Apr
23

Bag and Baggage

Posted by Clif Burns at 9:12 pm on April 23, 2008
Category: BIS, SEDs

Thermal ImageA recent settlement agreement between the Bureau of Industry and Security (”BIS”) with Miami-based Aviktor Trading Corporation involved both a charge of an unlicensed export of a thermal imaging camera and a charge of failure to file a Shipper’s Export Declaration. The latter charge is fairly rare. After all, how exactly do you manage to export something without filing an SED?

Although the charging documents don’t make this clear, it seems likely that Aviktor exported the thermal imaging camera in checked or carry-on baggage of an airline passenger. Normally an SED is not required for baggage but there is, of course, a significant exception. Section 758.1(b)(2) requires that an SED be filed for any export that requires a license, regardless of value or destination.

Obviously, the SED charge was just another case of piling on by BIS but this is a good opportunity to remind exporters that if you hand carry an licensed item to its destination, don’t forget to file the SED with Customs before departing.

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3 Comments »

  • An excellent point Clif: But as I am sure many will point out, you need a bloodhound in order to find a CBP officer before an international flight and you sure as heck can’t expect the sweet faced ticketing agent at the airline ticket counter to file the SED for you. This is just another example of the enforcement agencies going after what they themselves call “low hanging fruit” in order to plus up their numbers and get some easy headlines (plus the inevitable ‘atta boy in the joint press release)instead of actually doing the hard work of investigating and prosecuting real threats to national security.

    Comment by Mike Deal — April 23, 2008 @ 9:40 pm

  • Why do you need a bloodhound to find a CBP officer before an international flight at Miami International Airport? Last year GAO reported that most of CBP’s resources at MIA were tied up looking for contraband (Cuban rum and cigars) on passengers returning from Cuba. Apparently, CBP’s application of risk management results in the somewhat counterintuitive conclusion that Cuban cigars are a greater threat to US homeland and national security than trafficking in narcotics, money laundering, or exports of controlled technologies. Well done, boys!

    Comment by Cowboy — April 24, 2008 @ 7:23 am

  • Clif,

    “How exactly do you manage to export something without filing an SED?” Actually, it isn’t hard for the unscrupulous, unethical or uneducated. Just state “No SED Required 15 CFR 30.55(h)” on your documents. But I suppose the Commerce Department’s proposed legislation to require electronic filing, and for filers to be licensed (like Customs brokers) would help to curb that.

    By the way, I think you meant 758.1(b)(2). [I did. Thanks for the correction. -Clif]

    And as for the comment about filing a SED for hand-carries, the reqired time frame for filing for shipments by air, which presumably what a hand-carry by air would be, is 2 hours prior to scheduled departure (8 hours for ITAR). Nobody gets through TSA that fast, so you shouldn’t be doing this at the airport anyway. Call your freight forwarder in advance, he can file AES for hand-carries and provide proof of filing for when CBP pulls you out of line at the jetway.

    Comment by Jim Dickeson — April 24, 2008 @ 6:05 pm

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