Early Christmas.. here’s a PowerPoint presentation given by Nancy Meyer, Supervisory Defense Trade Anaylst from the US Department of State, at the series of International Traffic in Arms Regulations (ITAR) seminars in February and March 2006.  The presentation provides details on the administration of ITAR, and the responsibilities industry have in complying with it. Posted at the Australian Industry, Tourism and Resources website

Posted on April 25th, 2007 by keeton
Filed under: Uncategorized | 1 Comment »

Dr. Paul Fredenberg writes a regular export compliance column for American Machinist.com. Here he comments on industry efforts to compete in the world of EAR and ITAR. Read the article here. 

Export controls make sense to those who are concerned about the United States losing its technological edge over potential adversaries because America depends upon its technological edge to protect its national security. Yet it has become increasingly evident that export controls have significant economic consequences.

”  …the U.S. export control system is frequently used by our competitors as a compelling reason for not buying U.S. products. They argue that the purchase of the non-U.S. product won’t subject the buyer to the vagaries and delays that are almost certain to result from the U.S. regulatory system. “

Posted on April 25th, 2007 by keeton
Filed under: News | Comments Off on The Economic Consequences Of Export Controls – AmericanMachinst.com

WASHINGTON (Reuters) – The Bush administration asked Congress on Tuesday to sharply increase penalties on companies that violate export controls on dual-use technology and give Commerce Department agents new investigative powers at home and abroad. 

“In today’s post-9/11 world we need to give law enforcement officers the vitally important tools necessary … to keep the most sensitive items out of dangerous hands,” Commerce Secretary Carlos Gutierrez said in a statement. 

 

The proposed Export Enforcement Act of 2007 would give the Commerce Department’s Bureau of Industry and Security (BIS) “enhanced tools in the fight against terrorism and weapons of mass destruction,” the Commerce Department said. 

It would increase maximum corporate penalties from $50,000 under the executive orders to either $5 million or ten times the value of the exported good, whichever is more. 

It would also give the Commerce Department’s special agents statutory authority to investigate overseas and expanded undercover authority, the department said.

 

Read the rest at Reuters India website

Posted on April 25th, 2007 by keeton
Filed under: News | Comments Off on Bush To Congress – Sharp Penalty Increases and More Enforcement Power For BIS

John Huddle, CEO and practicing attorney with The Global Law Group in Richmond and chairman of the Virginia-D.C. District Export Council (DEC) spoke to the Blue Ridge Business Journal on the ITT fine, reverse engineering,  and other export compliance issues. Read the article by Michelle Long here. 

“In a nutshell,” Huddle says, “two problems are common and seem to have been manifested in the ITT situation.” 1) Effective written compliance programs that accommodate legitimate business needs with a system for checks and balances, so that it (a) educates, (b) prevents non-compliance, and (c) detects non-compliance early, whether by ignorance or willful misconduct; 2) Sales teams are especially vulnerable to compliance violations because they are on the front lines interacting with customers and it is imperative that they get the proper training.

Posted on April 25th, 2007 by keeton
Filed under: Uncategorized | Comments Off on ITT and Today’s Export Compliance Issues – An Expert Reflects

The White House today announced that it was sending to Congress the “Export Enforcement Act of 2007.” The proposed legislation would substantially increase penalties for violations of the Export Administration Regulations (”EAR”):The proposed Export Enforcement Act of 2007 . . . would increase maximum corporate penalties from $50,000 under the executive orders to either $5 million or ten times the value of the exported good, whichever is more.Yikes! Penalties The White House today announced that it was sending to Congress the “Export Enforcement Act of 2007.” The proposed legislation would substantially increase penalties for violations of the Export Administration Regulations (”EAR”):Read the rest of the story at ExportLawBlog.com 

Posted on April 25th, 2007 by keeton
Filed under: Uncategorized | Comments Off on ExportLaw.com on Export Enforcement Act of 2007 -“Yikes!”

ExportLawBlog has been diligently following a ITAR case in which the prosecution seems to be redefining what public domain is.

Blogger Cliff Burns discusses more ITAR-thumping courtroom perplexiites from the Chai Mak case in California. Read it here. 

Posted on April 19th, 2007 by keeton
Filed under: Uncategorized | Comments Off on Argument in Mak Trial Makes Exports of 757s to China Illegal – From ExportLawBlog

A dispute over U.S. security provisions has slowed Canada’s planned purchase of maritime helicopters and, at one point last year, led Department of National Defence (DND) officials to consider shutting down the project, a newly declassified report says.

At the heart of the issue are U.S. International Traffic in Arms Regulations (ITAR), which have limited Canadian access to technical information for its purchase of a version of Sikorsky’s H-92 helicopter for maritime missions. Canada is buying 28 helicopters, dubbed the Cyclone, to replace its aging Sea King choppers in a program worth 5 billion Canadian dollars ($4.3 billion).

