Archive for the ‘Sanctions’ Category

President Obama Signs Executive Order Imposing Additional Sanctions on Syria

Wednesday, October 5th, 2011 by Holly Thorne

On August 18, 2011, President Obama made a statement calling for Syrian President Bashar-Al Assad to “step aside” in light of recent events in Syria. The President also signed an Executive Order imposing the following additional sanctions on the country:

  • Requires the immediate blocking of all assets of the Government of Syria subject to U.S. jurisdiction.
  • Prohibits U.S. persons from exporting or reexporting services to Syria.
  • Prohibits U.S. imports of Syrian-origin petroleum or petroleum products
  • Prohibits U.S. persons from having any dealings in or related to Syrian-origin petroleum or petroleum products.
  • Prohibits U.S. persons, wherever located, from operating or investing in Syria.
  • Prohibits U.S. persons from approving, financing, facilitating or guaranteeing transactions by foreign person where the transaction by that foreign person would be prohibited if performed by a U.S. person or within the U.S.

Due to the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 (SAA), most exports and reexports of U.S. origin products to Syria have been prohibited since May 2004; however, the export of humanitarian products to Syria, such as medicines, agricultural products and medical devices, are still permitted with the proper licenses.

The following Syrian energy companies have been also added to the Specially Designated Nationals (SDN) List. All property of these companies subject to U.S. jurisdiction must be blocked and U.S. persons cannot engage in any transactions with these parties:

  • The General Petroleum Corporation
  • Syrian Petroleum Company
  • Syrian Company for Oil Transport
  • Syrian Gas Company
  • SYTROL: Syria’s

Additional information

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Posted in Countries, Sanctions, Syria | Comments Off

Violations

Monday, August 29th, 2011 by Holly Thorne

Toll Global Forwarding Will Be Paying It Back

The Bureau of Industry and Security (BIS) announced that Rosedale, New York-based Toll Global Forwarding (successor to Baltrans Logistics, Inc.) of will be paying a $200,000 penalty for  nine violations of the Export Administration Regulations. The Violations include:

  • Causing, Aiding or Abetting an Act Prohibited by the Regulations on eight different occasions between 2005-2007. On these occasions, Toll Global acted as a freight forwarder and arranged for the export of electronic components designated as EAR99 items from the US to Bharat Dynamics Limited in India.
  • Causing, Aiding or Abetting an Act Prohibited by the Regulations in November 2007 by acting as a freight forwarder and arranging for the export of platinum pellets (designated as EAR99 items) from the US to Solid State Physics Laboratory in India.

The interesting point in this case is that this forwarding company was penalized even though it apparently was not the exporter.  This case points out that BIS will not hesitate to impose penalties on parties involved in illegal transactions, even if they are the exporter who has the primary responsibility for compliance.

More information: http://efoia.bis.doc.gov/exportcontrolviolations/e2216.PDF

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Swiss Technology Inc. Pleads Guilty to Violating Arms Export Control Act, to Pay $1.1 Million Penalty

New Jersey-based defense contracting company Swiss Technology, Inc. will pay a $1.1 million penalty for violations of the Arms Export Control Act for exports of U.S. “defense articles” to the People’s Republic of China.

In August 2004, Swiss Tech entered into contracts with the U.S. Department of Defense (DoD) to manufacture defense articles and parts for use in military operations.     Between 2004 and June 2009, the Clifton, N.J.-based company exported their DoD drawings, specifications, and sample parts to the People’s Republic of China without obtaining a license from the U.S. State Department. Swiss Tech intended to contract with the Chinese company to cheaply outsource the manufacture of parts for M4 and M16 rifles, as well as M249 machine guns used in military operations. Their money-saving scheme didn’t come to fruition and instead resulted Swiss Tech receiving a $1.1 million penalty.

