Defense and Export-Import Update (November 4, 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:
Gary L. Stanley
President
Global Legal Services, PC
5335 Wisconsin Avenue, N.W.
Suite 440
Washington, D.C. 20015
Tel. +1 (202) 686-4854
Fax +1 (202) 686-2624
Mobile +1 (202) 352-3059

E-mail gstanley@glstrade.com

A daily Newsletter from Gary Stanley, Global Legal Services, PC.

Today's Items (click here for these items)

1. State/DDTC Posts Name Change Notice for BVT Surface Fleet Limited and Related Companies
2. BIS Issues Correcting Amendment to Encryption Simplication Rule
3. BIS Obtains Order Renewing Order Temporarily Denying Export Privileges of Orion Air, S.L. and Syrian Pearl Airlines
4. OFAC Removes Three Former Terrorist Supporters from Specially Designated Nationals List
5. NASA Announces Advisory Council Chairs and Committee Structure
6. Export-Import Bank Adopts Carbon Policy to Encourage Renewable Energy and Climate-Friendly Technologies

Important Links:

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Today's Items

1. State/DDTC Posts Name Change Notice for BVT Surface Fleet Limited and Related Companies

The U.S. Department of State’s Directorate of Defense Trade Controls (State/DDTC) has posted a notice on its website that effective October 39, 2009, BAE Systems plc indirectly acquired all of the shares of the joint venture company BVT Surface Fleet Limited. The name of the new entity is “BAE Systems Surface Ships Limited.” All operating subsidiaries, including those in the names of the previous VT Group and BAE System entities, have also changed names per the list in this notice. Due to the volume of authorizations requiring amendments to reflect this name change, the Managing Director of Satte/DDTC is exercising the authority under ITAR § 126.3 to waive the requirement for amendments to change currently approved authorizations. All currently approved DSP authorizations identifying BVT Surface Fleet Limited and any of the related companies identified on the attachment to this notice will not require an amendment to reflect the name change to BAE Systems Surface Ships Limited and related companies identified on the attachment to this notice. A copy of this website notice must be attached to the currently approved license by the license holder. Pending DSP authorizations received by DDTC identifying BVT Surface Fleet Limited or the related companies identified on the attachment to this notice will be adjudicated without prejudice. A copy of this website notice must be attached to the approved license by the license holder. New DSP license applications received after November 15, 2009, identifying BVT Surface Fleet Limited as a party to the license will be considered for return without action for correction to the new name, BAE Systems Surface Ships Limited. A copy of this website notice must be maintained by the license holder and presented with the relevant license to Customs at time of shipment. All currently approved agreements will require an amendment to be executed to reflect this name change. The agreement holder will be responsible for amending their agreement. The executed amendment will be treated as a minor amendment per ITAR § 124.1(d) and must be submitted as such. New DSP-83s must be executed as a result of the name change, as applicable. Pending agreements applications that require amending must be brought to the attention of the assigned Agreements Officer by the agreement holder. The necessary changes will be made before issuance when the Agreements Officer has been notified.

2. BIS Issues Correcting Amendment to Encryption Simplication Rule

(74 Fed. Reg. 57061) – The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published a final rule in the Federal Register on Thursday, October 15, 2009 (74 Fed. Reg. 52880) that amended the Export Administration Regulations (EAR) to finalize and correct errors in an interim final rule entitled ``Encryption Simplification'' on October 3, 2008 (73 Fed. Reg. 57495). That final rule contained one error in the amendatory instruction used for revising one section. This error in the amendatory instruction led to the unintentional removal of the wrong sentence. This document corrects that amendatory instruction error by adding back the sentence that was removed and removing the intended sentence from that section. In addition, this rule clarifies references in the preamble to an amendment to part 736 that should have been removed. The instruction to amend part 736 was removed from the rule prior to publication, because the amendment had already been made. No action is necessary to correct this mistake, as it did not affect the Code of Federal Regulations (CFR).

