International Trade Law News

Today's Wall Street Journal reports that many large European banks and companies are "severing ties" with Iran as a result of U.S. investigations into their compliance with U.S. sanctions programs and the possibility of multilateral sanctions being imposed on Iran. The article also notes that the Justice Department has several sanctions-related inquiries currently underway involving compliance with U.S. sanctions programs. The article quotes OFAC director Robert Werner as saying that firms must beef up their compliance programs to ensure "comprehensive implementation of U.S. economic sanctions and ensuring that companies and individuals, either wittingly or unwittingly, don't facilitate prohibited transactions with embargoed countries."

Labels: OFAC

Speaking of exports to Syria, KFC recently opened its first branch in Damascus earlier this month, becoming Syria's first fully licensed American food franchise. According to Reuters, the franchise is owned by Kuwait Food Co. (Americana), which owns and operates KFC and other U.S. restaurant chains, including Pizza Hut and TGI Fridays, in the Middle East.

The Bureau of Industry and Security (BIS) has entered into a settlement agreement with Nippon Express, USA, Inc., a freight forwarder and logistics company, for its participation in an unlicensed shipment to Syria in September 2004, five months after the U.S. imposed a comprehensive embargo on Syria. Specifically, BIS charged Nippon Express with providing the seismic equipment to a shipper for export to Syria without the export license. BIS also charged Nippon Express with making an incorrect statement on the Shipper’s Export Declaration (SED). Nippon stated on the SED that the export was authorized pursuant to "NLR" (no license required), when in fact a license was required (although the license would probably have been denied). Nippon Express agreed to settle this matter by paying a $17,000 fine. The charging letter, order and settlement agreement can be found at the following link: efoia.bis.doc.gov/ExportControlViolations/E943.pdf.

This week's print edition of The Economist discusses the continuing friction between the U.S. and the U.K. regarding export control issues associated with the Joint Strike Fighter (JSF). The article states that the U.K. Ministry of Defense is "looking at alternatives to the aircraft" due to concerns that the State Department may not grant licenses authorizing the U.K. access to obtain key software and systems used on the JSF.

President Bush today announced the nomination of W. Ralph Basham to be the next Commissioner of U.S. Customs and Border Protection (CBP). Mr. Basham currently serves as Director of the U.S. Secret Service. When confirmed, Mr. Basham will succeed Robert C. Bonner, who retired on November 25, 2005.

The Bureau of Industry and Security (BIS) has updated the Denied Persons List by extending the denial orders on Wen Enterprises, Ms. Hailin Lin and Mr. Ning Wen. Mr. and Mrs. Wen were recently found guilty of engaging in a consipiracy to export controlled electronic components to China.

Today's Asahi Shimbum reports additional details concerning Yamaha Motor Co., Ltd.'s recent exports of RMAX unmanned remote-controlled helicopters to China. The newspaper reports that one of the unmanned helicopters that Yamaha exported to China was sold to Poly Technologies Inc., a Beijing-based company established by high-ranking officers of the People's Liberation Army (PLA). The article also claims that received "several tens of millions of yen in rebates" in connection with sales of unmanned helicopters to Beijing BVE Technology Co., another Chinese company with close ties to the PLA. The paper states that investigators familiar with the case say that "Yamaha will face charges of violating the Foreign Exchange and Foreign Trade Control Law" in connection with these exports.

The Miami Herald reports that OFAC has suspended the license of La Estrella de Cuba one of Florida's largest travel agencies authorized to provide air, travel and remittance forwarding services to Cuba. The company's OFAC license was suspended as a result of information obtained by OFAC during an audit of the travel agency. OFAC is currently in the process of conducting on-site audits at licensed travel providers that do business with Cuba and expects to complete 25 audits in 2006.

Labels: OFAC

OFAC Director Robert Werner will discuss OFAC's recently published interim final rule on economic sanctions enforcement procedures for banking institutions at the Florida International Banker's Association's annual Anti-Money Laundering conference in Miami, Florida on February 9, 2006.

