U.S. Commerce Department Expands Export Restrictions Aimed at Russia’s Defense Sector

September 12, 2014

WASHINGTON– The U.S. Department of Commerce's Bureau of Industry and Security (BIS) today announced additional steps that will further restrict trade with Russia in response to Russia's continued efforts to destabilize eastern Ukraine. Today's actions are being announced in conjunction with an announcement by the U.S. Department of the Treasury that it is also imposing a new set of targeted prohibitions and designations against a range of Russian entities.

BIS will add five entities operating in the Russian Federation’s defense sector to the BIS Entity List. Designation on the Entity List imposes a license requirement for the export, reexport or foreign transfer of items subject to the Export Administration Regulations (EAR) to the designated entities, with a presumption of denial. BIS will also require licenses for an additional group of items destined to military end uses or end users in Russia.

The entities added to the BIS Entity List are:

  • Almaz-Antey Air Defense Concern Main System Design Bureau, JSC
  • is one of the world’s largest defense industry complexes, specializing in development of anti-air, anti-missile and space defense systems.
  • Tikhomirov Scientific Research Institute of Instrument Design
  • specializes in the development of weaponry control systems for fighter planes and mobile medium range anti-aircraft surface to air missile (SAM) defense vehicles.
  • Mytishchinski Mashinostroitelny Zavod, OAO
  • manufactures and supplies ordnance and accessories, including naval, aircraft, anti-aircraft and field artillery products.
  • Kalinin Machine Plant, JSC
  • designs and manufactures machines for military and civil applications.
  • Dolgoprudny Research Production Enterprise
  • develops and manufactures high-technology defense products.

In addition, BIS also added five Russian energy companies to the Entity List to impose a license requirement for the export, reexport or foreign transfer of items subject to the Export Administration Regulations (EAR) to those companies when the exporter, reexporter or transferor knows those items will be used directly or indirectly in exploration for, or production from, deepwater, Arctic offshore, or shale projects in Russia. License applications for such transactions will be reviewed with a presumption of denial when for use directly or indirectly for exploration or production from deepwater, Arctic offshore, or shale projects in Russia that have the potential to produce oil.

The Russian energy sector entities added to the BIS Entity List are:

  • Gazprom, OAO major business lines are geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel as well as generation and marketing of heat and electric power.
  • Gazpromneft is a Russian oil company engaged primarily in oil & gas exploration and production, the sale and distribution of crude oil, and the production and sale of petroleum products.
  • Lukoil, OAO is a leader of Russia’s petroleum industry.
  • Rosneft a leader of Russia’s petroleum industry. Rosneft activities include hydrocarbon exploration and production, upstream offshore projects, hydrocarbon refining, and crude oil, gas and product marketing in Russia and abroad.
  • Surgutneftegas is a Russian oil and gas company that was created in 1993 by merging several previously state-owned companies owning large oil and gas reserves in Western Siberia.

BIS controls exports and reexports of commodities, technology, and software to support national security and foreign policy, including nuclear, chemical and biological weapons, and missile non-proliferation, human rights, regional stability, and curbing terrorism. Criminal penalties and administrative sanctions can be imposed for violations of the Export Administration Regulations. For more information, please visit: www.bis.doc.gov.

ATA Carnets Exempt from EEI/AES Filing

August 13, 2014

Roanoke Insurance Group is very pleased to inform you that our hard work has paid off in securing exemption from the Electronic Export Filing (EEI) filing requirement for ATA Carnets! We received verbal confirmation from both U.S. Customs and Border protection (CBP) and U.S. Census Bureau yesterday. U.S. Census is currently working on revising the rules, which should be published very soon. October 2 is no longer a looming deadline for ATA Carnets!

