July 2014

Features

Future of Export-Import Bank Grows Uncertain in Congress
Exporters that rely on Export-Import Bank (Ex-Im) to finance their exports are closely watching a battle in Congress that could result in the end of bank's existence.
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New DDTC Compliance Chief Recognizes Challenges of Reform
DDTC Compliance Chief Sue Gainor recognizes challenges in implementing export control reforms and admits government hasn't decided how it will pursue enforcement when transition is complete.
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Focus on Enforcement

Red Bull U.S. Subsidiary Pays OFAC $89,775 for Unauthorized Cuba Travel
The U.S. subsidiary of energy drink maker Red Bull will need to give Treasury's Office of Foreign Assets Control (OFAC) more than wings to settle...
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Intersil Pays $10 Million Penalty, Despite Depending on Erroneous Advice from DDTC
Export control reform and the transfer of items from State to Commerce jurisdiction can't come fast enough for Intersil Corporation. Under the...
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Calif. Company Agrees to Export Denial Order After Successor Pays Fine to BIS
The other shoe has dropped in a complicated case of mergers and acquisitions involving Western Advanced Engineering Company (WAECO) of Orange,...
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Network Distributor Pays Again to Settle OFAC Sudan, Iran Sanction Charges
In its second settlement on export charges in the last year, Network Hardware Resale LLC (NHR) in Santa Barbara, Calif. agreed June 25, 2014, to...
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Chinese Company, Sales Reps Indicted for Exporting Infrared Cameras to Iran
A Chinese company and two sales executives were indicted in D.C. U.S. District Court for conspiracy to export U.S.-origin infrared cameras to Iran...
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Va. Man Sent to Prison for Export of High-Tech Goods to Iran Without Licenses
A naturalized U.S. citizen born in Iran was sentenced to 30 months in prison for exporting various high-tech goods included tachometers, power...
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Plea Deal Spares Hetran's Owner from Jail as Fine Gets Negotiated with Commerce
A federal judge June 10, 2014, accepted the guilty plea of a Pennsylvania manufacturing firm and its CEO to the illegal export of a lathe machine,...
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Former Contractor Sentenced to Prison for Selling Gunsights Destined for Germany on eBay
A former government contractor stationed at Fort Hood, Texas, was sentenced to six months in prison for exporting two Advanced Combat Optical...
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Jury Convicts Man for F-16 Parts Export to Venezuelan Air Force After Embargo
Ronald A. Dobek was convicted June 4, 2014, after a three-day jury trial in Milwaukee U.S. District Court of conspiring to export and exporting...
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Bass Pro Settles More BIS Charges of Exporting Rifle Scopes Without Licenses
More than nine years after a previous export settlement, sporting goods retailer Bass Pro, LLC of Springfield, Mo., agreed June 10, 2014, to pay...
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State Debars Spanish Citizen, Companies for Reexport of Night-Vision Devices
For the second time in six months, State's Directorate of Defense Trade Controls (DDTC) has used an administrative law judge (ALJ) to weigh its...
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NYPD, Customs Officers Plead Guilty to Exporting Arms to Philippines
Two brothers, one who is a Manhattan police officer and a second who is a Customs and Border Protection officer, respectively, have admitted to...
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Fokker's Self-Disclosure Leads to $21 Million Fine in Settlement with BIS, OFAC, Justice
In a global settlement following a voluntary self-disclosure, Dutch aerospace services provider Fokker Services B.V. (FSBV) agreed to pay $21...
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BNP Paribas Agrees to Pay Almost $9 Billion for Violating Sudan, Cuba, Iran Sanctions
A widespread, interagency investigation of 4,000 transactions over eight years has led to an almost $9 billion penalty against BNP Paribas (BNP),...
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Inside BIS

Most 600-Series Exports Are Being Shipped under License Exceptions or NLR, BIS Reports
Export control reforms appear to be working in eliminating licensing requirements for most less-sensitive items, including parts and components...
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Oil Industry Upset by Opaque BIS Ruling on Crude Oil Definition
Oil and gas industry firms reportedly are upset with the Bureau of Industry and Security (BIS) for issuing a commodity classification determination...
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Exporters Still Reluctant to Use STA Because They Don't Understand Rules, Wolf Says
U.S. and foreign companies still don't understand that the requirements for using License Exception Strategic Trade Authorization (STA) are no...
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Exporters Must File License Applications to Learn How BIS Interprets Russia Sanctions
Exporters who are uncertain about how the Bureau of Industry and Security (BIS) is interpreting the restrictions placed on exports to Russia will...
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Policy Briefs

DDTC Licenses Drop Dramatically Since Reform Effort, Officials Report
While it isn't exactly a zero-sum game, export control reform is working as it should, officials from Bureau of Industry and Security (BIS) and...
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DDTC Issues Advisory to Allow "Tokenization" of Data Exports to the Cloud
Companies hoping to use "tokenization," a method of data security, to put on the cloud technical data that are controlled under the International...
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Despite Benefits of Reforms, Exporters See Higher Costs and Risks During Transition
Exporter community enthusiasm for export control reform (ECR) is being tempered initially by the extra costs and risks companies see in going...
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OFAC Blocks Property of Self-Proclaimed Ukraine Separatist Leaders
Lesson learned: Don't proclaim oneself "mayor" or "governor" of an occupied territory that is the subject of international sanctions. Treasury's...
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Regulatory Briefs

Industry Has Mixed Views on BIS' Proposed Changes to Export Documentation Rules
The Bureau of Industry and Security (BIS) will have its work cut out in responding to divergent comments on its proposal to remove the requirement...
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BIS, State Issue Final Rules on Transfers of Category XI Military Electronics to CCL
After two proposed rules and two public comment periods, Bureau of Industry and Security (BIS) and State's Directorate of Defense Trade Controls...
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BIS, DDTC Publish "Conforming Updates" from Previous Rules
The party's not over until the cleaners come through. The Bureau of Industry and Security BIS) and State's Directorate of Defense Trade Controls...
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End Notes

END NOTES
HIGH-PERFORMANCE COMPUTERS : President Obama July 1, 2014, increased level for export control for high-performance computers to 8.0 Weighted...
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