Defense and Export-Import Update (Dec 23, 2009)
Defense and Export-Import Update (Dec 23, 2009) |
About Gary Stanley Gary Stanley is the President of Global Legal Services, PC, a Washington, DC-based law firm focusing on trade compliance and other international business issues. Stanley represents, among others, numerous U.S., Canadian, and European companies on defense export control issues. Stanley received his undergraduate degree from Emory University in 1975 and his law degree from Harvard Law School in 1978. He was elected in his junior year to Phi Beta Kappa. He currently serves as secretary-treasurer and a trustee of The Procedural Aspects of International Law Institute. For more information about Stanley and his law firm, Global Legal Services, call him at +1 202-686-4854 or e-mail him at gstanley@glstrade.com.
We hope this update proves helpful. If you have questions about any of these developments, please do not hesitate to call us. If you received this free newsletter from a colleague or friend and would like to subscribe directly, please just e-mail your name, title, company, and e-mail address to gstanley@glstrade.com.
Contact: E-mail gstanley@glstrade.com
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A daily Newsletter from Gary Stanley, Global Legal Services, PC. |
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Today's Items (click here for these items) 1. State/DDTC Posts Two New Name Change Notices
Other Headlines10. Over Protest, Taiwan Moves Toward Free Trade with China Important Links: |
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Today's Items1. State/DDTC Posts Two New Name Change Notices The U.S. Department of State's Directorate of Defense Trade Controls (State/DDTC) has posted on its website the following three new name change notices:
2. State/DDTC Suspends 3:00 P.M. Pick Up/Delivery During Holidays The U.S. Department of State's Directorate of Defense Trade Controls (State/DDTC) has posted a notice on its website that there will be no 3:00 p.m. pick up/deliver from Thursday, December 24th, through Thursday, December 31st. This service will resume on Monday, January 4, 2010.
3. BIS Suspends VEU Status for Aviza Technology China and GE Fanuc Systems in India (74 Fed. Reg. 68147) – The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has amended Part 748 of the Export Administration Regulations (EAR) to suspend the availability of Authorization Validated End-User (VEU) status any export, reexport, or transfer (in-country) of items subject to the EAR to Aviza Technology China, a VEU in the People's Republic of China (PRC/China) and to GE India's GE Fanuc Systems PVT Ltd facility in India. VEU status was provided to the PRC company in an April 2009 final rule published in the Federal Register, and to the eligible facility of the Indian company in a July 2009 final rule published in the Federal Register. BIS is suspending the availability of Authorization VEU for exports, reexports, and transfers (in-country) due to material changes at the companies, consistent with the authorization's eligible end-user provisions. Suspension of the availability of Authorization VEU in this amendment is not the result of prohibited activities by the two companies. This amendment does not otherwise create a new license requirement or adversely affect the licensing policy for exports, reexports or transfers of items to the company and facility identified in this rule.
4. BIS Amends Defense Offset Reporting Requirements (74 Fed. Reg. 68136) – The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has amended 15 C.F.R. Part 701 to update and provide clarification with regard to the information U.S. firms are required to submit each year to BIS to support BIS's preparation of the annual report to Congress on offsets in defense trade. These change are, in part, a response to a recommendation made by the Government Accountability Office (``GAO'') in its June 26, 2008 report entitled Defense Production Act: Agencies Lack Policies and Guidance for Use of Key Authorities (GAO-08-854). In its report, the GAO stated that Commerce provides useful summaries of offsets issues in its annual report to Congress, but the type of data collected from prime contractors limits BIS's ability to effectively analyze the impact of offsets on the U.S. economy. Consequently, the GAO recommended that Commerce update its Offset Reporting Regulation to require more precise information on the industry sectors in which offset activity occurs.