Labels: OFAC

Two U.S. producers of activated carbon products, Calgon Carbon Corporation of Pittsburgh, PA and Norit Americas Inc. of Marshall, TX, today filed an antidumping duty petition on activated carbon from the People's Republic of China (PRC). The petition alleges that imports of activated carbon from the PRC increased from 61.6 million pounds in 2002 to 84.1 million pounds in 2004 and that PRC imports represented between 53 and 59% of all imports between 2002 and 2004, making it the largest source of imported activated carbon.

"Activated carbon" is defined in the petition as a black carbon material obtained by "activating" various materials containing high levels of carbon (including but not limited to coal, wood and coconut shells) by heating them and/or treating them with chemicals which create a vast internal pore structure in the carbon material. Typical uses of activated carbon include removing objectionable tastes and odors from drinking water; reducing organic compounds in waste water; removing color and impurities from foods, pharmaceuticals, wine, liquor, fruit juices and chemicals; removing color from raw sugar in the refining stage; removing mercury and dioxins from flue gas emissions; and capturing gasoline vapor and recovering solvents.

Update: Less than a week before this petition was filed Calgon Carbon, one of the two petitioners in this case, announced that it had opened a "state-of-the art" activated carbon processing and packaging facility in Tianjin, China that will be operated by Calgon Carbon Company Tianjin Limited (CCT), a wholly owned subsidiary of Calgon Carbon Corporation.

Labels: Antidumping

Today the U.S. Department of Commerce (DOC) announced its preliminarily affirmative antidumping determination on metal calendar slides from Japan. DOC found a preliminary dumping margin of 7.68%. The petition requesting this investigation was filed by Stuebing Automatic Machine Company, located in Cincinnati, Ohio. The sole respondent in the case is Nishiyama Kinzoku Co., Ltd.

Labels: Antidumping

A Federal District in Dallas, Texas today imposed prison sentences on two of the five Elashi brothers that were convicted in July 2004 for their roles in selling desktop and laptop computers through Infocom, their family company, to Syria and Libya from 1995 to 2000. Ihsan Elashi was sentenced to six years in prison and Hazim Elashi was sentenced to five and a half years in prison. The three other Elashi brothers that were convicted of conspiracy to deal in the property of a Specially Designated Terrorist and conspiracy to commit money laundering have not yet been sentenced.

Assistant Secretary of Commerce for Export Administration Peter Lichtenbaum will soon leave BIS to return to Steptoe & Johnson, the law firm where he practiced for many years before being appointed to his current position. Matt Borman, Deputy Assistant for Export Administration, will serve as acting Assistant Secretary.

The World Trade Organization's Appellate Body today released its 2005 Annual Report. The report contains a great deal of useful information on the Appellate Body's activities during the past year, as well as information on the cases that the Appellate Body has dealt with since its inception in 1995. The report, available in MS-Word format, is available at the following link: www.wto.org/english/tratop_e/dispu_e/wt_ab5_e.doc.

As an update to our previous story on this subject, today's Asahi Shimbun newspaper reports that Yamaha Motor Co., Ltd. "deliberately understated the technological functions of an unmanned helicopter it planned to sell to a Chinese company when it applied for an export permit" from the Japanese Government. The paper reports that Yamaha "downplayed the advanced technology" in its export license applications, including "the fact that it is equipped with a Global Positioning System (GPS) and other high-tech devices."

The U.S. Commercial Service of the U.S. Department of Commerce is organizing an Aerospace Executive Service matchmaking mission for the March 2006 FIDAE International Air Show in Santiago, Chile. See today's Federal Register notice for information on how to participate.

The U.S.-China Economic and Security Review Commission will hold a public hearing in Washington, DC on February 2-3, 2006. The agenda for the hearing will be posted on the Commission's website at www.uscc.gov in the near future. The hearing will be held in Room 1310 of the Longworth House Office Building. Public seating is limited to about 50 people on a first come, first served basis.

