ITAR Freight Forwarder Update: Schenker AG and BAX Global Working on EPLS Removal

There has been a great deal of interest on the current situation involving the freight forwarders that received notices of suspension by the Department of the Air Force and the resulting impact on ITAR transactions.

Of the companies added to the Excluded Party List System (EPLS) on February 16, 2012, as of today only Schenker AG and BAX Global Inc. (now part of DB Schenker) remain on the EPLS (it was incorrectly reported earlier this week that these parties had been removed from the EPLS).

Schenker AG and BAX Global Inc. are working closely with the Department of the Air Force to demonstrate that they are "presently responsible contractors," the applicable legal standard. The companies hope that this matter will be resolved very soon and that they will be removed from the EPLS. 

It is important to note that Schenker AG's U.S. affiliated, Schenker Inc., is not on the EPLS. I have clients that have received recent authorizations and licenses from DDTC that include Schenker Inc. as the freight forwarder.

Here is the current status of the freight forwarders added to the EPLS on February 16, 2012:

• CEVA Logistics LLC   (removed from EPLS on February 24, 2012)
• EGL Inc. (now owned by CEVA Logistics) (removed from EPLS on February 24, 2012)
• Kuehne and Nagel International AG (removed from EPLS in March 2012)
  
• Panalpina World Transport (Holding) AG (removed from EPLS on March 16, 2012)
• Panalpina Inc. (removed from EPLS on March 16, 2012)

 The remaining list of ITAR-ineligible freight forwarders is as follows:

• Schenker AG
• BAX Global Inc. (now part of DB Schenker)