May 2012
Features
Satellite Report Sets Stage for Return of Controls to CCL
After a year-long delay, Defense and State have sent Congress a report recommending move of controls on most satellites back to Commerce from State, but legislative and regulatory hurdles will still need to be overcome before U.S. industry can benefit from the report's recommendations.
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Focus on Enforcement
State Settlement Targets Missile Parts Exports to Korean Air Force
Alpine Aerospace Corporation and TS Trade Tech Inc. of Closter, N.J., agreed April 5, 2012, to suspended civil penalties of $30,000 and $20,000,...
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BIS Issues Antiboycott Warning Letters to ATK, Two Other Companies
The Bureau of Industry and Security (BIS) posted three warning letters in the first quarter of 2012 to firms that either failed to report boycott...
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Mexican Sales Rep Gets Time Served for Fraud in FCPA Scheme
Fernando Maya Basurto of Mexico City, an employee of a Mexican sales company, was sentenced April 2, 2012, in Houston U.S. District Court to time...
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CCI Execs Plead Guilty to FCPA Charges of Bribing Officials in 36 Countries
Stuart Carson, the former president of valve company Control Components Inc. (CCI) in Rancho Santa Margarita, Calif., and his wife Hong "Rose"...
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Miami Man Sentenced to Five Months in Prison for Ex-Im Fraud
Rafael Cuarezma of Miami was sentenced March 22, 2012, in Ft. Lauderdale, Fla., U.S. District Court to five months in prison and five months home...
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Dresser Settles BIS Charges of Exporting Control Valves to Saudi Arabia, UAE, Others
Dresser Inc. of Houston, Texas, agreed March 28, 2012, to pay the Bureau of Industry and Security (BIS) $88,000 to settle 20 charges of unlicensed...
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L'Oreal Division Pays $450,000 to Settle OFAC Charges for Exports to Iran
Essie Cosmetics Ltd. of New York, which was acquired by L'Oreal in 2010, and a former Essie corporate officer agreed April 10, 2012, to pay...
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Texas Man Sentenced for Attempting to Export Munitions to Mexico
Enrique Gustavo Gonzalez of Roma, Texas, was sentenced April 10, 2012, in McAllen, Texas, U.S. District Court to 36 months in prison followed by...
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GrafTech Pays $275,000 for Exports of Graphite Electrodes to Libya
GrafTech USA LLC of St. Mary's, Pa., formerly known as C/G Electrodes LLC, agreed to pay $275, 000 to settle 23 export violations as part of a...
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More Latin Node Execs Sentenced for Bribing Honduran Officials
Two executives of Latin Node (LatiNode), a Miami-based telecommunications company, were sentenced to jail and probation for their roles in the...
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California Man Sentenced for Exporting Thermal Imaging Cameras to Hong Kong, China
Jason Jian Liang, owner of Sanwave International Corporation in Huntington Beach, Calif., was sentenced April 23, 2012, in Santa Ana, Calif., U.S....
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Ex-Morgan Stanley Director Pleads Guilty to FCPA Violations in Shanghai
Garth Peterson, a U.S. citizen living in Singapore, who was a managing director for Morgan Stanley, pleaded guilty April 25, 2012, in Brooklyn U.S....
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Sandhill Pays $126,000 to Settle Charges of Exporting Medical Equipment to Iran
Sandhill Scientific, Inc. a medical equipment manufacturer in Highlands Ranch, Colo., agreed to pay $126,000 to settle charges of violating...
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Virginia Man Sentenced to Prison for Exporting Arms to Ivory Coast
Michael Barry Shor of Alexandria, Va., was sentenced March 26, 2012, in San Jose, Calif., U.S. District Court to 18 months in prison for conspiracy...
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Houston Judge Drops FCPA Charges after Willbros Fulfills DPA Obligations
Six years after the first employee of Willbros Group was charged with bribing Nigerian and Ecuadorian government officials to obtain lucrative...
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BIS Issues TDO for Airline Firms to Block Export of Boeing Planes to Iran
The Bureau of Industry and Security (BIS) imposed a six-month Temporary Denial Order (TDO) April 27, 2012, on four airline companies and three...
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Inside BIS
New ECCN 0Y521 Will Be Holding Place for Emerging Technology
Emerging technologies and goods that don't have an existing place on the Commerce Control List (CCL) or U.S. Munitions List (USML) could find a...
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GAO Hits Failure of Agencies to Assess Impact of Reforms on Export Enforcement
While the Obama administration has done much to explain the benefits U.S. industry will gain from its export control reform initiative, it has...
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GAO Criticizes How Agencies Determine Export Enforcement Resources
The U.S. government has many agencies and departments involved in export enforcement but it doesn't adequately determine how those resources are...
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Policy Briefs
OFAC to Step Up Use of Penalties for Failure to Respond to Subpoenas
Firms that fail to respond to so-called "602" administrative subpoenas issued by Treasury's Office of Foreign Assets Control (OFAC) could face...
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Easing of Burma Sanctions May Not Be Moving Fast Enough for U.S. Industry
U.S. industry is concerned that Europe and Canada are moving faster than the U.S. in easing sanctions on Burma, which may put American firms may be...
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U.S. Seeks UN Arms Trade Treaty That Will Support Export Control Reforms
In talks that start in July on a United Nations (UN) Arms Trade Treaty (ATT), the U.S. will seek to make sure any final agreement doesn't conflict...
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Justice Won't Prosecute Firms that File Complete Voluntary Self-Disclosures
It is the Justice Department's long-standing policy not to undertake the criminal prosecution of companies that make "truthful, complete,...
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Regulatory Briefs
BIS Adds 23 to Entity List, Including 16 for Exporting IED Parts
In three separate Federal Register notices, the Bureau of Industry and Security (BIS) has added 23 entities to the Entity List.
In the Federal...
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BIS Proposes Requiring Written Notice for Shippers under VEUs
In a proposed rule published in the Federal Register April 17, 2012, the Bureau of Industry and Security (BIS) says it will require persons...
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Obama Issues Order Blocking Parties in Iran, Syria That Use Social Media to Abuse Rights
Just as social media helped fuel the Arab Spring of 2011, information technology also has been used against citizens to cut off their contact with...
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State, BIS Tackle Move of Category V Explosives to CCL
In parallel Federal Register notices May 2, 2012, State's Directorate of Defense Trade Controls (DDTC) proposed a plan to more accurately describe...
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