CBP Announces In-Transit Manifest Pilot Program (U.S. - Canada)

On April 27, 2016 the U.S. Customs and Border Protection (CBP) published (81 FR 24837-24839) a General Notice announcing their intentions to "conduct a National Customs Automation Program (NCAP) test relating to truck shipments of commercial goods that transit from a point of origination in Canada through the United States to a point of destination in Canada."  These shipments are domestic Canadian shipments that transit through the U.S. 

Instead of presenting the required paper manifest form (Customs Form 7512–B Canada 81⁄2), test participants will submit an in-transit manifest electronically.  In addition, the value data element requirement will be relaxed and they will not be required to provide the Harmonized Tariff Schedule (HTS) number. 

 

ISO 37001 Anti-bribery Management Systems - Gets Vote of Approval

On April 14, 2016 the International Organization for Standardization (ISO) announced the draft version of the new ISO 37001 Anti-Bribery Management Systems (ABMS) standard received a 91% vote of confidence. 

The ABMS "is designed to help organizations implement effective measures to prevent and address bribery, and instill a culture of honesty, transparency and integrity."   

The standard is intended to be used by small to large public, private, or voluntary sector companies.  The ABMS standard includes a few basic principles such as:

  • Adopting an anti-bribery policy
  • Appointing a person to oversee anti-bribery compliance
  • Training
  • Risk assessments and due diligence on projects and business associates
  • Implementing financial and commercial controls
  • Instituting reporting and investigation procedures

The standard is expected to be published in late 2016.

Key Links:

Authorised Economic Operator (AEO) Guidance Updated

On March 11, 2016 the European Commission published an update to the AEO Guidelines.  The AEO concept is one of the key security elements created within the Community Customs Code (Regulation (EC) 648/2005).  The guidelines were recently updated to account for the experience gained, ensure harmonized implementation of the AEO rules, and align the guidance with the Union Customs Code (Regulation (EU) 952/2013).  The Union Customs Code was adopted on October 9, 2013, entered into force on October 30, 2013, and will apply on May 1, 2016.    

AEO status can be granted by any Member State to an economic operator meeting certain criteria in the following areas: customs compliance, record-keeping, financial solvency and, where relevant, appropriate security and safety standards.

Key Links:

Key Term(s):

Authorized Economic Operator - is defined by the WCO SAFE Framework of Standards as a party involved in the international movement of goods, in whatever function, that has been approved by, or on behalf of, a national Customs administration as complying with WCO or equivalent supply chain security standards. AEOs include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses and distributors.

EU Updates Restrictive Measures Concerning Iran, North Korea & Central African Republic

Council Implementing Regulation (EU) 2016/603 of 18 April 2016 implementing Regulation (EU) No 267/2012 concerning restrictive measures against Iran

Council Decision (CFSP) 2016/609 of 18 April 2016 amending Decision 2010/413/CFSP concerning restrictive measures against Iran

Council Regulation (EU) 2016/555 of 11 April 2016 amending Regulation (EU) No 224/2014 concerning restrictive measures in view of the situation in the Central African Republic

Council Implementing Regulation (EU) 2016/556 of 11 April 2016 implementing Regulation (EU) No 359/2011 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Iran

Commission Implementing Regulation (EU) 2016/569 of 12 April 2016 amending Council Regulation (EC) No 329/2007 concerning restrictive measures against the Democratic People's Republic of Korea

Council Decision (CFSP) 2016/564 of 11 April 2016 amending Decision 2013/798/CFSP concerning restrictive measures against the Central African Republic

Council Decision (CFSP) 2016/565 of 11 April 2016 amending Decision 2011/235/CFSP concerning restrictive measures directed against certain persons and entities in view of the situation in Iran

Council Implementing Decision (CFSP) 2016/573 of 12 April 2016 implementing Decision 2013/183/CFSP concerning restrictive measures against the Democratic People's Republic of Korea
 

Treasury Publishes List of Countries Requiring Cooperation with a Boycott

On April 8, 2016, the Department of Treasury published (81 FR 20720) the current list of countries requiring cooperation with an international boycott.  Treasury identified the following countries as requiring or that may require participation in, or cooperation with, an international boycott (within the meaning of section 999(b)(3) of the Internal Revenue Code
of 1986
):

  • Iraq
  • Kuwait
  • Lebanon
  • Libya
  • Qatar
  • Saudi Arabia
  • Syria
  • United Arab Emirates
  • Yemen


 

DOJ Launches New FCPA Prosecutorial Guidance Pilot Program

On April 5, 2016 the Department of Justice (DOJ) Criminal Division announced a new one-year pilot program within the Fraud Section's FCPA Unit.  The pilot program provides guidance to DOJ prosecutors for resolutions in FCPA cases.  The program was designed to assist companies with their decision making process as to whether they should voluntarily self-disclose FCPA violations, cooperate with the Fraud Section, and when appropriate, correct gaps in their controls and compliance programs. 

The program describes what is meant by "voluntary self-disclosure", "full cooperation", and "timely and appropriate remediation".  The guidance states that when a company cooperates, remediates, and voluntarily self-discloses violations, it will be eligible for the full range of mitigation credit.  In the event a criminal resolution is warranted, a company may be granted a reduction of up to 50 percent below the low end of the applicable U.S. Sentencing Guidelines range.  In addition the company would generally not require the appointment of a monitor.

What are the reader's thoughts on the value of this pilot program?   

Related Documents:

BIS Amends EAR to Reflect Changes to Missile Technology Control Regime

On April 4, 2016 (81 FR 19026-19032) the Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to reflect changes to the Missile Technology Control Regime (MTCR) Annex.  

The MTCR is an export control agreement between 34 nations that establishes a common export control policy and a common list of controlled items (the Annex).  Member countries implement the controls within their own national export control regulations.  The purpose of the MTCR is to try to limit the risk of proliferation of weapons of mass destruction (WMD) by controlling the export of goods and technologies that might contribute to a delivery system for those weapons.  The focus of the MTCR is on nuclear, chemical and biological weapons.   

The amendments were published in order to update the EAR to reflect changes that were agreed to by MTCR member countries at the October 2015 Plenary in Rotterdam, Netherlands, and the April 2015 Technical Experts Meeting (TEM) in Bern, Switzerland.

The final rule revises six Export Control Classification Numbers (ECCNs) and it makes a change to MT licensing policy to specify that a license for MT controlled items should also authorize certain minimum "software'' and "technology.''  In addition, this final rule adds a new paragraph to the section of the EAR that specifies which changes to a license are considered "non-material.''

The six revised ECCNs are 1B101, 1C111, 7A116, 9A012, 9A610, and 9B106. 

The rule is effective April 4, 2016.  

 

ECHA Publishes Harmonised Classification and Labelling Excel Table

The European Chemicals Agency (ECHA) announced that they have prepared an excel file that contains updates to the harmonized classification and labelling of hazardous substances. 

The European Commission publishes updates to the harmonised classification and labelling of hazardous substances on an annual basis. 

OSHA Provides Update After the First Year of a New Severe Injury Reporting Requirement

On March 17, the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) released a report that details the results of the first year (CY2015) of a new reporting requirement related to severe work-related injuries.  The news release states there were "over 10K severe worker injuries reported in first year of OSHA requirement" and that "most employers cooperated with OSHA to fix hazards, but some tried to hide them". 

The new reporting responsibility requires employers to report severe work-related injuries within 24 hours of occurrence.  A severe work-related injury is defined as a "hospitalization, amputation or loss of an eye".  The existing requirement to report a work place fatality within eight hours remains in place.    

In 2015 employers reported 10,388 severe injuries (including 7,636 hospitalizations and 2,644 amputations).

The top 5 industry groups reporting severe injuries were:

  • Foundation, Structure, and Building Exterior Contractors
  • Building Equipment Contractors
  • Support Activities for Mining
  • Nonresidential Building Construction
  • Postal Service

The author of the report, Assistant Secretary of Labor for Occupational Safety and Health David Michaels, said “In case after case, the prompt reporting of worker injuries has created opportunities for us to work with employers we wouldn’t have had contact with otherwise".

OSHA intends to use the reporting data to target enforcement efforts and to "engage employers in high-hazard industries to identify and eliminate hazards". The

A copy of the full report is available here: "Year One of OSHA’s Severe Injury Reporting Program: An Impact Evaluation"

A complete list of injury reports by industry is available here: 2015 Injury Report

OSHA provides guidance on how to report injuries here: Report a Fatality or Severe Injury

EPA Partially Exempts Certain Chemical Substances From Some CDR Reporting

On March 29, 2016 the EPA published a final rule (81 FR 17392-17395) that amends the list of chemical substances that are partially exempt from reporting additional information under the Toxic Substances Control Act (TSCA) Chemical Data Reporting (CDR) rule.  The final rule is effective March 29, 2016. 

