Archive for the ‘Pakistan’ Category

State/DDTC Updates Pakistan Policy: No New Licenses for MDE Exports to Pakistan Until Pakistan Act Waiver is Issued

Tuesday, November 1st, 2011 by Holly Thorne

Notice to Exporters – Pakistan Policy Update, 5 Oct 2011 (October 1, 2011) Section 203 of the Enhanced Partnership with Pakistan Act of 2009 (Public Law 111-73) prohibits for fiscal years 2012-2014 the issuance of export licenses for major defense equipment (defined in 22 U.S.C. 2794(6)) to be exported to Pakistan absent an appropriate certification or waiver under Section 203 in the fiscal year. Since no certification or waiver has been issued for fiscal year 2012, exporters are advised not to submit such license requests to DDTC. A new notice will be issued in the event of a waiver or certification in fiscal year 2012.

Source: http://pmddtc.state.gov/FR/2011/Pakistan_WebNoticeExporters.pdf

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Don’t Do This: PPG’s License Application Denied and It Went Ahead Anyway

Friday, February 18th, 2011 by John Black

Was I dreaming when I read various export control pundits talking about the significance of the PPG enforcement case (reported above) because the US went after a company in China or because there was this indirect issue or that indirect issue?  Sorry, this is not new.  The new importance and “sweeping significance” of this is way over-rated.  It appears some experts are attempting to distort the importance to make it a broader, scary issue.  The issue is they got a license denied and shipped anyway.  That has always been at the top of my personal list of violations not to commit.

Shipping after a license is denied is willful and knowing and intentional and criminal, and, by the way, stupid.  Not only did they know a license was required, they knew the USG would deny the license.  People could have gone to jail and companies could have been added to the denial list.   Not a mistake or accident here but intentionally violating the regulations.  Add that to nuclear facility, entity list, China and Pakistan, and you have a big ole stew of aggravating factors

Perhaps I should apologize for saying the violation was stupid.  My mother always says it is rude to say “stupid.”  OK, the violation demonstrates a lack of sound judgment and thought and illustrated behavior based greed.  I just assumed that everybody knows that if BIS denies your license application, there is a good chance BIS will watch your company closely because BIS suspects your company will ship anyway.  You know why BIS does that?  Because idiotic (my mother doesn’t read this stuff) companies ship anyway when their license is denied. (more…)

Posted in BIS, CCL, China, Commerce Dept, Export License, Pakistan, Violations & Fines | Comments Off

PPG China Pays $3.75 Million Penalty

Friday, February 18th, 2011 by Danielle McClellan

One of the largest monetary penalties imposed on a non-US company for violating US export controls was imposed on PPG Paints Trading (Shanghai) Co., Ltd., a wholly-owned Chinese subsidiary of US-based PPG Industries, Inc.  PPG was hit with over $3.75 million in fines for four counts of violating IEEPA and the EAR.  The government’s aggressive enforcement of the export control laws should be a sign to companies that violations are costly and will not be taken lightly, no matter where the company is located. (more…)

Posted in BIS, China, EAR, Export License, Pakistan, Violations & Fines | Comments Off

$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

Posted in BIS, EAR, Export License, Pakistan, Violations & Fines | Comments Off

Another Valve Maker Gets Nailed

Sunday, September 30th, 2007 by John Black

Well, it seems to me that export compliance might be a good topic for the next annual meeting of US valve company executives and lawyers. Commerce Department law enforcement agents have found the valve industry to be a reliable source for a steady stream of violations. Just when I think maybe the stream will dry up, the valve industry offers up another victim.

Hmmm, “Valve Industry Export Control Update” has a nice ring to it…

The Commerce Department’s Bureau of Industry and Security (BIS) charged Cole-Parmer Instrument Co. for committing 10 violations of the Export Administration Regulations (EAR) for illegally exporting valves to China and Pakistan. Cole-Parmer Instrument Co. was forced to pay a civil penalty of $55,000 for violating the Regulations.

