International Trade Law News

As a follow-up to our post on Monday's announcement that the U.S. Department of State has designated Venezuela as a country that is "not fully cooperating [NFC] with U.S. antiterrorism efforts", the Directorate of Defense Trade Controls (DDTC) has issued a statement indicating that the prohibition on the sale or license for export of defense articles and services to Venezuela will not take effect until October 1, 2006. This is because designations made under Section 40A of the Arms Export Control Act (22 U.S.C. section 2781) do not take effect until the next fiscal year in which they are made, which in this case is October 1, 2006. As a result, existing licenses to export defense articles and services to Venezuela remain valid until October 1, 2006. However, in the period between now and October 1, 2006, new license applications are unlikely to be approved by DDTC. The complete text of DDTC's announcement can be found here.

Labels: DDTC, Export Controls