More information:
http://www.justice.gov/usao/nj/Press/files/Swiss%20Tech%20Plea%20PR.html; www.justice.gov/usao/nj

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Singapore Man Exports Carbon Fiber Illegally, To Pay $100,000 to Settle Charges

Jianwei Ding is facing BIS is facing the music for allegedly  conspiring to export carbon fiber items from the United States to China without the required licenses.

Ding is the manager of Jowa Globaltech Pte. Ltd. (also known as FirmSpace), and Far Eastron Co., both Singapore-based companies that acquire items for customers, including the China Academy of Space Technology. Despite several warnings from US suppliers, Ding acted in concert with these companies, and possible others, to export Toray carbon fibers that are controlled for nuclear proliferation and national security reasons.

More information: http://efoia.bis.doc.gov/exportcontrolviolations/e2216.pdf)

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Posted in BIS, Commerce Dept, Information Technology, Sanctions, Violations & Fines | Comments Off

Available Customer Service/Export Compliance Position

Tuesday, July 5th, 2011 by Danielle McClellan
Basic Purpose

Responsible for the administration of customer service issues, customer communications and customer requests and orders on a daily basis. Maintain and ensure integrity of all customer data in the business systems, including customer property, orders and associated dollars.  Assure that all customer requests for quotes are properly managed in the PTS system. Responsible for maintaining and ensuring accurate backlog, orders, and market segmentation data.

Position Specification
Education/Experience

  • An Associates or Bachelors degree with a minimum of 5 years related industry work experience.
  • Solid understanding of military and commercial export compliance regulations.
  • Demonstrated ability to effectively and professionally communicate with all levels in the organization, vendors and customers.
  • Understanding of pricing models.
  • Proven negotiation skills.
  • Strong verbal and written communication skills.
  • Strong computer skills with working knowledge of MS Office and Access.
  • Proven team-work capabilities and experience.
 Additional Requirements

  • Understanding of the Fourth Shift or Syteline ERP system.
  • Able to handle and resolve customer complaints and problems and escalate when required.
  • Willing and able to develop long-term relationships internally and externally.
  • Attention to detail.
Functional Scope

The Customer Service Representative provides support to both the internal and external customers of the company.  This position plays an active role in the maintenance and management of the various business systems. Success in this role will require a proactive approach and the ability to create and implement process improvements to ensure that the systems and processes are as robust as possible to provide superior service to the customers.
Duties and Responsibilities

  • Responsible for the accurate and timely management of all sales order activity.
  • Ensure all sales data is accurate and complete in order to maintain order, market and backlog reporting integrity including schedule and associated dollars.
  • Responsible for raising export compliance concerns to the DECA or DECA backup when required.
  • Serves as a central point of contact for customer inquiries. Provides customers with updated order and delivery status.
  • Responsible for inputting data (RFQs, pricing, status, etc) into the PTS (Proposal Tracking System) and ensuring that all data is accurate and complete and up to date.
  • Provides engineering with request for quote information required to initiate estimating process.
  • Performs contract review and order acceptance process. Controls and maintains master contracts/ purchase order files.
  • Assists with the configuration control process.
  • Performs the EDI transaction conversion to the business system. Tracks changes in delivery dates, prices and handles terminations.
  • Maintains customer information in the various business systems.
  • Responsible for disseminating Terms and Conditions, special shipping instructions, configuration changes and quality requirements throughout the organization.
  • Assists accounting with invoicing and collection issues.
  • Review Customer Scorecards.
  • Perform other duties as required by the business and as instructed by supervisor.
Essential Functions of Position

Interpersonal Skills

  • Must be able to communicate clearly and effectively with all levels of personnel within the organization and the customer.
  • Must be able to communicate orally and/or in writing as to work requirements, work in progress, and/or work completion
  • Must be able to follow complex instructions and/or directions. May require ability to decide on a course/sequence of action

Schedule and Planning

  • Must be able to schedule and organize time effectively to satisfactorily complete assigned tasks and functions.

Physical Effort

  • Minimal physical effort
  • May be required to travel occasionally to customer premises or corporate office.
  • Operate personal computer.

