According to some major newspapers in Japan, one of Japanese trading companies was raided by police of Kanagawa prefecture on November 29, 2011. The company name is Intertec Corporation (http://www.itcj.com/e/index.html) who is small company with about 50 employees, founded on 1994 with the capital amount JPY 100 millions, and sell semiconductor manufacturing equipments and parts.
The news paper report the company exported semiconductor manufacturing equipment with controlled software to China without required export license. It seems (simply my guess from limited news article) the items are likely to be controlled under Category 7 (16) and its related technology of Japanese export control list (or equivalent to Category 3B001 and 3D001 in US ECCN).
Also, the news article imply the goods and technology might be used for development of missile technology in China. If this is true, the case is also the violation of WMD catch-all control.
I find on Intertec's company web site they mainly sell "used" semiconductor equipment. As many of export control professionals know, the classification whether the used equipment is controlled or not is difficult and require special knowledge and skill. This operational challenge may be behind this violation case.
2011年11月21日月曜日
Hong Kong update Strategic Commodities List
In order to comply with the controlled item list update of international regimes, such as Wassenaar Arrangement ("WA"), AG, MTCR, and NSG, Hong Kong announced their control list update on Nov. 18, 2011.
The announcement is available here: http://www.stc.tid.gov.hk/english/circular_pub/2011_stc07.html
I quickly looked through the Annex, which indicates the full details of amendment. I come to know it included the WA's latest list update (in December 2010) in Category 3 and Category 5 part 2, which means in link with US EAR and Japan's export control list.
The announcement is available here: http://www.stc.tid.gov.hk/english/circular_pub/2011_stc07.html
I quickly looked through the Annex, which indicates the full details of amendment. I come to know it included the WA's latest list update (in December 2010) in Category 3 and Category 5 part 2, which means in link with US EAR and Japan's export control list.
2011年11月11日金曜日
Russia join WTO!
Russia’s accession to the WTO cleared a major hurdle when the WTO Working Party on its accession approved on 10 November 2011, according to WTO news release.
After Ukraine, former Soviet Union country, joined WTO in May 2008, Russia has been "last big one" of non-WTO country.
The major interest for traders would be how tariff will be reduced.
See below URL, and "Market access for goods — tariff and quota commitments" provide the summary information how tariff will be changed.
http://www.wto.org/english/news_e/news11_e/acc_rus_10nov11_e.htm
After Ukraine, former Soviet Union country, joined WTO in May 2008, Russia has been "last big one" of non-WTO country.
The major interest for traders would be how tariff will be reduced.
See below URL, and "Market access for goods — tariff and quota commitments" provide the summary information how tariff will be changed.
http://www.wto.org/english/news_e/news11_e/acc_rus_10nov11_e.htm
2011年11月10日木曜日
BIS proposed new rules for aircraft and related items
On November 7, 2011, BIS published proposed rules for aircraft and related items that no longer warrant control under Category VIII of the U.S. Munitions List ("USML").
http://www.bis.doc.gov/news/2011/fr_11072011.pdf
In short, this is another important step in US Export Control Reform, following by July 15 proposed rule this year, which was integration of USML Category VII with EAR's Commerce Control List ("CCL").
This time, it is USML Category VIII (aircraft and related items) into CCL, in new ECCN 9A610, 9B610, 9C610, 9D610, and 9E610. The third digit of ECCN ("600 series) are for ex-USML items after incorporated into CCL.
Public comments will be accepted until December 22, 2011.
http://www.bis.doc.gov/news/2011/fr_11072011.pdf
In short, this is another important step in US Export Control Reform, following by July 15 proposed rule this year, which was integration of USML Category VII with EAR's Commerce Control List ("CCL").
This time, it is USML Category VIII (aircraft and related items) into CCL, in new ECCN 9A610, 9B610, 9C610, 9D610, and 9E610. The third digit of ECCN ("600 series) are for ex-USML items after incorporated into CCL.
Public comments will be accepted until December 22, 2011.
2011年11月8日火曜日
Japan will change definition of "Use"
On November 7, 2011, Japan METI announced new notification draft to seek public comment regarding export control term's new definition. It is to change the definition of "Use". Perhaps export control professionals are familiar with this term in technology transfer, the controlled technology is defined as "development", "manufacturing", or "use" relating to controlled item. The notification draft specifically define the interpretation of "Use" with the change of the notification.
In Japan, the definition of "Use" is not defined in controlled item's list, but in METI notification called "役務通達 or Ekimu Tsutatsu". Currently, the definition is described as below.
Use is defined as "Operation, installation (including on-site installation), maintenance (inspection), repair, overhaul, refurbishing etc which are stages other than development and manufacturing.
