Archive for June, 2013


Jun

6

Export Control Reform Roundtable in Boulder


Posted by at 12:46 pm on June 6, 2013
Category: Export Reform

By Brylie Oxley (Own work) [CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons http://commons.wikimedia.org/wiki/File%3ABoulder_Colorado_-_Perl_Street_Mall_-2005-10-14T205944.pngNext Tuesday, June 11, I’ll be in Boulder leading a round-table discussion on export control reform. And the best part: it’s free. So, if you’re in the area, please feel free to come and join in.

The format for the discussion will be pretty open, so if people who are attending want to talk about other export issues or have other questions, we can talk about that too.

Details on time, location and how to RSVP are here.

I hope to see you there.

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Copyright © 2013 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Jun

4

Nice Work If You Can Get It


Posted by at 8:26 pm on June 4, 2013
Category: BISCriminal Penalties

Toray Carbon Fiber http://brooknewmaterial.com/english/proshow.asp?articleid=609 [Fair Use]Lisong Ma, a Chinese national, pleaded guilty last week to charges that he attempted to export carbon fiber from the United States without a license. Carbon fiber meeting certain technical qualifications is classified as ECCN 1C010 and would require a license from the Bureau of Industry and Security (“BIS”) before it could be exported to China. Reading the DOJ press release announcing the plea suggests that the defendant was either incredibly stupid or that something else was going on.

According to the DOJ account, the defendant contacted an undercover agent online and inquired into the purchase of a large amount of Toray T800 carbon fiber. What is strange is that the defendant actually came to the United States to close the deal. And, of course, the rest is history.

But what make this strange is that the Toray carbon fiber is made in Japan and appears to be readily available in China. Either the defendant was just dumber than the carbon fiber he was trying to buy or, possibly, the agents proposed an incredibly attractive price to lure him into the United States. Admittedly the failure to recognize a price “too good to be true,” if that is what happened here, is probably also a form of stupidity

As is typical with press releases of this kind, the government agencies involved spare no effort to pat themselves on the back for nabbing this dangerous criminal through “covert cyber operations.” Although “covert cyber operations” sounds intriguing, what it means, ultimately, is having a bunch of federal agents surf the net and hang out at alibaba.com looking for exporters to nab by dangling sweet deals in front of them. As they say (or sing sometimes): nice work if you can get it.

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Copyright © 2013 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Jun

2

iOFAC iOkays iPhones for iRan


Posted by at 9:03 am on June 2, 2013
Category: Iran SanctionsOFAC

iRanPhone www.apple.com [Fair Use]Not long ago, I posted on an announcement by Samsung that it was closing its app store for Iranian customers. I speculated that  paid apps were at least part of the problem because they were not covered by the 2010 OFAC general license permitting export of “services and software incident to the exchange of personal communications over the Internet.”

Well, that problem has just gone away. On Friday, OFAC issued General License D which expands the aforementioned general license to cover both fee-based services and software.  It covers personal communications hardware as well, specifically mentioning, not surprisingly, “smartphones.”

That is all well and good, and certainly looks good on paper, but don’t imagine that the folks at Apple are giving each other the iFives over the prospect of selling iPhones in Iran. Nothing in General License D gets over the slight problem of how anyone actually gets paid for goods and services exported to Iran no matter how permissible those exports might be. U.S. banks cannot deal directly with Iranian banks and foreign banks, scared of potential sanctions under CISADA, increasingly refuse to deal with Iranian banks.

But if anyone wants to give away smartphones in Iran, have at it.

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Copyright © 2013 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)