Today the U.S. Department of Commerce published in the Federal Register the amended final results of the 2003-2004 antidumping duty administrative review on certain welded carbon steel pipe and tube (standard pipe) from Turkey. After correcting certain ministerial errors made by DOC in the original margin calculations, the amended final dumping margins were as follows:

• Borusan Group = 0.74% (originally 0.86%)
• Yucel Boru/Cayirova = 3.28% ( originally 3.52%)
  

Labels: Antidumping

A retired Naval officer currently employed as a civilian at the Naval Station Ingleside (Texas) has been accused of stealing Variable Intensity Tactical Aiming Lights (VITAL) and selling them on eBay. VITALS are laser sights that can be mounted to a weapon for nighttime use. The retired Naval officer allegedly exported them from the U.S. to buyers in Hong Kong and South Korea. Night Vision Equipment Company, a manufacturer of VITALs, includes a useful "Export Caution" icon on the company's product information pages on its website.

Japanese police today conducted a raid on Yamaha Motor Co., Ltd.'s headquarters and other company locations seeking evidence concerning Yamaha's exports of RMAX unmanned remote-controlled helicopters, which could be converted to military use, to Beijing BVE Technology, a Chinese company believed to be connected to China's People's Liberation Army. While Yamaha acknowledged exporting nine of the RMAX helicopters to China since 2001, a senior company official claimed the company followed proper export procedures. Japan's Ministry of Economy, Trade and Industry, the government agency that administers Japan's export control laws, also filed a criminal complaint against Yamaha Motor.

In recognition of the Government of Ukraine's efforts to improve the enforcement and protection of intellectual property rights, the Office of the U.S. Trade Representative today announced that the U.S. will reinstate Ukraine's Generalized System of Preferences (GSP) benefits and lower Ukraine’s designation under Special 301 (Section 182 of the Trade Act of 1974) from "Priority Foreign Country" to "Priority Watch List."

Today's Seattle Times contains two must-read articles on Boeing's efforts and difficulties to ensure that the 787 is "ITAR-free." The main article, entitled "Separation anxiety: The wall between military and commercial technology", describes how several Boeing engineers refused to sign waivers declaring that key manufacturing techniques and technology relating to carbon-fiber composites that will be used in the aircraft originated in Boeing's commercial aircraft business, not in military programs such as the B-2 stealth bomber. The article discusses the company's efforts to confirm that the technology used to develop the aircraft is not subject to the ITAR and notes Boeing has more than 100 people on the 787 project dealing with export-control matters.

The companion article, entitled "How B-2 data wound up in 787 program", describes one instance of how B-2 data leaked into the 787 program and the steps Boeing took to resolve that issue.

Dow Jones Newswires reported on January 20th that the Office of Foreign Assets Control (OFAC) expects "a major enforcement case in the next few years against a U.S. company with a foreign subsidiary in a sanctioned nation." The article also notes that OFAC "has stepped up scrutiny of U.S. parent companies that may be directing or facilitating its Iran operations" and has adjusted its "enforcement strategy to better target companies with systemic violations."

Labels: OFAC

The National Foreign Trade Council (NFTC) and USA*Engage recently commended the response of the U.S. and its European allies to the threat posed by Iran’s resumption of its nuclear program. "It is tremendously important for the United States and all of our allies to take a firm and unified stand against a nuclear Iran," said USA*Engage Director Jake Colvin. Colvin further stated that "we applaud the efforts of the United States, together with Britain, France and Germany, to refer this matter to the United Nations Security Council."

USA*Engage continues to advocate for a multilateral solution to the current impasse, and urges all UN Security Council Members to establish an appropriate response to Iran. While encouraged by current multilateral efforts, USA*Engage Co-Chair and NFTC President William A. Reinsch cautioned that unilateral moves by the U.S. would not help the situation. "Time and time again we have seen that unilateral economic sanctions by the United States do not work," Reinsch said. Reinsch also noted that "unilateral measures – including some bills pending in the U.S. Congress – would harm relations with our allies without achieving the results we all desire."