5. BIS Amends EAR to Reflect the Accession of Albania and Croatia to Formal Membership in NATO (74 Fed. Reg. 68142) – The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has amended certain requirements in its Export Administration Regulations (EAR) that that apply to Albania and Croatia. These changes are based upon the accession of Albania and Croatia to formal membership in the North Atlantic Treaty Organization (NATO) on April 1, 2009. Consistent with the EAR license requirements and licensing policies that apply to members of NATO, this final rule amends the EAR to remove certain crime control (CC), national security (NS), and regional stability (RS) license requirements for these two countries. A license continues to be required for exports and reexports to Albania or Croatia of items on the Commerce Control List (CCL) controlled for national security or regional stability reasons that are identified as requiring a license to destinations indicated under NS Column 1 (also NS Column 2, for Albania) or RS Column 1, respectively, on the Commerce Country Chart. Certain restraint devices, discharge type arms, and related technology described on the CCL continue to require a license for crime control reasons to Albania or Croatia. A license also continues to be required for specially designed implements of torture described on the CCL. Furthermore, this rule does not affect any license requirements that apply to these countries based on other reasons for control identified in the EAR. This final rule also removes the EAR prohibition that applied to certain in transit shipments through Albania, removes Albania from Country Group D, and adds Albania to Country Group B. Croatia has already been designated in the EAR as a Country Group B country. In addition, this rule amends the provisions of License Exception APR (Additional Permissive Reexports) that apply to reexports of certain thermal imaging cameras to include Albania and Croatia among the list of eligible destinations. Finally, this rule amends the definition of ``NATO (North Atlantic Treaty Organization)'' in the EAR to include Albania and Croatia.
6. BIS Removes Neda Kargar in the U.A.E. from the Entity List (74 Fed. Reg. 68146) – The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has amended Part 744 of the Export Administration Regulations (EAR) to remove the following person from the Entity List (Supplement No. 4 to EAR Part 744): · Neda Kargar, No. 308, 3rd Floor, Rafi Center, Al Nakheel, Deira, Dubai, U.A.E.
7. OFAC Announces $217 Million Settlement with Lloyds TSB Bank The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) yesterday announced a $217 million settlement with Lloyds TSB Bank, plc (Lloyds), concerning Lloyds’ intentional manipulation and deletion of information about U.S. sanctioned parties in wire transfer instructions routed through third-party banks located in the United States. Lloyds had previously entered into deferred prosecution agreements with the Department of Justice and with the New York County District Attorney’s Office for the same pattern of conduct. Lloyds’ apparent violations of Treasury regulations arose out of policies that began in the mid-1990s when, at the behest of and with the knowledge of its Iranian bank customers, Lloyds developed a policy of intentionally manipulating and deleting information about U.S. sanctioned parties in wire transfer instructions. OFAC’s analysis of Lloyds’ transactions indicated that, from June 2003 through August 2006, Lloyds routed at least 4,281 electronic funds transfers totaling nearly $37 million through third-party banks located in the United States in apparent violation of the International Emergency Economic Powers Act and OFAC regulations related to Iran, Sudan, and Libya. As part of its settlement with OFAC, for the next two years, Lloyds will conduct annual reviews of the bank’s policies, procedures, and a statistically significant sampling of USD payments to determine whether any payments subject to OFAC regulations are processed through, or on behalf of, any U.S. individual or entity. The United Kingdom’s Financial Services Authority, Lloyds’ primary regulator in the United Kingdom, will be involved in developing the scope of, and approving an independent third party to oversee, Lloyds’ annual review. Lloyds has agreed to settle the alleged violations of Treasury regulations for $217 million. This obligation has been deemed satisfied by its prior $350 million payment to the U.S. Department of Justice and the New York County District Attorney’s Office arising out of the same pattern of conduct.
8. OFAC Designates Insurgent Group for Posing Threat to Stability in Iraq The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) yesterday designated the Iraq-based insurgent group Jaysh Rijal al-Tariq al-Naqshabandi (JRTN) for threatening the peace and stabilization efforts in Iraq. JRTN has committed, directed, supported, or posed a significant risk of committing acts of violence against Coalition and Iraqi Security Forces and is being designated today pursuant to Executive Order (E.O.) 13438, which targets insurgent and militia groups and their supporters. Yesterday's designation freezes any assets that JRTN may have under U.S. jurisdiction and prohibits U.S. persons from conducting financial or commercial transactions with the entity. The U.S. Government has no information indicating any tie between JRTN and the Naqshabandi Sufi order of Islam.
