Every Monday we post the highlights out of last week’s FCC Export/Import Daily Update (“The Daily Bugle”). Send out every business day to approximately 7,500 readers of changes to defense and high-tech trade laws and regulations, The Daily Bugle is a free daily newsletter from Full Circle Compliance, edited by James E. Bartlett III, and Alexander Witt.
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Last week’s highlights of The Daily Bugle included in this edition are:
- EU Amends Restrictive Measures Against the Central African Republic; The Daily Bugle; Monday, 23 September 2019, Item #5;
- State/DDTC: “L3Harris Technologies of Melbourne, FL, Enters Consent Agreement to Pay $13 Million to Settle Charges of 131 ITAR Violations”; The Daily Bugle; Tuesday, 24 September 2019, Item #6;
- Treasury/OFAC Further Targets Entities and Vessels Moving Venezuelan Oil to Cuba; The Daily Bugle; Tuesday, 24 September 2019, Item #7;
- Justice: “Iranian Citizen Sentenced for Conspiring to Facilitate The Illegal Export Of Technology To Iran”; The Daily Bugle; Wednesday, 25 September 2019, Item #5;
- Treasury/OFAC Publishes New FAQ Corncerning Iran; The Daily Bugle; Wednesday, 25 September 2019, Item #6;
1. EU Amends Restrictive Measures Against the Central African Republic
(Source: Official Journal of the European Union, 23 Sep 2019.)
* Council Implementing Regulation (EU) 2019/1574 of 20 September 2019 implementing Article 17(3) of Regulation (EU) No 224/2014 concerning restrictive measures in view of the situation in the Central African Republic
* Council Implementing Decision (CFSP) 2019/1576 of 20 September 2019 implementing Decision 2013/798/CFSP concerning restrictive measures against the Central African Republic
2. State/DDTC: “L3Harris Technologies of Melbourne, FL, Enters Consent Agreement to Pay $13 Million to Settle Charges of 131 ITAR Violations”
(Source: DDTC, 23 Sep 2019.) [Excerpts.]
* Respondent: L3Harris Technologies, 1025 W. NASA Blvd., Melbourne, Florida
* Charges: 131 assorted ITAR violations
* Voluntarily Disclosed: Yes
* Penalty: $13 Million ($6,500,000 suspended and assessed for remedial measures)
* Debarred: Not if penalty is paid as agreed.
* Date of Order: 19 Sep 2019
* Access documents:
– Proposed Charging letter HERE
– Consent Agreement HERE
– Order HERE
3. Treasury/OFAC Further Targets Entities and Vessels Moving Venezuelan Oil to Cuba
(Source: Treasury/OFAC, 24 Sep 2019.) [Excerpts.]
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated four entities that operate in the oil sector of the Venezuelan economy pursuant to Executive Order (E.O.) 13850. Additionally, OFAC identified four vessels that transport oil and other petroleum products from Venezuela to Cuba as blocked property owned or controlled by the four designated entities.
“The United States continues to take strong action against the former illegitimate Maduro regime and the malign foreign actors who support it. Maduro’s Cuban benefactors provide a lifeline to the regime and enable its repressive security and intelligence apparatus,” said Treasury Secretary Steven T. Mnuchin. “Venezuela’s oil belongs to the Venezuelan people, and should not be used as a bargaining tool to prop up dictators and prolong the usurpation of Venezuelan democracy.”
Since the January 28, 2019 designation of Venezuela’s state-owned oil company Petroleos de Venezuela, S.A. (PdVSA), Cubametales, the Cuban state-run oil import and export company, and other Cuba-based entities have continued to circumvent sanctions by receiving oil shipments from Venezuela. On July 3, 2019, OFAC designated Cubametales for operating in the oil sector of the Venezuelan economy pursuant to E.O. 13850, as amended.
Today’s action further targets Venezuela’s oil sector and the mechanisms used to transport oil to Maduro’s Cuban benefactors, who continue to provide a lifeline to the illegitimate former regime:
– Caroil Transport Marine Ltd. is based in Cyprus, and operates three vessels: Carlota C, Sandino, and Petion.
– Carlota C (IMO 9502453) is a chemical/products tanker that recently delivered Venezuelan petroleum products, including gasoline, to Cuba. In August 2019, PdVSA, Cubametales, and Cuban officials arranged to ship gasoline from El Palito, Venezuela to Cuba. Later in August, Carlota C traveled from Venezuela to the Havana Port Petroleum Refinery in Cuba.
– Sandino (IMO 9441178) is a chemical/products tanker that recently delivered Venezuelan oil products to Cuba.
– Petion (IMO 9295098) is a products tanker that loaded crude oil as part of a shipment involving Cubametales and PDVSA in late May 2019.
– Trocana World Inc. is based in Panama and is the registered owner of Petion.
– Tovase Development Corp is based in Panama and is the registered owner of Sandino.
– Bluelane Overseas SA is based in Panama and is the registered owner of Giralt.
– Giralt (IMO 9259692) is a crude oil tanker that recently delivered Venezuelan oil to Cuba.
