Recent Enforcement Actions And Updates (International Trade and Technology Transfer).Office of Foreign Assets Control The Office of Foreign Assets Control (OFAC) is an agency of the United States Department of the Treasury under the auspices of the Under Secretary of the Treasury for Terrorism and Financial Intelligence. OFAC administers and enforces economic and trade sanctions based on U. (OFAC OFAC Office of Foreign Assets Control (US Treasury) OFAC Ontario Farm Animal Council (Canada) OFAC Olmsted Falls Airport Committee OFAC Organic Fertilizer Association of California ) - US Department of the Treasury Guidant Corporation Settles Charges Pertaining to License Violation: Guidant Corporation agreed to pay US$277,017 to settle allegations of violating the Iranian Transactions Regulations and Iraqi Sanctions Regulations between July 2000 and July 2004. The OFAC alleged Guidant operated its vascular intervention and cardiac surgery Cardiac surgery is surgery on the heart and/or great vessels performed by a cardiac surgeon. Frequently, it is done to treat complications of ischemic heart disease (for example, coronary artery bypass grafting), correct congenital heart disease, or treat valvular heart disease units without an OFAC license. Varian, Inc. Settles License Allegations: Varian, Inc., on behalf of its subsidiaries Varian A.G. Switzerland and Varian Deutschland GmbH, agreed to remit US$114,958 to settle OFAC's allegation that it sold software in Iran and Iraq without an OFAC license between March 2001 and October 2003. Last year Varian paid more than US$60,000 in connection with similar claims against its subsidiaries to the BIS. Coda International Tours, Inc. Settles Cuban Embargo Allegations: Coda International Tours, Inc. agreed to remit US$3,500 for alleged violations of the Cuban Assets Control Regulations by conducting restricted business with Cuba without an OFAC license between May and November 2004. Bureau of Industry and Security The Bureau of Industry and Security (BIS) is an agency of the United States Department of Commerce which deals with issues involving national security and high technology. (BIS) - US Department of Commerce EMD EMD Electromechanical dissociation, see there Chemicals Inc. Faces Civil Penalty for Improper Exportation: EMD Chemicals Inc. must pay US$44,000 in civil penalties for exporting controlled acid to Guatemala and re-exporting industrial pigments to Iran without BIS authorization. Sales Director to Pay US$60,000 to Settle Export Violation Charges: Robert Abreu, senior director of strategic sales, Supermicro Computer, Inc. of San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif., agreed to pay a US$60,000 civil penalty for allegations of arranging and approving sales agreements regarding the export of super servers to Iran without a license. New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). Company Fined US$50,000 for Prior Illegal Exports to Cuba by Acquired Company: On April 25, 2007 LogicaCMG, Inc., successor to CMG CMG Coastal & Marine Geology (USGS) CMG Chipotle Mexican Grill, Inc. (stock symbol) CMG Companion (of the Order Of) St Michael and St George CMG Computer Measurement Group Telecommunications Inc., of Nashua, N.H., pleaded guilty to illegally exporting a computer server to Cuba. The Federal District Court in Concord, N.H. sentenced the company to pay US$50,000, the maximum fine under the International Emergency Economic Powers Act The International Emergency Economic Powers Act (IEEPA) is a United States federal law allowing U.S. Presidents to identify any unusual extraordinary threat that originates outside the United States and to confiscate property and prohibit transactions in response. . LogicaCMG, Inc. may also face civil penalties to be determined by the Department of Commerce. LogicaCMG, Inc. to Pay US$99,000 in Civil Penalties for Exporting to Cuba: Subsequent to the criminal penalties imposed by the Federal District Court of New Hampshire, the Department of Commerce ordered LogicaCMG, Inc. to pay US$99,000 to settle nine charges that predecessor and affiliated entities violated the EAR in connection with the unlicensed export of telecommunications equipment through Panama to Cuba. Yamada America to Pay US$220,000 Civil Penalty for Unauthorized Exports: Yamada America, Inc., an Illinois company, was assessed a civil penalty of US$220,000 in connection with the export of diaphragm pumps to Taiwan, Singapore, Brazil and Ecuador without the required licenses. The BIS claims the violations occurred