Until further notice ATA Carnet shipments will continue to include “CARNET” as an exemption statement on required manifest documents. In the event that the cargo carrier refuses the shipment due to missing exemption code, we recommend, only during this period of informed compliance, reverting back to the former exemption code “CARNET NO EEI per 30.37(q)” for U.S. ATA Carnets and “30.37(r)” for foreign ATA Carnet shipments. Once the revised rules are officially published we will provide guidance on how to handle ATA Carnet shipments. Please be aware that these exemptions only apply to ATA Carnets that cover commodities that do not require export licenses. All exports from the U.S. that require a participating government agency export license have never been exempt from the EEI filing requirement.

Background Information
In March 2013, several changes were made to the U.S. Census Bureau’s Foreign Trade Regulations (FTR) pertaining to the filing of export documentation under the Automated Export System. One significant change was the removal of the exemption that ATA Carnet shipments benefited from. These changes would have been effective and subject to a vigorous enforcement regime by US Customs and Border Protection (CBP) on October 2, 2014. Roanoke was instrumental in obtaining this re-exemption by representing our customers on the EEII/AES working group alongside the U.S. Council for International Business, US CPB and US Census.


Commerce Department Announces Further Expansion of Export Restrictions on Russia

Wednesday, July 16, 2014

WASHINGTON – As part of a series of sanctions announced today by the United States, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) is adding 11 parties to its Entity List in response to Russia's continued action in Ukraine. Russian support to the separatists has fueled increased fighting and casualties in eastern Ukraine. Russia continues to provide the separatists with heavy weapons, equipment, and other financing, and continues to allow militants to enter Ukraine freely. In addition, Russia has returned many of its troops to border areas, and also has been massing additional equipment near the border for potential transfer into Ukraine.

In response to Russia’s continued policy of destabilization in eastern Ukraine and ongoing occupation of Crimea and Sevastopol, the following 11 parties are being added to the Entity List based on a determination they are involved, or pose a significant risk of becoming involved, in activities contrary to the national security and foreign policy interests of the United States. Designation on the Entity List imposes a license requirement for the export, re-export or foreign transfer of items subject to the Export Administration Regulations to the designated Entities, with a presumption of denial.

Today's additions to the Entity List are: 1) Donetsk People’s Republic; 2) Feodosia Enterprise; 3) JSC Concern Radio-Electronic Technologies; 4) JSC Concern Sozvezdie; 5) JSCC Almaz-Antey; 6) Kalashnikov Concern; 7) KBP Instrument Design Bureau; 8) Luhansk People’s Republic; 9) MIC NOP Mashinostroyenia; 10) Research and Production Corporation “UralVagonZavod”; and 11) State Research and Production Enterprise “Bazalt.”

Today’s action is being taken in conjunction with an announcement by the Department of the Treasury that it also will impose sanctions on a number of parties.

BIS controls exports and reexports of commodities, technology, and software for reasons of national security, missile technology, nuclear non-proliferation, chemical and biological weapons non-proliferation, crime control, regional stability, foreign policy and anti-terrorism. Criminal penalties and administrative sanctions can be imposed for violations of the Export Administration Regulations. For more information, please visit www.bis.doc.gov.

FDA Food Safety Modernization Act (FSMA) - Food Facility Registration Now Open for Renewals



All food facilities that are required to register with FDA under section 415 of the FD&C Act must renew their registrations with FDA, as required by section 102 of FSMA. Registrants are required to submit registrations to FDA containing the information described in section 415(a)(2) of the FD&C Act, including the new information added by section 102 of FSMA.

Biennial registration renewal for food facilities will be available on Monday, October 22, 2012. Please check FDA’s website at www.access.fda.gov for more information, or sign-up for FSMA updates at www.fda.gov/FSMA. Additional information regarding Registration Renewal may be found at http://www.fda.gov/Food/FoodSafety/FSMA/ucm314178.htm.

Under FSMA, all food facilities that are required to register with FDA under section 415 of the FD&C Act, including foreign facilities, are required to submit registration renewals to FDA during the registration renewal period.

The failure to register your facility, update required elements, or cancel a registration in accordance with 21 CFR Part 1, Subpart H is a prohibited act under the FD&C Act (see 21 C.F.R. 1.241). If a foreign food facility is required to register with FDA, but fails to do so, food from that facility that is being imported or offered for import into the U.S. is subject to refusal under section 801(l) of the FD&C Act.

