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April 19 - 22
NCBFAA Annual Conference
Orlando, FL
May 6 - 8
WCO IT Conference & Exhibition
Bahamas
May 21
C-TPAT Road to Certification Webinar
May 31 - June 2
AAEI Annual Conference
Arlington, VA
June 7 - 9
ICPA EU Compliance Conference
Berlin, Germany
June 17 - 26 WCO Knowledge Academy Brussels, Belgium More Info/Register
August 20
C-TPAT Road to Certification Webinar
October 27 - 29
WCO 5th Technology & Innovation Forum
Rotterdam, the Netherlands More Info/Register November 2 - 3
The 28th Annual
Global Trade Controls & Compliance Conference
London, UK More Info/Register |
Featured Article:
Where Do We Belong?
By Michael Laden
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One of the most frequent questions I am asked is, "Where do we (as a trade compliance organization) belong in our company's reporting hierarchy?" Over the years I have worked for and consulted with many different companies having differing opinions on just where the trade compliance group should report. In fact in some companies, the trade compliance group is often viewed as an orphan and is bounced around from foster parent to foster parent. Over the years I have worked with companies where trade compliance reports to one of the following areas:
Distribution
Logistics
Procurement
Sourcing/Vendor Operations
Law Department
Tax and Risk
Finance or Treasury
Compliance (under Chief Compliance Officer)
When it comes to reporting structures, of course some of it may influenced or driven by corporate politics and/or the corporate culture. The bottom line is that in my opinion, a trade compliance group should report where they fit best within an organization AND where they have the most authority and influence to mandate the necessary controls to keep the company compliant. They must also have the authority to (when required) say, "No!"
(more follows) To read the entire article or to download an Adobe copy please follow this link: Where Do We Belong |
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 Welcome to the April 2015 edition of the Trade Update. This month marks our 10th anniversary in business; it's hard to believe that ten years has elapsed.
In April of 2005, the two original founders of Trade Innovations, Michael Laden and Kelby Woodard, formed this company with a single objective; to provide specialized 'real world' advice to clients engaged in global trade. As we pause to reflect back on the last ten years, we would like to thank our loyal clients, who turn to us when they have a problem or project related to international trade. We take stock in the reality that without those loyal customers, we would not here.
To be sure we have endured a lot in the last 10 years including a significant economic downturn. Of course, we believe that these challenges made us a stronger company and we look forward to serving you for the next 10 years!
The Trade Innovations team is committed to providing timely and accurate news to the trade community. We believe that the complexities of trade compliance rules and regulations necessitates greater awareness.
Our goal in this publication is to encapsulate a summary of the news and information highlights every month in a single place. It is in that spirit then that we offer this newsletter to you. The Trade Update is published on the first Wednesday of every month.
Our team stands ready to assist you and you with your customs and supply chain security programs. The Principals of Trade Innovations have a broad background in customs compliance, supply chain and global security and we are confident that our approach will fit your unique challenges and opportunities.
Please share! Feel free to circulate our newsletter to your social media network, we appreciate the exposure and it's the only way we cultivate new readers. Share buttons may be found in the upper left-hand corner and you can Forward this e-mail by scrolling to the bottom section.
Thank you for taking time from your schedule to peruse our newsletter. We may be reached via e-mail at info@tradeinnovations.com or by telephone at 952.975.9099.
Sincerely,
The Trade Innovations Team
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Trade News Briefs
Relevant News for Trade Professionals
CBP Commissioner Delivers State of Trade
On March 24, 2015, U.S. Customs and Border Protection (CBP) Commissioner, R. Gil Kerlikowske spoke at the U.S. Chamber of Commerce in Washington, D.C.
 He offered a reflective look at his first full year in position and also commented on what the future holds for trade. In FY 2014, CBP cleared $2.5 trillion in imports, and $1.6 trillion in exports, and processed approximately 26 million cargo containers -- increases of about 4 percent over 2013. His comments are exhaustive and include the Centers for excellence (CEE's), Trusted Trader, E-Bond, ACE and Single Window, COAC, Cargo Security and more. he also pointed out that trade penalty assessments have increased by 140 percent from $385.4 million in Fiscal Year 2011 to $925.9 million in Fiscal Year 2014. (more follows)
To read the entire article or for a link to all of Commissioner Kerlikowske's remarks please follow this link:
CBP Announces 14th COAC
CBP Commissioner R. Gil Kerlikowske announced the membership of the 14th Advisory Committee on Commercial Operations to U.S. Customs and Border Protection, better known as COAC, at his "State of Trade" remarks given on March 24th at the U.S. Chamber of Commerce. The COAC is a 20-member council that advises the secretaries of the Department of the Treasury and the Department of Homeland Security (DHS) on the commercial operations of CBP and related DHS and Treasury functions. Members of the trade who are appointed to COAC can serve two-two year terms. Trade Innovations Principal Michael Laden served on the 9th and 10th COAC.
(more follows)
To read the entire article or to see the names of those appointed to COAC please follow this link: CBP Announces 14th COAC
Call for Participation
 CBP issued CSMS #15-000193 titled "Request for Participants - DDTC Trade/PGA Working Group."