Read more at DefenseNews.com

Posted on April 19th, 2007 by keeton
Filed under: Uncategorized | Comments Off on ITAR Disputes Continue In Canada – Cyclone Helicopter Plans Threatened

Export Charges May Affect Indian-U.S. TiesIndian government officials are wondering how the U.S. Justice Department’s April 2 indictment of four Indian nationals on charges of violating technology export-control laws will affect defense ties and the nuclear cooperation accord between Washington and New Delhi. Read the complete story at DefenseNews.com      

 US considers Licenses for Exports of Defense items to Vietnam

The US Department of State has changed its licensing policy with respect to Vietnam and consider granting licenses for exports of non-lethal defence articles to Vietnam from Apr. 3. The move is part of the amendment made by the Department of State to the International Traffic in Arms Regulations (ITAR) regarding Vietnam. Under the amendment, the Department of State will consider on a case-by-case basis licenses, other approvals, exports or imports of non-lethal defense articles and defense services destined for or originating in Vietnam. Read the complete story at Vietnamnet.com   U.S. says India broke law to get weapons technology By Mark Mazzetti and Neil A. Lewis Tuesday, April 3, 2007 WASHINGTON: The Justice Department has charged that agencies of the Indian government participated in a conspiracy to sidestep U.S. export regulations and obtain secret weapons technology from American companies over several years. The indictment, disclosed Monday, charges that a private electronics firm, Cirrus, operating in Singapore, South Carolina and Bangalore, India, was working as an agent of the Indian government to obtain sensitive missile and weapons technology for its military programs.Read the complete story at iht.com 

United States: OFAC Revises Sanctions Against Sudan And North Korea The United States continues to refine its sanctions against Sudan and North Korea in light of changing political realities on the ground. Specifically, on Oct. 17, 2006, President Bush signed Executive Order 13412 (the “Executive Order”) which provides certain exceptions to the Sudanese sanctions for designated areas of the country (Southern Sudan, Southern Kordofan/Nuba Mountains State, Blue Nile State, Abyei, Darfur, and marginalized areas in and around Khartoum; henceforth, the “Exempt Areas”). In addition, in light of recent U.N. Security Council resolutions, the United States on Jan…. Read the complete story at Mondaq.com 

Posted on April 9th, 2007 by keeton
Filed under: Uncategorized | Comments Off on ExportRules.com News Briefs 4-9-07

The U.S. and South Korea reached agreement on a trade deal between the two sides, barely meeting a deadline for the Bush administration to submit the deal to the U.S. Congress for their approval. Read that story on Agweb.com   But it may not get through Congress said a key Michigan Democrat who wants changes to help the US auto industry.

“In automotive, the Koreans got what they wanted,” said US Representative Sander Levin. “The U.S. did not get what was needed – an agreement that assures that the U.S. automotive industry will no longer face the barriers to their products, that trade will be truly a two-way street.” Read the full story at the Bradenton Herald website.

Posted on April 7th, 2007 by keeton
Filed under: Uncategorized | Comments Off on US Korea Agreement Reached May Be Dead In the Water….

The latest on the US/India techno scnadal from th Daily News and Analysis out of Mumbai, India…

NEW YORK: Cirrus Electronics founder Parthasarathy Sudarshan, 46, was arraigned before US Magistrate Judge Deborah Robinson on Tuesday on charges of illegally smuggling dual-use technology linked to the development of missile and aerospace systems to three Indian state-run agencies.

Sudarshan and another Cirrus executive Mythili Gopal, 36, were both arrested on March 23 based on a 15-count federal grand jury indictment. The indictment also charged two other Cirrus employees, AKN Prasad of Bangalore and Sampath Sundar of Singapore, for their roles in acquiring US i960 microprocessors for the Tejas, a fighter jet being developed by India’s Aeronautical Development Establishment.

“These arrests put a network of technology smugglers out of business and demonstrate that we have no tolerance for weapons proliferators who illegally supply entities with weapons technology,” said Assistant Attorney General Kenneth L Wainstein.

Cirrus allegedly shipped Static Random Access Memory computer chips that are designed to withstand extreme heat, capacitors and resistors to Singapore, and then clandestinely re-exported them to India’s state-run Vikram Sarabhai Space Centre, Bharat Dynamics and the Aeronautical Development Establishment.

US prosecutors have built their case against the defendants with the help of the FBI and US commerce, customs and immigration agencies. If convicted of the charges, Sudarshan could face up to 10 years in prison, while Gopal up to six years. Prasad and Sundar face likely sentencing ranging from six to eight years if convicted.  

“Networks that procure US technology whose export is restricted to combat proliferation and then seek to evade US export and licensing regulations undermine our national security,” said US Attorney Jeffrey Taylor indicating a tough stand. Opponents to the Indian nuclear deal are using this case to needle the Bush administration. However, State Department spokesman Sean McCormack stressed that the US and India have “strong” ties and “this will not change” because of the case.

“This is a law-enforcement matter that began before our efforts to conclude a civilian nuclear cooperation agreement,” said McCormack.  “The arrests of these individuals are not connected to our efforts to conclude an agreement.” 

Posted on April 7th, 2007 by keeton
Filed under: Uncategorized | Comments Off on Update On Indian Government Espionage Case – Cirrius Chief Faces 10 Years