The U.S. Commerce Department has published for comment a proposed export license exception (“ICT”) that would authorize approved companies and their wholly owned or controlled affiliates to engage in transfers among themselves of many items that would otherwise require individual export licenses, including licenses to make so-called deemed exports to foreign nationals. Comments on the proposed rule are due by November 17th.
The parent company must be incorporated in a country listed in a new supplement to the regulations.To gain approval for use of the exception, the company would have to apply to the Departmentand obtain express approval.
Among the things the application must contain is an ICT internalcontrol plan for the Department to review. What is perhaps most interesting about the proposal is what the Department says the internal control plan must contain because it suggests what Commerce would look to in deciding in other circumstances, such as an enforcement action or a voluntary disclosure situation, whether a company has an effective export compliance program.
The more details are available in following bulletin in IRB# 405 dated October 7, 2008.