BIS and State Department publish proposed rules addressing submersible vessels and related items that the President determines no longer warrant control on the United States Munitions List. The comment period for both rules closes on February 6, 2012.
Please visit http://www.bis.doc.gov/ for more information.
On November 23, 2011, President Obama signed Executive Order (EO) 13590 that authorizes the imposition of certain sanctions with respect to the provision of goods, services, technology, or support for Iran’s energy and petrochemical sectors.
The EO targets transactions that could “directly and significantly contribute to the maintenance or enhancement of Iran’s ability to develop petroleum resources located in Iran,” and that could “directly and significantly contribute to the maintenance or expansion of Iran’s domestic production of petrochemical products.”
The sanctions are not limited to U.S. persons and apply to “any person.”
On November 7, 2011, the Department of State issued a proposed rule in the Federal Register that amends the International Traffic in Arms Regulations (ITAR) to revise Category VIII (aircraft and related articles) of the U.S. Munitions List (USML) to describe more precisely the military aircraft and related defense articles warranting control of the USML.
Former University of Tennessee professor Dr. J. Reese Roth’s certiorari petition was upheld by the Supreme Court on October 3, 2011. The Supreme Court brief can be viewed here.
This is the frequently cited case of the University of Tennessee professor who was convicted of violations of ITAR. The decision is an interesting read and raises concerns about carving out subprojects that are not subject to export controls under contracts for research that is otherwise subject to controls. In this case, Roth permitted access by a foreign graduate student to technical data relating to an Air Force military drone project.
Roth’s certiorari to the Supreme Court argued that the Sixth Circuit court appeal (Dismissed in Jan 2011) was flawed in its finding that the willfulness element necessary for a conviction under the Arms Export Control Act did not require a finding that Professor Roth knew that the technology in question was on the United States Munitions List. The Sixth Circuit held that Professor Roth was aware that his conduct was unlawful without regard to any specific knowledge he may or may not have relating to the United States Munitions List (USML).
In a White House Press Release, President Obama announced Executive Order imposing further sanctions on Syria which prohibits:
(a) new investment in Syria by a US person, wherever located;
(b) exportation, reexportation, sale, or supply, directly or indirectly, from the US, or by a US person, wherever located, of any services to Syria;
(c) importation into the US of petroleum/petroleum products of Syrian origin;
(d) any transaction or dealing by a US person, wherever located;
(e) any approval, financing, facilitation, or guarantee by a US person, wherever located, of a transaction by a foreign person where the transaction by that foreign person would be prohibited by this section if performed by a US person or within the United States.
This ban on services includes providing educational services (including distance learning – DLPE) to Syrian nationals (including students, in both Syria or in third party countries outside of the United States (e.g., Egypt)), without license from Office of Foreign Asset Controls (OFAC) for the exportation of such educational services.
SUMMARY: This rule updates the Code of Federal Regulations legal authority citations for the Export Administration Regulations (EAR) to include the citation to the President’s Notice of August 12, 2011—Continuation of Emergency Regarding Export Control Regulations.
DATES: The rule is effective September 21, 2011. Link Federal Register Notice
Proposed DFARS Rule Would Impose New Protection and Reporting Requirements on Defense Contractors
The Department of Defense (DoD) is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to add a new subpart and associated contract clauses to address requirements for safeguarding unclassified DoD information. DoD proposed a rule that would modify the DFAR contract clause 252.204-7000 Disclosure of Information Clause, requiring basic and enhanced security measures for any contracts requiring access to DoD information. Certain types of information would require enhanced protection IAW guidelines in NIST 800-53, FIPS 199 & 200, and data disposal IAW NIST-88.
The proposed rule can be viewed here.
June 2011
WASHINGTON – U.S. Commerce Secretary Gary Locke today announced the next step in President Obama’s export control reform (ECR) initiative aimed at strengthening U.S. national security and ensuring the competitiveness of American companies abroad. The Department will implement today a new license exception, Strategic Trade Authorization (STA), that will facilitate exports between the United States and partner countries while enhancing the competitiveness of key industrial base sectors.
BAE Systems plc Enters Civil Settlement of Alleged Violations of the AECA and ITAR and Agrees to Civil Penalty of $79 Million
Under the four-year term of the Consent Agreement, BAES will pay in fines and in remedial compliance measures an aggregate civil penalty of $79 million, the largest civil penalty in Department history. The Department agreed to consider suspension of $10 million of this amount for qualified pre-and post-Consent Agreement remedial compliance measures. BAES also agreed to oversight and auditing of its export compliance program for the duration of the Consent Agreement.
We are pleased to announce that a “Master” Technology Control Plan (TCP) has been developed for GTRI. This Master TCP removes the current requirement that every export-controlled project have its own project-specific TCP. GTRI employees who work on export-controlled projects will be asked to review and sign the Master TCP as their current TCPs expire. Effective immediately, project-specific TCPs will only be required in cases described below.