Indian Customs makes key arrival and departure manifest changes

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On May 11, 2018, India's Central Board of Indirect Taxes and Customs (CBIT) released a notification(1), that outlines new sea cargo manifest and transshipment regulations. 

The new requirements require shipping lines to comply with the timelines and requirements of the cargo manifestation for exports from India and imports arriving in India.  The changes include:

  • Delivery of an Arrival Manifest - all authorised sea carriers carrying imported goods, export goods, or coastal goods, are required to file an electronic (unless it's not possible to file electronically) arrival manifest with Indian Customs prior to the vessel's departure from the last port of call before arriving in India; and
  • Delivery of a Departure Manifest - all authorised sea carriers carrying imported goods, export goods, coastal goods or goods meant for foreign transit or foreign transshipment, are required to file an electronic (unless it's not possible to file electronically) departure manifest Indian Customs prior to the vessel's departure from the Indian port. 

The effective date of the new regulations was August 1, 2018. 

Definitions:

  • Arrival Manifest - means an integrated declaration required to be delivered by an authorised carrier on arrival of the vessel or train or truck carrying imported goods, export goods and coastal goods.(1)  
  • Authorised carrier - means an authorised sea carrier, authorised train operator, shipping line or custodian registered under regulation 3.(1)
  • Authorised sea carrier - means the master of the vessel carrying imported goods, export goods and coastal goods or his agent.(1)
  • Coastal goods transited through a designated foreign route - means (i) coastal goods transported between an Indian port on east coast and another Indian port on west coast or vice versa, by a vessel through the territorial waters of Sri Lanka, whether or not calling any port in Sri Lanka in between and without change of vessel; and (ii) coastal goods transported between an Indian port on east coast and a river port in India or vice versa, by a vessel through a route passing through the Bangladeshi waters and without change of vessel.(1)
  • Departure Manifest - means integrated declaration required to be delivered by an authorised carrier before departure of a vessel or train or truck for imported goods, export goods and coastal goods.(1)

References:

Weekly Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Sanctions Busters Smuggled North Korean Coal, Iron to the South via Russia | WSJ

"Three South Koreans illegally imported North Korean coal and iron via Russia in violation of sanctions, South Korean customs officials said, exposing a crack in the US-led campaign to cut off trade with the Pyongyang regime." (Click here for the article) - North Korea, South Korea, Russia, USA

Iran Sanctions Wind-Down Period Ends and New Iran Executive Order | Baker McKenzie

"In conjunction with the New Iran EO, the US Treasury Department's Office of Foreign Assets Control issued extensive new guidance on the New Iran EO..." (Click here for the article) - Iran, USA, European Union

FIFA eliminates "corruption" from Code of Ethics | NBC Sports

"FIFA eliminated the word "corruption" from its revised code of ethics during "secret meetings"..." (Click here for the article) - Global

Petrobras recovers $274 million from corruption scandal | Yahoo News

"Brazil's state-owned oil major Petrobras said Thursday that it has recovered 1.034 billion reais ($274 million) in funds embezzled during a giant corruption scandal that badly damaged the company and upended Brazilian politics." (Click here for the article) - Brazil

Customs of Ukraine and Serbia will work together to fight corruption | The Bobr Times

"Ukraine and Serbia signed a document that concerns data interchange between the customs authorities of the two countries and should increase the efficiency of the fight against corruption." (Click here for the article) - Serbia, Ukraine

The Long-Term Impact of Brexit on the European Union | Seeking Alpha

"When the United Kingdom leaves the European Union, higher barriers to trade, capital flows, and labor mobility will affect output and jobs not only in the UK but also in the remaining 27 EU member states." (Click here for the article) - UK, European Union

There's a good chance to reach a NAFTA deal this month | BDP International

"The U.S., Mexico and Canada have a good opportunity to reach a NAFTA agreement this month, and getting there will depend on the political flexibility of the Trump administration, according to the top representative for Mexico's private sector." (Click here for the article) - Mexico, Canada, USA

US, China to resume Trade Talks as Tariffs Bite | WSJ

"The US and China reached a modest breakthrough in their trade dispute, saying they would hold lower-level talks later this month on the spiraling dispute." (Click here for the article) - China, USA

Venezuelan President implicated in US investigation of money laundering | Malta Independent

"Venezuelan President Nicolas Maduro has been implicated in an American investigation for having laundered some 160 million euros through an unnamed Maltese private investment firm..." (Click here for the article) - Malta, Venezuela, USA

Weekly Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

An illusion of choice: the conflicts that mire the audit world | Financial Times

"Most listed companies in Britain and the US use one of the Big Four auditing firms.  No fewer than 98 percent of FTSE 350 consituents have their books vetted by one of KPMG, EY, Deloitte or PwC...Conflicts are often hidden discreetly beneath the surface." (Click here for the article) - Global