The purpose of the Directorate of Defense Trade Controls (DDTC) Import Working Group will be to ensure that all stakeholder groups are represented in the technical solution and data elements that will be required by the DDTC in the new cargo release and control functionality for the Automated Commercial Environment (ACE) and the International Trade Data System (ITDS). The working group will consist of members of the trade whose businesses are regulated by the Department of State, Directorate of Defense Trade Controls (DDTC) and trade software developers who support the business processes, as well as representatives from DDTC and from the U.S. Customs and Border Protection (CBP) team that is developing the ITDS software system - the Automated Commercial Environment (ACE). (more follows)
To read the entire article or to download an Adobe copy of the Working Group Solicitation please follow this link: CBP Call for Participation
CEE's Phase II Expansion
CBP has announced that on April 06, 2015, the Center Directors for the Electronics; Petroleum, Natural Gas & Minerals (PNGM); and Pharmaceuticals, Health & Chemicals (PHC) Centers of Excellence and Expertise (Centers) will assume trade authority for post-release trade processes of entry summaries for the respective industry tariff lines filed in certain Ports of Entry under the following Field Offices:
| Electronics |
PHC |
PNGM |
| Atlanta |
Buffalo |
Chicago |
| Baltimore |
Laredo* |
Detroit |
| Boston |
Los Angeles |
Houston |
| Buffalo |
New Orleans |
Laredo |
| Detroit |
Seattle |
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| El Paso |
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| Laredo |
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| Miami |
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| New Orleans |
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| New York |
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| San Diego |
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| San Juan |
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| Tampa |
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| Tucson |
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*Will transition to the PHC Center on May 4, 2015.
DHS Issues Report on CBP Rail Shipments
The Department of Homeland Security (DHS) Office of the Inspector General (IG) has published a 23-page report titled, "U.S. Customs and Border Protection (CBP) Did Not Effectively Target and Examine Rail Shipments from Canada and Mexico." According to the report, "CBP did not effectively target and examine rail shipments entering the U.S. from Mexico and Canada. Specifically, CBP Officers did not always target shipments using the mandatory Automated Targeting System (ATS) targeting criteria."
Additional findings included CBP Officers were unaware of the correct targeting criteria, one port did not have required radiation detection equipment, CBP Officers received insufficient training and supervisory personnel did not provide enough oversight. As a result, CBP may have failed to target or properly examine rail shipments that were at an increased risk for contraband or dangerous goods. (more follows)
ACE Cargo Release Status Update
CBP has published an Automated Commercial Environment (ACE) Status Update. ACE is CBP's next-generation automated system for processing commercial cargo. It has been under development and deployment for many years, but the primary conversions are now underway. All rail ports just began accepting ACE Cargo Release on March 30th. The next critical milestone is April 13th when all truck ports go live. (more follows)
To read the entire article or to see Helpful Links please follow this link: ACE Status Updates
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Bank Fined $1.45B for Violations
The Department of Justice (DOJ) announced that a German-based financial institution will incur a total of $1.45 billion in penalties for violations of the International Emergency Economic Powers Act (IEEPA) and the Bank Secrecy Act (BSA). The bank has further agreed to pay $263 million in forfeiture and a fine of $79 million for the IEEPA violations, and to pay $300 million in forfeiture in connection with the BSA violations. Additionally, the New York State Department of Financial Services (DFS) announced that the bank has agreed to, among other things, pay a monetary penalty to DFS of $610 million. The OFAC has also levied a fine of $258.6 million, which will be satisfied by payments made to the Justice Department. In total, financial institution will pay $1.45 billion in penalties. (more follows)
$780K for OFAC Violations
The U.S. Department of the Treasury announced that a Michigan company has agreed to pay $780,000 to settle potential civil liability for apparent violations of the former Iraqi Sanctions Regulations. According to the published Office of Foreign Assets Control (OFAC) action notice, the company cited knowingly and willfully formed a conspiracy for the purpose of transferring funds from the United States to Iraq, by and through Amman, Jordan, and appears to have made funds transfers pursuant to this conspiracy. (more follows)
$3.8M for False Claims
 The U.S. Department of Justice (DOJ) has announced that a Miami-based lender has agreed to pay $3.8 million to resolve allegations under the False Claims Act that it made false statements and claims to the Export-Import Bank (Ex-Im Bank) of the United States in order to obtain loan guarantees.
According to the DOJ Press Release, the Ex-Im Bank guarantees loans made by approved lenders to foreign businesses for the purchase of American-made products. The lender is responsible for performing a credit review of the transaction to ensure that it meets applicable criteria. The government alleged that company created false documentation to obtain Ex-Im Bank guarantees on fictitious transactions on which no products were sold or exported, and that the company acted recklessly by outsourcing key credit review functions to an Agent without adequate supervision or oversight. (more follows)
$232M for IEEPA Violations
The U.S. Commerce Department's Bureau of Industry and Security (BIS) announced that a company has agreed to enter a guilty plea and to pay a $232,708,356 penalty to the U.S for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan. (more follows)
$7.6M for OFAC Violations
The U.S. Department of the Treasury has announced that a San Jose, California company has agreed to remit $7,658,300 to settle its potential civil liability for processing 486 transactions totaling approximately $43,934, in apparent violation of the following sanctions programs administered by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC). (more follows)
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