A food facility will not be issued a new registration number when it renews a current registration under the biennial registration renewal process.

High-Tech Ports

Shipping giant Maersk is building the world's most automated terminal at Rotterdam, Europe's largest port. It's slated to open in 2014, and once completed "Maasvlakte II" will be the size of about 3,737 football fields. The terminal will include automatic cranes, driverless dollies, and a rail line. The planned result? Fewer accidents, lower costs, and a 50% increase in operating efficiency.

(Source: Fortune Magazine, May 21, 2012)


The U.S. Customs & Border Protection Importer Security Filing required by the Safe Port Act of 2006 will become effective for all ocean import shipments exported on or after Jan 26, 2009. CBP is allowing a 12 month delayed enforcement period to allow time for the trade community to adjust to the new requirements. Once the requirements become mandatory in Jan 2010 the importer will be subject to a $ 5,000.00 penalty for failure to file prior to loading of the vessel. At this time the filing requirement is the responsibility of the importer and the importer only. Most parties (importer, shipper, seller, forwarder, and broker) require some orientation period before they are able to seamlessly gather and transmit the ISF. The longer the importer waits to file data, the less time each will have to refine the gathering and filling of the data. In an effort to generate as much participation as possible by our customers we are offering to file the ISF on your behalf at no charge until the regulations become mandatory in 2010. Although it is not mandatory at this time CBP would like to see a good compliance rate and will be monitoring the progress of the filing parties.

The following is the data elements required in order for us to file the ISF on your behalf:

  1. AMS House Bill of Lading number or AMS Master bill of lading number if no HBL is issued
    • Seller
    • Buyer
    • Manufacturer
    • Ship to party
    • Container stuffing location
    • Name & address of company responsible for stuffing the container
  3. OTHER:
    • Country of Origin
    • Commodity description and or HSTSUS number

We encourage you to contact us with any questions and your plan for compliance with the ISF regulations.

Importer Security Filing becomes mandatory. Jan 26, 2010.

ISF (10+2) is now available with a direct link on our website. The link is leading directly to the form and instructions. Currently, the form can be filled in online but not saved.

Data providers have to fill in the information (the text is shrinking as the data is entered to fit even lengthy and complicated information) and then print the form. The printed form then can be emailed or faxed to us.

This feature on our website is still work in progress. For more information regarding ISF please see our newsletter on the website.

CTPAT Recommendations to importers:

Container & Trailer Security
It is critical, whether a C-TPAT member or not, to of have security procedures in place at the point of container stuffing. Procedures to inspect, properly seal and maintain the integrity of the shipping containers and trailers should be implemented. The seven- point inspection process for empty containers prior to the loading the cargo as well as the seventeen-point inspection process for all trailers/tractors, should be followed. Please contact us an we will be glad to provide you with details of the processes..

Container & Trailer Seals
The sealing of trailers and containers, to include continuous seal integrity, are crucial elements of a secure supply chain.Seals used to secure loaded containers and trailers bound for the U.S. must meet or exceed the current PAS ISO 17712 standards for high security seals.

  • All loaded U.S.-bound containers and trailers must have a PAS ISO 17712 high-security seal affixed.
  • Procedures for recognizing and reporting compromised seals to CBP or the appropriate foreign authority must be instituted.

Additional recommendations:

A) Cargo Security
Where necessary begin photographing seal and container at origin and destination.
Identify Errors/ Service Failures/ Weakness in System
Review immediate impact
Determine parties to be involved
Make report
Recommend corrective action

B) Employee Identification
Employees are issued an ID badge upon hire and must be utilized. This is not negotiable.

C) Customs Risk & Procedures
Evaluate and implement follow up as indicated in sub-section A above.

D) Broker/Forwarder
Review activity in community; verify initiatives, carrier participation, advanced knowledge, relationship with CBP, reporting anomalies to management.

