Archive for the ‘OFAC’ Category


Sep

18

Friday Grab Bag


Posted by at 5:32 pm on September 18, 2015
Category: BISCuba SanctionsOFAC

Grab BagHere are a few recent developments that you may have missed:

  • Adam Szubin, former OFAC head, threatens to re-impose sanctions on Iranian banks in confirmation hearings on his nomination as Treasury Department Under Secretary for Terrorism and Financial Intelligence.
  • DC  tabloid Washington Examiner suggests that BIS is about to realize more rules lifting parts of the Cuba embargo; quotes DC attorney and embargo cheerleader who predicts end of the world as we know it if that happens. UPDATE: New BIS regulations are here and new OFAC regulations are here. They will be effective when published on Monday (9/21/2015). World to end on following day.
  • Sony’s deal to distribute Cuban music is premised, naturally, on the informational materials exception, and has been in the works for two years with OFAC granting travel licenses for Sony executives to go to Cuba to negotiate the deal.
  • Foreign Policy magazine’s blog is all worked up about military applications of mind-reading machines and possible proliferation of this “dual use” technology. Next week, the folks at Foreign Policy blog are going to urge that warp speed space ships be added to the USML.
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Copyright © 2015 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Sep

16

Glaring Omissions from OFAC LIst of Medical Items Criticized


Posted by at 8:34 pm on September 16, 2015
Category: OFAC

GE Giraffe Baby Warmer via http://www3.gehealthcare.com/en/products/categories/maternal-infant_care/warmers/giraffe_warmer [Fair Use]As regular readers probably know, the Office of Foreign Assets Control (“OFAC”) has issued a list of medical devices and items that are eligible to be exported to otherwise sanctioned countries under a general license, such as this list of medical devices and items that can be exported to the Crimea region of Ukraine.

There has been considerable criticism of these lists because of what appears to be arbitrary omissions of necessary and common medical items that should be eligible for a general license. But no one has put it better than Kathleen Palma, GE’s senior counsel for international trade compliance, did on Monday at meeting of the President’s Export Council Subcommittee on Export Administration [WARNING: EXPLICIT LANGUAGE AHEAD! NSFW!!] when she said this:

I would note that condoms are on the list but baby warmers and units for neonatal intensive care are not on the list.

Unflustered, an OFAC official at the meeting said that the agency was in the process of reviewing proposals to add more items to the list. No time frame, other than sometime before the zombie apocalypse, was given, nor was any indication offered of what items might be added.

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Copyright © 2015 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Sep

9

Through the Looking Glass: ITC To Investigate Cuban Restrictions on U.S. Trade


Posted by at 10:52 pm on September 9, 2015
Category: Cuba SanctionsInternational Trade CommissionOFAC

Cuba - Havana - Car by Didier Baertschiger [CC-BY-SA-2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Flickr https://www.flickr.com/photos/didierbaertschiger/11785935544[cropped]

I’m not sure that chutzpah is a term applicable to government agencies, but, if it is, this is chutzpah. The International Trade Commission announced that it is investigating how

Cuban non-tariff measures, Cuban institutional and infrastructural factors, and other Cuban barriers … inhibit or affect the ability of U.S. and non-U.S. firms to conduct business in and with Cuba.

Say what? The U.S. has imposed an almost total embargo on all trade with Cuba for more than 50 years and now the U.S. is worried about the impact that Cuban non-tariff trade barriers have had on U.S. trade with the island? This is not much different from foxes complaining about chicken wire after they’ve already slipped through it and eaten all the chickens.

Not surprisingly, partisan politics is behind this insanity. The ITC investigation was originally opened at the behest of Democratic Senate Finance Chairman Ron Wyden, who asked that the ITC investigate the impact that the U.S. embargo on Cuba had on U.S. trade with Cuba. When Republican Orrin Hatch took over the Senate Finance Committee, he was not having any of that and asked the ITC to also look at Cuba’s restrictions on U.S. trade.

Your tax dollars at work.

