promoting the advantages of shipping through the New Orleans area since 1988, IFFCBANO works in conjunction and coordination with regional trade associations and industry partners to develop new economic opportunities for the community and its membership.
Working together to expand educational opportunities and trade development efforts, IFFCBANO and our member firms are poised to capitalize on the emerging opportunities in the Gulf region. We look forward to another year of servicing the international trade community and our membership.
Kristiann App J. W. Allen & Co. VICE PRESIDENT
Jack Jones Ecolab DIRECTOR
Keith Guidroz, Jr. Gilscot Guidroz International EX-OFFICIO
Janet Colley-Morse Dupuy Group PRESIDENT / PAST PRESIDENT’S COUNCIL
Chris Melan Geo. Wm. Rueff SECRETARY / TREASURER
Luke LaHaye Adams & Reese, LLP DIRECTOR
Linda Sansovich Freedom Intermodal DIRECTOR
Sheila Skipper Roanoke Insurance Group DIRECTOR
Caroline Milek Milekco International Co., Inc. DIRECTOR
Kevin Wild Page & Jones DIRECTOR
Amanda Coates Port of New Orleans DIRECTOR
Cheers to 2025, everyone! Off to a chilly start! We are looking back on a successful 2024 and looking forward to more good things to come!
The 2nd annual Louisiana International Trade Summit, again held in conjunction with the State of the Port and our host partner, the Port of New Orleans, was an even bigger success than last year! A lot of changes, including welcoming the Port’s new CEO, Beth Ann Branch. A huge thank you to all our speakers and sponsors for making both events possible. We are excited to start planning for this year!
Once again, the Holiday party, also cohosted by the Port of New Orleans, was a wonderful networking event and a good time was had by all. Gathering and celebrating with our friends and colleagues is always a great addition to the season!
We continue to see the Port of New Orleans make great strides towards the development of the Louisiana International Terminal in St. Bernard. We can’t wait to see what the future holds for the continuation of the project.
Wishing everyone a wonderful year and thank you all for your continued support!
Janet Colley Morse | President
MEMBERSHIP BENEFITS
Industry Engagement & Participation
• One of fourteen nominating organizations that participate in the selection process for the Port of New Orleans Dock Board Commissioners.
• Active members of the National Customs Brokers and Forwarders Association of America (NCBFAA). NCBFAA engagement offers members national participation on trade-related issues.
• A nominating organization for the selection of the Annual C. Alvin Bertel Award.
• Two members actively serve on the Louisiana Pilotage Fee Commission.
• Bi-monthly meetings are held with local U.S. Customs & Border Protection management, fostering a solid working relationship.
Educational & Networking Offerings
• IFFCBANO hosts the Annual Port of New Orleans State of the Port Luncheon in the fall.
• IFFCBANO hosts an Annual
What makes being an IFFCBANO membership valuable?
Your membership, along with the help of our volunteer board and committee members, helps to keep IFFCBANO in the forefront by offering members the following:
Liquid Bulk Symposium bringing local and national industry leaders together to network and educate.
Other Benefits
• Industry resource providing routine electronic updates regarding issues impacting the trade community on local, regional and national issues.
• COMPLIMENTARY listing in the IFFCBANO annual directory.
• COMPLIMENTARY listing on our website directing
customers to you through various search engines iffcbano.org/business-directory
• Monthly board meetings are held to address membership and industry concerns on a local and national level.
• Scholarship Opportunities: Members, their children and grandchildren are eligible for IFFCBANO’s annual scholarship awards. Two awards are presented during the State of the Port event.
(Application deadlineSeptember 30th)
MARCH 11 BOARD MEETING 12:00 P.M.
MARCH 26
LIQUID BULK SYMPOSIUM PORT OF NEW ORLEANS AUDITORIUM 9:00 A.M. -4:30 P.M.
SEPTEMBER
SEPTEMBER 1 LABOR DAY HOLIDAY
SEPTEMBER 9 BOARD MEETING 12:00 P.M.