E) Security Survey
A security survey will consist of a review of the total operation of the facility during business hours and non-working hours, the computer systems, supplier’s security procedures, carrier’s procedures, and the broker’s procedures, including the delivery to your warehouse. The survey should provide management with a list of strengths and weaknesses in their protection program of each aspect of the supply chain. The survey report should also identify suggestions on what actions can be taken to improve the program with both operational and line item funding. Examples of the topical areas covered in the survey should include the protective force, electronic security, physical protection, information security, property protection, protection from sabotage and workplace violence, probability of issues with producers, packagers, forwarders, carriers, brokers, and truckers, etc. The Supply Chain Manager will provide a written report on the results of the survey with details, which include the security evaluation by the outside inspector including program improvements. Please review the additional forms at the end of this chapter and the instructions for completing them.

F) Training
Training is an important tool in guiding employees to perform in a specified manner. Training results in higher employee morale, improved confidence levels, and better customer relations. Training subjects may vary from one facility to another, with subjects including customer service, emergency response, patrol, and bomb threats. A four-step training program would be recommended for each class. Utilizing bomb threats as an example, step one is a short video on how to deal with a bomb threat. Step two is a classroom lecture. Step three would be a practical application of handling a bomb threat call or search for a device. Step four would be a test of the employee’s knowledge. Additionally, these steps in training should be passed on to your partners, or at a minimum refer them to a Risk Management specialist.

The Supply Chain Manager will establish the proper training to be made available for

your set of circumstances. Provide supply chain training with all new employees. An annual training will be held to facilitate the completion of our Self-Assessment program.

Security awareness is the least expensive and most productive use of funds in a security budget. Security briefs can be written for facility newsletters. Posters can be procured and displayed on bulletin boards. The single most important goal is to make security a part of every employee’s day-to-day routine. Simple tasks must become routine, such as locking valuables in a secure place versus leaving them in the open and unattended. Sensitive documents should not be disposed of in the trash; they should always be shredded. Employees should challenge people in the workplace that they do not know.

When properly trained and educated, your workforce becomes one of your best security providers.

In order to maintain a smooth operation, you will continue to monitor these aspects of your business. It should be your goal operationally to have a seamless transition in times of communication breakdown, in the areas of electronic reporting, change in personnel, or any source that we rely on, for the continuation of your daily business.

Your company cannot guarantee a totally safe and secure workplace. What you can do is reduce any risks through an integrated program of elements, such as a well-trained and motivated protective force, security electronics, physical barriers, and general security awareness. These elements, plus a detailed background check on employees, will increase the level of security at all facilities.

US-Korea Set March 15, 2012 as Start Date for Free Trade Agreement

The U.S. and Korean governments announced on February 21, 2012 that the long-awaited free-trade agreement between the two nations will take effect March 15.

Congress approved the FTA in October after languishing for years along with similar agreements with Colombia and Panama, after changes were made to the original agreements.

The Colombia agreement was signed in 2006, and the Korea and Panama deals were signed in 2007, but they were never submitted to Congress for approval due to Democrats concerns over some of the terms, notably labor rights issues in Colombia and Panama, and access to the auto market in Korea.

The following is a statement from the U.S. Trade Representative:
United States Trade Representative Ron Kirk announced today that the U.S.-Korea trade agreement will enter into force -- that is, take effect -- on March 15, 2012. This announcement follows the completion over the President's Day weekend of work by the United States and Korea to review each other's laws and regulations related to the implementation of the agreement. The United States has exchanged diplomatic notes with Korea in which each side confirmed that they had completed their applicable legal requirements and procedures for the agreement's entry into force.

"In a few short weeks, the promise of the U.S.-Korea trade agreement - including tens of thousands of export-supported jobs with better wages - will start to come home for American businesses and working families," said Ambassador Kirk. "President Obama insisted that we get this agreement right by forging a better deal that led to strong bipartisan support in both houses of Congress. Entry into force of this agreement will open up Korea's $1 trillion economy for America's workers, businesses, farmers, and ranchers while also strengthening our economic partnership with a key Asia-Pacific ally."