Deutsche Bank reports show chinks in money laundering armor | Reuters

"Most listed companies in Britain and the US use one of the Big Four auditing firms.  No fewer than 98 percent of FTSE 350 consituents have their books vetted by one of KPMG, EY, Deloitte or PwC...Conflicts are often hidden discreetly beneath the surface." (Click here for the article) - Germany, European Union, Russia, Ireland, Spain, Italy, South Africa

US unveils next round of Chinese imports to face tariffs | BDP International

"The Trump administration on Tuesday unveiled a list of roughly $16 billion worth of imports from China that will be hit with 25% tariffs." (Click here for the article) - China, USA

US guidance on trade sanctions being reimposed on Iran | KPMG

"The US Treasury Department's Office of Foreign Assets Control today announced the following guidance concerning an executive order reimposing sanctions with respect to Iran..." (Click here for the article) - Iran, USA

Fourth Circuit Agrees with Walmart on Privilege Issue Relevant to FCPA Inquiry | FCPA Professor

"Walmart and the government seem to be at an impasse regarding resolution of Walmar'ts FCPA scrutiny first disclosed in late 2011...In late June 2018 the Fourth Circuit, in this decision, agreed with Walmart's position." (Click here for the article) - USA

US slaps export controls on dozens of Chinese firms over threat to national security | South China Morning Post

"Washington has slapped restrictions on dozens of key Chinese companies - including state-owned developers of military-use technologies such as air defence and satellite systems - for reasons of national security." (Click here for the article) - China, USA

 

Saturday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Weekly Compliance News feature is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Are CEOs Less Ethical Than in the Past? | Strategy + Business

"The job of a CEO at a large publicly held company may seem to be quite comfortable - high pay, excellent benefits, elevated social status, and access to private jets.  But the comfortable perch is increasingly becoming a hot seat, especially when CEOs and their employees cross red lines." (Click here for the article) - Global

What if BREXIT Happened Without an Exit Deal? | Stratfor

"Negotiators for the UK and the EU are racing the clock to reach agreements on a long list of remaining issues before the UK formally leaves the bloc..." (Click here for the article) - UK, European Union

Texas jury indicts Arkema, two executives over chemical releases | Reuters

"A Texas grand jury on Friday indicted chemicals manufacturer Arkema North America and two of its executives for releasing emissions that allegedly endangered the public after a 2017 hurricane." (Click here for the article) - USA

OFAC Sanctions Russian Bank for Moving North Korean Cash | RegTech Post

"The Office of Foreign Assets Control has named Russia's Commercial Bank Agrosoyuz as a Specially Designated National, for moving funds for a DPRK bank, and for two front companies acting for the North Korean Government." (Click here for the article) - Russia, North Korea, USA

US elevates India to most-important allies list  | The Economic Times

"In a big boost to India, the US has eased the export restrictions for high-technology product sales to India by designating it as a Strategic Trade Authorization-1 country, the only South Asian nation to be on the 36 countries list." (Click here for the article) - India, USA

EU Privacy Becomes Excuse to Withhold in US Bribery Probes | Bloomberg Law

"Companies are improperly using the European Union's fairly new privacy standards as the scapegoat for why they can't disclose documents to the US government during foreign bribery investigations..." (Click here for the article) - European Union, USA

CNPC refutes subsidiary's role in 1MDB money-laundering scandal | South China Morning Post

"China Petroleum Pipeline Engineering, a unit of China's state-owned oil and gas giant China National Petroleum Corp, had refuted a media report that money paid for its pipeline projects in Malaysia was diverted to third-party Cayman Islands companies involved in money laundering." (Click here for the article) - China, Malaysia, Cayman Islands, UAE

OECD Publishes Phase 4 Anti-Bribery Implementation Report on Germany

/ Global Compliance Solutions Group LLC/

In June, the OECD published their Phase 4 report (the "Report") on Germany's implementation of the 1997 OECD Anti-Bribery Convention.  The OECD published their Phase 3 report on Germany in March 2011.

The Report describes Germany's achievements, challenges, and enforcement practices related to its foreign bribery laws.  Since 1999, there have been 67 bribery cases in Germany that have resulted in 328 individuals and 18 entities being sanctioned.  A majority of these having occurred in the last 5 years.  This rate places Germany among the highest enforcers of the Anti-Bribery Convention in the world.  

The Working Group commended Germany for holding individuals responsible, but noted a concern that there appeared to be insufficient enforcement against companies.  The Report noted that Germany has demonstrated an ability to detect bribery allegations through multiple sources including Mutual Legal Assistance, self-reporting by companies, coordination with tax authorities, and joint investigative teams in multi-jurisdiction investigations.    

Bribery Risks in Light of Trade Profile

Germany is the largest European economy and the 4th largest economy in the world.  It accounted for 7.85% of the world's exports in 2016.(1)  The German economy is very strongly oriented towards exports. Exports accounted for almost half of Germany's GDP in 2016.(2)  47% of German foreign direct investment is in the United States, UK, Luxembourg, and the Netherlands.(3)  Many of the bribery allegations involving German companies and nationals related to projects in Central, Eastern, and South-Eastern Europe.  