SEPTEMBER 7-9 NCBFAA GOVERNMENT AFFAIRS CONFERENCE GRAND HYATT, WASHINGTON, D.C.
APRIL 1 BOARD MEETING 12:00 P.M.
APRIL 6-9 NCBFAA CONVENTION SHERATON GRAND AT WILD HORSE PASS, AZ
APRIL 18 GOOD FRIDAY HOLIDAY
MAY –CUSTOMS MEETING (DATE TBD)
MAY 6 BOARD MEETING (VIRTUAL) 12:00 P.M.
MAY 26 MEMORIAL DAY HOLIDAY
JUNE 3 BOARD MEETING 12:00 P.M.
JUNE 20 WTC LOUISIANA INTERNATIONAL TRADE CONFERENCE (LIT) WINDSOR COURT
OCTOBER 7 BOARD MEETING 12:00 P.M.
OCTOBER 13 COLUMBUS DAY HOLIDAY (CUSTOMS)
NOVEMBER 4 BOARD MEETING 12:00 P.M.
NOVEMBER CUSTOMS MEETING (TBA)
NOVEMBER 11 VETERANS DAY OBSERVED
NOVEMBER (DATE TBA) PORT OF NEW ORLEANS PORT NIGHT PORT OF NEW ORLEANS 6:00 – 8:00 P.M.
NOVEMBER (DATE TBA) PORT OF NEW ORLEANS STATE OF THE PORT BRUNCH LOCATION TBA 10:30 A.M. – 1:00 P.M.
NOVEMBER 27-28 THANKSGIVING HOLIDAYS
JULY 4 INDEPENDENCE DAY
JULY 8 BOARD MEETING
12:00 P.M.
DECEMBER 2 BOARD MEETING LOCATION TO BE ANNOUNCED 12:00 P.M.
DECEMBER 25 CHRISTMAS HOLIDAY
AUGUST 5 BOARD MEETING 12:00 P.M.
ANNUAL SCHOLARSHIP AWARDS
1st place scholarship recipient, Kendall Guidroz
Kendall attends Louisiana State University in Eunice and is working on a degree in General Studies and a minor in Sports Science. Kendall is the daughter of Keith Guidroz, Jr., Gilscot-Guidroz Int’l., Inc.
2nd place scholarship recipient, Ioan Yordanov
Ioan attends Louisiana State University and is working on a degree in Computer Science. Ioan is the son of Maia Yordanov, Missionary Expediters, Inc.
In recognition of the critical role education plays in preparing children for a lifetime of success, IFFCBANO is pleased to offer two scholarship awards on an annual basis to the hardworking students of individual members.
The Scholarship Awards are presented each year during IFFCBANO’s Annual Port of New Orleans State of the Port Address in November. Students are recognized for their scholastic achievements and commitment to education. To learn more visit iffcbano.org/scholarships
March 26, 2025
Port of New Orleans Auditorium
INNOVATIVE SOLUTIONS FOR ‘LAST MILE’ CHALLENGES
Contemporary international trade issues significantly impact the ‘last mile’ of distribution, which refers to the final stage of delivering goods to consumers. One issue is trade tariffs imposed by governments, altering the cost structure and potentially disrupting supply chains. Environmental concerns, such as carbon emissions regulations and sustainability initiatives, influence transportation methods and logistics strategies, affecting the efficiency and cost-effectiveness of the last mile.
Honoring a commitment to sustainability, the Port of New Orleans (Port NOLA) is finding innovative ways to address these issues. Port NOLA marked 40,000 container moves by barge during calendar year 2024, the highest since starting the service in 2016 with the Port of Greater Baton Rouge and Ingram Marine Group. Container-on-barge moves containers by water rather than by truck on roads to reduce air emissions. This vital weekly service repositions empty containers where they can be used and offers shippers alternative ways to move their goods.