On March 15, almost 80 percent of U.S. exports of industrial products to Korea will become duty-free, including aerospace equipment, agricultural equipment, auto parts, building products, chemicals, consumer goods, electrical equipment, environmental goods, all footwear and travel goods, paper products, scientific equipment and shipping and transportation equipment.

Also on March 15, almost two-thirds of U.S. exports of agricultural products to Korea will become duty-free, including wheat, corn, soybeans for crushing, whey for feed use, hides and skins, cotton, cherries, pistachios, almonds, orange juice, grape juice, and wine.

The agreement also includes a number of significant commitments related to non-tariff measures that will also come into force on March 15, including obligations related to motor vehicle safety and environmental standards, enhanced regulatory transparency, standard-setting, technology neutrality, and customs administration. Strengthened protections for intellectual property rights benefiting American creators and innovators will also come into force on that day. Finally, commitments opening up Korea's $580 billion services market will also be in effect beginning March 15.

These commitments are backed by the agreement's strong enforcement provisions, which will enable the United States to hold Korea to its promises under the pact.


The U.S. - Korea trade agreement is an integral part of the President's efforts to increase opportunities for U.S. businesses, farmers, ranchers, and workers through improved access for their products and services in foreign markets, and supports the President's National Export Initiative goal of doubling of U.S. exports in 5 years. The agreement will promote the further integration of the U.S. and Korean economies and enhance the competitiveness of U.S. businesses in the world's 12th largest economy.

In December 2010, President Obama announced the successful resolution of outstanding issues with the U.S.-Korea trade agreement, setting the stage for the ratification of an agreement estimated to support 70,000 American jobs from increased goods exports alone, with additional jobs potential from the further opening of Korea's large services market to American firms, and other measures.

The U.S.-Korea trade agreement's implementing bill, approved by Congress in October 2011, authorizes the President to exchange notes with Korea providing for the entry into force at such time as the President determines that Korea has taken measures necessary to comply with provisions of the agreement that are to take effect on the date of the entry into force.

Goods of Argentina to Lose GSP Benefits

On March 26, 2012, President Obama issued Presidential Proclamation 8788, suspending Argentina's GSP eligibility because Argentina had not acted in good faith in enforcing two longstanding arbitral awards.

Goods of Argentina will lose Generalized System of Preference (GSP) eligibility if entered or withdrawn from warehouse for consumption on or after May 28, 2012.

U.S. - Colombia Trade Promotion Agreement Implementation

The U.S. - Colombia Trade Promotion Agreement Implementation Act ("the Act," Pub. L. No. 112-42, 125 Stat. 462) was signed into law on October 21, 2011. The Act allowed for the Agreement to take effect on or after January 1, 2012, with the actual implementation date to be determined by the President. Section 201 of the Act authorizes the President to proclaim the tariff modifications and provide the rules of origin for preferential tariff treatment with respect to goods provided for in the Agreement. The text of the Agreement is posted on the U.S. Trade Representative's website.

The President issued a Proclamation implementing the U.S. - Colombia Trade Promotion Agreement (CTPA) on May 14, 2012, for goods entered, or withdrawn from warehouse for consumption, on or after May 15, 2012. The Proclamation incorporated, by reference, Publication 4320 of the United States International Trade Commission (USITC). Annex I of Publication 4320 amends the Harmonized Tariff Schedule of the United States (HTSUS) by adding a new General Note 34 (GN 34) containing specific information regarding the CTPA and a new Subchapter XXI to Chapter 99 to provide for temporary tariff rate quotas (TRQs) implemented by the CTPA. In addition, new provisions have been added to Subchapter XXII to Chapter 98. Annex II of Publication 4320 amends the HTSUS to provide for immediate and staged tariff reductions. Publication 4320 has been posted to the USITC website.

The Agreement provides for the immediate or staged elimination of duties and barriers to bilateral trade in goods and services originating in the United States and/or Colombia.