9. GAO Reports, Testimony, and Correspondence of Interest International Space Station: Significant Challenges May Limit Onboard Research. GAO-10-9, November 25. http://www.gao.gov/cgi-bin/getrpt?GAO-10-9 Highlights - http://www.gao.gov/highlights/d109high.pdf Other Headlines10. Over Protest, Taiwan Moves Toward Free Trade with China Washington Post, Dec. 23 - Taiwan and China signed a series of business accords on Tuesday, bringing them closer to economic integration amid vociferous protests here from critics who fear that the move will eventually lead to unification with the Chinese mainland. Beijing's top negotiator for Taiwan, Chen Yunlin, signed three technical accords with his Taiwanese counterpart, Chiang Pin-kung, in the central city of Taichung. They also said agreements on free trade and intellectual property rights would be negotiated in talks slated for the first half of next year. 11. UN Expected to Approve Sanctions on Eritrea New York Times and Associated Press, Dec. 23 - The U.N. Security Council was expected to approve an arms embargo and other tough sanctions against Eritrea for supplying arms to opponents of the Somali government and refusing to resolve a border dispute with neighboring Djibouti. The U.N.'s most powerful body was likely to approve the sanctions resolution on Wednesday, diplomats said, speaking on condition of anonymity because they were not authorized to speak publicly. It would ban the import and export of weapons to Eritrea and call on U.N. member states to inspect all suspect air and sea cargo between the Red Sea nation and Somalia. The draft resolution would also impose a travel ban on individuals -- including Eritrea's political and military leadership -- who violate the arms embargo, obstruct a border settlement with Djibouti, or ''perpetrate acts of violence or terrorist acts against other states or their citizens in the region.'' The financial assets of these individuals as well as government and private companies responsible for similar violations would be frozen. The Security Council committee monitoring sanctions against Somalia would designate the individuals and companies subject to the new sanctions against Eritrea. 12. Serbia Submits Application to Join EU Financial Times, Dec. 22 - Boris Tadic, Serbia’s president, on Tuesday presented Belgrade’s application to join the European Union to the prime minister of Sweden, which currently holds the 27-member bloc’s rotating presidency. The application comes as the Balkan country of 8m people moves on Wednesday to advance an investment deal with Fiat, the Italian car-maker, that is widely seen in Serbia as a step towards economic integration with the bloc. . . . However, to win approval as a candidate within two years and proceed to accession talks, the largest of the former Yugoslav republics must track down two fugitives suspected of war crimes in the 1990s. The Netherlands, in particular, insists on the capture and extradition of Ratko Mladic, former Bosnian Serb army commander, to face trial at the United Nations tribunal in The Hague. 13. As Attacks Increase, U.S. Struggles to Recruit Computer Security Experts Washington Post, Dec. 23 - The federal government is struggling to fill a growing demand for skilled computer-security workers, from technicians to policymakers, at a time when network attacks are rising in frequency and sophistication. Demand is so intense that it has sparked a bidding war among agencies and contractors for a small pool of special talent: skilled technicians with security clearances. Their scarcity is driving up salaries, depriving agencies of skills, and in some cases affecting project quality, industry officials said. The crunch hits as the Pentagon is attempting to staff a new Cyber Command to fuse offensive and defensive computer-security missions and the Department of Homeland Security plans to expand its own "cyber" force by up to 1,000 people in the next three years. Even President Obama struggled to fill one critical position: Seven months after Obama pledged to name a national cyber-adviser, the White House announced Tuesday that Howard Schmidt, a former Bush administration official and Microsoft chief security officer, will lead the nation's efforts to better protect its critical computer networks.
Upcoming Export Control and Other Trade Compliance Conferences
Jan. 25-26 – American Conference Institute – Global Forum on Export Finance – New York, NY – Helmsley Park Lane Hotel – Click here for more information.
Jan. 26-27 – American Conference Institute – 4th FCPA Boot Camp Houston Edition – Houston, TX – J.W. Marriott Hotel – Click here for more information.
Jan. 26-27 – U.S. Dept. of Commerce/Bureau of Industry and Security & The Arizona District Export Council - Complying with U.S. Export Controls - Phoenix, Arizona -Orange Tree Golf Resort - Click here for more information.
