Archive for August, 2013


Aug

7

There’s No Crying in Baseball (Unless OFAC Gets Involved)


Posted by at 5:48 pm on August 7, 2013
Category: Cuba SanctionsOFAC

There is no better proof that comprehensive sanctions are useless and silly than this: U.S. sanctions on Cuba are going to prevent the participation of Cuba’s national baseball team in the Caribbean Series which will take place next February in Venezuela and will not involve any U.S. teams. Founded in 1949, with Cuba as one of the original founders, Cuba played in the annual series until 1961 when Castro banned professional sports on the island.

So there was quite a bit of excitement when several months ago Cuba said it would return to the series. But just as the excitement for mighty Casey faded when he struck out, hopes were quickly dashed for Cuba’s time at bat when OFAC struck them out before they could even get to the plate. Apparently the organizers of the Caribbean Series received a letter from Major League Baseball saying that players signed with the MLB couldn’t play in the tournament if Cuba participated. Most of the Carribean league players already have MLB contracts, even if only with the minor leagues, so excluding players with MLB contracts is a non-starter. And no one knows whether OFAC licenses could be obtained at all, much less in time.

MLB’s theory about the application of the sanctions to players under contract with the League is a bit bizarre, to say the least. Last time I checked, signing a contract with the MLB does not turn the player automatically into a U.S. person (or even an honorary one). I suppose the fear is that even if the player is playing in his personal capacity as a member of one of the Caribbean leagues he is still somehow a Major League player and this would bring down the wrath of OFAC on MLB. That being said, given the huge fines that OFAC can impose and the general perception that OFAC doesn’t play fairly, I can understand MLB’s reticence to run this risk.

One thing is certain: banning Cuba from the Caribbean series will not lead the current Cuban government to abdicate; nor will itwin the U.S. any friends among ordinary Cubans.

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

Aug

6

Selling Guns to Canadians in a Parking Lot Is a Really Bad Idea


Posted by at 3:53 pm on August 6, 2013
Category: General

Settle Inn Source: Google MapsShawn James Hartnell, a Canadian citizen, pleaded guilty last week to charges he attempted to export rifles from the United States to Canada without a license. Hartnell had been nabbed when he tried to sell rifles to U.S. and Canadian agents in the parking lot of the felicitously named Settle Inn in Grand Forks, North Dakota.

Apparently, Hartnell had been engaged in gun running from the United States to Canada for quite some time and had been under investigation by the Feds and the Mounties for over a year. During the course of the investigation, the resourceful Mr. Hartnell had told undercover agents that they could always smuggle the guns into Canada using a snowmobile.

Hartnell’s sentencing hearing has not yet been scheduled.

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

Aug

1

No, You Aren’t Imagining Things


Posted by at 5:04 pm on August 1, 2013
Category: BISDDTC

Tim Hoffman via DTSA website http://www.dtsa.mil/sys_art/Hoffman_Hugh.jpg [Public Domain]
ABOVE: Tim Hoffman, DTSA

If you thought it was taking longer to get export licenses from the Bureau of Industry and Security (“BIS”) and from the Directorate of Defense Trade Controls (“DDTC”), you’re right. And the reason? Furloughs at the Defense Technology Security Administration (“DTSA”) are the culprit.

Speaking at the BIS Update Conference last week, Tim Hoffman, Deputy Director of DTSA, pointed his finger at the furloughs at DTSA caused by the budget sequester. Hoffman said that DTSA has taken some steps with BIS and DDTC to give them some “slippage” in their required response times on BIS and DDTC applications. And even when the sequester is theoretically over in October (and assuming that there are no more budget shenanigans on the Hill), Hoffman predicted that processing delays would persist for a while as ripple effects from the current furloughs.

Get more information from this in the July 29 issue (subscription required) of the Washington Trade and Tariff Letter.

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