The Bureau of Industry and Security is again revising its policies to further encourage exporters to voluntarily self-disclose potential violations of export rules.
In 2022 BIS announced changes that promised quicker resolution of VSDs involving minor or technical infractions. In April 2023 BIS increased pressure on exporters to disclose not only their own potential violations but those by others as well. Just three months later BIS joined with the Office of Foreign Assets Control and the Department of Justice to stress that exporters have a duty to report violations to help protect U.S. national security.
BIS is now making the following updates to enhance the efficiency and effectiveness of its VSD program and make it easier for exporters to make disclosures.
- strongly encouraging the submission of VSDs (including initial notifications, extension requests, and narrative accounts) via email
- allowing those disclosing violations where no aggravating factors are present (which BIS characterizes as “the overwhelming majority of VSD submissions”) to submit an abbreviated narrative account as part of their disclosure rather than a full five-year lookback
- allowing multiple minor or technical violations (i.e., those without aggravating factors) to be bundled into a single quarterly submission
- suggesting that requests to dispose of potentially violative goods in ways otherwise prohibited by BIS regulations be submitted via email and committing to expedite review and analysis of such requests
- clarifying that any person (not just one submitting a VSD) may notify BIS that a violation has occurred and request permission to engage in otherwise prohibited activities
- providing that for parties seeking to return an unlawfully exported item to the U.S., the presumptive recommendation will be to authorize such reexports regardless of who is seeking such permission
For more information on whether a voluntary self-disclosure is right for your company, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.
Copyright © 2024 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.