USA*Engage opposes legislation pending in Congress that would severely restrict the Administration’s flexibility to conduct foreign policy with respect to Iran. The organization has urged the Bush Administration and Congress to redouble its efforts to achieve a multilateral resolution.

On February 1, 2006, U.S. Customs and Border Protection (CBP) will begin Phase II of its enforcement of the wood packaging material (WPM) regulations. Effective February 1, 2006, CBP will prohibit all imports of violative pallets and crates and will order the reexport of all shipments containing violative pallets or crates if the Port Director determines that it is not feasible to separate merchandise from the violative WPM. In addition, in-transit shipments found to contain violative WPM will not be permitted to transit the U.S. All expenses incurred for the services of CBP Officers and Agriculture Specialists involved in the separation of cargo will be billed to the importer or other party of interest. WPM and associated merchandise will be exported at the expense of the importer or other party of interest.

Phase III, or full enforcement of the WPM ban, will begin on July 5, 2006. See CBP's WPM website at www.customs.ustreas.gov/xp/cgov/import/commercial_enforcement/wpm/ for the WPM regulations and other WPM-related information.

Labels: Customs

The Center for Nonproliferation Studies (CNS) has published the December 2005/January 2006 issue of the International Export Control Observer (IECO). The current issue focuses on international developments in export controls during 2005.

The current issue of the IECO contains an extensive analysis of China and Russia's export controls during the past year. The IECO gives Beijing "mixed reviews" on its committments to improve export controls on sensitive items and discusses the expanding role of Russia's Ministry of Defense in the Russian export control system. The publication also contains an article an excellent overview of prosecutions relating to export control violations in Europe and Pakistan that "continued to expose the weaknesses of export control and nonproliferation systems globally, and more particularly in Europe."

The issue also contains an overview of 2005 developments in international export control regimes, including the Australia Group, Organization for the Prohibition of Chemical Weapons, Missile Technology Control Regime, Wassenaar Arrangement and Nuclear Suppliers Group.

This publication (in PDF format) will soon be available on the CNS website at cns.miis.edu/pubs/observer/index.htm.

In today's daily press briefing State Department spokessman Sean McCormack stated that Venezuela's recent "spending spree" on military equipment is evidence that Venezuela is undertaking a "military buildup" that is much greater than the country's legitimate defense needs. Here is an excerpt from today's daily press briefing:

QUESTION: It's about the deal of Brazilian aircrafts (inaudible) to Venezuela. President Lula said yesterday that he won't accept American intervention and that he tried to convince President Bush to approve the deal, and yesterday Amorim said that the restrictions are not justified as Venezuela is not under sanctions. Is the U.S. going to block the sale?

MR. MCCORMACK: Again, we have been in discussions with Brazilian officials regarding this matter and we continue to talk to them about it. But we -- I would just say that in the past, and for example, I'll use the example of a proposed sale of some Spanish armaments to Venezuela, that we have had concerns about those sales. Those concerns center around a military -- what we would consider an outsized military buildup in Venezuela. The Chavez government has chosen to activate its reserves and also to build up what I could only describe as what is a planned million-person civilian militia.

In addition to this, fueled by revenues coming from increased oil prices, there has been a -- the Venezuelan Government has talked about a buying spree for military equipment. And all this planned buying spree is really outsized, in the analysis, I believe, of many, to Venezuela's defense needs.

So we have expressed those concerns in the past. We expressed those concerns to the Spanish Government as well as to the Brazilian Government.

QUESTION: It's exactly the same situation, the same kind of airplanes and exactly the same situation?