The planned $1.8 billion Louisiana International Terminal (LIT) will provide container-on-barge services incorporating the latest green technologies. That includes shore power, allowing vessels to plug in at the dock, eliminating the need to run diesel engines. Operators plan to invest in an electrified equipment fleet, further reducing local emission impacts. LIT is scheduled to begin construction in 2025 with the first phase of terminal opening in 2028.
The New Orleans Public Belt Transloading Industrial Park off Jourdan Road/New Orleans East opened in August 2024 for shippers to move freight more efficiently between rail and truck into America’s heartland. In addition, the St. Bernard Transportation Corridor, a long-needed roadway for St. Bernard Parish, will connect LIT to the interstate system.
Optimizing the last mile distribution and ensuring smooth delivery of goods to consumers worldwide will continue to be a challenge, but South Louisiana is poised to meet this challenge with innovative approaches and solutions.
1100 Poydras St., Suite 3475 New Orleans, LA 70163 (504) 527-6900
Hispanic Chamber of Commerce of Louisiana, Inc. 1515 Poydras St., Suite 1010 New Orleans, LA 70112 (504) 885-4262
Website: www.hccl.biz
International Freight Forwarders & Customs Brokers Association of New Orleans, Inc.
1908 Clearview Parkway, Suite 203 Metairie, LA 70001 (504) 779-5671
iffcbano.org iffcbano@bellsouth.net
Louisiana District Export Council
423 Canal St., Suite 419 New Orleans, LA 70130
P: (504) 589-6530
erin.butler@trade.gov
Louisiana Maritime Association 3939 N. Causeway Blvd., Suite 102 Metairie, LA 70002 (504) 833-4190
Louisiana Maritime International Chamber of Commerce 1908 Clearview Parkway, Suite 203 Metairie, LA 70001 (504) 779-5671
lmicc@bellsouth.net
Mississippi Valley Trade & Transport Council 1131 N. Causeway Blvd., Suite 205 Mandeville, LA 70471 (985) 377-1918
National Customs Brokers & Forwarders Association of America 1200 18th St., NW, Suite 901 Washington, D.C. 20036 (202) 466-0222 NCBFAA.org
New Orleans Board of Trade Ltd.
365 Canal St., Suite 1580 New Orleans, LA. 70130 (504) 525-3271
Port of Greater Baton Rouge
Greg Johnson
P.O. Box 380
Port Allen, LA 70767-0380
P: (225) 342-1660
johnsong@portgbr.com
The Big River Coalition 4742 Utica St., Suite 200 Metairie, LA 70006 (504) 833-4190, Ext. 805
The Greater New Orleans Council of the Navy League of the U.S. 1908 Clearview Pkwy., Suite 203, Metairie, LA 70001 (504) 779-5671
navyleague@bellsouth.net
The Propeller Club of the U.S., Port of New Orleans 1908 Clearview Parkway, Suite 203 Metairie, LA 70001 (504) 779-5671
propclubnola.org propclubnola@bellsouth.net
Southern United States Trade Association 701 Poydras St., Suite 3845 New Orleans, LA. 70139 (504) 568-5986
World Trade Center of New Orleans 1100 Poydras St., Suite 3475 New Orleans, LA 70163 (504) 529-1601 wtcno.org info@wtcno.org
CURRENT AND PENDING TRADE AGREEMENTS: REAUTHORIZING TRADE PROMOTION AUTHORITY
BY JOHN T. HYATT
1. Israel FTA became effective August 19, 1985
2. The North America Free Trade Agreement (NAFTA) with Canada and Mexico became effective January 1, 1994
A revised United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020. The USMCA replaces the North America Free Trade Agreement (NAFTA). Agreement highlights include:
• Creating a more level playing field for American workers, including improved rules of origin for automobiles, trucks, other products, and disciplines on currency manipulation.
• Benefiting American farmers, ranchers, and agribusinesses by modernizing and strengthening food and agriculture trade in North America.
