Archive for 2009

Electronic Applications for Agreements Are Here

Saturday, December 19th, 2009 by Danielle McClellan

DDTC recently announced that starting October 19, 2009 they will be allowing US applicants to submit agreements electronically via the D-Trade 2 application. D-Trade 2 will be the means for submitting, reviewing, and approving agreement proposals. The system uses the DSP-5 tool to transition agreements and their respective amendments from on phase of the adjudication process to the next.

At this time only new agreements and re-baselined agreements may be submitted using D-Trade 2. Amendment proposals for paper agreements must be submitted via paper. Once an electronic agreement is approved, then electronic amendments to that approval may be submitted. DDTC will continue to accept both paper and electronic agreements but do expect to make electronic submissions mandatory for all applicants by fall 2010. So the rule of thumb is if your agreement was submitted via paper so will the amendments to that agreement.

DDTC has also encourage applicants to thoroughly read and review the Guidelines for Preparing Electronic Agreements (Coordinating Draft-3) dated October 7, 2009 before attempting to submit an electronic agreement.
Web Notice: http://pmddtc.state.gov/licensing/documents/WebNotice_ElectronicAgreements.pdf

BIS Clarifies ECCNs 2B116 and 2B101

Monday, November 9th, 2009 by Danielle McClellan

BIS is once again amending the EAR. In November 2008 the Missile Technology Control Regime (MTCR) members determined that it was necessary to clarify the controls related to ECCN 2B116, more directly to clarify that systems capable of a range of at least 300km, regardless of payload capacity fall under 2B116.  In order to make this jive with the current Regulations, BIS has issued a final rule adding, “capable of a range of at least 300 km” to ECCN’s 2B101 and 2B116.

This change is effective November 9, 2009. BIS has stated that “shipments of items removed from eligibility for a license exceptions or NLR as a result of this ruling that were on dock for loading, on lighter, laden aboard an exporting or reexporting carrier, or en route abroad a carrier to a port of export/reexport on November 9, 2009 pursuant to actual orders for export/reexport to a foreign destination may proceed to that destination under the previous eligibility for a license exception or NLR as long as they are exported/reexported before December 9, 2009.”

Federal Register: http://edocket.access.gpo.gov/2009/E9-26961.htm

Senate Banking Committee wants Tougher Trade Sanctions on Iran

Monday, November 2nd, 2009 by Danielle McClellan

On October 29 The Senate Banking Committee unanimously approved legislation that, if it ever becomes a law,  would strengthen economic and trade sanctions against Iran. The Comprehensive Iran Sanctions, Accountability and Divestment Act would strengthen the Treasury Department’s ban on trade with Iran. The act includes the following provisions: (more…)

Treasury Announces Countries Enforcing Boycott on Israel

Friday, October 30th, 2009 by John Black

The Department of Treasury released a list of countries that “may require participation in, or cooperation with, an international boycott (meaning of section 999(b)(3) of the Internal Revenue Code of 1986).” The following countries have been named on the list: (more…)

$450,000 Penalty ($400,000 Suspended) for Illegal Valve and Pump Exports

Friday, October 30th, 2009 by Danielle McClellan

FSI International, Inc. was charged with 66 violations of the EAR after the company voluntarily self disclosed the violations to BIS earlier this year. The charging letter stated that between 2003 and 2006 FSI exported fluoropolymer-coated valves and pumps from the US to China, Israel, Malaysia, Taiwan, and Singapore. The valves and pumps are classified 2B350 for chemical and biological weapons proliferation reasons. (more…)

UAE Firms Pays $44,625 Fine for Antiboycott Violations

Friday, October 30th, 2009 by Danielle McClellan

M-I Production Chemicals of the UAE has been charged with 20 violations of the EAR and a $44,625 fine. The company didn’t export anything illegally, but did agree to prohibited antiboycott activities in conjunction with the sale of goods/services (the charging letter doesn’t state which) from the US to Syria.

Many of you may be asking why is a foreign company is charged with breaking US antiboycott laws, well M-I Production Chemicals (MIPC) is a “controlled-in-fact foreign affiliate” of M-I LLC of Delaware. This means that the US parent company operates and/or has control over the foreign subsidiary, an important reminder to foreign companies who are controlled by their US parent company.

(more…)

$91,000 Oscilloscopes to Pakistan Nets $125,000 Fine

Friday, October 30th, 2009 by Danielle McClellan

Utech Product’s Inc. was recently charged with 3 violations of the EAR. The charging letter explains that the New Jersey company failed to get a license for 3 exports of oscilloscopes to Pakistan. The oscilloscopes are classified under ECCN 3A292 and are controlled for nuclear nonproliferation reasons. The charging letter stated that the exports were valued at $91,000; BIS fined the company $125,000 for the violations. Looks like they won’t be making a profit on that export. 

Charging letter: http://efoia.bis.doc.gov/ExportControlViolations/TOCExportViolations.htm

DDTC Revises Electronic DSP-61 to Allow Multiple Foreign Intermediate Consignees

Friday, October 23rd, 2009 by Danielle McClellan

DDTC recently published a web notice stating that the DSP-61 PureEdge form has been fixed and Block 20-Foreign Intermediate Consignee will now allow users to include additional parties on the form. Previously the “add” feature on Block 20 included 12 separate Name and Address blocks, all of which were not functional, but are now. The new form will fall under version 3.1 and will be implemented on October 23, 2009.

Inquiries regarding the new form should be sent to: Kwaku Pipim: 202-663-2282 or pipimka@state.gov, or Kathryn Wilderotter: 202-261-8598 or widerotterkl@state.gov.

Web Notice: http://pmddtc.state.gov/documents/IndustryNotice-DSP61.pdf

Businessman Pleads Guilty to Illegal Bribes

Thursday, October 22nd, 2009 by Danielle McClellan

Joseph T. Lukas, a partner in Nexus Technologies Inc., has pled guilty in connection with a conspiracy to bribe Vietnamese government officials. Nexus was a privately owned export company that found US vendors for Vietnamese government contracts that involved underwater mapping equipment, bomb containment equipment, helicopter parts, chemical detectors, satellite communication parts and air tracking systems. Lukas was in charge of the negotiations of these contracts with US suppliers. The Vietnamese officials included the commercial branches of Vietnam’s Ministries of Transport, Industry and Public Safety. (more…)

DDTC Waives Amendment Requirements for Specified Name Changes and Acquisitions

Thursday, October 22nd, 2009 by John Black

The Directorate of Defense Trade Controls in the State Department has announced several instances when a company name change (sometimes involving an acquisition) will not require that license and agreement holders follow the burdensome ITAR requirements for amending or replacing outstanding licenses or agreements.

These announcements will save a great deal of work for DDTC and the parties involved in the impacted licenses and agreements.

Here are the most recent announcements: (more…)