Germany's trading with China has increased substantially recently.  German imports from and exports to China rose to 180 billion USD in 2016 and Germany became the largest recipient of Chinese foreign direct investment in 2017.(4)

Germany has a high exposure to the risk of bribery of foreign officials due to its dependency on exports and its trading in high-risk industrial sectors in high-risk jurisdictions.(5) 

Bribery Cases        

Since 2011 there have been 121 foreign bribery cases being investigated, with 35 still under investigation and 42 cases terminated due to insufficient grounds.  47 cases have resulted in sanctions on individuals and/or companies.  In the last five years the rate of enforcement has increased significantly over the previous ten years.  

Report Conclusions and Recommendations

  • German tax authorities have played a large role in detecting foreign bribery cases.
  • There is strong cooperation between tax authorities, prosecutors, and the Police.
  • OECD commends Germany's efforts to investigate, prosecute, and sanction individuals.
  • Germany plays a leading role in enforcing the Anti-Bribery Convention.
  • A couple of the many recommendations included that they provide clear guidance to companies about self-reporting procedures and that they amend legislation to provide clear protections for whistle-blowers.

Case Examples from the Report

Aviation company: "A subsidiary of a German aviation company paid bribes amounting to EUR 100 000 between 2007 and 2011 to responsible persons of an aviation authority in a central African state to facilitate the securing more consulting service contracts for the privatisation of the African state run airports. The benefits resulting from the concluded consulting service contract were estimated to equal the paid bribes. The investigation proceedings were initiated in 2013 based on information self-reported by the company and received from foreign authorities. In the course of the investigation, MLA requests were sent to three Parties to the Convention in 2014 and 2017. Informal contacts were established with one Party prior to the execution of one of the MLA requests. The German aviation company was held liable by Cologne Local Court in 2014 and received a EUR 100 000 regulatory fine. No individual was held liable in this case."(6)

DB Schenker (Russia): "DB Schenker, a German logistics provider of the state-owned German rail company Deutsche Bahn, was commissioned to deliver car parts to Russia. Bribes amounting to EUR 1.7 million were paid to customs officers in order to get these officers to forego the customs controls and to accelerate customs clearance. The Cologne Public Prosecutor office opened an investigation in 2013 based on an anonymous report which led Schenker’s parent company DB Deutsche Bahn to self-report to law enforcement authorities. In total, seven individuals, including the former chief executive, entered into a resolution pursuant to section 153a CCP. In turn, DB Schenker was held liable by the Cologne Local Court in 2016 and received an overall regulatory fine of EUR 2 million. The punitive component of the fine is EUR 300°000 and the confiscatory component EUR 1.7 million.186 The prosecutors indicate that the amount of the confiscatory component is equal to the amount of the bribe payments because the proceeds of bribery could not be estimated."

References and Key Links:

Wednesday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Wednesday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Texas Instruments CEO Resigns after Code of Conduct Violations | WSJ

"Texas Instruments Inc.'s Chief Executive Brian Crutcher has resigned over violations of the company's code of conduct..." (Click here for the article) - USA

US Tariffs are taxing for the whole world, not just China | South China Morning Post

"The United States' unilateral imposition of 25 per cent tariffs on Chinese products worth US$34 billion damages the global economy in the short term, and strategically threatens the economic well-being of numerous other countries." (Click here for the article) - China, USA

Japan's first corporate plea deal resolves overseas bribery case | The FCPA Blog

"Prosecutors in Tokyo used a plea bargain to resolve an overseas bribery case with a power plant maker under a new law adopted in June..." (Click here for the article) - Japan, Thailand

Lativia's Corruption Scandal is Getting Even Weirder | Bloomberg

"It's central bank chief has been charged with bribery.  A lawyer liquidating the bank that was accused of bribing him was killed in a hail of machine-gun fire.  And one of the banks' biggest lenders was shut down after U.S. allegations of money laundering and violations of sanctions on North Korea." (Click here for the article) - Latvia, USA, North Korea, Russia, Luxembourg, EU

Terrorists slipping through net thanks to anti-money laundering unit delays | Handelsblatt Global

"The Financial Intelligence Unit is overworked and understaffed, say police and prosecutors.  Staff only pass on tips six months after crimes are committed..." (Click here for the article) - Germany

OFAC Issues Global Magnitsky Sanctions Regulations

/ Global Compliance Solutions Group LLC/

On June 29, 2018 the Department of the Treasury's Office of Foreign Assets Control (OFAC) published a final rule (83 FR 30541-30548) that implements the Global Magnitsky Human Rights Accountability Act (the "Act") and Presidential Executive Order 13818 (the "EO").  

The Act authorizes the US President to impose sanctions on any foreign person determined to be responsible for extrajudicial killings, torture, or other gross violations of human rights, or a government official that is responsible for, complicit in, ordering, controlling, or otherwise directing acts of significant corruption.  The EO declared a national emergency to deal with the threat of serious human rights abuse and corruption around the world.  

The published regulations prohibit all transactions previously prohibited under the EO.

