International Trade Law News

The law firm of Sandler, Travis & Rosenberg is presenting the following two export compliance webinars in the coming weeks:

•Dealing with Antiboycott Issues in the Real World on April 20, 2010 - This webinar is intended to provide exporters and freight forwarders with an overview and in-depth practical understanding on how the U.S. antiboycott laws and regulations impact international transactions. The webinar will cover the types of boycott requests that are not permissible and the specific types of boycott-related language and requests that are reportable to BIS and to the Internal Revenue Service. The webinar will also discuss current trends in antiboycott activity and enforcement. The webinar will feature an interactive question and answer session during which participants can raise issues pertinent to their export compliance activities.

•Exporting Agricultural Products, Medicines and Medical Devices to Embargoed Countries: What You Need to Know on April 29, 2010 - While the U.S. maintains comprehensive embargoes on several countries, U.S. law and policy authorize the export of agricultural products, medicines and medical devices to embargoed countries, subject to certain conditions and licensing requirements. However, the requirements for exporting authorized humanitarian products to embargoed countries are complex and the requirements vary, depending on the country of destination. This 1-1/2 hour webinar on April 29, 2010 will provide practical and useful information and insights on the requirements of the Commerce Department’s Bureau of Industry and Security (BIS) and the Treasury Department’s Office of Foreign Assets Control (OFAC) to export agricultural products, medicines and medical devices to Cuba, Iran, North Korea, Sudan and Syria.

Both webinars will be presented by Doug Jacobson, the leader of Sandler, Travis & Rosenberg’s Export Controls Practice Group and the editor of International Trade Law News. Doug has been practicing international trade and export controls law for nearly 20 years. He regularly defends companies in antiboycott enforcement actions and has extensive experience in obtaining licenses from BIS and OFAC to export humanitarian products to embargoed countries. Doug will share his practical experience and insights with the webinar participants.

Click here to register for these webinars.

Labels: BIS, Exports, TSRA

USA*Engage, a coalition that works to seek alternatives to unilateral U.S. foreign policy sanctions and to promote the benefits of U.S. engagement abroad, today held its annual luncheon on Capitol Hill in Washington, DC to honor Senator Chuck Hagel (R-NE) and Representative Earl Blumenauer (D-OR) for their leadership on issues relating to U.S. diplomacy and global engagement. Senator Hagel and Representative Blumenauer each delivered remarks on the importance of the United States maintaining an open dialogue with the rest of the world.

Senator Hagel was honored by USA*Engage for his strong support of U.S. global engagement, free trade and his efforts to reform the way in which U.S. sanctions are administered. Senator Hagel was one of the original sponsors of the Trade Sanctions Reform and Export Enhancement Act of 2000 (codified at 22 USC § 7201 et seq.) that authorized the licensed export and reexport of medicines, medical devices and agricultural products to countries subject to U.S. unilateral sanctions.

In his remarks, Senator Hagel said that "trade is not just an exchange of goods and merchandise. Trade is the only bridge into other nation’s culture and society. It is the one bridge that gets across the great chasm of differences; it is the one relevant and realistic option for countries to continue to grow and improve." He added that "we can fall prey to the narrowness of politics, but trade will overcome it. I believe free trade will be sustained."

USA*Engage honored Congressman Blumenauer for his commitment to a U.S. diplomacy, including his votes against new unilateral U.S. sanctions efforts against Cuba and Iran. Represenative Blumenauer has sought to promote humanitarian engagement abroad, and as a new member of the House Ways and Means Committee, has been a strong supporter of a bipartisan trade policy. Representative Blumenauer focused his remarks on the need for multilateral cooperation on a range of issues – from environmental protection and global poverty to international trade.

Jake Colvin, Director of USA*Engage, said "Senator Hagel and Congressman Blumenauer each take a thoughtful and nuanced approach to U.S. foreign policy and are champions of international engagement." He added that “their commitment to ensuring that the United States remains a respected diplomatic leader in the world is one reason we honor their public service today."

Editor's Note: Senator Hagel will be speaking tomorrow, June 26, on U.S. foreign and trade policy at the Brookings Institution in Washington, DC. During his speech, Senator Hagel will examine the inventory of global challenges that the next president will inherit and the responsibilities of the presidential candidates to address these challenges.