In new notification draft, it will be changed as below, specifically limiting the words:
Use is defined as "Operation, installation (including on-site installation), maintenance (inspection), repair, overhaul, and refurbishing" (Please be noted the 'and' here is not same as the definition of US EAR. Perhaps 'or' may be better in Japan, as all six activities are not necessary to trigger a license requirement. Any one of them is fine to be recognized as sufficient. )
The difference is that the new definition is narrowed by removing "etc., stages other than development and manufacturing". At this point of time, with this phrase, Japan's definition of "Use" tend to be interpreted more broadly and to cover more "use" technology than other countries who follow Wassenaar Arrangement.
This change is to reflect and to follow the Wassenaar's definition which will make Japanese export control practice same as other WA countries.
The schedule when this draft will be in effect is still unknown.
Update: METI officially updated the notification and announced this new definition of "use" is effective on December 26, 2011.
http://www.cistec.or.jp/export/express/111226/4ef02a6e5dfe8.pdf
(Source: http://search.e-gov.go.jp/servlet/Public?CLASSNAME=PCMMSTDETAIL&id=595111066 )
In Japan, the definition of "Use" is not defined in controlled item's list, but in METI notification called "役務通達 or Ekimu Tsutatsu". Currently, the definition is described as below.
Use is defined as "Operation, installation (including on-site installation), maintenance (inspection), repair, overhaul, refurbishing etc which are stages other than development and manufacturing.
In new notification draft, it will be changed as below, specifically limiting the words:
Use is defined as "Operation, installation (including on-site installation), maintenance (inspection), repair, overhaul, and refurbishing" (Please be noted the 'and' here is not same as the definition of US EAR. Perhaps 'or' may be better in Japan, as all six activities are not necessary to trigger a license requirement. Any one of them is fine to be recognized as sufficient. )
The difference is that the new definition is narrowed by removing "etc., stages other than development and manufacturing". At this point of time, with this phrase, Japan's definition of "Use" tend to be interpreted more broadly and to cover more "use" technology than other countries who follow Wassenaar Arrangement.
This change is to reflect and to follow the Wassenaar's definition which will make Japanese export control practice same as other WA countries.
The schedule when this draft will be in effect is still unknown.
Update: METI officially updated the notification and announced this new definition of "use" is effective on December 26, 2011.
http://www.cistec.or.jp/export/express/111226/4ef02a6e5dfe8.pdf
(Source: http://search.e-gov.go.jp/servlet/Public?CLASSNAME=PCMMSTDETAIL&id=595111066 )
2011年11月5日土曜日
Japan list Libya as restricted country, remove Sierra Leone
On November 2, 2011, Ministry of Economy, Trade and Industry ("METI") of Japan posted public comment of export control regulation change on government web site.
http://search.e-gov.go.jp/servlet/Public?CLASSNAME=PCMMSTDETAIL&id=595111060
The proposed change is to add Libya into restricted country list (UN arms embargo list) under conventional weapon catch-all rule, while removing Sierra Leone from this list
The tentative enforcement date is February 1st, 2012. This proposal is to follow United Nations Security Council Resolution ("UNSCR") 1970 which impose more strict export control of arms to Libya.
As for relax of control to Sierra Leona, it is to follow the UNSCR 1940 which clear the arms embargo to Sierra Leone.
What would be the impact to trader? This change does not affect to license management of WA dual-use controlled items, because this is under conventional weapon catch-all scheme. A trader who export industrial goods (nearly all goods except food or wooden product) to Libya need to conduct end-use screening to check whether the goods are used for development, manufacturing or use of conventional weapon items. (In other words, the end-use screening for conventional weapon to Libya have not been not required so far. Only WMD end-use check.) As for Sierra Leone, the obligation of the above mentioned end-use screening will not be required.
This is to impose more strict end-use control to export operation to Libya, while relaxing it to Sierra Leone. I don't think so many Japanese companies have big business with Sierra Leone, while Libya may be attractive emerging market especially for energy industry.
http://search.e-gov.go.jp/servlet/Public?CLASSNAME=PCMMSTDETAIL&id=595111060
The proposed change is to add Libya into restricted country list (UN arms embargo list) under conventional weapon catch-all rule, while removing Sierra Leone from this list
The tentative enforcement date is February 1st, 2012. This proposal is to follow United Nations Security Council Resolution ("UNSCR") 1970 which impose more strict export control of arms to Libya.
As for relax of control to Sierra Leona, it is to follow the UNSCR 1940 which clear the arms embargo to Sierra Leone.
What would be the impact to trader? This change does not affect to license management of WA dual-use controlled items, because this is under conventional weapon catch-all scheme. A trader who export industrial goods (nearly all goods except food or wooden product) to Libya need to conduct end-use screening to check whether the goods are used for development, manufacturing or use of conventional weapon items. (In other words, the end-use screening for conventional weapon to Libya have not been not required so far. Only WMD end-use check.) As for Sierra Leone, the obligation of the above mentioned end-use screening will not be required.
This is to impose more strict end-use control to export operation to Libya, while relaxing it to Sierra Leone. I don't think so many Japanese companies have big business with Sierra Leone, while Libya may be attractive emerging market especially for energy industry.
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