The rule is effective as of June 29, 2018.

Contact the experts at GCSG for more information.

E info@globalcompliancesg.com

References:

Wednesday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Wednesday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

India, South Korea sign agreements on trade and commerce | India Times

"India and South Korea will reduce duties on 11 tariff lines in a bid to expand bilateral trade..." (Click here for the article) - India, South Korea

HMRC doubles fines for breaking money laundering rules | Financial Times

"The UK tax authority almost doubled the fines it handed down for violations of money-laundering rules in the latest financial year..." (Click here for the article) - UK

Iran calls for EU help as shipping giant pulls out for fear of US sanctions | KYC360

"One of the world's biggest cargo shippers announced on Saturday it was pulling out of Iran for fear of becoming entangled in U.S. sanctions..." (Click here for the article) - EU, Britain, France, Germany, China, Russia, Iran, USA

China Implements New Tariffs on US Products | CNBC

"China immediately slapped retaliatory tariffs on US imports on Friday after the US imposed duties on $34 billion worth of Chinese products..." (Click here for the article) - China, USA

Pakistan's Former Prime Minister Found Guilty of Corruption | WSJ

"A Pakistani court found former Prime Minister Nawaz Sharif guilty of corruption in a verdict that will likely affect the country's election..." (Click here for the article) - Pakistan

US SEC Charges Credit Suisse with FCPA Violations | Securities and Exchange Commission Press Release

"The SEC today announced that Credit Suisse Group AG will pay approximately $30 million to resolve SEC charges that it obtained investment banking business in the Asia-Pacific region by corruptly influencing foreign officials in violation of the FCPA..." (Click here for the article) - Pakistan

OFAC Amends the Iranian Transactions and Sanctions Regulations

/ Global Compliance Solutions Group LLC/

On Thursday, June 28 the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) amended (1) the Iranian Transactions and Sanctions Regulations (2) in order to implement the President's May 8, 2018 decision (3) to end U.S. participation in the Joint Comprehensive Plan of Action (JCPOA).  The changes include, but are not limited to:

  • Amending the general licenses authorizing the importation into the US (4) of and dealings in, Iranian-origin carpets and foodstuffs, as well as related letters of credit and brokering services, to narrow the scope of the licenses and to allow for the wind down of these activities through August 6, 2018;
  • Adding a new general license to authorize the wind down, through August 6, 2018, of transactions related to the negotiation of contingent contracts for activities, previously approved under General License I (5), related to the export or re-export to Iran of commercial passenger aircraft and related parts and services; and 
  • Adding a new general license (6) to authorize the wind down, through November 4, 2018 of certain transactions, previously approved under General License H (7), related to foreign entities owned or controlled by a US Person (8).
    • Non-US entities that are owned or controlled by a US Person are still subject to the restrictions on US Person involvement during the wind down period (9).  

For more information contact your GCSG experts.

E  info@globalcompliancesg.com

References:

Tuesday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Tuesday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

European firms are increasingly tackling the scourge of bribery | The Economist

"Governments in Europe are catching up with America in pursuing corporate graft...A spate of scandals in Europe suggest that prosecutors, as well as the politicians who influence how much freedom judicial investigators enjoy, are becoming ever less tolerant of corporate corruption" (Click here for the article) - Europe, USA

Fraud biggest business risk to Middle East Businesses  | Gulf Digital News

"48% of Middle East businesses cited fraud and corruption as the greatest risk to their company, followed by cyber attacks (38%)..." (Click here for the article) - Middle East

Vietnam arrests oil refinery executives amid corruption crackdown  | Reuters

"Police in Vietnam arrested the chairman and the chief accountant of Binh Son Refining and Petrochemical Co. Ltd. on suspicion of embezzlement..." (Click here for the article) - Vietnam

UK Data Protection Act 2018  | Cordery Compliance

"The UK's new data protection legislation, the Data Protection Act 2018 (DPA 2018) received the Royal Assent..." (Click here for the article) - UK, Europe

Serious Fraud Office charges against Barclays dismissed  | Independent

"A court has dismissed charges brought by the Serious Fraud Office against Barclays relating to capital raisings that took place in 2008." (Click here for the article) - UK, Europe

 

 

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

Malaysia proposes amendments to Anti-Corruption Act | GCSG

"On March 26, 2018 the Malaysian Anti-Corruption Commission Amendment Bill 2018 passed its first reading.  The amendments propose several changes to the Malaysian Anti-Corruption Commission Act of 2009." (Click here for the article) - Malaysia

EU Targets US Products in Retaliation of US Section 232 Tariffs | SIDLEY

"The EU has published its response to the US section 232 tariffs on EU steel and aluminum products." (Click here for the article) - USA, European Union

Europe faces limited options on US threat on Iran sanctions | Financial Times

"The EU faces a tough call on whether to hit back against a US squeeze on European companies' dealings with Iran - but history offers the bloc only small comfort that it can prevail." (Click here for the article) - USA, European Union

