bsad ch 13

d. Multilateral sanctions resulting from passage of resolution by UN Security Council

_____ are typically the most effective form of sanctions

b. Yes, because he is a national of a state to whom exporting of the technology is prohibited.

Bell Helicopters located in Fort Worth, Texas owns much proprietary technology about the software needed to operate military helicopters safely. The export of this technology abroad is controlled by various US laws and regulations, and cannot be exported to China. A Chinese national in the US on a spousal visa works at Bell's facility in Euless, Texas. Are there any export restrictions on his access to that technology?

a. US Department of Commerce. and d. US Department of Defense.

Export Administration Regulations (EAR) promulgated under original authority of Export administration Act of 1979 are administered by:

d. Commercial item that has potential for military, terrorist or "proliferation" uses.

EAR applies to commercial and "dual use" items defined to be:

c. A boycott.

An organized refusal of one or more nations to trade with a certain nation or nations, backed by economic sanctions is called:

a. The person or entity receiving the item or "end user."

One of the main areas of scrutiny and review by the government for license applications to export controlled items or technology is for applicants to specify in detail in the application:

d. Saudi Arabia may have placed his company on a "blacklist" since it has sold goods to Israel in the past.

Saudi Arabia refuses to do business with Israel or companies located there. You are a French citizen owning a cable manufacturing firm in Paris that does much business with the Israeli government. What advice do you give the president of the French company if he also wants to do business in Saudi Arabia?

b. If this item is already viewed as a "dual use" product and listed on the Commerce Control List, it will be very difficult to export legally.

ABC Company in Burlingame, California wishes to export from the US a sophisticated ground positioning system (GPS) for use in all motorized vehicles, e.g., cars. ABC has already licensed this to General Motors and Ford. You are outraged when the US government (Commerce Department) insists the GPS system can only be exported under a valid license from BIS. How do you advise them if you are their attorney?

d. BIS will assert Company A staff did no due diligence investigation of end user and displayed "conscious avoidance" by not seeking to ascertain truth. Payment of above market price was a "red flag."

Company A in US is asked by "Francois de Nationale" in Marseilles to sell it 1,000 gallons of arsenic, a poison. The price offered is above the market price. Without asking any questions, Company A obtains the required license and exports this item. The BIS seizes the goods in transport and says that there is on the Company since the end user is a terrorist organization front. What is BIS' basis of this alleged liability? Is it valid? What are best defenses by Company A?

b. No, these are "tools of the trade" and can be temporarily exported without a license so long as remain under control of Company A and secured.

Company A in the US is opening a factory in Italy to manufacture its products, e.g., radio transmitters. These products made by Company A for special use are generally controlled by EAR when being exported. It wishes to send over to Italy certain quality assurance software programs and testing equipment for use in its Italian facility to assist in the manufacturing process. Must it obtain an export license form BIS if EAR-covered?

a. Requiring record-keeping for all exports and a mandate for retaining such records for five years. This includes broadly all "records" such as license applications, supporting documents, etc.

Company A wishes to institute an export management and compliance program. You are asked to implement such a program for the first time at the company. A key part of such program and an area deserving special emphasis is:

d. Diversion.

In export control regulation, the unlawful transfer, transshipment, rerouting or re-exporting of controlled items or technology is called:

c. Establishment of an export management and compliance program.

Large exporting firms typically wish to minimize legal risks of violating export control regulations and all export laws in general. A best strategy for doing this is:

d. Export controls.

Laws and regulations restricting the sale and licensing of goods and technology exported from the US are generally referred to as:

c. Antiboycott laws.

Legal responses by governments that make it unlawful for its citizens or companies to participate in a boycott are called:

c. To promote price stability and affordability of certain products.

The policy reasons to support the control and licensing of certain exports include all of the following excerpt: