Author Archive


Apr

26

No Apps For Ayatollahs


Posted by at 1:10 pm on April 26, 2013
Category: Iran SanctionsOFAC

Ayatollah Phone (original work from public domain and fair use elements)Samsung has just announced that, as of May 22, it is shutting off access from Iran to its mobile phone app store. The move, announced in an email to customers, was somewhat vague about the reason for the decision, citing only “legal barriers.”

I’m not so sure what those “legal barriers” are that would mandate shutting down the store entirely. To begin with, Samsung, which is  headquartered in South Korea, is not a U.S. person and isn’t subject to U.S. sanctions on Iran. One can be quite sure that no U.S. persons are involved in Samsung’s dealings in Iran, particularly since Samsung appears to want to continue to sell its phones and other electronic devices in Iran.

Even more perplexing, of course, is trying to reconcile the company’s stance with the general license issued by OFAC in 2010 authorizing the export to Iran of certain services and software incident to the exchange of personal communications over the Internet. The guidance issued by OFAC on that general license makes crystal clear that “free mobile apps related to personal communications” fall within the license. The guidance also announces “a favorable licensing policy” for license applications to permit export of paid mobile apps relating to personal communications to Iran.

Perhaps the real culprits here are the Angry Birds, the Bad Piggies, and the Fruit Ninjas. It is probably safe to say that these popular mobile device games, whether free, freemium or paid, do not relate to personal communications over the Internet and aren’t covered by either the general license or the favorable licensing policy. Rather than sanitizing the store by eliminating those pesky games, Samsung just decided to chuck the whole thing. And, of course, there may also be practical reasons why it was hard to keep the fingerprints of U.S. persons employed by Samsung off the app store.

Needless to say,  it is highly doubtful that whether the Samsung app store is open or closed will have any impact at all on Iran’s nuclear proliferation activities.

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Apr

23

Arms Treaty Foe Cites Export Reform As Reason for Opposition


Posted by at 1:26 pm on April 23, 2013
Category: Arms ExportExport Reform

Baker Spring http://www.youtube.com/watch?v=kY9ZTCu2wWc (Fair Use)
ABOVE:Baker Spring

I don’t know who Baker Spring is, other than some flak for a Washington think tank, but he has, for some reason, decided to join Iran, North Korea and Syria in opposing the U.N. Arms Trade Treaty. According to Baker, the treaty will interfere with the export control reform process:

There are many reasons to dislike the ATT, but one of them … it [sic] that it urges signatories to regulate a wide range of arms exports just as the U.S. reform process is trying to build higher walls around fewer items.

For instance, the new rules on aircraft and turbine engines transfer these items from the strict and inflexible Munitions List, maintained by the Department of State, to the more flexible Commodity Control List, maintained by the Department of Commerce. …

The review process has been meticulous, involving the Departments of Defense, State, and Commerce; the White House; Capitol Hill; industry; allied governments; think tanks; and other interested parties. The specialists in the Administration who have worked in this complex area of federal regulation deserve to be commended for achieving this major milestone in the reform effort. Their work should not be frustrated by uncertainties created by the ATT.

Let’s leave aside for the moment the silliness of this argument given that the White House, which is spearheading export reform, also supports the Arms Trade Treaty. The United States did, after all vote for it. (As did everyone else in the world but North Korea, Syria, and Iran.) If the White House thought that the treaty would gum up export control reform, it’s doubtful it would have supported the treaty.

The bigger problem with Baker Spring’s argument is that he apparently has not read the treaty that he is criticizing or, at least, he does not understand it. The treaty simply requires adherents to impose export controls on the items listed in Article 2, which the United States already does and which it will continue to do whether the item is on the USML or the CCL.

Baker Spring also has not read, or, at least he does not understand, the export control reform proposals that were just adopted. Certainly if he did, he wouldn’t have come up with this whopper quoted above:

For instance, the new rules on aircraft and turbine engines transfer these items from the strict and inflexible Munitions List … to the more flexible Commodity Control List …

Er, no, aircraft and turbine engines are not being transferred to the CCL. Some are and some aren’t. Article 2 of the ATT covers “combat aircraft” and it is safe to say that all those aircraft remain on the USML. As to turbine engines, they are not even covered by the Arms Trade Treaty at all. Article 4 covers “parts and components” such as aircraft engines but only “where the export is in a form that provides the capability to assemble the conventional arms covered under Article 2,” in other words, only when the entire aircraft or other article is exported in the form of disassembled parts and components. An export of a turbine engine by itself obviously fails to meet that criterion.