Russia Remains Chief Sanctions Risk for Companies, Banks | WSJ

"The risk of breaching Russian sanctions remains a top concern for European banks, corporations and wealthy individuals despite market tensions surrounding the US withdrawal from the Iran deal..." (Click here for the article) - USA, European Union, Russia

Novartis investigating $85 million bribery allegations in Turkey | Reuters

"An anonymous whistleblower has accused Swiss drugmaker Novartis of paying bribes in Turkey through a consulting firm to secure business advantages worth an estimated $85 million..." (Click here for the article) - USA, Turkey, UK, Switzerland

 

Malaysia proposes amendments to Anti-Corruption Act

/ Global Compliance Solutions Group LLC/

On March 26, 2018 the Malaysian Anti-Corruption Commission Amendment Bill 2018 (the "Amendment") passed the first reading.  The amendments propose several changes to the Malaysian Anti-Corruption Commission Act of 2009 ("2009 Act"). 

The most significant proposed change is the addition of a new section(1) which for the first time adds a corporate liability(2) provision for corrupt acts committed by persons associated with a "commercial organization"(3).  The 2009 Act only contained provisions for individual liability.  With the Amendment a commercial organization commits an offense if:

"a person associated with the organization(4) corruptly gives, agrees to give, promises or offers to any person any gratification whether for the benefit of that person or another person with intent- (a) to obtain or retain business for the commercial organization; or (b) to obtain or retain an advantage in the conduct of business for the commercial organization."(5)

Penalties under the Amendment are no less than ten times the sum or value of the gratification, or one million ringgit ($253,000), whichever is higher, and/or imprisonment for up to 20 years.  In addition, the Amendment states that commercial organizations will be able to provide a defense against a corruption charge by having adequate procedures in place that were designed to have prevented persons associated with the organization from committing the offense.  The Malaysian government intends to publish guidelines in the future that will provide more clarity on how they will interpret "adequate procedures".

Key Takeaways

  • The Amendment introduces corporate liability for corrupt acts committed by persons associated with a commercial organization
  • Having an adequate compliance program in place may mitigate the potential penalties associated with a corrupt act by an associated person
  • Associated persons include both employees AND third parties providing services on the company's behalf
  • The penalties for non-compliance are potentially severe 

Recommendations

  • If you have a business that operates in Malaysia we recommend a review of your  compliance programs in country and a review of your monitoring and auditing practices to ensure they are adequate to prevent and detect corrupt acts.

GCSG will continue to follow developments and will distribute the guidelines when the Malaysian Anti-Corruption Commission publishes them.  For more information contact your GCSG experts.

E  info@globalcompliancesg.com

References and Definitions:

  • (1) The 2009 Act only provided for individual liability associated with corruption by company employees - Malaysian Anti-Corruption Commission Act 2009
  • (2) The corporate liability amendments are modeled after the UK Bribery Act 2010.
  • (3) "Commercial Organization...means (a) a company incorporated under the Companies Act 2016 and carries on a business in Malaysia or elsewhere; (b) a company wherever incorporated and carries on a business or part of a business in Malaysia; (c) a partnership- (i) under the Partnership Act 1961 and carries on a business in Malaysia or elsewhere; or (ii) which is a limited liability partnership..and carries on a business in Malaysia or elsewhere; or (d) a partnership wherever formed and carries on a business or part of a business in Malaysia."(5)
  • (4) "A person is associated with a commercial organization if he is a director, partner or an employee of the commercial organization or he is a person who performs services for or on behalf of the commercial organization."(5)
  • (5) Malaysian Anti-Corruption Commission (Amendment) Bill 2018
  • Malaysian Anti-Corruption Commission

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

US considers tightening grip on China ties to Corporate America | CNBC

"The US government may start scrutinizing informal partnerships between American and Chinese companies in the field of artificial intelligence..." (Click here for the article) - USA, China

Laundering Scandal Exposes European Rift on Policing Banks | Bloomberg

"Europe is struggling to agree on how to tackle money laundering in the wake of high-profile scandals in the Baltic region." (Click here for the article) - EU, Latvia, Germany

Panasonic to Pay $280MM to End U.S. Corruption Probe | Bloomberg

"Panasonic Corp. will pay about $280 million to resolve U.S. allegations that executives at its in-flight-entertainment unit improperly hid payments to consultants in the Middle East and Asia, some did little or no work for the company." (Click here for the article) - Middle East, Asia, USA

New Customs Agreement between the EU and New Zealand | EU Commission News

"A new customs agreement between the EU and New Zealand will officially enter force on 1 May." (Click here for the article) - EU, New Zealand

EU considers using algorithms to detect anti-competitive acts | Reuters

"EU regulators may set up their own algorithms to find companies that use software to fix prices with peers or squeeze out their rivals..." (Click here for the article) - EU

Corruption at (Philippines) Customs now on lesser scale | Manila Bulletin

"EU regulators may set up their own algorithms to find companies that use software to fix prices with peers or squeeze out their rivals..." (Click here for the article) - Philippines

BAFA publishes updated Export Controls Guidance Document

/ Global Compliance Solutions Group LLC/

The German Federal Office for Economic Affairs and Export Control (BAFA) has published an updated English version of their Export Controls guidance document.  The "Brief Outline on Export Controls" provides information related to Licensing requirements, application procedures, and information sources.  