• Supporting a 21st Century economy through new protections for U.S. intellectual property and ensuring opportunities for trade in U.S. services.
• New chapters covering Digital Trade, Anticorruption, and Good Regulatory Practices, as well as a chapter devoted to ensuring that Small and Medium Sized Enterprises benefit from the Agreement.
3. Jordan FTA became effective October 24, 2000
4. Chile FTA became effective January 1, 2004
5. Singapore FTA became effective January 1, 2004
6. Morocco FTA became effective June 15, 2004
7. Australia FTA became effective January 1, 2005
These cutting-edge agreements eliminate tariffs, tackle non-tariff barriers, open services markets, strengthen the intellectual property protections for our knowledge industries, and enhance labor and environmental protections. They level the playing field for U.S. businesses, increase choice and value for American consumers, and provide fresh momentum for open markets.
8. DR-CAFTA (Dominican Republic-Central America FTA)
The agreement was signed May 29, 2004 and passed by both Houses of the U.S. Congress on July 27, 2005. Accession did not begin until each country changed its domestic laws to conform to the agreement. Countries were admitted into the agreement during the early months of 2006 in the following order: El Salvador, Honduras, Nicaragua, Guatemala and the Dominican Republic.
Costa Rica’s participation was affirmed after an October 2007 countrywide plebiscite; and a further extension granted in order to finalize certain laws relating to monopolies in telecommunications and insurance before the U.S. Trade
Representative could certify Costa Rica to the President. Such was accomplished in late 2008 and Costa Rica entered into DR-CAFTA as of January 1, 2009.
9. Bahrain FTA became effective January 11, 2006
10. Oman FTA became effective January 1, 2009
11. Peru FTA became effective February 1, 2009
12. Korea FTA became effective March 15, 2012
13. Colombia FTA became effective May 15, 2012
14. Panama FTA became effective October 1, 2012
More than 70 percent of the world’s purchasing power and nearly 95 percent of its consumers are located outside the United States. Businesses that export grow faster and are 8 percent less likely to declare bankruptcy than those that do not, according to the Institute for International Economics. Expanding exports can accelerate economic growth and hiring: every $1 billion of exports supports nearly 6,000 jobs. Free trade agreements (FTAs) can open up new markets to exports. FTAs reduce trade barriers while also establishing common standards and protections for U.S. interests and laws. The U.S. has 14 FTAs with 20 countries, which accounted for over 45 percent of the country’s exports last year.
Under the Trump Administration, multi-lateral trade negotiations were reduced to bi-lateral negotiations. At the same time the Section 301 China Tariff was implemented, raising duties
on Chinese exports as high as 25% above the normal column 1 tariff, although some exceptions were allowed by the USTR. The Biden Administration has, to date, not addressed Section 301 except for the extension of exclusions (that would have expired 12/31/23) until after the 1st quarter of 2024.
15.
African Growth and Opportunity ACT (AGOA)
Certain benefits for duty free entry (particularly in the textile apparel sectors) for Sub-Saharan countries afforded U.S. importers the opportunity to source from areas other than Asia (particularly China) to diversify their portfolios. 98% of all U.S. apparel is produced offshore carrying double-digit duty rates (unless exempted via a trade agreement/preference program). Nevertheless, certain countries which have not met requirements, such as Gabon, Niger, the Central African Republic, and Uganda have been removed as beneficiary countries effective 01/01/24. Mauritania, however, has been reinstated as a beneficiary country.
16. U.S-Japan Trade Agreement – entered into force January 1, 2020. Over 90 percent of U.S. food and agricultural products imported into Japan will either be duty free or receive preferential tariff access. Under the agreement, Japan will
• Reduce tariffs on products such as fresh and frozen beef and pork.
• Provide a country-specific quota for wheat and wheat products.
• Reduce the mark-up on imported U.S. wheat and barley.
• Immediately eliminate tariffs for almonds, walnuts, blueberries, cranberries, sweet corn, grain sorghum, broccoli, and more.