6/26 Update: The text of Senator Hagel's speech, entitled “Memo to the Candidates" delivered today at the Brookings Institution can be found here. The speech contained the following discussion of trade issues:

Trade is a driving force for sustained economic prosperity and job creation both in the United States and throughout the world. Trade, however, is not a guarantee. The ongoing credit crisis and skyrocketing world food and energy prices are among the recent temptations for countries to restrict markets and veer toward protectionism that leads to dangerous insular thinking. These temptations must be resisted and the hard-earned lessons of history not forgotten. The United States must continue to press for a successful conclusion to the Doha Round of global trade negotiations. America’s leaders should stand behind our trade agreements and support the pending Free Trade Agreements with Colombia, South Korea and Panama as well as renewing Trade Promotion Authority for the next President.

Labels: Congress, Sanctions, TSRA

Last week the Office of Foreign Assets Control (OFAC) issued its third Biennial Report of Licensing Activities Pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) covering the period from October 2004 through September 2006.

The report indicates that during that two year period OFAC received 1,794 applications to export agricultural commodities, medicine and medical devices to Iran and Sudan under the TSRA program and issued 1,104 licenses. The report also indicates that it took OFAC an average of 33.1 business days to issue export licenses during that period. By contrast, the most recent quarterly TSRA report issued by OFAC shows that the average licensing times increased to 80 business days at the end of 2007.

In addition to providing licensing statistics, the report summarizes the public comments that OFAC had requested. According to OFAC, all of the comments expressed concern about the delays in the licensing process. In addition, the commenters mentioned the following other areas of concern:

• Lack of transparency in the interagency review process;
• Non-adherence to the established time guidelines;
• Inconsistency in license application requirements;
• Redundant requests to obtain official EAR99 Commodity Classifications;
• Difficulty in obtaining guidance or clarification concerning the scope of licenses issued;
• Difficulty in obtaining meaningful information concerning the status of pending license applications; and
• Failure to issue required reports to Congress in a timely fashion.

Among the suggestions submitted for improving the licensing procedures were:

• Process and issue one-year TSRA licenses on a more expedited schedule;
• Devote more resources to the license application processing, both at OFAC and at the reviewing agencies;
• Institute a "white list" of approved importers/end-users;
• Develop an internet- or telephone-based automated electronic export licensing application tracking system;
• Institute a priority processing system for agricultural commodities license applications;
• Establish an expedited mechanism for the renewal5 of expired one-year licenses;
• Work with the Commerce Department’s Bureau of Industry and Security (BIS) to have BIS' "Illustrative List of EAR99 Medical Devices" updated;
• Add additional staff to answer exporters’ questions; and
• Send TSRA licenses on a consistent basis via e-mail to applicants

In response to these comments OFAC stated that it will "undertake a review of its licensing procedures to better meet the needs of license applicants" and that "all comments made will be considered in the process of this review."

Labels: OFAC, TSRA

Today the Treasury Department's Office of Foreign Assets Control (OAFC) issued its most recent quarterly report of export licenses related to agricultural commodities, medicine and medical devices to Iran and Sudan under the Trade Sanctions Reform and Enhancement Act of 200 (commonly known as TSRA).

OFAC's report for the period October through December 2007 indicates that the average licensing time increased to 80 business days and that OFAC issued 100 licenses during the quarter. During the previous quarter (July-September 2007) OFAC issued 183 licenses with an average turnaround time of 70 business days.

By contrast, during the October-December 2005 quarter, OFAC issued 233 licenses with an average turnaround time of only 24.5 business days.

Labels: OFAC, TSRA

Earlier this week the Treasury Department designated Bahrain-based Future Bank B.S.C. and all its branch offices pursuant to Executive Order 13382 of June 28, 2005, “Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters.”

Future Bank was established in 2004 as a joint venture between two Iranian banks, Bank Melli and Bank Saderat, and a private bank based in Bahrain. According to the Treasury Department, Bank Melli and Bank Saderat, both of which have been designated by OFAC, hold 33.3 percent of Future Bank's outstanding shares and Future Bank is controlled by Bank Melli.

OFAC announced today that holders of valid OFAC licenses authorizing the exportation or reexportation of agricultural commodities, medicine or medical devices to Iran or Sudan are no longer permitted to engage in any transactions, directly or indirectly, with Future Bank B.S.C.

As a result of OFAC’s various actions against financial institutions to date, the following banks cannot be involved in payments associated with Ag/Med licenses issued pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA):

* Future Bank B.S.C.
* Bank Sepah
* Bank Saderat (including, Iran Export Bank, Bank Saderat PLC)
* Bank Melli Iran Zao
* Bank Kargoshaee (also known as Kargosa’i Bank)
* Bank Melli
* Melli Bank PLC
* Arian Bank (also known as Aryan Bank)
* Bank Mellat
* Mellat Bank SB CJSC (including Mellat Bank DB AOZT)
* Persia International Bank PLC

Labels: OFAC, Sanctions; Iran, TSRA