The new edition provides updates for the following:

  • The amendment of the Foreign Trade and Payments Act (AWG) and of the Foreign Trade and Payments Regulation
  • Introduction to the new General Licenses 26 and 27
  • Update on the embargo provisions
  • Firearms regulation

Click here for the pdf of the updated document. 

For more information contact your GCSG experts.

E  info@globalcompliancesg.com

Key Link(s):

US Approves New Policy on Exports of Unmanned Aerial Systems

/ Global Compliance Solutions Group LLC/

On April 19, 2018 the U.S. Department of State announced that the President has approved a new policy in regards to the export of unmanned aerial systems (UAS).  The policy applies to all U.S. origin UAS, including those under the control of the United States Munitions List (USML) and those under the Commerce Control List (CCL).

The policy addresses five major objectives:

  • Increases trade opportunities for U.S. companies
  • Facilitates international partners access to U.S. UAS
  • Strengthen bilateral relationships through UAS transfers
  • Prevent state or non-state actors from gaining capabilities that would undermine the US
  • Prevent the proliferation of weapons of mass destruction (WMD) delivery systems   

Transfer conditions:

  • Armed UAS - transfers may be made via Direct Commercial Sales (DCS) or Foreign Military Sales (FMS)
  • Unarmed UAS - transfers may be made via DCS or FMS
  • Civil UAS - continue to be subject to the licensing requirements and policies of the Export Administration Regulations 

For additional details see the State Department press release: https://www.state.gov/r/pa/prs/ps/2018/04/280619.htm

Contact the experts at GCSG for more information.

E  info@globalcompliancesg.com

Key Link(s):

Monday Compliance News - Around the World

/ Global Compliance Solutions Group LLC/

GCSG's Monday Compliance News is a compilation of some of the previous weeks interesting trade compliance, anti-bribery/corruption, fraud, and due diligence news bites, from around the world.

British defense contractor under fraud investigation in Algeria | ArabNews.com

"Ultra Electronics on Thursday announced that the UK's Serious Fraud Office had opened a criminal investigation into 'suspected corruption in the conduct of business' by the British defense contractor in Algeria." (Click here for the article) - UK, Algeria

NIST Releases v 1.1 of its Cybersecurity Framework | NIST News

"The U.S. Commerce Department's National Institute of Standards and Technology (NIST) has released version 1.1 of its popular Framework for Improving Critical Infrastructure Cybersecurity..." (Click here for the article) - USA

African Union planning free trade area 7 times larger than the EU | African Union News

"The Extraordinary Summit on the African Continental Free TRADE AfCFTA held from 17 – 21 March 2018 in Kigali , Rwanda, will serve as a platform for the African Union to sign into existence another flagship project that will boost intra-Africa trade: The Treaty Establishing the African Economic Community relating to Free Movement of Persons, Rights of Residence and Right of Establishment." (Click here for the article) - Africa

U.S. publishes list of China-origin products subject to 25% duty | EY

"On 3 April 2018, the United States Trade Representative (USTR) published a proposed list of Chinese goods targeted for assessment of an additional 25% duty upon importation into the United States." (Click here for the article) - China, USA

UK SFO facing judicial review on powers to demand overseas data | Freshfields Bruckhaus Deringer

"The Serious Fraud Office is facing another judicial review of its actions—this time by US engineering and construction company, KBR Inc...The issue in dispute is the SFO’s power to compel KBR Inc to produce data held in the US." (Click here for the article) - UK, USA

China Launches Website to Report Foreign Spies, Corrupt Officials | South China Morning Post

"China has stepped up its campaign against foreign espionage with a website in Mandarin and English encouraging people to report national security threats such as bids to 'overthrow the socialist system'.  The website, 12339.gov.cn, launched by the Ministry of National Security on Sunday, also urges anyone to report attempts by Chinese nationals or foreigners to bribe state or military officials, instigate armed riots or incite ethnic separatism." (Click here for the article) - China

Construction Sector Experiences Heightened Vulnerability to Fraud | Construction Executive

"Ninety-three percent of construction, engineering and infrastructure sector executives said their companies had experienced a cyber incident or information theft, loss or attack in the past year—the highest proportion of all sectors..." (Click here for the article) - Global

Stricter EU Rules on Money Laundering and Terrorism Financing | European Parliament

"To increase transparency and respond to the latest technological developments, MEPs voted on 19 April in favour of an update of EU legislation on money laundering and terrorism financing.  The new directive is aimed at preventing the EU’s financial system from being used to fund criminal activities. It also includes a ban on the large-scale concealment of funds and creates more transparency with regards to the true ownership of companies and trusts." (Click here for the article) - EU

US CBP Expands ISF Importer Definition

/ Global Compliance Solutions Group LLC/

On April 12, 2018, the U.S. Customs and Border Protection (CBP) published a final rule that expands the definition of an Importer Security Filing (ISF) Importer.  The final rule adopts the proposed rule published in the Federal Register on July 6, 2016 (1).