• Provide staged tariff elimination for products such as cheeses, processed pork, poultry, beef offal, ethanol, wine, frozen potatoes, oranges, fresh cherries, egg products, and tomato paste.
17. Steel/Aluminum Trade from the European Union
Existing tariff-rate quotas on imports of steel and aluminum from the EU have been extended to 12/31/25 to provide additional time for both sides to conclude a global Agreement to discourage trade in high-carbon steel and aluminum.
REAUTHORIZING TRADE PROMOTION AUTHORITY
The most recent previous renewal of TPA covered agreements reached between December 2002 and the end of June 2007. Current legislation would apply to agreements reached before July 1, 2018, with a possible extension to July 1, 2021. Legislation to reauthorize TPA was introduced, but not considered, in the 113th Congress.
For successful negotiations, TPA allows the President to enter into reciprocal trade agreements and requires that legislation for implementing the agreement be considered on a defined timeline without amendments. It improves the Administration’s position in the negotiations by ensuring the agreed-upon terms will be binding.
In 2021, the TPA expired once again and was not renewed. Comprising 10 nations this essentially tanked talks on the Transpacific Partnership.
The Trade Adjustment Act assists workers negatively
affected in domestic industries from trade agreements with retraining. The Trade Preferences Extension Act of 2015 entered phaseout termination in July 2022.
In June 2023, a bill was introduced extending authorization of TAA through FY2030; but this bill has not received committee consideration yet.
RETROACTIVE RENEWAL- GENERALIZED SYSTEM OF PREFERENCES GSP
The program extends duty-free treatment to several thousand products imported into the United States from more than twothirds of the world’s countries. GSP is an important way American companies keep costs down. Large and small businesses import products duty-free under GSP.
THE MISCELLANEOUS TARIFF BILL (MTB)
An annual piece of legislation that is passed by the US Congress to temporarily reduce or suspend tariffs on certain imported products and make technical corrections to US tariff laws. The legislation boosts the competitiveness of U.S. manufacturers by lowering the cost of imported inputs without harming domestic firms that produce competing products. The 3-year 2021-2024 MTB, although approved by all stake holders, has yet to see the light of day in a highly polarized Congress.
SOME POINTS TO CONSIDER WITH FTA S/TPA S
• The U.S. currently has in place free trade agreements with 20 countries. Although the U.S. trade deficit is continually cited as a reason to throttle back on FTAs/TPAs, in fact, exports to these countries in manufactured goods, agricultural products and financial services have increased three fold, resulting in a healthy trade surplus, per U.S. Department of Commerce statistics.
• Prior to implementation of the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), the U.S. was running an annual $1.7 billion trade deficit with the region. That has now morphed into a $1.8 billion trade surplus.
It should be remembered that protectionism serves no one’s interests. The Tariff Act of 1930 (otherwise known as the SmootHawley Tariff), was signed into law on June 17, 1930 by President Herbert Hoover with the flourish of six gold pens, despite protests by over 1,000 economists (and noticed as a headline on the front page of the May 5, 1930 issue of the The New York Times). It raised U.S. tariffs on over 20,000 imported goods to record levels. The overall tariff levels were the second-highest in U.S. history, and the ensuing retaliatory tariffs by U.S. trading partners reduced American exports and imports by more than half.
NOTE ON 118TH CONGRESS 2022-2024
Not a single trade-related piece of legislation was passed in this Congress. With continued political polarization in the upcoming 119th Congress 2025-2026 it is doubtful that any meaningful trade legislation will advance.
BUREAU OF INDUSTRY & SECURITY GUIDELINES
In support of the safe and secure flow of international trade, the Bureau of Industry and Security (BIS) published the following guidelines to assist the trade community in achieving a high level of compliance with Export Administration Regulations.
