Cuffs

To all those who thumb their nose at compliance, to those who say “I have a way around it..” we hope the DoJ slams you. Recently we received a call to assist an organization in obtaining DDTC Registration and then subsequently prepare a DSP-5 Application. When the client was told that registration would not granted within a day they said they would have someone else export the Defense Articles. We tried to explain to the prospect that the Exporter must show a PO (from the Foreign customer), that selling the goods then having someone falsely representing themselves on the DSP-5 Application as the “Seller” was a violation, the prospect just laughed.

§ 127.2  Misrepresentation and Omission of Facts

(a) It is unlawful to use or attempt to use any export or temporary import control document containing a false statement or misrepresenting or omitting a material fact for the purpose of exporting, transferring, reexporting, retransferring, obtaining, or furnishing any defense article, technical data, or defense service.  Any false statement, misrepresentation, or omission of material fact in an export or temporary import control document will be considered as made in a matter within the jurisdiction of a department or agency of the United States for the purposes of 18 U.S.C. 1001, 22 U.S.C. 2778, and 22 U.S.C. 2779.

(b) For the purpose of this section, export or temporary import control documents include the following:

(1) An application for a permanent export, reexport, retransfer, or a temporary import license and supporting documents.

(2) Electronic Export Information filing.

(3) Invoice.

(4) Declaration of destination.

(5) Delivery verification.

(6) Application for temporary export.

(7) Application for registration.

(8) Purchase order.

(9) Foreign import certificate.

(10) Bill-of-lading.

(11) Airway bill.

(12) Nontransfer and use certificate.

(13) Any other document used in the regulation or control of a defense article, defense service or technical data for which a license or approval is required by this subchapter.

(14) Any other shipping document that has information related to the export of the defense article or defense service.

 

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