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:
- UK OFSI Imposes £146,341 Penalty on Telia Carrier UK for Syria Sanctions Violations; The Daily Bugle; Monday, 28 October 2019, Item #6;
- Indian DGFT Approves Two OGELs in Major Push for Defense Exports; The Daily Bugle; Monday, 28 October 2019, Item #8;
- Justice: “South Florida Resident Arrested for Attempting to Illegally Export Controlled Items to Libya”; The Daily Bugle; Thursday, 31 October 2019, Item #5;
- President Continues National Emergency with Respect to Sudan; The Daily Bugle; Friday, 1 November 2019, Item #1;
- Treasury/OFAC Issues Amended Ukraine-related General Licenses ; The Daily Bugle; Friday, 1 November 2019, Item #7
1. UK OFSI Imposes £146,341 Penalty on Telia Carrier UK for Syria Sanctions Violations
(Source: UK OFSI, 28 Oct 2019.) [Excerpts.]
Imposition of Monetary Penalty – Telia Carrier UK Limited
(1) Following a review by the Economic Secretary to the Treasury pursuant to s147 of the Policing and Crime Act 2017 (PACA 2017), on Monday 9 September 2019 the Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, issued a monetary penalty of £146,341 against Telia Carrier UK Limited for breaches of regulations 4 and 6 of the Syria (European Union Financial Sanctions) Regulations 2012 . This penalty replaced an earlier penalty of £300,000, which was imposed by OFSI on 15 July 2019. There was no voluntary disclosure in this case.
(2) Telia Carrier UK Limited had indirectly facilitated international telephone calls to SyriaTel, an entity designated under the above regime (Group ID: 12153). This resulted in the company repeatedly making funds and economic resources indirectly available to the designated entity over an extended period of time.
(3) OFSI imposed a monetary penalty because it was satisfied, on the balance of probabilities, that Telia Carrier UK Limited breached prohibitions imposed by or under financial sanctions legislation, and knew, or had reasonable cause to suspect, that they were in breach of these prohibit ions. …
2. Indian DGFT Approves Two OGELs in Major Push for Defense Exports
(Source: India MoD, 21 Oct 2019.)
Defence Minister Rajnath Singh has approved issuance of two Open General Export Licences for export of certain defence parts and components and intra-company transfer of technology to select countries.
The countries allowed under the OGELs are Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, USA, Canada, Italy, Poland and Mexico.
The items permitted under OGEL include components of ammunition and fuse setting device without energetic and explosive material, firing control and related alerting and warning equipment and related system.
It also includes body protective items, complete aircraft or complete unmanned aerial vehicles (UAVs), and any components specially designed or modified for UAVs are excluded under this licence.
3. Justice: “South Florida Resident Arrested for Attempting to Illegally Export Controlled Items to Libya”
(Source: Justice, 30 Oct 2019.)
Peter Sotis, 55, of Delray Beach, Florida, was arrested yesterday based on an indictment charging him with conspiracy to violate and attempted violation of the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR), as well as smuggling of goods. …
The indictment alleges Sotis was the owner and principal of Add Helium, a Fort Lauderdale diving company. Sotis was charged with smuggling, conspiracy to violate and attempted violation of the IEEPA and the EAR by transferring dual-use goods, that is, articles that have both civilian and military application, for export to Libya without the required Department of Commerce license.
In particular, court documents indicated that Sotis and a co-defendant at Add Helium transferred four rebreathers, which were controlled under the EAR for national security reasons, to a shipping company for export to Libya after being informed by a Commerce agent that the items could not be exported while a license determination was pending. A rebreather is an apparatus that absorbs the carbon dioxide of a scuba diver’s exhaled breath to permit the rebreathing (recycling) of each breath. This technology produces no bubbles, thereby concealing the diver’s activities from those on the surface, and allowing a diver to stay underwater longer compared with normal diving equipment. …
4. President Continues National Emergency with Respect to Sudan
(Source: Federal Register, 1 Nov 2019.)
84 FR 59285: Notice of October 31, 2019 – Continuation of the National Emergency with Respect to Sudan
Continuation of the National Emergency with Respect to Sudan
On November 3, 1997, by Executive Order 13067, the President declared a national emergency with respect to Sudan pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701-1706) and took related steps to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States posed by the actions and policies of the Government of Sudan. On April 26, 2006, by Executive Order 13400, the President determined that the conflict in Sudan’s Darfur region posed an unusual and extraordinary threat to the national security and foreign policy of the United States, expanded the scope of the national emergency declared in Executive Order 13067, and ordered the blocking of property of certain persons connected to the Darfur region. On October 13, 2006, by Executive Order 13412, the President took additional steps with respect to the national emergency declared in Executive Order 13067 and expanded in Executive Order 13400. In Executive Order 13412, the President also took steps to implement the Darfur Peace and Accountability Act of 2006 (Public Law 109-344).
On January 13, 2017, by Executive Order 13761, the President found that positive efforts by the Government of Sudan between July 2016 and January 2017 improved certain conditions that Executive Orders 13067 and 13412 were intended to address. Given these developments, and in order to encourage the Government of Sudan to sustain and enhance these efforts, section 1 of Executive Order 13761 provided that sections 1 and 2 of Executive Order 13067 and the entirety of Executive Order 13412 would be revoked as of July 12, 2017, provided that the criteria in section 12(b) of Executive Order 13761 had been met.
On July 11, 2017, by Executive Order 13804, I amended Executive Order 13761, extending until October 12, 2017, the effective date in section 1 of Executive Order 13761. On October 12, 2017, pursuant to Executive Order 13761, as amended by Executive Order 13804, sections 1 and 2 of Executive Order 13067 and the entirety of Executive Order 13412 were revoked.
Despite recent positive developments, the crisis constituted by the actions and policies of the Government of Sudan that led to the declaration of a national emergency in Executive Order 13067 of November 3, 1997; the expansion of that emergency in Executive Order 13400 of April 26, 2006; and with respect to which additional steps were taken in Executive Order 13412 of October 13, 2006, Executive Order 13761 of January 13, 2017, and Executive Order 13804 of July 11, 2017, has not been resolved. These actions and policies continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States. I have, therefore, determined that it is necessary to continue the national emergency declared in Executive Order 13067, as expanded by Executive Order 13400, with respect to Sudan.
5. Treasury/OFAC Issues Amended Ukraine-related General Licenses
(Source: Treasury/OFAC, 1 Nov 2019.)
Today OFAC extended the expiration date of two general licenses related to GAZ Group by issuing Ukraine-related General License No. 13M – Authorizing Certain Transactions Necessary to Divest or Transfer Debt, Equity, or Other Holdings in Certain Blocked Persons, and Ukraine-related General License No. 15G – Authorizing Certain Activities Necessary to Maintenance or Wind Down of Operations or Existing Contracts with GAZ Group, and Certain Automotive Safety and Environmental Activities.
In addition, General License No. 15G includes an expanded authorization for certain safety-related activity and a new authorization for certain activities to comply with environmental regulatory requirements.