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:
- Treasury/OFAC Announces $1,125,000 Settlement with Eagle Shipping International; The Daily Bugle; Tuesday, 28 January 2020; Item #5.
- EU Extends Financial Sanctions Concerning Tunisia Until 31 January 2021 ; The Daily Bugle; Tuesday, 28 January 2020; Item #6.
- Justice: “Harvard University Professor and Two Chinese Nationals Charged in Three Separate China Related Cases”; The Daily Bugle; Wednesday, 29 January 2020; Item #4.
- UK ECJU Publishes Notice to Exporters 2020/03: “Exporting and Trading Items Subject to Strategic Controls During the Transition Period”; The Daily Bugle; Wednesday, 29 January 2020; Item #6.
- Commerce/BIS Denies Export Privileges to Companies Linked to Pakistan’s Nuclear Program; The Daily Bugle; Friday, 24 January 2020; Item #1.
1. Treasury/OFAC Announces $1,125,000 Settlement with Eagle Shipping International
(Source: Treasury/OFAC, 27 Jan 2020.)
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced that Eagle Shipping International (USA) LLC (“Eagle Shipping”), a Marshall Islands company with its headquarters in Stamford, Connecticut, has agreed to pay $1,125,000 to settle its potential civil liability for 36 apparent violations of the Burmese Sanctions Regulations, 31 C.F.R. part 537 (BSR) (the “Apparent Violations”). The Apparent Violations involve Eagle Shipping’s dealings in the property interests of Myawaddy Trading Limited (“Myawaddy”), which at all relevant times was identified on OFAC’s List of Specially Designated Nationals and Blocked Persons, and the provision of transportation services from Burma to Singapore for a land reclamation project for the benefit of Myawaddy, in apparent violation of § 537.201 of the BSR. The total transaction value of the Apparent Violations was $1,796,400. OFAC determined that Eagle Shipping voluntarily self-disclosed the Apparent Violations, and that the Apparent Violations constitute an egregious case.
For more information on this action, please visit the following web notice.
2. EU Extends Financial Sanctions Concerning Tunisia Until 31 January 2021
(Source: Official Journal of the European Union, 28 Jan 2020.)
* Council Implementing Regulation (EU) 2020/115 of 27 January 2020 implementing Regulation (EU) No 101/2011 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Tunisia
* Council Decision (CFSP) 2020/117 of 27 January 2020 amending Decision 2011/72/CFSP concerning restrictive measures directed against certain persons and entities in view of the situation in Tunisia.
3. Justice: “Harvard University Professor and Two Chinese Nationals Charged in Three Separate China Related Cases”
(Source: Justice, 29 Jan 2020.) [Excerpts.]
The Department of Justice announced today that the Chair of Harvard University’s Chemistry and Chemical Biology Department and two Chinese nationals have been charged in connection with aiding the People’s Republic of China.
Dr. Charles Lieber, 60, Chair of the Department of Chemistry and Chemical Biology at Harvard University, was arrested this morning and charged by criminal complaint with one count of making a materially false, fictitious and fraudulent statement. Lieber will appear this afternoon before Magistrate Judge Marianne B. Bowler in federal court in Boston, Massachusetts.
Yanqing Ye, 29, a Chinese national, was charged in an indictment today with one count each of visa fraud, making false statements, acting as an agent of a foreign government and conspiracy. Ye is currently in China.
Zaosong Zheng, 30, a Chinese national, was arrested on Dec. 10, 2019, at Boston’s Logan International Airport and charged by criminal complaint with attempting to smuggle 21 vials of biological research to China. On Jan. 21, 2020, Zheng was indicted on one count of smuggling goods from the United States and one count of making false, fictitious or fraudulent statements. He has been detained since Dec. 30, 2019. . . .
4. UK ECJU Publishes Notice to Exporters 2020/03: “Exporting and Trading Items Subject to Strategic Controls During the Transition Period”
(Source: UK ECJU, 29 Jan 2020.)
The UK Export Control Joint Unit (ECJU) within the Department of International Trade (TID) has published the following update on its website:
The UK leaves the EU on 31 January 2020. Current export licensing arrangements will continue to apply until the end of the transition period on 31 December 2020.
Strategic items are regulated through a system of export and trade controls. The following items are subject to strategic control:
- military items
- dual-use items (items with both civil and military uses)
- items that can be used for torture or capital punishment
- radioactive sources
- other items controlled under international sanctions
The Export Control Joint Unit (ECJU) is responsible for the control and licensing of the trade of these items.
The current export licensing arrangements will continue to apply during the transition period. This includes the arrangements for exporting all strategic items.
The open general export licence (export of dual-use items to EU member states) is not required to export dual-use items to the EU during the transition period.
For more information on the current regulations and requirements, see:
- export controls: military goods, software and technology
- export controls: dual-use items, software and technology, goods for torture and radioactive sources
- firearms and export control forms
- export controls: torture goods
- current trade sanctions, including arms embargoes and other restrictions
- UK sanctions guidance for information on other types of sanctions
5. State/DDTC: Airbus Agrees to $10 Million and Other Penalties to Settle 74 Alleged ITAR Violations
(Source: State/DDTC, 31 Jan 2020)
* Respondent: Airbus SE, Leiden, 2303 DA, Auid-Holland, The Netherlands
* Charges: 75 charges of violations of the AECA and ITAR Part 130 between 2011 and 2019:
(1) Failure to report accurate ITAR Part 130 statements for fees or commissions paid to facilitate sales as required by 22 CFR 120.9;
(2) Failure to maintain require ITAR Part 130 records;
(3) Unauthorized reexports of defense articles from Spain to Australia;
(4) Unauthorized Retransfers of defense articles in Spain
* Civil Settlement: Consent Agreement includes 3-Year period of assignment of Special or Internal Compliance Officer; extensive remedial compliance measures, and payment of $10 million ($5 Million shall be paid in three installments;$5 Million shall be assessed for remedial compliance measures, but suspended on condition of the completion of remedial measures).
* Debarred or Suspended from Export Transactions: Not if penalty is paid and corrective actions are completed as agreed.
* Result of Voluntary Self-Disclosure: Yes
* Date of Order: 29 Jan 2020
* Available documents:
* Proposed Charging Letter: Here.
* Consent Agreement: Here.
* Order: Here.