MR. MCCORMACK: I don't think the proposed -- the two proposed sales, I think, are for different kinds -- different kinds of equipment. I think the Spanish sale involved some maritime patrol, armed maritime patrol sea craft and then some airplanes as well. And on the Brazilian sale, it has to do with the Super Tucano aircraft.

The Treasury Department's Office of Foreign Assets Control (OFAC) today granted a specific license permitting Cuba to play in the inaugural World Baseball Classic to be held March 3-20 in the U.S., Japan and Puerto Rico.

Major League Baseball submitted a revised license application seeking permission for Cuba to play in the event after OFAC denied its original application in mid-December. The revised application that led to the granting of the license stipulates that any financial gain obtained by Cuba would be earmarked as a charitable contribution for U.S. victims of Hurricane Katrina.

Labels: OFAC

Source: CBP Press Release, January 17, 2006

Hot Wheels – Long Gone Stolen Corvette Recovered

Los Angeles – She’s not as young as she used to be. She’s been missing and abused for 37 years. But after all that time she still has that sleek, curvy, classic body that turns heads and makes the heart race. An icon of American motoring, a 1968 Chevrolet Corvette convertible, stolen in 1969, is being returned to its original owner thanks to a dedicated band of law enforcement officers in California and New York.

U.S. Customs and Border Protection (CBP), the California Highway Patrol (CHP), the National Insurance Crime Bureau (NICB), and the New York City Police Department (NYPD) joined forces in recovering the stolen Corvette before it was shipped from the Port of Long Beach, Calif., to its new owner in Stockholm, Sweden.

“This is a miracle,” said Alan Poster, the Corvette’s owner, when law enforcement officials told him that his car had been recovered. He saw his car for the first time in 37 years at a media briefing held at a CBP warehouse in Carson, Calif., today. Poster was living in New York City when his Corvette was stolen in 1969. Today he lives in Petaluma, Calif., a community 32 miles north of San Francisco.

“You can’t get your kicks on Route 66 anymore, but we got a kick out of assisting in the recovery of this classic car,” said Kevin Weeks, Los Angeles director of Field Operations for U.S. Customs and Border Protection. “Americans love their cars,” he added, “Customs and Border Protection helps fuel that love by maintaining productive partnerships with our state and local counterparts in preventing the illegal exportation of stolen vehicles.”

The Corvette’s saga began on January 22, 1969, when the NYPD took a stolen vehicle report from Poster. On January 3, 2006, almost 37 years to the day that the Corvette was stolen, U.S. Customs and Border Protection’s LA/Long Beach seaport Outbound Enforcement Team along with the CHP’s Foreign Export and Recovery Team (FEAR), and the NICB, seized the Corvette from a shipping container destined for Sweden. The new owner, a Stockholm resident, bought the car from an unidentified seller for $10,000. He did not know the car was stolen.

In late November 2005, the Corvette’s shipper presented the car’s documentation to the CBP LA/Long Beach Auto Export Validation Desk. On December 7, subsequent to processing the vehicle’s documentation, the NICB advised CBP that a stolen vehicle record existed on the Corvette. Following inspection of the car it was held from being exported to Sweden until the NYPD, the originator of the stolen vehicle record, could confirm the validity of the dated record – initiated January 22, 1969. It took two NYPD detectives four days to locate the record, which was stored on microfiche.

On December 23, 2005, the NYPD Auto Crime Division advised LA/Long Beach CBP that the Corvette had never been recovered and the victim had been located. Following seizure of the car on January 3, it was put in storage at a CBP warehouse in Carson, California.

Further investigation is being conducted by the CHP to determine a possible culprit in this case.

Over the past three decades the Corvette endured what car purists would probably describe as abuse – originally sporting a blue exterior and interior, it is now silver and red respectively; the original 327-cubic-inch engine has been replaced by a 454 big block Chevy engine; a stolen automatic transmission, that wasn’t introduced until the mid 1980s, has replaced the original transmission; and the gas tank is missing. The car’s classic design, however, has survived and continues to thrive.