Working Conditions

  • Primarily work in office areas with exposure to shop floor.
  • Generally responsible for the safety and clean up of own work area.

Disclaimer

  • The above information on this job description has been designed to indicate the general nature and level of work performed by employees within this classification. It is not designed to contain or be interpreted as a comprehensive inventory of all duties, responsibility and qualification required of employees assigned to this job.

Contact Pamela R. Daly regarding this position at:

Barnes Aerospace

169 Kennedy Rd

Windsor, CT 06095

P: 860-687-5270

F: 401-228-0823

pdaly@barnesaero.com

Posted in BIS, Commerce Dept, DDTC, Defense Trade Controls, EAR, Export License, Jobs/Careers, Jobs/Careers, OFAC, Sanctions, State Dept, State Dept, USA Regulations | Comments Off

Balli Group and Ballie Aviation Discloses More Violations, $2 Million Penalty Unsuspended

Monday, June 27th, 2011 by Anna Barone

By: Anna Barone

As the result of a self-disclosure, Balli Group and Balli Aviation’s the Bureau of Industry and Security has unsuspended the previously suspended $2 million penalty. The suspended $2 million was a portion of the $15 Million penalty levied against Balli Group and Balli Aviation on February 5th.  They will not be debarred or suspended from export transactions if the penalty is paid on schedule.

More Information available: http://efoia.bis.doc.gov/ExportControlViolations/TOCExportViolations.htm

Posted in Sanctions, Violations & Fines | Comments Off

State Department Sanctions Seven Companies for Involvement in Petroleum Business with Iran

Monday, June 27th, 2011 by Anna Barone

By: Anna Barone

The Department of State imposed sanctions on seven companies under the Iran Sanctions Act (ISA) of 1996, as amended by the Comprehensive Iran Sanctions, Accountability, and Divestment Act (CISADA) of 2010, for their activities in support of Iran’s energy sector. (more…)

Posted in Iran, Sanctions | Comments Off

State Amends ITAR to Reflect UN Sanctions on Libya

Monday, June 27th, 2011 by Anna Barone

In the May 24, 2011 Federal Register the Department of State amended the International Traffic in Arms Regulations (ITAR) to update the policy regarding Libya to reflect the United Nations Security Council arms embargoes adopted in February and March.  This does not make a significant change to US export control policy because Libya is already an ITAR 126.1 prohibited country and because State has already cancelled previously approved.

Posted in ITAR, Libya, Sanctions | Comments Off

Valve Company CEO Sentenced to 13 Months Prison for Violating Iran Sanctions

Monday, June 27th, 2011 by Anna Barone

By: Anna Barone

The CEO of a Bakersfield-based company has been fined and sentenced to 13 months in prison for conspiring to illegally export industrial valves to Iran.  A federal judge in Fresno sentenced GWC Valve International Inc. CEO David Meador on Monday, also ordering him to pay a $10,000 fine. The company was fined $300,000, put on 5 years’ corporate probation. Both the 52-year-old Meador and the company pleaded guilty last year to conspiring to violate U.S. economic sanctions, which prohibit virtually all trade and investment activities with Iran by U.S. citizens. Authorities say between July 2005 and May 2008, GWC and Meador received almost $2.2 million in valve orders from Iranian customers, whose identity they concealed.  The judge also ordered the company to forfeit nearly $411,000.

More Information available: http://www.businessweek.com/ap/financialnews/D9N4K7P80.htm

Posted in Iran, Sanctions | Comments Off

US Lifts Sanctions on High Level Libyan Government Defector

Tuesday, May 3rd, 2011 by Anna Barone

Two weeks after President Obama implemented sanctions against Muammar Qadafi and the Government of Libya, Treasury designated Libya’s then Foreign Minister, Moussa Koussa for sanctions pursuant to Executive Order 13566 for being a senior official of the Government of Libya.