between 2001 and 2005. Foreign Subsidiary of Delaware Company Settles Charges of Antiboycott Violations: Cooper Tools Industrial Ltda. (CTIL CTIL Commander's Tracked Item List CTIL Critical Tracked Items List CTIL CSSCS Tracked Item List CTIL Convergent Technologies Innovation Lab (Bell Labs/Lowry, CO) ), a wholly owned Brazilian subsidiary of Cooper US, Inc., a Delaware. corporation, agreed to pay a US$27,000 civil penalty to settle allegations it committed 15 violations of the antiboycott provisions of the EAR. The BIS alleged that CTIL furnished 15 prohibited items about business relationships with Israel with persons in Kuwait and the United Arab Emirates United Arab Emirates, federation of sheikhdoms (2005 est. pop. 2,563,000), c.30,000 sq mi (77,700 sq km), SE Arabia, on the Persian Gulf and the Gulf of Oman. during June and July 2004. Super Net Computers, L.L.C. to Pay Penalty for Exports of Computer Equipment to Iran: On May 21, 2001 Super Net Computers, L.L.C., a United Arab Emirates company, was ordered to refrain from exporting goods to or from the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. for five years or export items from the United States on behalf of a Denied Person after an administrative law judge administrative law judge n. a professional hearing officer who works for the government to preside over hearings and appeals involving governmental agencies. They are generally experienced in the particular subject matter of the agency involved or of several agencies. granted the BIS motion for default. Super Net failed to respond to the BIS charge dated September 17, 2006. The BIS alleged Super Net Computers, L.L.C. had ordered super servers, motherboards and computer chassis on behalf of Iranian users between September 2001 and March 2003. General Dynamics General Dynamics Corporation (NYSE: GD) is a defense conglomerate formed by mergers and divestitures, and as of 2006 it is the sixth largest defense contractor in the world[1]. The company has changed markedly in the post-Cold War era of defense consolidation. C4 Systems to Pay US$6,600 for Shippers Export Declarations Violations: The BIS ordered General Dynamics C4 Systems of Scottsdale, Ariz. to pay US$6,600 for exporting encryption test equipment to Malaysia without obtaining an export license and for filing or causing to be filed export control documents and declarations that falsely stated that the equipment qualified for the export. BIS Imposes US$55,000 Penalty on Primavera pri·ma·ve·ra 1 or pri·ma ve·ra n. 1. A tree (Cybistax donnellsmithii) of Mexico and Guatemala, having opposite, palmately compound leaves, yellow flowers, and close-grained, light-colored wood. 2. Systems, Inc. for Unlicensed Exports to Iran: The BIS imposed a US$55,000 fine on Primavera Systems, Inc. of Bala Cynwyd, Pa. for unlicensed exports of computer equipment to Iran. The fine settled the charges against the company, which include exporting without a license and failure to maintain proper records as required by the Shippers Export Declarations. Maryland Man Denied Export Privileges for 10 Years: The BIS denied export privileges to Khalid Mahmood Khalid Mahmood (born 13 July 1961 in Kashmir) is a Labour Party politician in the United Kingdom. He has been Member of Parliament for Birmingham Perry Barr since the 2001 general election. of Beltsville, Md. in connection with the claims against him for conspiracy to violate regulations and causing the export of lift truck parts to Iran without required authorization. Commerce/BIS Imposes US$13,200 Penalty on Biospherical Instruments Inc. for Unlicensed Exports to India: The BIS imposed a civil penalty of US$13,200 on Biospherical Instruments Inc. of San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , Calif. for exporting to a listed entity without the required license, transferring an item with knowledge that a violation of the EAR would occur and submitting false statements on export control documents in connection with exporting a profiling radiometer radiometer (rā'dēŏm`ətər), instrument for detection or measurement of electromagnetic radiation; the term is applied in particular to devices used to measure infrared radiation. system to the Space Application Center in Ahmedabad, India. BIS Imposes US$6,000 Penalty on Baltrans Logistics, Inc. for Unlicensed Exports to India: Baltrans Logistics, Inc. is to pay US$6,000 to settle charges of aiding and abetting a·bet tr.v. a·bet·ted, a·bet·ting, a·bets 1. To approve, encourage, and support (an action or a plan of