Editor's Note: A photo of the vehicle can be found at the following link:
www.officer.com/article/article.jsp?siteSection=1&id=28071

Registration for the International Compliance Professional Association's (ICPA) 2006 trade compliance conference to be held in Las Vegas from March 6-9 is now open to non-members and is filling up fast. The conference agenda and registration information can be found at the following link: icpa.conferencetime.com.

This conference is highly recommended for anyone involved in import or export compliance.

The U.S. and Mexico have reached an agreement-in-principle that will resolve the long-running dispute regarding imports of Mexican cement into the U.S. The following is a summary of the terms of the agreement that will expire in 2009:

• Limit of 3 million metric tons of Mexican cement to be distributed regionally throughout the southern tier of the United States at an antidumping duty of $3 per metric ton;
• A disaster provision of an additional 200,000 metric tons to be instituted if the President determines that a natural disaster warrants an increase in the import of Mexican cement;
• Elements for mutual trade liberalization including general U.S. access to the Mexican market;
• Resolution of all outstanding litigation before the U.S. and international courts;
• Provisions that address the revocation of the antidumping duty order at the conclusion of the agreement in 2009.

This dispute dates back to 1989, when the Southern Tier Cement Committee filed an antidumping petition on cement from Mexico. The U.S. Department of Commerce imposed an antidumping order on imports of cement from Mexico in August 1990 and since that time the U.S. has imposed antidumping duties ranging from 27.40% to 109.43% on imports of Mexican cement. The Commerce Department recently announced the final results of the 14th administrative review on gray portland cement and clinker from Mexico and found dumping margins of 42.26% (per-unit rate of $26.28 per metric ton) on CEMEX S.A. de C.V. and its affiliate, GCC Cemento, S.A. de C.V.

The terms of the agreement should be finalized in the near future.

Labels: Antidumping

Mr. Ning Wen of Manitowoc, Wisconsin, was sentenced on January 18, 2006 to 60 months in prison for export control and money laundering violations. Mr. Wen was also ordered to pay a $50,000 fine, to forfeit his interest in his home and forfeit $329,000 in cash.

Mr. Wen was convicted in September 2005 by a federal jury in Milwaukee, Wisconsin of nine counts related to his participation in a conspiracy to export more than $300,000 in electronic components to China from 1991 to 2004. According to the U.S. Government, the electronic components, primarily semi-conductor chips, had a wide variety of applications including military radar and communications applications, and as such, required export licenses. Wen and three others involved in the transactions, including his wife, Hailin Lin, and two Chinese nationals, failed to obtain the requisite export licenses and shipped the items to China, where they were distributed to entities and institutes including some that conduct military research and development. The jury also convicted Wen of laundering money for the purpose of promoting the illegal exports.

Mr. Wen’s wife, Hailin Lin, previously pled guilty to the same charges and was sentenced to 42 months in prison and a $50,000 fine. The two other co-defendants in the case, Jian Guo Qu and Ruo Ling Wang were also sentenced to prison time and ordered to pay monetary penalties.

The publication of the Census Bureau's final Mandatory AES regulation has been delayed yet again. Census now expects to distribute the draft of the final regulation to the other interested agencies (BIS, CBP, State) in a few weeks and hopes to publish the final regulation in the Federal Register in March. Given the final rule's 90 day implementation period, all SEDs (to be called Electronic Export Information) will have to be submitted to Census electronically via AES by mid-2006.

