Chapter 13 Vocab and Cases

Export Controls

laws and regulations that govern the control and licensing of certain goods and technology exported from the United States or released or transferred to anyone who is not a U.S. citizen or permanent resident, whether that person is within or outside the U.S.

Dual-use items

those commercial items that may also have military, terrorist, or "proliferation" uses

Sanctions

a regulation that restricts or prohibits certain relationships with specified foreign countries, foreign entities, or named foreign individuals because of their support for international terrorism, the proliferation of weapons of mass destruction, for international drug and narcotics trafficking, etc.

Multilateral Sanctions

those resulting from a resolution of the United Nations Security Council, are usually more effective than sanctions that don't have universal support

Diversion

unlawful transfer, transshipment, rerouting, or reexporting of controlled goods or technology from one destination to which the goods or technology were legally shipped to another destination or foreign person who has not been licensed to receive the items.

The Missile Technology Control Regime

voluntary association of 35 countries committed to keeping missile technology from rogue regimes and terrorist groups that could use it to deliver weapons of mass destruction

United States Vs. Zhi Yong Guo

- Defendant is a Chinese citizen who worked as an engineer in Bejing developing photoelectric technologies - Chao purchased 3 export-controlled thermal imaging cameras called FLIR and had them shipped to China. - Defendant paid Chao $900 commission - Defendant then came to LA and purchased 10 more cameras, hid them in his baggage, and was arrested by federal agents while attempting to board a return flight to China. Both were charged with willfully and knowingly conspiring to export, and attempting to export, controlled items without a license. - Chao pled guilty and the defendant was convicted at trial of violating the criminal provisions of the International Emergency economic powers act - Decision: defendant appeal didn't work,

United States Vs. Mandel

- Defendants were charged with illegally exporting high technology equipment without a license. - Instead of resubmitting their application that was originally inadequate, the defendants are alleged to have shipped the equipment to a Hong Kong company placing the application number on the shipping documents in place of an actual license number. - They requested to see that records and the government argued that the records were not material to the defense because a criminal defendant cannot challenge the secretary's decision to place a commodity on a control list - The district court required the government to produce the records and the government appealed - Decision: reversed and remanded. The info and factual basis relied on by the secretary of commerce in deciding to place an item on the control list are not subject to discovery by the defendants and are not material to the defense.

Briggs & Stratton Corp, Vs. Baldridge

- In December 1954, the League of Arab States called for an economic boycott of Israel. Under the "general principles" worked out by the Arab states, a firm could be blacklisted if it traded with Israel. - Plaintiff manufactures internal combustion engines, its products are used as component parts and Briggs has been blacklisted because of dealing with Israel - They were sent a questionnaire and did not have it authenticated because of the new antiboycott regulations - Briggs brought an action against the officials charged with enforcing the act and regulations - Decision: the antiboycott regulations were upheld by the court despite the difficulties of compliance or the economic consequences that may result.

United States Vs. Mousavi

- Mousavi immigrated to the US from Iran and became a naturalized citizen in 1999. He operated 2 businesses, one installing tv satellite systems and the other organizing travel packages to Mecca for pilgrimages. - IRS discovered he had unreported income of $45,000 from a Kuwaiti company to help him develop his business in Iran, and he had no license from OFAC to transact business with Iran. - Mousavi was convicted in US District court for violating a US embargo of Iran under IEEPA and the Iranian Transaction regulations. On appeal, he argued his conviction should be reversed bc he did not willfully intend to violate a specific law or regulation. - Decision: affirmed, in order to sustain a conviction for the willful violation of IEEPA and the Iranian sanctions, the gov need not prove that the defendant knowingly violated a specific provision of the law, but that the defendant acted with knowledge that his conduct was unlawful.

Deemed reexport

the release or transfer of an item from someone who was licensed to receive it to a different foreign person

Fundamental Research

Research in science, engineering, or mathematics, the results of which ordinarily are published and shared broadly within the research community, and for which the researchers have not accepted restrictions for proprietary or national security reasons

Short supply controls

US law permits the use of short supply controls to protect the US economy from excessive foreign demand for scarce materials

Export

the actual shipment or transmission out of the US in any manner, or releasing or transferring of technology or software (source code) to a foreign person in the US

Validated End-User Program

allows qualified exporters to preapprove shipments to foreign trusted customers, business partners, and subsidiaries of American companies of certain high technology or dual use items without the need for individual export licenses

Export management and compliance program

an effective program should be in writing and state company compliance policies, involve senior management as well as personnel at all levels, etc.

boycott

an organized refusal of one or more nations, often backed by economic sanctions, to trade with one or more other nations

National Security Controls

the export of an item may be controlled to particular countries for reasons of national security if the item would make "a significant contribution to the military potential of any other country or combination of countries which would prove detrimental to the national security of the US." They are coordinated with US allies on the basis of Wassenaar arrangement.

Technology

the info necessary for the development, production, use, or operation of items, and in almost any form, such as blueprints, drawings, photographs, formulae, and engineering designs, whether written, verbal, or electronic.

Electronic export information (EEI)

electronic filing required for each export shipment leaving the US

Extraterritorial Jurisdiction

extending the power of its export control laws

Foreign availability

generally means that controlled item, or one of comparable quality, is "available-in-fact" from non-US sources in sufficient quantities so that any attempt to control for national security purposes would be ineffective

Deemed export

the release of technology or source code that is subject to the Export Administration Regulations, to a foreign national located in the United States.

Antiboycott laws

legal responses by governments that make it unlawful for their citizens or companies to participate in a boycott

Consolidated Screening List

lists consolidated into one searchable online database

Conscious Avoidance

meaning that the exporter purposely avoided learning the truth about an end user or destination

Automated Commercial Environment (ACE)

online system of US customs and border protection, in collaboration with the US Census Bureau

Commerce Control List and Commerce Country Chart

published by the BIS as supplements to EAR and available online. Used together, these two documents identify items by an Export Control Classification Number (ECCN), give the reasons for control for each, and tell whether a license is required for export to specific countries.

Reexport

refers to the shipment or transfer of American-controlled items or technology from one foreign country to another foreign country or foreign person

Internation Emergency Economic Powers Act (IEEPA)

statute provides the current grant of authority to the president to regulate economic and financial transactions and to place restrictions on importing or exporting during a peacetime international emergency