action); urge and help on. 2. Biospherical Instruments, Inc. in connection with the unlicensed export of a profiling radiometer system to the Space Application Center in Ahmedabad, India. California Resident's Export Privileges Suspended for 180 Days: Bill Chen William (Bill) Chen (born 1970) is a quantitative analyst, poker player and software designer with a Ph.D. in mathematics (1999) from the University of California, Berkeley. He is currently in the Statistical arbitrage department at Susquehanna International Group. (aka Yueqiang Chen), manager of Data Physics Corporation, Beijing and Los Gatos, Calif., was indicted INDICTED, practice. When a man is accused by a bill of indictment preferred by a grand jury, he is said to be indicted. on charges of five unlicensed exports to China. The BIS issued a temporary denial order which suspends his exporting privileges for 180 days. Data Physics Corporation Gets US$55,000 Penalty and Five-Year Restriction on Transactions: Data Physics Corporation entered a settlement agreement under which the BIS imposed a US$55,000 civil penalty, suspended Data Physics' export licenses until the penalty was paid, and restricted Data. Physics from directly or indirectly participating in a transaction involving a commodity, software or technology that is subject to the regulations and is exported to or from the United States to China. This restriction limits Data Physics' ability to apply for or obtain an export license, carrying on negotiations in connection with such commodities or technology or benefiting in any way from any such transaction. Winter Aircraft Products S.A. and Two of Its Corporate Executives Denied Export Privileges for 10 Years: Denial orders were imposed by the BIS against Winter Aircraft Products S.A. and the two executives for violating the EAR in connection with the unlawful diversion and transshipment Transshipment The passing goods from one ocean vessel to another. of USorigin aircraft parts through Spain to Iran. The BIS charged each with committing two violations of the EAR for evading the licensing requirements maintained by the US government for the exportation of theaircraft parts. In 2000, Winter Aircraft Products and the two executives acquired aircraft parts from the United States, concealed the identity of the country of ultimate destination from the US suppliers and then transshipped the parts through Spain to Iran with a substantial markup in price. Winter Aircraft and the executives each received a charging letter from the BIS but failed to file answers to the letters. Under the denial order, Winter Aircraft Products, Sanchez Lopez and Diaz Sanchez may not directly or indirectly participate in or benefit in any way from any transaction subject to the EAR including by exporting or re-exporting an item subject to the EAR; applying for an export license from the BIS; by transporting, financing or servicing an item subject to the EAR; or benefiting in any way from a transaction involving such an item. It is also a violation of the EAR for any person to participate in a transaction subject to the EAR involving a denied party. California Resident to Pay US$55,000 and Be Restricted from Exporting to China to Settle Charges of Unlicensed Exports to China: Sri Welaratna of San Jose, Calif. will pay US$55,000 to settle charges of unlicensed export to a listed entity in China, acting with knowledge of a violation and providing a false statement on a Shippers Export Declaration. The BIS also imposed a five-year restriction from transactions involving exports to China. New Jersey Resident to Pay US$48,000 to Settle Charges of Unlicensed Exports to China: Zhonghe Ji (aka James Ji) of Cherry Hill, N.J. was charged with eight violations of causing, aiding or abetting the exportation of electronic components to the People's Republic of China with knowledge that violations would occur. Ji will pay a civil penalty of US$48,000. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Resident to Pay US$6,380 to Settle Charge of Conspiracy to Export Unlicensed Dental Equipment to Iran: David H. McCauley of Ronkonkoma, N.Y. is to pay US$6,380 in connection with the charge of conspiring to violate the EAR by exporting dental equipment to Iran without a license. Enternet LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control to Pay US$7,000 to Settle Charges of Unlicensed Transfer of Technology to an Iranian National: Enternet LLC of Lisle, Ill. will pay US$7,000 relating to the charge of exporting technology to Iran without the required license. Georgia Resident to Pay US$35,000 Penalty for Six EAR Violations: Nyema E. Weli of Marietta, Ga. was charged with attempted export of armored vehicles from the United States to Nigeria without the required license and failure to comply with recordkeeping requirements. Weli will pay a civil penalty of US$35,000 to settle the charges. Illinois Company to Pay US$221,200 Penalty for 67 EAR Violations: Littelfuse, Inc. of Des Plaines, Ill. will pay US$221,000 to settle charges including numerous counts of engaging in prohibited conduct and failure to comply with reporting requirements. Directorate of Defense Trade Controls (DDTC DDTC Directorate of Defense Trade Controls DDTC Digital Deployed Training Campus DDTC Discrete Donut Twisted Chain (model of space and matter) DDTC Datalink Delivery of Taxi Clearance (aviation) ) - US Department of State Security Assistance International Settles Charges Related to Export Violations: Henry Lavery III, president of Security Assistance International, Inc. (SAI), an export broker, entered into a consent agreement with the US Department of State in which Lavery agreed to accept a one-year debarment de·bar tr.v. de·barred, de·bar·ring, de·bars 1. To exclude or shut out; bar. 2. To forbid, hinder, or prevent. in lieu of being assessed a civil penalty in the amount of US$75,000 to settle charges for Arms Export Control Act The Arms Export Control Act requires governments that receive weapons from the United States to use them for legitimate self-defense. It also places certain restrictions on American arms traders and manufacturers, prohibiting them from the sale of certain sensitive technologies to violations. The primary underlying violation involved a failure to disclose in an export license application submitted by Lavery requesting authorization for the temporary export of night vision devices to Germany that the the actual exporter would be Tenebraex Corporation (the US manufacturer of the night vision devices and a company that was not registered with the State Department). The State Department found that Lavery's only involvement in the export was using his registration to obtain the export license. Mr. Lavery was further held responsible for violations of administrative and recordkeeping obligations. Foreign Residents Sentenced for Night Vision Device Smuggling smuggling, illegal transport across state or national boundaries of goods or persons liable to customs or to prohibition. Smuggling has been carried on in nearly all nations and has occasionally been adopted as an instrument of national policy, as by Great Britain : Reinahard Rusli and Helmi Soedirdja have been sentenced by the US District Court for the Maryland District for violation of the Arms Export Control Act in the form of conspiracy to export defense articles from Guam to Indonesia and attempted export of night vision devices from the United States to Indonesia. Both individuals were also statutorily debarred by the Department of State on June 7, 2007. Members of Smuggling Ring Sentenced for Arms Trafficking and Money Laundering The process of taking the proceeds of criminal activity and making them appear legal. Laundering allows criminals to transform illegally obtained gain into seemingly legitimate funds. : Ibrahim Amran of Singapore, Ignatius Soeharli of Indonesia, Hadianto Djuliarso of Indonesia and David Beecroft of the United Kingdom have been sentenced by the US District Court for the Eastern District of Michigan for violation of the Arms Export Control Act. The group attempted to purchase defense articles including radar, guidance parts for military aircraft and machine guns and smuggle smug·gle v. smug·gled, smug·gling, smug·gles v.tr. 1. To import or export without paying lawful customs charges or duties. 2. To bring in or take out illicitly or by stealth. them out of the United States. Certain members of the group were also convicted of money laundering, and all have been statutorily debarred by the Department of State for three years. www.ssd.com The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Mr George Grammas Squire, Sanders & Dempsey L.L.P. 1201 Pennsylvania Avenue NW Suite 500 Post Office Box 407 Washington, DC DC 20044 0407 UNITED STATES Tel: 2164798500 Fax: 2164798780 E-mail: marketing@ssd.com URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : www.ssd.com Click Here for related articles (c) Mondaq Ltd, 2007 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com |
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