Labels: AES

U.S. Customs and Border Protection (CBP) has released the following statistics touting the agency's 2005 progress in the Customs-Trade Partnership Against Terrorism (C-TPAT) program:

January 1, 2005	December 31, 2005
8,643 Applicants	10,286 Applicants (16% increase)
4,615 Certified Partners	5,636 Certified Partners (18% Increase)
Paper Submission of Applications	On-Line Electronic Submissions of Applications
Guidelines	Minimum Security Criteria
38 Supply Chain Security Specialists; 4 field offices	88 Supply Chain Security Specialists; 5 Field Offices (50 more specialists hired in 2006)
403 Validations Completed (8%)	1,405 Validations Completed (25%)
518 Validations in Progress (11%)	2,273 Validations in Progress (41%)
One Standard Benefits Package	Tiered Benefits Structure
Validations Conducted Using Checklists, Notepads	Validations Conducted Using Automated Assessment Questionnaires (with more than 900 questions)/ Tablet PCs

With respect to C-TPAT program changes in 2006, CBP has obtained approval from the Government of China to commence C-TPAT validations of Chinese exporters and such validations are expected to commence in 2006. In addition, CBP is working with the U.S. importing community to implement tangible benefits for C-TPAT members.

CBP has issued additional answers to questions submitted by importers at CBP's Trade Symposium held in Washington, DC in November 2005. U.S. Importers should review these questions and answers as they provide some very interesting and valuable information regarding C-TPAT , Focused Assessments, ISA and other CBP programs. For example, CBP stated that information uncovered during C-TPAT validations is supposed to be kept confidential within the Office of Field Operations and that such information is not shared with the Office of Strategic Trade/ Regulatory Audit (the CBP division that conducts Focused Assessments). The answers to the questions raised at the Trade Symposium can be found at the following link: www.customs.gov/linkhandler/cgov/import/communications_to_trade/trade_2005/answers_qcards.ctt/answers_qcards.doc
(opens as Word document).

Labels: Customs

The bidding for Dofasco Inc., Canada's largest steel company, heated up this weekend when Germany's ThyssenKrupp increased its bid for the company. Luxembourg-based Arcelor SA, the world's second-biggest steelmaker, subsequently raised its offer to C$71 per share, 4.4% more than ThyssenKrupp's recent bid of C$68 per share and 13% more than its own previous bid of C$63 per share.

Tulsa, Oklahoma-based GasTech Engineering Corp. (GasTech), a company that engages in the design and fabrication of oil and gas processing plants and systems, pleaded guilty on January 11, 2005 of conspiracy to violate OFAC's Iranian Transactions Regulations. In its Plea Agreement, GasTech admitted that it conspired with its President Parviz Khosrowyar, and other unindicted Co-Conspirators, to provide engineering and procurement services to the Government of Iran's National Iranian Gas Company for the design of the Tabnak Gas Treating Plant in Iran.

GasTech agreed to a forfeiture money judgment representing proceeds traceable to its role in the conspiracy and payment of a regulatory penalty, in addition to any fine imposed by the Court at sentencing. The Plea Agreement calls for GasTech to implement a corporate compliance program that will be monitored by the Bureau of Industry and Security.

Co-Defendant Parviz Khosrowyar, President and Chief Executive Officer of GasTech, remains a fugitive, including the conspiracy charge and the charge for his failure to appear at trial.

John Lockhart, one of seven members of the World Trade Organization's Appellate Body, died at his home in Sydney, Australia, at the age of 70. Mr. Lockhart was appointed as a member of the Appellate Body in December 2001. WTO Member Governments recently re-appointed him for a further 4-year term ending in December 2009. Mr. Lockhart participated in 30 appeals and 4 arbitration proceedings during his tenure on the Appellate Body.

The de facto U.S. arms embargo on Venezuela continues, as State Department Spokesman Sean McCormack announced on Friday that the U.S. Government has informed Spain that the U.S. denied licenses for Spain to transfer U.S. technology contained in 12 aircraft that Spain intends to sell to Venezuela. The licenses were denied on grounds that "the proposed sale of military equipment and components to Venezuela could contribute to destabilization in Latin America." McCormack said the decision to deny the licenses was "a policy judgment of the United States government" and that such decisions "are reviewed carefully with input from a variety of different agencies, from DOD, from the intelligence community, from the Department of State as well as other agencies around the government. But I think that when you're talking about armed patrol boats, maritime control aircraft, as well as other kinds of aircraft, it raises a lot of questions about their potential use and what effect that may have on the stability in the region."

