Dec
5
Don’t Go Giving BIS Any Ideas
Posted by Clif Burns at 6:04 pm on December 5, 2011
Category: BIS • DDTC
Oh, the things you’ll learn when you read the documents that companies file with the Securities and Exchange Commission:
In March 2011, BlastGard’s management team officially assumed operational control of HighCom. Since this time we have accomplished a number of key compliance tasks and finalized manufacturing agreements with several key partners. As stated in the paragraph above, BlastGard has received official communication from the U.S. State Department that HighCom’s export authority has been reinstated. In addition to this, BlastGard has completed registration through both the Directorate of Defense Trade Controls as well as the Bureau of Industry and Security (“BSI”). The purpose of these registrations is to allow BlastGard control over the export management and compliance program moving forward.
Completing registration with the Bureau of Industry and Security is quite an accomplishment — considering the BIS (or is it BSI?) doesn’t have a registration process. Perhaps they mean that they’ve gotten a PIN for the SNAP-R system? And we’ll award the coveted “Reader of the Week” prize to anyone who can figure out what the last sentence in that quotation means.
All kidding aside, I still am somewhat surprised that BIS hasn’t gotten on the needless user fee gravy train yet along with DDTC. It’s probably only a matter of time before BIS realizes that there’s gold in them registration hills, and then companies will be able to boast in press releases that they’ve been certified as export-compliant and super cool by BIS in addition to having been certified by DDTC.
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Copyright © 2011 Clif Burns. All Rights Reserved.
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6 Comments:
It means the person that wrote that is dangerously misunderstood, and misinformed about export controls, and compliance thereto — least of which how to correctly remediate from an export violation.
Now what did i win?
Forget BIS. I’m gonna start my own registration program. For $1,000, any company can register with me. I’ll send them an esteemed certificate of registration that gives them full control, responsibility, accountability, and culpability over their export management and compliance program.
PS: Please make checks payable in Cayman Islands Dollars.
Clif,
I gotta take a shot at earning “Reader of the Week”.
My guess is that since they’ve alluded to assuming operational control of HighCom, much of what they tout as registration accomplishments has more to do with migration of active licenses and authorizations from HighCom’s now-defunct registration to BlastGard.
In that context, the last sentence would appear to mean that now that the migration is complete, BlastGard will be officially taking over the lead for all things export compliance for the company formerly known as HighCom.
Hi Clif, it probably means that anything pending under HighCom and future transactions will now be handled by BlastGard (licenses, classification submissions, etc). The BIS registration is referring to the SNAP-R Company Registration to request a Company Identification Number (CIN). The BIS doesn’t require a new CIN if a company changes their name or address, but they might require a new registration for an acquisition. I hope I win:-)
Forget the opportunity for a new super cool logo on their web site. I’m thinking another super cool TATTOO!!
When one company acquires another, even though the acquired company has its own separate registration number, under 122.4, both should and the acquiring company must file a Notice of Material Change. ODTCC requires that the acquired company’s registration, and eventually all outstanding licenses and agreements, be “consolidated” on the acquiring company’s registration, and the acquiring company becomes liable for all the sins and transgressions of the acquired company, past and future. In other words, barring some unusual circumstance, the acquired company cannot continue on its own registration, and must be reflected as a subsidiary on the acquiring company’s registration statement. ODTCC will normally give 30 days or so to file GC requests to amend the acquired companies licenses and agreements to reflect the change (see Guidance of 6/21/2011). Presumably, since the acquiror now holds control, its responsible officers gets to appoint empowered officials and therefore manages compliance “moving forward.”