Jan. 27 – Export Controls Division of Foreign Affairs and International Trade Canada & Controlled Goods Directorate of Public Works and Government Services Canada – Export Control Seminar – Halifax, Nova Scotia, Canada– Atlantica Hotel Halifax - Click here for more information.
Jan. 28-29 – American Conference Institute – 5th National Forum on Export Enforcement & Investigations – Washington, DC – The Madison Hotel – Click here for more information.
Feb. 1-2 – IDEEA, Inc. – ComDef West 2010 – San Diego, California – San Diego Convention Center – Click here for more information.
Feb. 8-9 – C5 Group Inc. - 4th Forum on Export Controls – Brussels, Belgium – Le Meridien Brussels Hotel – Click here for more information. Also see In-depth post-conference workshop Using Technology to Overcome Operational Challenges in Your Day-to-Day Export Controls Administration and Compliance on Feb. 10.
Feb. 22-23 – Society for International Affairs – 2010 Winter Back to Basics Conference – San Antonio, TX – Hotel TBD - Click here for more information. Also see 3rd Day Workshop – A Hands-on Approach to Applying the ITAR in the Real World on Feb. 24.
Feb. 22-23 – U.S. Dept. of Commerce/Bureau of Industry and Security – Fifth Annual Export Control Forum – Irvine, California – Hyatt Regency Hotel – More information to follow as it becomes available.
Feb. 23 – Export Controls Division of Foreign Affairs and International Trade Canada & Controlled Goods Directorate of Public Works and Government Services Canada – Export Control Seminar – Calgary, Alberta, Canada– The Greenwood Inn Conference Centre - Click here for more information.
March 9-10 – U.S. Dept. of Commerce/Bureau of Industry and Security & Illinois District Export Council – Complying with U.S. Export Controls – Chicago, Illinois – Embassy Suites Chicago – O’Hare, Rosemont, Illinois – Click here for more information.
March 11 - U.S. Dept. of Commerce/Bureau of Industry and Security & Illinois District Export Council – How to Develop an Export Management and Compliance Program - Chicago, Illinois – Embassy Suites Chicago – O’Hare, Rosemont, Illinois – Click here for more information.
March 18-19 – U.S. Dept. of Commerce/Bureau of Industry and Security & The San Diego District Export Council – Complying with U.S. Export Controls – Del Mar, California – Hilton San Diego Hotel – Click here for more information.
March 24 – Export Controls Division of Foreign Affairs and International Trade Canada & Controlled Goods Directorate of Public Works and Government Services Canada – Export Control Seminar – Vancouver, British Columbia, Canada – Four Points Sheraton Vancouver Airport - Click here for more information.
March 25 – Massachusetts Export Center, Transportation Security Administration, & Oceanair – TSA Certified Cargo Screening Program – Boston, Massachusetts – Radisson Hotel, 200 Stuart Street - More information to follow as it becomes available.
April 7-8 - U.S. Dept. of Commerce/Bureau of Industry and Security & The Rocky Mountain World Trade Center Institute - Complying with U.S. Export Controls - Denver, Colorado - The Brown Palace Hotel - Click here for more information.
April 21-22 - U.S. Dept. of Commerce/Bureau of Industry and Security & The Professional Association of Exporters and Importers – Complying with U.S. Export Controls – Santa Clara, CA – Hilton Santa Clara Hotel – Click here for more information.
April 26-27 - Society for International Affairs – 2010 Spring Conference – Las Vegas, Nevada – Hotel TBD - Click here for more information.
May 20-21 – U.S. Dept. of Commerce/Bureau of Industry and Security & Nevada District Export Council – Complying with U.S. Export Controls – Las Vegas, Nevada – Alexis Park Resort Hotel - Click here for more information.
June 9-10 – U.S. Dept. of Commerce/Bureau of Industry and Security & The Trade Development Alliance of Greater Seattle – Complying with U.S. Export Controls – Seattle, Washington – Embassy Suites Hotel, 20610 44th Avenue West, Lynnwood, WA – Click here for more information.
June 13-15 – International Compliance Professionals Association (ICPA) – ICPA EU Conference – Amsterdam, The Netherlands – Hilton Hotel – More information to follow as it becomes available.
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