"The changes are necessary to ensure that the definition of ISF Importer includes parties that have a commercial interest in the cargo and the best access to the required information." (2)  

Background

The ISF Importer is required to submit an ISF to CBP before the cargo is loaded on a vessel that is destined to the United States.  Except for foreign cargo remaining on board (FROB), the ISF must be filed no later than 24 hours before any cargo is laden aboard a vessel.  For FROB cargo the ISF is required any time prior to lading.   

ISF Importers (or their agents) are required to submit to CBP (3):

  • 10 data elements for goods intended to be entered into the U.S. or to be delivered to a foreign trade zone (FTZ)
  • 5 data elements for shipments that consist solely of FROB, immediate exportation (IE), and Transportation and Exportation (T&E) in-bond shipments  

What is Changing?

The existing definition of an ISF Importer is generally defined (4):

  • As the party causing goods to arrive within the limits of a port in the United States by vessel and is generally the goods owner, purchaser, consignee, or agent
    • However, the definition is limited to just certain named parties for FROB, IE and T&E in-bond shipments, and for merchandise being entered into an FTZ
  • To designate the Carrier as the ISF Importer for FROB cargo
  • To designate the party filing the IE, T&E, or FTZ documentation as the ISF Importer for IE and T&E in-bond shipments, and for goods to be delivered to an FTZ

Based on feedback from the trade community, CBP determined that the definition did not always reflect commercial realities.  The updated definition of an ISF Importer now generally (2):

  • Expands the definition for FROB cargo, IE and T&E shipments and for goods to be delivered to an FTZ by:
    • Broadening the definition to include non-vessel operating common carriers (NVOCCs) for FROB shipments
    • Including the goods owner, purchaser, consignee, or agent as a responsible party for IE and T&E in-bond shipments and for goods to be delivered to an FTZ

The vessel operating carrier is the ISF Importer for FROB shipments under the current definition.  In many cases, the carrier does not have access to all the data elements.  As a result, often the NVOCC files the information with CBP (even though legal responsibility remains with the carrier).  In addition, under the current definition, the ISF Importer is the filer of the IE or T&E documentation, but this documentation is often not created until the cargo arrives in the US. 

The expansion of the definition shifts the responsibility to file the ISF, in the instances noted above, to the party that actually has the data.  In many instances this was already occurring so the change is not expected to have a significant impact on the trade community.

What do we need to do?

If your imports into the U.S. require an ISF to be filed:

  • Evaluate if you are currently relying on any carrier's to file your ISF
  • Recognize that in the event you were relying on the carrier to file the ISF, the responsibility to file may now have shifted to your own operation       

The rule becomes effective on May 14, 2018.

Contact the experts at GCSG for more information, assistance with evaluating how the ISF definition change may affect your business, and/or assistance with facilitating the change within your supply chain.    

E  info@globalcompliancesg.com   

References and Definitions:

  • (1) 83 FR 43961-43965 - "Definition of Importer Security Filing Importer"
  • (2) 83 FR 15736-15740 - "CBP Decision No. 18-04; Definition of Importer Security Filing Importer"
  • (3) 19 CFR 149.3 - "Data Elements"
  • (4) 19 CFR 149.1 - "Definitions"
  • ISF Importer (Current) - "means the party causing the goods to arrive within the limits of a port in the United States by vessel.  For shipments other than foreign cargo remaining on board (FROB), immediate exportation (IE) and transportation and exportation (T&E) in-bond shipments, and goods to be delivered to a foreign trade zone (FTZ), the ISF Importer will be the goods' owner, purchaser, consignee, or agent such as a licenses customs broker.  For FROB cargo, the ISF importer will be the carrier.  For IE and T&E in-bond shipments, and goods to be delivered to an FTZ, the ISF Importer will be the party filing the IE, T&E, or FTZ documentation." (4)
  • ISF Importer (New) - "means the party causing goods to arrive within the limits of a port in the United States by vessel. For shipments other than foreign cargo remaining on board (FROB), the ISF Importer will be the goods' owner, purchaser, consignee, or agent such as a licensed customs broker. For immediate exportation (IE) and transportation and exportation (T&E) in-bond shipments, and goods to be delivered to a Foreign Trade Zone (FTZ), the ISF Importer may also be the party filing the IE, T&E, or FTZ documentation. For FROB cargo, the ISF Importer will be the carrier or the non-vessel operating common carrier." (2)
  • U.S. Customs and Border Protection

GCSG announces Jonathan Mellard obtains CFE

/ Global Compliance Solutions Group LLC/

GCSG announces that our very own, Jonathan Mellard recently obtained his Certified Fraud Examiner (CFE) certification

PRAIRIEVILLE, Louisiana, April 14, 2018 – Global Compliance Solutions Group LLC (GCSG), is pleased to announce that Jonathan Mellard, GCSG's Founder, has recently obtained the Certified Fraud Examiner (CFE) certification.