2020 best practices for preventing unlawful diversion of U.S. dual-use items subject to the export administration regulations, particularly through transshipment trade
Best Practice No. 1 - Companies should pay heightened attention to the Red Flag Indicators on the BIS Website and communicate any red flags to all divisions, branches, etc., particularly when an exporter denies a buyer’s order or a freight forwarder declines to provide export services for dual-use items.
Best Practice No. 2 - Exporters/Re-exporters should seek to utilize only those Trade Facilitators/Freight Forwarders that administer sound export management and compliance programs which include best practices for transshipment.
Best Practice No. 3 - Companies should “know” their foreign customers by obtaining detailed information on the bona fides (credentials) of their customers to measure the risk of diversion. Specifically, companies should obtain information about their customers that enables them to protect dual-use items from diversion, especially when the foreign customer is a broker, trading company or distribution center.
Best Practice No. 4 - Companies should avoid routed export transactions when exporting and facilitating the movement of dual-use items.
Best Practice No. 5 - When the Destination Control Statement (DCS) is required, the Exporter should provide the appropriate Export Control Classification Number (ECCN) and the final destination where the item(s) are intended to be used, for each export to the end-user and, where relevant, to the ultimate consignee. For exports that do not require the DCS, other classification information (EAR99) and the final destination should be communicated on bills of lading, air waybills, buyer/seller contracts and other commercial documentation. For re-exporters of controlled and uncontrolled items, the same classification and destination specific information should be communicated on export documentation as well.
Best Practice No. 6 - An Exporter/Re-exporter should provide the ECCN or the EAR99 classification to freight forwarders, and should report in AES the ECCN or the EAR99 classifications for all export transactions, including “No License Required” designation certifying that no license is required.
Best Practice No. 7 - Companies should use information technology to the maximum extent feasible to augment “know your customer” and other due-diligence measures in combating the threats of diversion and increase confidence that shipments will reach authorized end-users for authorized end-uses, unless a longstanding and trustworthy relationship has been built among the exporter, the foreign principal party in interest (FPPI), and the FPPI’s U.S. agent
If you have reason to believe a violation is taking place or has occurred, you may report it to the Department of Commerce by calling its 24-hour hotline number: (800) 424-2980.
red flag indicators
Use this as a check list to discover possible violations of the Export Administration Regulations
• The customer or its address is similar to one of the parties found on the Commerce Department’s [BIS’s] list of denied persons.
• The customer or purchasing agent is reluctant to offer information about the end-use of the item.
• The product’s capabilities do not fit the buyer’s line of business, such as an order for sophisticated computers for a small bakery.
• The item ordered is incompatible with the technical level of the country to which it is being shipped, such as semiconductor manufacturing equipment being shipped to a country that has no electronics industry.
• The customer is willing to pay cash for a very expensive item when the terms of sale would normally call for financing.
• The customer has little or no business background.
• The customer is unfamiliar with the product’s performance characteristics but still wants the product.
• Routine installation, training, or maintenance services are declined by the customer.
• Delivery dates are vague, or deliveries are planned for out of the way destinations.
• A freight forwarding firm is listed as the product’s final destination.
• The shipping route is abnormal for the product and destination.
• Packaging is inconsistent with the stated method of shipment or destination. When questioned, the buyer is evasive and especially unclear about whether the purchased product is for domestic use, for export, or for re-export.
BUREAU OF INDUSTRY & SECURITY GUIDELINES
1. The Bureau of Industry and Security (BIS) implements U.S. Government sanctions against Cuba, Iran, North Korea, Sudan, and Syria pursuant to the Export Administration Regulations (EAR), either unilaterally or to implement United Nations Security Council Resolutions.
The license requirements, license exceptions, and licensing policy vary depending upon the particular sanctioned destination. The corresponding country pages are intended to assist exporters and reexports with determining the export and re-export requirements pursuant to the EAR. However, the webpages are not comprehensive and do not serve as replacements for the EAR.
Exporters and re-exporters should be aware that other U.S. Government agencies administer regulations that could also impact their export or reexport transactions. For example, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) also implements certain sanctions against Cuba, Iran, North Korea, Sudan, and Syria. Exporters and re-exporters are responsible for complying with all applicable regulatory requirements.