Spain agreed in 2005 to sell Venezuela four Spanish coastal patrol ships, four corvettes, 10 C-295 transport planes and two CN-235 maritime surveillance planes as part of a $2 billion arms package.

Brazil's Foreign Minister Celso Amorim said earlier this week there were signs the U.S. may block a pending sale of Brazilian light combat and reconnaissance planes to Venezuela, and that his government would try to persuade U.S. officials not to veto the deal.

The Bureau of Industry and Security (BIS) has opened registration for the "Export Control Forum" to be held in Newport Beach, California on March 13, 2006. This one-day event was developed by BIS in response to numerous requests for an Update-like program on the West Coast. See the following link for further details and registration information: www.bis.doc.gov/seminarsandtraining/Newport_Beach_Mar_13_06.htm.

U.S. Trade Representative Rob Portman has named Everett Eissenstat as Assistant USTR for the Americas. Eissenstat most recently served as Chief International Trade Counsel to Senator Chuck Grassley (R-IA), Chairman of the U.S. Senate Finance Committee.

Dear clients, friends and subscribers to International Trade Law News:

After a brief hiatus, International Trade Law News is back. Although the look is different, we will continue to provide the same timely news and practical information on import, export and other trade-related issues.

Also, please note that effective January 1, 2006, the Law Offices of Douglas N. Jacobson LLC merged with Straburger & Price, LLP, a full-service law firm with offices in the major cities in Texas, Mexico City and Washington, DC, where I will be based. I will serve as Chair of Strasburger's International Trade Compliance practice. My new contact information can be found at the following link: www.strasburger.com/bios/b-jacobsond.htm.

All the best in 2006,

Doug Jacobson

U.S. Customs and Border Protection (CBP) has announced that it will hold a C-TPAT Supply Chain Security Training Seminar entitled "Supply Chain Security in a New Business Environment” from March 1-3, 2006 in Costa Mesa, California. This program is open to certified C-TPAT members only. While the agenda for the seminar has not yet been finalized, it will include a discussion of security criteria and seven- point container inspections. Joint Customs/Trade presentations, panel discussions and concurrent workshops will be conducted. There is no registration fee for this program, but space is limited. Online registration for this program is now available at the following link: https://apps.cbp.gov/ctpat_training_registration/.

Labels: Customs

The 2006 Schedule B codes used for SED and AES records are now available on the U.S. Census Bureau's web site at www.census.gov/foreign-trade/schedules/b/2006/browse.html.

The 2006 edition of the Harmonized Tariff Schedule of the United States (USHTS) is available on the U.S. International Trade Commission's Web site at: www.usitc.gov/tata/hts/ .

OFAC recently announced that it will engage in a "substantial reorganization " of the content on its website in the coming weeks. The announcement indicated that the "majority of . . . web content will be organized around the sanctions programs that OFAC administers." As a result, readers will be able to "find all material related to a specific sanctions program on a single page."

In addition, OFAC recently added the following item to the Frequently Asked Questions page on its website:

Question: Is a license required to enter into an overflight permit agreement with the Cuban Civil Air Authority, even if there is no cost?

Answer: Yes. A permit from the Government of Cuba is property in which the Government of Cuba has an interest. Therefore, a license from OFAC is necessary prior to obtaining the permit, even if no funds are changing hands at this point in the process. Many U.S. companies provide permitting and payment services on behalf of their clients. If such a facilitator holds an OFAC license to obtain the permits and make the payments to the Government of Cuba, there is no need for each individual client to obtain a separate OFAC authorization. [01-06-06].

Labels: OFAC

The Directorate of Defense Trade Controls (DDTC) has changed the URL of its website to www.pmddtc.state.gov. In addition, DDTC's website will soon have a new look.

Labels: DDTC, Export Controls