With this final rule the EPA is adding the following chemical substances to the list that are exempt from reporting the information described in 40 CFR 711.15(b)(4) :

  • Fatty acids, C14-18 and C16-18 unsaturated, methyl esters (CASRN 67762-26-9)
  • Fatty acids, C16-18 and C-18 unsaturated, methyl esters (CASRN 67762-38-3)
  • Fatty acids, canola oil, methyl esters (CASRN 129828-16-6)
  • Fatty acids, corn oil, methyl esters (CASRN 515152-40-6)
  • Fatty acids, tallow, methyl esters (CASRN 61788-61-2)
  • Soybean oil, methyl esters (CASRN 67784-80-9).

According to 40 CFR 711.6, this partial exemption will become inapplicable to a chemical substance in the event that the chemical substance later becomes the subject of a rule proposed or promulgated under section 4, 5(a)(2), 5(b)(4), or 6 of TSCA; an enforceable consent agreement (ECA) developed under the procedures of 40 CFR part 790; an order issued under TSCA section 5(e) or 5(f); or relief that has been granted under
a civil action under TSCA section 5 or 7.

The EPA is Proposing to Amend its RMP Regulations

On March 14, 2016 the Environmental Protection Agency (EPA) published a proposed rulemaking (81 FR 13638) that includes major changes to its Risk Management Program (RMP) regulations (40 CFR Part 68). The RMP regulations apply to facilities that hold regulated substances in excess of threshold quantities.  The proposed rulemaking says the amendments are intended to "seek to improve chemical process safety, assist local emergency authorities in planning for and responding to accidents, and improve public awareness of chemical hazards at regulated sources."

The proposed rulemaking includes major changes in the following areas:

Accident Prevention Program

  • All facilities with Program 2 or 3 processes (definition below) would be required to conduct a root cause analysis as part of an incident investigation of a catastrophic release or an incident that could have reasonably resulted in a catastrophic release (i.e., a near-miss).
  • Facilities with Program 2 or 3 processes would be required to contract with an independent third-party to perform a compliance audit after the facility has a reportable release. Compliance audits are required under the existing rule, but are allowed to be self-audits (i.e., performed by the owner or operator of the regulated facility).
  • Facilities with Program 3 regulated processes in North American Industrial Classification System (NAICS) codes 322 (paper manufacturing), 324 (petroleum and coal products manufacturing), and 325 (chemical manufacturing) would be required to conduct a safer technology and alternatives analysis (STAA) as part of their PHA, and to evaluate the feasibility of any inherently safer technology (IST) identified. The current PHA requirements include consideration of active, passive, and procedural measures to control hazards. The proposed modernization effort continues to support the analysis of those measures and adds consideration of IST alternatives.

Emergency Response

  • Facilities with Program 2 or 3 processes would be required to coordinate with the local emergency response agencies at least once a year to ensure that resources and capabilities are in place to respond to an accidental release of a regulated substance.
  • Facilities with Program 2 or 3 processes would be required to conduct notification exercises annually to ensure that their emergency contact information is accurate and complete.
  • Facilities subject to the emergency response program requirements of subpart E of the rule (or “responding facilities”) conduct a full field exercise at least once every five years and one tabletop exercise annually in the other years. Responding facilities that have an RMP reportable accident would also have to conduct a full field exercise within a year of the accident.

Enhanced Availability of Information

  • All facilities would be required to provide certain basic information to the public through easily accessible means such as a facility Web site. If no Web site exists, the owner or operator may provide the information at public libraries or government offices, or use other means appropriate for particular locations and facilities.
  • A subset of facilities would be required, upon request, to provide the Local Emergency Planning Committee (LEPC), Tribal Emergency Planning Committee (TEPC)  [2] or other local emergency response agencies with summaries related to: Their activities on compliance audits (facilities with Program 2 and Program 3 processes); emergency response exercises (facilities with Program 2 and Program 3 processes); accident history and investigation reports (all facilities that have had RMP reportable accidents); and any ISTs implemented at the facility (a subset of Program 3 processes).
  • All facilities to hold a public meeting for the local community within a specified timeframe after an RMP reportable accident.
  • Proposes revisions to clarify or simplify the RMP submission.

Program 1 eligibility requirements. A covered process is eligible for Program 1 requirements as provided in §68.12(b) if it meets all of the following requirements: (1) For the five years prior to the submission of an RMP, the process has not had an accidental release of a regulated substance where exposure to the substance, its reaction products, overpressure generated by an explosion involving the substance, or radiant heat generated by a fire involving the substance led to any of the following offsite: (i) Death; (ii) Injury; or (iii) Response or restoration activities for an exposure of an environmental receptor; (2) The distance to a toxic or flammable endpoint for a worst-case release assessment conducted under subpart B and §68.25 is less than the distance to any public receptor, as defined in §68.30; and (3) Emergency response procedures have been coordinated between the stationary source and local emergency planning and response organizations.