3. BIS Obtains Order Renewing Order Temporarily Denying Export Privileges of Orion Air, S.L. and Syrian Pearl Airlines

An Administrative Law Judge has granted the request of the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) to renew for 180 days the Order Temporarily Denying the Export Privileges of Orion Air, S.L., of Madrid, Spain, and Syrian Pearl Airlines of Damascus, Syria. As part of its initial TDO request, BIS presented evidence that on or about May 1, 2009, Orian Air re-exported a BAE 146-300 aircraft (tail number EC-JVO), an item subject to the Export Administration Regulations (EAR) because the aircraft contains greater than a ten percent de minimis of U.S.-origin content, to Syrian Pearl Airways without the U.S. Government authorization that General Order No. 2 of Supplement No. 1 to EAR Part 736 requires. This re-export took place after Orion Air had been directly informed of the export licensing requirements by the U.S. Government, and thus had actual as well as constructive notice of those licensing requirements, occurred despite assurances made by Orion Air but it would put the transaction on hold based on the U.S. Government’s concerns. Additionally, BIS argued that future violations of EAR remain eminent based on previous statements by Orion Air to the U.S. Government that of Orion Air had plan to re-export an additional BAE 146-300 aircraft, currently located in the United Kingdom, to Syria and specifically to Syrian Pearl Airlines. Click here for a copy of the renewal order.

4. OFAC Removes Three Former Terrorist Supporters from Specially Designated Nationals List

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) yesterday removed Patricia Rosa Vinck, Barakaat International, and Barakaat International Foundation from its Specially Designated Nationals List, having found that Vinck and the two entities no longer present a significant threat of supporting terrorism.  Yesterday's action was taken in conjunction with a removal of the three names from the United Nations' 1267 Sanctions Committee (U.N. 1267 Committee) Consolidated List of individuals and entities subject to U.N. sanctions measures.  Vinck is the wife of Nabil Abdul Salam Sayadi, who headed the Belgium office of the Global Relief Foundation (GRF), an organization designated in October 2002 by the United States and the United Nations for its support to al Qaida. Vinck served as the secretary of GRF's Belgium office and facilitated GRF's activities. Following U.S. and U.N. sanctions against her, Vinck ceased her activities on behalf of GRF. The Barakaat organizations were part of a financial conglomerate operating in 40 countries around the world that facilitated the financing and operations of al Qaida and other terrorist organizations. The U.S. and U.N. sanctions against these entities assisted the global effort to prevent them from routing funds to al Qaida and other terrorist groups, and the two organizations are no longer operating. Other designated entities and individuals related to the Barakaat conglomerate remain on the U.S. and U.N. sanctions lists.

5. NASA Announces Advisory Council Chairs and Committee Structure

NASA Administrator Charles Bolden held his first meeting with the restructured NASA Advisory Council recently at the agency's Ames Research Center at Moffett Field, Calif. Bolden has added four new committees to the council in key areas of importance to the agency's future: Commercial Space, Education and Public Outreach, Information Technology Infrastructure, and Technology Innovation. The chairs for the council and its committees are:

·         NASA Advisory Council: Kenneth M. Ford

·         Aeronautics Committee: Marion Blakey

·         Audit, Finance and Analysis Committee: Robert M. Hanisee

·         Commercial Space Committee: Brett Alexander

·         Education and Public Outreach: Miles O'Brien

·         Exploration Committee: retired Air Force Gen. Lester L. Lyles

·         Science Committee: Wesley T. Huntress, Jr.

·         Space Operations Committee: former astronaut and retired Air Force Col. Eileen M. Collins

·         Technology and Innovation Committee: Esther Dyson

An appointment is pending for the Information Technology and Infrastructure Committee. Raymond S. Colladay represents the National Academies' Aeronautics and Space Engineering Board, and Charles F. Kennel represents the National Academies' Space Studies Board as ex officio members.

6. Export-Import Bank Adopts Carbon Policy to Encourage Renewable Energy and Climate-Friendly Technologies

The Export-Import Bank of the United States (Ex-Im Bank) today became the first Export Credit Agency (ECA) to adopt a comprehensive Carbon Policy to guide its support of United States exports in light of climate change concerns. Included in the policy is a commitment to explore ways to further improve the Bank's transparency in the tracking and reporting of CO2 emissions from projects that it supports. As a part of this policy the Bank has established for the first time a $250 million facility to finance renewable energy exports, including solar, wind and geothermal energy. Click here for more information.