"The Certified Fraud Examiner (CFE) credential denotes proven expertise in fraud prevention, detection and deterrence.  CFEs are trained to identify the warning signs and red flags that indicate evidence of fraud and fraud risk."(1)

Jonathan has more than 18 years of compliance experience and has extensive U.S. and international audit and investigation experience.  He has experience in export/import audits, anti-bribery/corruption and fraud audits and investigations, drug precursor and distilled spirits compliance, and environmental audits.(3)  In addition to the CFE he also holds a Certified Compliance & Ethics Professional (CCEP) certificate.  

"CFEs must pass a rigorous test on the four major disciplines that comprise the fraud examination body of knowledge: Fraud Investigation Methods, Financial Transactions and Fraud Schemes, Law, and Fraud Prevention and Deterrence."(1)

For more information:

  • (1) http://www.acfe.com/cfe-skill-set.aspx

  • (2) http://www.acfe.com/about-the-acfe.aspx

  • (3) http://www.globalcompliancesg.com/gcsg-team-1/

** *** **

About the ACFE

"The ACFE is the world's largest anti-fraud organization and premier provider of anti-fraud training and education.  Together with nearly 85,000 members, the ACFE is reducing business fraud worldwide and inspiring public confidence in the integrity and objectivity within the profession." (2) 

** *** **

About GCSG

GCSG is headquartered in Louisiana, USA.  We provide Advisory, Audit, and Due Diligence services for our clients across a range of industries in the areas of Import, Export and Customs Compliance, Anti-Bribery and Corruption, Drug Precursor, and Distilled Spirits Plant compliance.  The GCSG service team delivers compliance program assessment, development and implementation support, regulatory interpretation, internal and external audit services, fraud investigation, and third-party due diligence and risk management services.  GCSG partners with our clients to provide innovative solutions that enable their ability to operate in compliance with the law while facilitating efficient sales and trade.  Our focus on integrity and serving our client's is at the core of what GCSG is about.  For more information about us visit:  http://www.globalcompliancesg.com/about-us/

Learn more about GCSG by following us online:

Contact us here.

Italy Expands Whistleblower Protections

/ Global Compliance Solutions Group LLC/

Italy's Anti-corruption law, known as the Severino law (1), was promulgated in 2012.  The Severino law included public sector whistleblower protection provisions but it did not include protections for many private sector whistleblowers.  On November 30, 2017 a new law ("Law 179") was passed that included enhanced protections for public sector employees as well as more general protections for private sector whistleblowers. (2) 

Some of the important elements of Law 179 as it relates to public sector employees include:

  • A public employee that reports illegal conduct is not to be retaliated against
  • The anti-retaliation provisions for public employees now include employees of public economic entities, private law employees subject to public scrutiny, and to employees of contractors of companies supplying goods or services to the public administration
  • Allows for the reporting of violations to an internal officer, to the National Anti-Corruption Authority (3), an accounting authority, or to the judiciary
  • Reinforces the protection of the anonymity of a whistleblower

Some of the important elements of Law 179 as it relates to private sector employees:

  • Extends private sector employee protections beyond just the finance sector, insurance companies, and specific activities such as worker health and safety (4,5,6)
  • Requires companies that already have compliance programs to develop a whistleblower reporting program that includes at least one reporting mechanism allowing employees to report illegal conduct or potential violations and at least one confidential reporting mechanism that protects the whistleblower's identity
  • Requires companies should have a department responsible for managing the whistleblower program, procedures that provide guidance on what is covered and the protections provided, and allow for the discipline of employees that violate the procedures
  • Includes a prohibition against whistleblower retaliation  
  • The Company bears the burden of proof when a whistleblower makes a retaliation claim

Law 179 entered into force on December 29, 2017.

References:

Vietnam's anti-corruption laws bolstered

/ Global Compliance Solutions Group LLC/

On January 1, 2018 Vietnam's new Penal Code (the "New Code") became effective.  The New Code enhances Vietnam's anti-corruption laws and expands the range of covered offences to the private sector for profit-based commercial entities.

Till the new Code requirements came into effect Vietnam's bribery statutes focused on the bribery of public officials.  Now, the new Code prohibits offering bribes to persons in the private sector and introduces corporate criminal liability for tax evasion and money laundering.      

Key Amendments

  • Prohibits bribes offered to or accepted by "persons with positions and/or powers" in the public and private sector
  • Prohibits bribing foreign public officials
  • Introduces corporate liability for tax evasion (Article 200); terrorist financing (Article 300); and money laundering (Article 324)
  • The death penalty for receiving bribes has been removed

Other Observations

  • The new Code does not extend liability for commercial bribery offences to corporations - it is still only applicable to individuals
  • To be applicable, the inducements must be offered with corrupt intent
  • Penalties for giving and receiving bribes depend on a trigger threshold of 88 USD (VND 2 million)

Key Link(s):