CPI Flashcards
What does CPI investigate?
Exports- items going out of US
Commodity
an article of trade or commerce; something of use, advantage, or value (goods or services) (things, ideas, designs, items). CPI has two basic types of commodities:
1) “Single use” – any commodity that has only a military application. “Defense articles” and “Defense Support services” (example: surface-to-air missiles).
2) “Dual use” – any commodity which could have either a military application or a civilian application (example: generators).
Export – Three types:
1) Movement of a commodity across the U.S. border
2) Movement of a commodity across to a foreign embassy in the U.S.
3) Transfer of a commodity to an unauthorized foreign national in the U.S. (“deemed export or intangible transfer”)
Deemed Export (Intangible Transfer):
1) The commodity does not have to depart the country or cross an international boundary.
2) Occurs when a foreign national in the U.S. gains access to
information, data, schematics, training, etc., without clearance and/or authorization.
3) A deemed export violation is a concept that is applicable to all export laws.
4) LPRs are exempt – cannot be charged for deemed export violations.
Export license
authorization from U.S. government permitting the export of a commodity. The license is the primary means of controlling what is allowed to leave the U.S. All export-controlled items/commodities must have a license, or qualify for a license exemption in order to be exported from the United States.
General License
Unwritten authorization for an export.
a) The export is not controlled under any regulation and is not bound for a prohibited or restricted destination (embargoed/ sanctioned entity).
b) Not a Commerce Control List (CCL) or U.S. Munitions List (USML) listed item.
c) Transaction requires no application or written approval for export.
d) Electronic Export Information (EEI) [formerly known as a Shipper’s Export Declaration (SED)] is required to be filed through the Automated Export System (AES) only if the shipment’s value is more than $2,500.
Validated License
Written authorization from the relevant administrative agency for the export of a commodity.
a) Commodity listed on USML or CCL.
b) Being shipped/exported to embargoed or sanctioned entity.
c) No value threshold (can have any value).
d) Must have written permission (must submit application and obtain approval from the applicable agency (State, Treasury, Commerce, etc.) prior to export.
e) End use is specified during the application process (end user statement).
How long do you have to file an Electronic Export Information
- must be filed with CBP 24 hours prior to an export through AES documenting and declaring content, destination, shipper, etc
- Filed 24 hours prior to departure of a shipment
- Required for all shipments with a validated license regardless of value
- Required for all general license shipments valued over $2,500
Detain/Detention
- Temporary holding of an outbound shipment, pending further investigation
1) Can detain for as long as necessary to get a license determination
2) Done on a 6051D form
Arms Export Control Act
- regulates export of defense articles and services
- authorized sales by US to friendly governments
- US to regulate export, sale, and grants of defense articles and services
Elements
- Exports of attempts to
- an article on the munitions list or a technology
- w/o a license.
- an intended to do so.
ITAR
- Sending/taking defense articles out of us
- Transferring registration or control of any aircraft to a foreign person
- disclosing/transfer in the us any defense article to embassy.
International Emergency Economic Powers Act of 1977
a) Investigate, regulate, or prohibit any transactions in foreign exchange
b) Investigate, regulate, or prohibit financial transfers involving a foreign country or foreign national
c) Investigate, regulate, or prohibit the importing or exporting of currency or securities
Outbound Smuggling - 554
- Not meant to replace the ACEA, EAR, or embargo offenses
CPI investigations begin with ***
a. What is it?
b. Where is it going?
c. Does it need a license?
Common elements for successful prosecution of export laws.
An export, or attempted export, occurred – A transfer of a product, entailing
1) Actual movement across border
2) Transfer to a foreign national in the United States (“deemed export”)
3) Transfer to a Foreign Embassy in the United States
4) The export required a license
5) Export or attempted export occurred without a license.
6) Prosecution must prove the exporter had specific Intent.
