StandardAero announced that its components business in Cincinnati, Ohio, has been designated a foreign trade zone. FTZs are sites approved by the Foreign Trade Zone Board where imported goods can be stored or processed with duty-free treatment on items that are re-exported or where duty payment can be deferred.
The Obama Administration notified Congress on March 7 of planned revisions to the U.S. Munitions List (USML) in the aircraft and gas-turbine engine categories. The revisions will move items considered to be non-sensitive or having dual military and commercial uses from the State Department-administered USML to the more flexible Commerce Control List (CCL) under the administration’s export control reform initiative.
The arrest of 11 members of an alleged Russian military procurement ring in Houston earlier this month was an exceptional but not isolated example of foreign interests attempting to acquire advanced technologies by skirting U.S. export control laws. “This is exceptional in the sense of the scale and scope. But these types of procurement networks are very common,” said Douglas Jacobson, an international trade attorney who specializes in export controls. “Efforts to procure a variety of U.S.[products] are common from Iran, from China, from other countries,” he added.
New draft rules for the export of U.S. military aircraft and parts were released this week. They are part of a systemic reform of the export control regime for military-related products that has been long sought by America’s aerospace industry.
The Modification and Replacement Parts Association is raising the red flag over proposed changes to U.S. export policy. Currently, a foreign-made component with 25 percent or less U.S. content is not subject to U.S. export laws when it is re-exported (sent from one foreign country to a second non-U.S. country). The minimum U.S. content drops to 10 percent for re-exports to Cuba, Iran, North Korea, Sudan or Syria.