Somehow I suspect that Baker Spring’s objections to the Arms Trade Treaty are the result of considerations other than the flimsy excuses he proffered in the article at hand.

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Copyright © 2013 Clif Burns. All Rights Reserved.
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Apr

18

T-Platforms Placed on Entity List; SUNY No Longer Feels Sunny


Posted by at 8:11 pm on April 18, 2013
Category: BISEntity List

Source: T-Platform (Fair Use)Some tech writers have just discovered the Bureau of Industry and Securities’ Entity List and they are, well, perplexed. Arstechnica, Slashdot and HPC Wire all weighed in on the mysterious list, with all three expressing some surprise that U.S. companies could no longer supply components to T-Platforms, the Russian supercomputer manufacturer that BIS put on the Entity List back in March.

The BIS notice putting T-Platforms on the Entity List cited two rationales. First, the company had received shipments of a number of export-controlled items that had been shipped without the required licenses. Second, the notice stated that there was “reason to believe” that T-Platform was involved with the Russian military’s research on nuclear weapons. As a result, BIS stated that all exports of items subject to the EAR would require licenses and that the licensing policy would be a presumption of denial.

By focusing on the impact of the designation on exports of components and hardware to T-Platforms, the articles all missed a more interesting issue. Last year, T-Platforms delivered a supercomputer to the State University of New York at Stony Brook. My educated guess is the SUNY paid a small fortune and expected and received an agreement from T-Platforms that it would provide maintenance and service as needed for the supercomputer.

Uh-oh. To say the least. Somebody at SUNY right now is probably asking who on earth had the bright idea to buy this thing from Russia, because I’m sure that someone has realized by now that most requests for service by T-Platforms of this leviathan would inevitably require that SUNY transfer EAR99 technology to T-Platforms.  Such a transfer would occur to the extent that the request would transfer to T-Platforms non-public information on the development, production or use of the computers.

How long before we see SUNY’s new supercomputer on eBay for $19.99 OBO?

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Apr

17

Now We Are More


Posted by at 11:34 pm on April 17, 2013
Category: General

Pay attention to the by-lines on posts here now that my colleague George Murphy has agreed to contribute posts. The post just above this one — the one about the “non-egregious” OFAC violation by San Corporation — comes from George. You can read more about George here.

If you say nice things in the comments to his post, we might be able to convince him to stick around.

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Apr

16

Export Control Final Transition Plan Announced


Posted by at 11:25 pm on April 16, 2013
Category: DDTCExport Reform

CH-53Ds landingToday DDTC released its final transition plan for the first wave of export control reform under which certain items in Category VIII of the USML are transitioned to a new “600 series” of controls in Category 9 of the CCL. Of course, a major concern of exporters has been where to file licenses for the transitioned items between the date of the publication of the rule and its effective date.

This concern was exacerbated by some confusing language in the proposed transition plan released last summer. That was this language:

License applications [for transitioned items] received by DDTC within the 45 days following the final rule’s publication, but before the rule becomes effective, will be adjudicated only when the applicant provides a written statement certifying that the export or temporary import will be completed within 45 days after the effective date of the final rule.

The concern here, of course, was what would happen to licenses for these items that were filed after the 45 days from publication but before the effective date of the rule when, presumably, BIS would be able to issue licenses for the transitioned items. When informal information subsequently suggested that the period between publication and effective date would be 180 days, the concern was magnified: this would create a licensing limbo of 135 days when DDTC would not accept or grant applications and BIS would not grant them.

Under the final version of the transition plan, this problem goes away:

License applications will be accepted by both DDTC and BIS for items moving from the USML to the CCL, but BIS will not issue approved licenses for such items until on or after the applicable effective date.

Licenses for transitioned items granted by DDTC during the 180-day transition period will be valid for two-years unless an earlier expiration date is specified in the license.

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(No republication, syndication or use permitted without my consent.)