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Copyright © 2015 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Sep

4

Exclusive Tip: How to Speed up an OFAC License Application


Posted by at 9:15 am on September 4, 2015
Category: OFAC

Diana Nyad via http://www.diananyad.com/blog/My-Turn-on-DWTS [Fair Use]A recent article in the Miami Herald discussed the bureaucratic entanglements involved when world-famous athlete Diana Nyad wanted to make a historic swim between Florida and Cuba. She needed an OFAC license to visit Cuba. Her support team needed a BIS license to take their boats into Cuban waters. And the response in Washington to Nyad’s request was this: Diana Nyad? Diana who? She wants to swim to Cuba? Why would anyone want to do that? Get back in line, lady, and wait your turn. We’re busy.

Well one of the interesting finds in Hilary Clinton’s emails (outside the awesome international trade kerfuffle over gefilte fish), according to the Miami Herald, was that it seems the only way that Diana got permission on time was that Hilary Rosen called Hillary Clinton and asked for help. The article had this money quote from Nyad:

You want to go to Cuba, especially with boats and vessels, you need an OFAC license … . You need the Treasury Department. You need the Department of Commerce.

It was difficult to train for something, doing 14-, 16-, 18-hour swims, trying to raise money, got a team taking off their jobs and families with no pay, and you don’t really know if it’s ever going to happen. You file those darn OFAC licenses and have no one to call. It’s very governmental, shall we say, bureaucratic paperwork.

First, Nyad wrote to her representative in DC, Debbi Wasserman Schulz, and asked for help, saying: “I have been told by lawyers within the Treasury that it will take either Hilary (sic) Clinton or Obama himself to clear my event.” No dice.

So Diana had Hilary Rosen email Hillary Clinton to ask for help. Hillary asked one of her advisors to help get the license and within 24 hours she had a license from OFAC. No you know what it takes. You need to be a world famous athlete and you need to get the ear of the Secretary of State. The rest of you, get back in line and wait (and wait and wait) for your turn.

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Copyright © 2015 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Aug

25

Skateboarding on Thin Concrete


Posted by at 9:02 pm on August 25, 2015
Category: BISCuba SanctionsOFAC

Santa Monica Skateboarder by Clif BurnsAn article in today’s Washington Post may be attracting some attention over in the halls and cubicles of the Office of Foreign Assets Control (“OFAC”).  It describes in some detail how Miles Jackson, a local DC man and skateboarding enthusiast, appears to have been skating around the U.S. embargo on Cuba to deliver skateboards to Cuba and to spend time with his skateboarding buds in Havana.

Apparently the skateboarder became interested in Cuban skateboarding while studying abroad in Cuba during college.  So far, so good; nothing wrong with that.

The dicey stuff starts after he returns to the United States and wants to keep up with his skateboarding buddies in Cuba and send them real skateboards, notwithstanding the travel and export bans for Cuba.

Jackson and [a friend] Bradley began traveling to Cuba that September to drop a few boards off. Because direct travel from the United States was limited, their first trips went through Toronto, Bradley said.

That sentence probably should be re-written to remove the word “limited” — “Because direct travel from the United States was illegal, their first trips went through Toronto.” Of course, direct travel would be legal with a license, but then you wouldn’t go through Canada. Of course, maybe Jackson did get an OFAC license to go skateboarding in Cuba and decided to take the long route through Toronto.

On top of that, Jackson started exporting skateboards to Cuba:

Jackson … regularly travels with up to 50 skateboards at a time. He and his friends, through their nonprofit organization Cuba Skate, have ferried more than 200 skateboards in the past five years to aspiring skaters in the island country.

Of course, that would be okay if licensed, but there is no indication that such licenses were obtained. Another possibility would be export pursuant to BIS License Exception GFT. But that covers parcels addressed to an individual containing quantities normally given as gifts; it does not cover carrying 50 skateboards to Cuba through Canada if that is what happened.

Now Jackson wants to fix up the skateboard parks in Havana. He and some friends

plan to travel again to Havana in September, when they hope to start an ambitious renovation of the country’s only official skatepark, El Patinodromo, on the outskirts of the city. During the rainy season, the park floods, and the metal ramps and rails have begun to rust.

With the embargoes relaxed, Jackson hopes to replace the aging ramps and rails over five to eight weeks, pending permission from the State Department.

The State Department? Really?? Apparently the editors at the Washington Post (like their colleagues at the Wall Street Journal) must also be on vacation.

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Copyright © 2015 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)