CBP ACE Modernization

• US Customs and Border Protection (CBP) is modernizing the Automated Commercial Environment Secure Data Portal (ACE Portal) over multiple phases over the course of the 2022 calendar year. The modernization effort will transition existing functionality to an upgraded platform in the hopes of offering the trade community a more user-friendly experience and better performance.
• Phase 1 is a new login and home page that has enhanced 2 factor authentication. Effective February 20, 2022, all Jabil employees using ACE to access import data or file AES Electronic Export Information (EEI) records must create a new login.
• If you have any questions, or require additional assistance, please contact Jabil Global Trade Compliance or Jabil_AES@Jabil.com.

33 China-based companies added to BIS Unverified List

• Bureau of Industry Security (BIS) added an additional 33 China based entities to its Unverified List (UVL) because it is unable to establish legitimacy relating to the end use or end user of items subject to US export control when investigated by US Authorities. Being on the UVL does not mean that US exporters cannot engage with listed parties or that there are current national security concerns, or sanctions against them. However, transactions with parties on the UVL require additional documentation, including statements from authorized officials of UVLs, and such transactions are not eligible for authorization pursuant to EAR license exceptions.
• The list of entities can be found at the below here: https://www.federalregister.gov/documents/2022/02/08/2022-02536/revisions-to-the-unverified-list
• Please review the list to see if your organization or BU engages in any business with these entities, its parents or subsidiaries and contact the Jabil GTC for direction and guidance.

Forced Labor Enforcement -- The Rules Are Changing for Globalized Supply Chains

• The US Senate recently introduced a bill related to forced labor enforcement called “Slave-Free Business Certification Act of 2022”. While it is not clear if the bill will become law, it is a significant step towards social responsibility because certain branches of the government are already taking measures towards the Xinjiang Uyghur Autonomous Region of China.
• If passed, the bill requires businesses of a certain size to conduct annual audits to investigate the presence of forced labor in their supply chain (including producers, direct suppliers, secondary suppliers, and on-site service providers). The CEO would have to certify that the business has exercised “due diligence in order to eradicate forced labor in the supply chain” and that no instances of forced labor were discovered during the audit. If any were discovered, they need to be disclosed. The proposed audit report and certification would be submitted to the Secretary of Labor and violations would carry civil penalties of up to $100,000,000.
• While Jabil already has a “Slavery and Human Trafficking Avoidance Policy” in place, it will need to be updated and appropriate reporting will need to be implemented to ensure it upholds its international labor and human rights standards to stay in compliance with future supply chain changes.
• If you need more information or have knowledge of the presence of forced labor in the supply chain, please contact the Risk Office or GTC.

State Department Proposes Changes to ITAR Nationality Rule

• On February 2, 2022, the Department of State published a proposed rule that amend the International Traffic in Arms Regulations (ITAR) affecting how the nationality of foreign persons is determined for purposes of providing greater opportunities for foreign persons who are no longer citizens or permanent residents of certain proscribed countries to participate in ITAR regulated activities.
• Specifically, the proposed rule would change certain definitions that only a foreign person’s current citizenship and current permanent residence would need be considered for deemed export purposes. The current regulations consider any country in which the foreign person holds or has held citizenship or permanent residency.
• As a reminder, a deemed export is the release of technology or source code required for the development, production, or controlled items to a foreign national (non-US citizen). Examples of this would be hiring a refugee from Iran to work on a JDAS program or emailing a blueprint for a military item to a foreign Jabil site for review. Both examples / activities require an export license application which may not be approved.

There continues to be significant issues relating to transportation into and out of the UK due to Brexit

• There are still trucking queues into and out of the UK; average is still approximately 2-3 days.
• There are minimal delays of non-EU imports into the UK.
• For imports from the EU (except Ireland) to Great Britain include:
  • full customs import declarations are required for all goods at the time of entry into Great Britain.
  • importers may need a suppliers’ declaration proving the origin if they are using the zero tariffs agreed in the UK’s trade deal with the EU.
• For Exports:
  • Exporters will need to ensure they identify the port their goods will leave GB – as the process to be followed will vary port-by-port.

New Regulations Expand UK’s Russia Sanctions Powers

• On February 10, 2022, the UK government expanded the scope of the UK’s Russia sanctions regime by significantly broadening the range of individuals, businesses, and other entities that the UK can sanction in the event of further Russian aggression against Ukraine. The Amended Regulations include new designation criteria to target individuals and entities of significance to the Kremlin. Highlights of the amendments are below while full text of the regulatory change can be read here: https://www.legislation.gov.uk/uksi/2019/855/contents/made.
• The Amended Regulations authorize the UK government to designate any individual or entity that is or has been involved in:
  • destabilizing Ukraine or undermining or threatening the territorial integrity, sovereignty, or independence of Ukraine; or
  • obtaining a benefit from or supporting the Government of Russia.
• An entity is a “Government of Russia-affiliated entity” if
  • it is owned or controlled directly or indirectly by the Government of Russia.
  • the Government of Russia holds directly or indirectly a minority interest in it.
• The new designation criterion also encompasses any:
  • entity that is owned or controlled directly or indirectly by a person obtaining a benefit from or supporting the Government of Russia.
  • individual or entity who or that is acting on behalf, or at the direction, of a person obtaining a benefit from or supporting the Government of Russia.
• If sanctioned, the UK Government will impose an asset freeze on funds owned, held, or controlled by that person. UK citizens are prohibited from providing funds to, or for the benefit of, a sanctioned person. The prohibition on dealing with a designated person also extends to any legal entities that person owns or controls, directly or indirectly, even if the particular entity is not listed by the UK as a designated person. Designated persons who are individuals also face a UK travel ban.