More information:

E2004.pdf (PDF)

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Update on New Country Requirements and Policies

Saturday, August 30th, 2003 by Maarten Sengers

Here is a rundown of changes to US Government trade control policy for certain countries:

India and Pakistan ITAR Licensing Policy

In a Federal Register Notice dated June 20, DDTC declared that defense export licenses to India and Pakistan would now be reviewed on a case-by-case basis. According to information posted on the www.pmddtc.state.gov website, the previous licensing policy had been one of denial.

Rwanda Licensing Policy Changes

Both DDTC and EAR changed their regulations to loosen restrictions surrounding the lifting of the UN Arms Embargo on Rwanda. The ITAR changes essentially enunciate a new case-by-case license policy for the Government of Rwanda only. For all non-Government exports, all other 126.1 ITAR proscribed country restrictions remain, including a policy of denial for licenses. Likewise, exemptions may not be used for non-Government end users.

Burma

On July 29, 2003, President Bush issued an Executive Order that place further trade restrictions on Burma (a.k.a. Myanmar). Previous to this order, the Foreign Assets Control regulations restricted investment by US firms in Burma. The Executive Order expands Burma trade restrictions. First the order freezes all assets of the Government of Burma that enter the US or are in the possession of US Persons (which includes US branch offices overseas). Second, all imports from Burma into the United States (but not exports or reexports to Burma) are prohibited effective August 28, 2003. The order also prohibits the export or import of financial services. The order contains restrictions of any facilitation of any activity by a third person that a US person could not engage in.

So you may continue to export commercial products to Burma, but dealing with the Government and Government entities will be tricky as Government assets are frozen and related financial services, such as confirming or negotiating a Letter of Credit, are restricted. No barter deals: imports into the US from Burma will soon be prohibited. Burma continues to remain an ITAR proscribed country, so defense article exports are prohibited.

Iraq

On June 27, OFAC formally amended its regulations on Iraq that now basically allow most EAR99 and “xx991″ export and reexports to Iraq under a General License. We described these changes last month, and this regulation adds nothing new.

Posted in Burma/Myanmar, DDTC, Defense Trade Controls, EAR, Federal Register, India, Iraq, ITAR, OFAC, Pakistan, USA Regulations | Comments Off

Update of Lifting of US Sanctions on India and Pakistan

Monday, October 1st, 2001 by John Black

The US Government has taken several steps to implement President Bush’s executive order waiving export and trade sanctions on India and Pakistan. The United States decided to relax its sanctions against India and Pakistan because of their cooperation in the US antiterrorism campaign. Bush’s executive order of September 22, 2001 effects both the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR), as well as trade US trade financing rules.

(more…)

Posted in BIS, Defense Trade Controls, EAR, Federal Register, India, ITAR, Nonproliferation & Nuclear, Pakistan, Sanctions | Comments Off

Terrorist Attack: New Restrictions on “Terrorists” and Relaxations for Cooperative Countries

Sunday, September 23rd, 2001 by John Black

In the aftermath of the September 11, 2001 terrorist attack against the United States, President Bush used export and trade controls to punish targeted “terrorists” and reward countries that have cooperated with the new US antiterrorism campaign.

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Posted in Commerce Dept, Defense Trade Controls, Denied & Restricted Parties, Finance & Banking, India, Information Technology, ITAR, OFAC, Pakistan, Sanctions, Terrorism | Comments Off

President Approves Military Exports to Pakistan

Friday, August 24th, 2001 by John Black

In the August 24, 2001 Federal Register President Bush announced that he has decided to approve exports of US helicopter parts and armored personnel carrier parts to Pakistan. Bush cited special circumstances as his reason for overriding the laws that prohibit the approval of licenses for exports of military items to Pakistan. The special circumstances are that the parts are intended for use by Pakistan in its deployment in Sierra Leone in support of UN peacekeeping operations.

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