Link for Sanctions destinations — www.bis.doc.gov/index.php/ policy-guidance/country-guidance/sanctioned-destinations
2. In consideration of the ongoing situation in Crimea, BIS has imposed export restrictions targeted at Russia’s energy and defense sectors. For example, in August 2014, BIS implemented restrictions on exports of certain items destined for Russian deep water, Arctic offshore, or shale energy exploration or production. See: 79 FR 45675 (August 6, 2014) Subsequently, BIS expanded its military end use and end user controls to impose a license requirement on various items that may not otherwise require a license if the exporter has knowledge that such items may be used by military end users or for military end uses in Russia. See: 79 FR 55608 (September 17, 2014). In addition, BIS has expanded controls on certain microprocessors for military end uses and end users in Russia (as well as other D:1 countries). See 79 FR 75044 (December 17, 2014).
BIS remains concerned about efforts by front companies and other intermediaries, who are not the true final end users, to trans-ship or re-export U.S.-origin items to the Russian Federation in violation of these measures and other export controls. Even prior to the imposition of restrictions based on the situation in Crimea, front companies and other intermediaries obtained U.S.-origin items that may require a license to Russia through intermediate countries subject to a more favourable licensing policy under the Export Administration Regulations (EAR). A salient example is Wassenaar Arrangement dual-use items controlled under the EAR for National Security (NS) reasons. Therefore, BIS is providing additional guidance to U.S. exporters to prevent unauthorized re-exports to Russia, especially for transactions involving NS-controlled items or items listed in Supplement No. 2 to Part 744 of the EAR, which lists items that are subject
to the military end use license requirement. As described in Supplement No. 3 to Part 732 of the EAR, whenever a person who is clearly not going to be using the item for its intended end use (e.g., a freight forwarder) is listed as an export item’s final destination, the exporter has an affirmative duty to inquire about the end use, end user, and ultimate destination of the item to ensure the transaction complies with the EAR. In addition, the exporter should pay attention to any information that may indicate an unlawful diversion is planned. This may include discrepancies in the destination country and the country from which an order is placed or payment is made.
When inquiring into the ultimate destination of the item, an exporter should consider e-mail address and telephone number country codes and languages used in communications from customers or on a customer’s website. The exporter should also research the intermediate and ultimate consignees and purchaser, as well as their addresses, using business registers, company profiles, websites, and other resources. Exporters should always screen their customers against the U.S. Government’s consolidated export screening list. An interactive tool for searching this list based on entity name and address is also available.
Furthermore, exporters should pay attention to the countries a freight forwarder serves, as well as the industry sectors a distributor or other non-end user customer supplies. The exporter should then determine whether a license is required based on the likely country of ultimate destination and end use and end user. The exporter should consider not only the list-based license requirements specified in Supplement No. 1 to Part 738 of the EAR (the Commerce Country Chart) in conjunction with item’s classification specified in Supplement No. 1 to Part 774 of the EAR (the Commerce Control List), but also the end use and end user controls in Part 744 and the embargoes and special controls in Part 746. If the exporter continues to have any doubts or concerns surrounding the end use, end user, or country of ultimate destination after exercising due diligence, the exporter should present all relevant information to BIS in the form of a license application or refrain from the transaction.
Export controls are a shared responsibility between government and industry. If you have any concerns about suspicious inquiries that come to your firm, you are encouraged to contact your local BIS Export Enforcement Office.
If you have any questions about export licensing requirements or submitting a license application, you may contact BIS’s Office of Exporter Services at (202) 482-4811. If contacting the Office of Exporter Services via e-mail, please include a telephone number to facilitate BIS’s response to your request.
Link for Imposed export restrictions targeted at Russia’s energy and defense sectors — www.bis.doc.gov/index.php/ policy-guidance/russia-due-diligence-guidance
