International Trade Law News

Australia's central bank, the Reserve Bank of Australia, has imposed financial sanctions against several Iranian banks, entities and persons who have contributed to Iran's proliferation activities. The sanctions were imposed under Australia's Banking (Foreign Exchange) Regulations 1959.

Most of the sanctioned entities, such as Iranian state-owned banks Bank Melli and Bank Saderat, are already included on the U.S. Specially Designated Nationals List.

As a result of these designations, any Australian transactions involving the transfer of funds or payments to, by the order of, or on behalf of any of the named entities are prohibited without prior approval from the Reserve Bank.

The complete list of sanctioned entities can be found here.

Labels: Australia, Sanctions; Iran

The Senate Foreign Relations Committee has indicated that it will wait until the next session of Congress before considering the Defense Trade Cooperation treaties with the U.K. and Australia that were signed in 2007.

The Aerospace Industries Association reacted to this news by issuing the following statement:

We are very disappointed that Congress has deferred approval of the U.S.-UK and U.S.-Australian Defense Trade Cooperation Treaties. We had been optimistic that they would be approved and signed by the president this session, despite the press of last minute business acing the Senate. Even with this setback, we are encouraged by progress this year in export control modernization. The administration's package of proposals released in January, along with the rule clarifying export control treatment for civil aircraft components in August, are significant steps forward in achieving a system that is predictable, efficient and transparent. It is critical to our nation's security and economic prosperity to continue with modernization efforts in the next administration and Congress, to include passage and implementing these treaties.

The full text of the U.S.-U.K. Defense Trade Cooperation treaty can be found here. The full text of the U.S.-Australia Defense Trade Cooperation treaty can be found here. The implementing arrangements for these treaties that were signed earlier this year can be found here (U.K) and here (Australia).

Labels: Australia, DDTC, United Kingdom

Australia's Canberra Times reports that Australia's Minister for Defense has disclosed for the first time information on violations of Australia's export control laws. The article reports that there "have been 41 known breaches of Australia's defence export regulations", "22 violations 2006-07, 17 in 2007-08 and two in 2005-2006." According to the article, the "breaches involved military equipment, chemicals, telecommunications and electronic equipment, information security technology, avionics, material processing technology and other controlled goods."

The article notes that under Australia's Customs Act, penalties for persons and companies who attempt to export controlled goods without a permit or license face fines of up to $275,000 Australian dollars (approximately US$238,000) and 10 years imprisonment.

The article also indicates that "in recent years there have been only two prosecutions for defence export control violations, both in 2006 for offences alleged to have been committed in 2003, with one firm being fined a modest $13,000 and forfeiting the goods in question."

Labels: Australia, Export Controls

The Senate Committee on Foreign Relations will hold a hearing on May 21, 2008 on the Defense Trade Cooperation treaties that the U.S. signed with the governments of the United Kingdom and Australia in 2007 and were submitted to the Senate for "advice and consent" (2/3 vote required for approval) prior to ratification by the parties.

The Defense Trade Cooperation treaties are intended to ease restrictions associated with the International Trade in Arms Regulations (ITAR) by creating a comprehensive framework within which most defense trade can be carried out under streamlined procedures.

So far, the only witness appearing at the hearing will be Jon C. Rood, Acting Under Secretary of State for Arms Control and International Security Affairs.

The hearing will be held at 9:15 A.M. in room 419 of the Dirksen Senate Office Building.

The full text of the U.S.-U.K. Defense Trade Cooperation treaty can be found here. The full text of the U.S.-Australia Defense Trade Cooperation treaty can be found here. The implementing arrangements for these treaties that were signed earlier this year can be found here (U.K) and here (Australia).

Labels: Australia, DDTC, United Kingdom