May 2013

Features

Publication of Rules Moves Export Control Reforms Forward
Skeptics who doubted that the Obama administration would ever carry out its export control reform initiative are eating humble pie following publication of final rules implementing key provisions of the reforms and congressional acquiescence to the changes.
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Focus on Enforcement

BIS Imposes $2.8 Million Fine for Transfers of Internet Monitoring Equipment to Syria
A two-year investigation into the export of Internet monitoring equipment to Syria has led to the imposition of a $2.8 million civil fine April 24,...
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Colombian Businessman Given 30-Month Jail Term for Scheme to Defraud Ex-Im
Juan Carlos Schwartzman, the owner of a trade finance consulting company in Miami and Barranquilla, Colombia, was sentenced April 19, 2013, in D.C....
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Parker Drilling Pays $15 Million to Settle FCPA Charges of Nigerian Bribery
Parker Drilling Company, a Houston drilling services and project management firm, agreed April 16, 2013, to pay the Securities and Exchange...
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Mexican Farm Owner Sentenced to Probation for Defrauding Ex-Im
Jaime Galvan-Guerrero, a farm owner in Delicias, Chihuahua, Mexico, was sentenced April, 25, 2013, in El Paso, Texas, U.S. District Court to 60...
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Nutrition Retailer SAN Pays $22,500 to Settle Charge of Exporting Supplements to Iran
SAN Corporation, a nutritional supplement retailer in Oxnard, Calif., agreed April 12, 2013, to pay $22,500 to settle Treasury's Office of Foreign...
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BizJet Executives Charged with Bribing Government Officials to Win Contracts
Justice continued its pursuit of individuals responsible for violations of the Foreign Corrupt Practices Act (FCPA) in Tulsa U.S. District Court...
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Alstom Power Executives Charged with FCPA Violations Tied to Bribes in Indonesia
The indictment of one executive of Alstom Power Inc. and a guilty plea by a former executive on charges of violating the Foreign Corrupt Practices...
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Former Siemens Executive Settles FCPA Charges of Bribing Argentine Officials
A Manhattan U.S. District Court judge issued a final judgment April 15, 2013, against Uriel Sharef, a former officer and board member of Siemens...
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Philips Pays $4.5 Million for Bribing Polish Healthcare Officials
oninklijke Philips Electronics N.V. (Philips) agreed April 5, 2013, to pay disgorgement of $3,120,597 and prejudgment interest of $1,394,581 to...
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Taiwanese Citizen Sentenced to Time Served for Attempted Export of Carbon Fiber to Taiwan
Yen Ling Chen, a Taiwanese citizen, was sentenced March 29, 2013, in Brooklyn, N.Y., U.S. District Court to time served with no supervised release...
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French Citizen Charged with Obstructing Grand Jury's FCPA Investigation
A French citizen was arrested April 14, 2013, and then indicted April 25 on charges of obstructing a grand jury investigation into money laundering...
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Ralph Lauren Rewarded for Helping FCPA Investigation of Bribes Paid in Argentina
Sometimes good deeds do go unpunished, almost. Ralph Lauren Corporation (RLC), the N.Y. apparel company, earned a sharp cut in the potential...
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Inside BIS

State's Reversal of CJ Advice Puts Camera Lens Firm at Commercial Disadvantage
Being conscientious and getting a commodity jurisdiction (CJ) ruling from State has put Lattice Materials, Inc., at a disadvantage to its U.S. and...
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Proposal on USML Category XII Behind Schedule, Wolf Admits
Because of the priority given to other proposals for transferring items from the U.S. Munitions List (USML) to the Commerce Control List (CCL),...
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Universities Want Visa Mantis Process to Speed Deemed Exports, ETRAC Told
While members of the university community say they are generally pleased with new rules implementing export control reforms, especially changes to...
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GAO Investigating NASA Export Control Policies after Lawmaker's Request
The Government Accountability Office (GAO) has begun a preliminary investigation into export control policies at the National Aeronautics and Space...
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Policy Briefs

Ex-Im Financing Is Key for Exports of Planes, Satellites, Bank President Contends
Although the Export-Import Bank (Ex-Im) provides financing for less than 2 percent of U.S. exports, its existence is still justified because of the...
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Ex-Im Policies Haven't Kept up with Financing Volume, GAO Complains
The Export-Import Bank's (Ex-Im) risk-management system and its methodology for calculating default rates haven't kept up with the expanded volume...
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Ex-Im Draws Conflicting Views on Domestic-Content Rule Ahead of Report to Congress
Not surprisingly, the Export-Import Bank (Ex-Im) has received sharply different public comments in response to its review of its current domestic...
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Colorado Lawmakers Form Working Group on Aerospace Export Control Reforms
Sen. Michael Bennet (D-Colo.) and Rep. Mike Coffman (D-Colo.) have formed a working group on aerospace export control reforms with the goal of...
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House Hearing Shows Lawmakers Know Little About Export Reforms
More members than expected showed up for the House Foreign Affairs Committee's April 24, 2013, hearing on the Obama administration's export...
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Regulatory Briefs

BIS, State to Repropose Transfers of Electronics in USML Category XI
The Bureau of Industry and Security (BIS) and the Directorate of Defense Trade Controls (DDTC) plan to publish a second proposal for amending U.S....
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OFAC General License Permits Exchanges with Sudanese Students
Treasury's Office of Foreign Assets Control (OFAC) issued a new General License April 15, 2013, authorizing accredited U.S. undergraduate and...
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OFAC Goes Electronic for Submission of License Applications and Opinions
Treasury's Office of Foreign Assets Control (OFAC) joined the 21st century April 18, 2013, with the creation of an online electronic licensing...
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End Notes

END NOTES
STATE : Assistant Secretary of State for Political-Military Affairs Andrew Shapiro left post April 19, 2013. He did not announce his future...
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