Program 2 eligibility requirements. A covered process is subject to Program 2 requirements if it does not meet the eligibility requirements of either a Program 1 or Program 3 facility. 

Program 3 eligibility requirements. A covered process is subject to Program 3 if the process does not meet the requirements of a Program 1 facility, and if either of the following conditions is met: (1) The process is in NAICS code 32211, 32411, 32511, 325181, 325188, 325192, 325199, 325211, 325311, or 32532; or (2) The process is subject to the OSHA process safety management standard, 29 CFR 1910.119.

A public hearing on the proposed rule will be held on March 29, 2016.  Comments on the proposed rule are due on May 13, 2016.

 

Protecting the Environment: A Half Century of Progress - EPA Alumni Association

The EPA Alumni Association, has published an interactive report entitled Protecting the Environment: A Half Century of Progress.  The report tells "the story of our nation's environmental program for those who don't know or remember it", and it "presents an overview of the environmental problems that existed, the major actions taken, and the progress made as well as the challenges that remain."

Seven essays were written in order to support the main report.  The essays detail the improvements made in the environment since the 1970s in the areas of Air, Water, Drinking Water, Waste Disposal, "Superfund" land cleanup, Pesticides, and Toxic Substances.  Links to the supporting essays are provided below. 

Turkish National Arrested for Conspiring to Evade U.S. Sanctions Against Iran, Money Laundering and Bank Fraud

An indictment was unsealed for a Turkish national and two Iranian citizens for engaging in transactions on behalf of the government of Iran and other Iranian entities (which were barred by U.S. sanctions), laundering the proceeds of those transactions and defrauding several financial institutions.  For more visit this US DOJ New link

 

 

 

Commerce releases updated FTA Tariff Tool

On March 15, the Department of Commerce (DoC) released an updated Free Trade Agreement Tariff tool that incorporates the latest data on tariffs for U.S. products exported to Trans-Pacific Partnership (TPP) markets. 

Commerce will be hosting several webinars  to help the trade community learn more about the FTA Tariff Tool.  Webinar dates and times (Eastern Daylight):

Participant Passcode: 8750962; Audio Dial-in: 1-888-889-0538. 

EPA Issues 2016 TSCA CDR Reporting Guidance

The EPA has published seven factsheets and a FAQ web page that help explain the TSCA 2016 CDR reporting requirements.  The most recently published guidance include a FAQ page and factsheets for toll manufacturing and byproducts reporting for the printed circuit board industry.  The complete list of guidance documents (with direct links) are listed below:   

U.S. CBP Increases De Minimis Value to $800

On March 10, U.S. Customs and Border Protection (CBP) announced that it has raised the value of a shipment of merchandise imported by one person on one day that can generally be allowed to be imported free of duties and taxes from $200 to $800. 

CBP will publish an Interim Final Rule that amends the appropriate regulations. Please note that CBP reserves the right to require a formal entry on any shipment where they believe it is required.  In addition, the duty and tax free treatment can be denied if it is used for the purpose of avoiding compliance with any law or regulation. 

Census Bureau Proposes to Amend Export Reporting Requirements

On March 9, 2016 the Census Bureau published a proposed rule that proposes new export reporting requirements.  The new requirements are related to the implementation of the International Trade Data System.

A few of the proposed changes are listed below:

  • Add two new data elements, "Original ITN" and a "Used electronics indicator"
  • Clarify the country of ultimate destination to be reported with respect to shipments under BIS and State Department export licenses.
  • Include the definition of the USPPI for consistency with the format for other data elements
  • Clarify whose contact information should be provided in the AES for the USPPI
  • Indicate that the USPPI or authorized agent must provide the proof of filing citation, post-departure filing citation, AES downtime citation, exemption or exclusion legend to the carrier
  • Add language requiring the date of export and Internal Transaction Number (ITN) to be provided to the U.S. Principal Party in Interest (USPPI) upon request   

OSHA Publishes 2016 Hazard Classification Guidance

OSHA recently published a new 2016 hazard classification guidance document titled "Hazard Classification for Manufacturers, Importers, and Employers". 

The 432 page document outlines the basic applicability of the OSHA Hazard Communication Standard (HCS) as well as the hazard classification process.  According to OSHA, the document is designed to "help manufacturers and importers of chemicals not only identify chemical hazards, but also to classify these hazards so that workers and downstream users can be informed about and better understand these hazards as required by OSHA’s Hazard Communication Standard." 

If you are responsible for any aspect of compliance with the HCS or for classifying chemical hazards you will find this guidance document helpful.