As a result of today’s action, all property and interests in property of these entities, and of any entities that are owned, directly or indirectly, 50 percent or more by the designated entities, that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked or designated persons.
U.S. sanctions need not be permanent; sanctions are intended to bring about a positive change of behavior. The United States has made clear that the removal of sanctions is available for persons designated under E.O. 13692 or E.O. 13850, both as amended, who take concrete and meaningful actions to restore democratic order, refuse to take part in human rights abuses, speak out against abuses committed by the illegitimate former Maduro regime, and combat corruption in Venezuela
In addition to today’s designations and in recognition of a demonstrated change in behavior, OFAC is delisting Serenity Maritime Limited, Lima Shipping Corporation, the vessels Leon Dias and New Hellas, and an aircraft (N133JA).
OFAC designated Serenity Maritime Limited on May 10, 2019, for operating in the oil sector of the Venezuelan economy, pursuant to E.O. 13850, as amended. Additionally, one vessel, the Leon Dias, was identified as blocked property in the interest of Serenity Maritime Limited. Following the company’s designation, Serenity adopted sanctions compliance measures that included the discontinuation of business activities with Cubametales, which chartered the Leon Dias to transport Venezuelan oil to Cuba.
Lima Shipping Corporation was designated by OFAC on April 12, 2019, for operating in the oil sector of the Venezuelan economy, pursuant to E.O. 13850, as amended. Additionally, one vessel, the New Hellas, was identified as blocked property in the interest of Lima Shipping Corporation. Lima Shipping Corporation has subsequently terminated its charter with Cubametales and refused new oil shipments from Venezuela to Cuba.
Finally, OFAC is delisting aircraft N133JA, which was blocked on January 8, 2019, because it was identified as property in which Gustavo Adolfo Perdomo Rosales (Perdomo) had an interest. OFAC designated Perdomo pursuant to E.O. 13850 for being responsible for or complicit in, or having directly or indirectly engaged in, any transaction or series of transactions involving deceptive practices or corruption and the Government of Venezuela or projects or programs administered by the Government of Venezuela, or for being an immediate adult family member of such a person. OFAC has determined that aircraft N133JA is no longer associated with Perdomo.
Treasury recognizes the actions that Serenity Maritime Limited and Lima Shipping Corporation took to ensure that these entities’ respective vessels no longer support the economic interests of the illegitimate former Maduro regime. As a result of today’s action, all property and interests in property that had been blocked as a result of the designation of Serenity Maritime Limited and Lima Shipping Corporation are unblocked, and all otherwise lawful transactions involving U.S. persons and these two entities are no longer prohibited. …
4. Justice: “Iranian Citizen Sentenced for Conspiring to Facilitate The Illegal Export Of Technology To Iran”
(Source: Justice, 24 Sep 2019.) [Excerpts.]
Assistant Attorney General of National Security John C. Demers and United States Attorney Erica H. MacDonald for the District of Minnesota today announced the sentencing of Negar Ghodskani, 40, to 27 months in prison for her participation in a conspiracy to illegally export controlled technology from the United States to Iran. Ghodskani, who pleaded guilty on Aug. 9, 2019, was sentenced this morning before United States District Judge Joan N. Ericksen in Minneapolis, Minnesota.
According to the defendant’s guilty plea, Ghodskani assisted in establishing and operating Green Wave Telecommunication, Sdn Bhn, (“Green Wave”) a Malaysian company located in Kuala Lumpur, Malaysia. Since its incorporation in 2009, Green Wave operated as a front company for Fanavar Moj Khavar (“Fana Moj”), an Iran-based company that specializes in both broadcast communications, microwave communications as well as in the production of digital video broadcasting equipment. Fana Moj supplies microwave radio systems and wireless broadband access in Iran. Fana Moj’s principal customer was the Islamic Republic of Iran Broadcasting (IRIB), which is controlled by the Government of Iran.
According to the defendant’s guilty plea and documents filed in court, from 2008 until 2011, Ghodskani, who was based in Tehran, falsely represented herself as an employee of Green Wave to U.S. Companies in order to acquire unlawfully sensitive export controlled technology from the United States on behalf of Fana Moj. In order to accomplish these acquisitions, Ghodskani and her co-conspirators concealed the ultimate unlawful destination and end users of the exported technology through false statements, unlawful financial transactions, and other means. Further, as part of the conspiracy, the defendant’s co-conspirators would contact producers and distributors of the sought-after technology, solicit purchase agreements, and negotiate the purchase and delivery of the goods with the seller.
Both the IRIB and Fana Moj have been designated by the United States Department of the Treasury as a Specially Designated National for providing financial, material, technological or other support for, or goods or services in support of, the Islamic Republic of Iran Broadcasting (IRGC).
5. Treasury/OFAC Publishes New FAQ Corncerning Iran
(Source: Treasury/OFAC, 25 Sep 2019.)
Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing a new FAQ relating to a determination by the Secretary of State that COSCO Shipping Tanker (Dalian) Co. and COSCO Shipping Tanker (Dalian) Seaman & Ship Management Co. met the criteria for the imposition of sanctions under E.O. 13846.