Koussa has since severed ties with the Qadhafi regime, and today the United States is lifting sanctions against him as he is no longer subject to sanctions for being a senior official of the Government of Libya. Koussa’s name will be removed from Treasury’s Specially Designated Nationals (SDN) List, and he is no longer subject to an asset freeze.

Koussa’s defection and the subsequent lifting of sanctions against him should encourage others within the Libyan government to make similar decisions to abandon the Qadhafi regime.

There are currently 13 senior Libyan government officials on the SDN List, and we expect to announce additional sanctions against other officials in the coming days. Those who continue to serve in the Libyan government should be put on notice that Treasury will continue to aggressively identify and target senior officials for sanctions.

More Information Available:

http://www.treasury.gov/connect/blog/Pages/Lifting-Sanctions-Against-Libyas-Former-Foreign-Minister.aspx

Posted in Libya, Sanctions, Treasury Dept, Treasury Dept, Uncategorized, USA Regulations, USA Regulations, Violations & Fines, Violations & Fines | No Comments »

Make it Snappy, SNAP-R Holders

Tuesday, May 3rd, 2011 by Anna Barone

All SNAP-R Account Holders with at least one active SNAP-R account must designate an administrator by June 9, 2011.  After this date, all active SNAP-R user accounts associated to the company CIN without a designated company administrator will become inactive until at least one company administrator is designated.

More Information Available:

http://www.bis.doc.gov/news/2011/fr_02092011.pdf

Posted in Defense Trade Controls, Sanctions, USA Regulations, USA Regulations, Violations & Fines, Violations & Fines | No Comments »

Judge Says State Utility Officials are FCPA “Foreign Officials”

Tuesday, May 3rd, 2011 by Anna Barone

On April 1, 2011, US District Judge Howard Matz, of the Central District of California, held that officials of Mexico’s state-owned utility company qualify as foreign officials for purposes of the FCPA. Judge Matz’s ruling, which comes in the case of U.S. v. Noriega, No. 2:10-cr-01031, could have far-reaching implications for how other courts interpret the definition of a “foreign official” and for how the DOJ prosecutes FCPA cases going forward.

Summary of Judge Matz’s Ruling and its Implications for Future FCPA Cases:

Defendants: The President and CFO of Lindsey Manufacturing Company (LMC)

Charge: Violating the FCPA by conspiring to bribe officials of Mexico’s Comisión Federal de Electricidad (CFE), an electric utility company owned by the government of Mexico.

Defense: Argued that officers and employees of state-owned corporations, like the CFE, do not fall within the FCPA’s definition of “foreign official.” The statute provides that foreign officials include “officer[s] or employee[s] of a foreign government or any department, agency, or instrumentality thereof[.]“  Furthermore, the defendants contended that Congress did not intend the word “instrumentality to cover state-owned corporations.

Ruling: Judge Matz disagreed with the defense and declined the defendants’ invitation to delve into the FCPA’s legislative history and, instead, relied on certain undisputed facts plus a reading of Mexican law.  Judge Matz noted the following about the CFE and, therefore, found that the CFE officials identified in the indictment were “foreign officials” under the FCPA.

    • It supplies electricity to all of Mexico except for Mexico City.
    • Its governing board is composed of Mexican government officials
    • The Director General is appointed by the President of Mexico
    • Their English language website described it as an agency of the Mexican Federal Government.
    • Its status under Mexican Constitution provides that the supply of electricity in Mexico is solely a government function and Mexican statutory law defines the CFE as a “decentralized public entity with legal personality and its own patrimony.”

Implications: The decision in Noriega could have a domino effect, as defendants in other FCPA cases have recently raised identical issues. Given the lack of judicial authority in this area, these courts will likely have to grapple with the Noriega decision.

Additional information available:

http://www.securitiesdocket.com/2011/04/11/court-rules-on-meaning-of-foreign-official/

Posted in Sanctions, USA Regulations, Violations & Fines | 2 Comments »

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