Category Archives: BIS Updates

09.09.14
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This is not a toy: Vlacheslav Zhukov charged by BIS

Courtesy of Export Law Blog, a story of a Georgia man who tried to ship rifle scopes to Russia and got nabbed by the Bureau of Industry and Security (BIS) for export control violations…

Seems he kind of knew what he was doing was illegal…

As the false statement count suggests, there is some evidence that Zhukov may have known that the exports required a license from the U.S. government. Zhukov allegedly filed a Customs Declaration with the U.S. Postal Service saying that the boxes contained a “cardboard box, a model battle tank, and men’s jeans.” Telling customs that you’re mailing a “cardboard box” to Russia probably is more or less an open invitation to having your shipment detained and inspected, which may well be how he was caught.

Of course, there may be other reasons that Zhukov fibbed about the contents of the box. Perhaps he was hoping to avoid Russian import license requirements or duties. At this point, we have no idea what his explanation will be for providing an incorrect description of the items being exported.

As Mr. Watchlist is fond of saying, we are in the business of catching the stupid and unsophisticated, the impatient and the greedy…

Links:

Be Careful What You Like on Facebook (from Export Law Blog)

Indictment Text

 

09.04.14
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This is not a toy: Vlacheslav Zhukov charged by BIS

Courtesy of Export Law Blog, a story of a Georgia man who tried to ship rifle scopes to Russia and got nabbed by the Bureau of Industry and Security (BIS) for export control violations…

Seems he kind of knew what he was doing was illegal…

As the false statement count suggests, there is some evidence that Zhukov may have known that the exports required a license from the U.S. government. Zhukov allegedly filed a Customs Declaration with the U.S. Postal Service saying that the boxes contained a “cardboard box, a model battle tank, and men’s jeans.” Telling customs that you’re mailing a “cardboard box” to Russia probably is more or less an open invitation to having your shipment detained and inspected, which may well be how he was caught.

Of course, there may be other reasons that Zhukov fibbed about the contents of the box. Perhaps he was hoping to avoid Russian import license requirements or duties. At this point, we have no idea what his explanation will be for providing an incorrect description of the items being exported.

As Mr. Watchlist is fond of saying, we are in the business of catching the stupid and unsophisticated, the impatient and the greedy…

Links:

Be Careful What You Like on Facebook (from Export Law Blog)

Indictment Text

 

07.31.14
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July 29, 2014: BIS Expands Export Restrictions on Russia

Tuesday, the US Bureau of Industry and Security (BIS), announced it would ban export/reexport of goods that are used for deepwater, arctic or shale oil exploration projects. In addition the press release says it will also specifically ban unlicensed dealings with OJSC United Shipbuilding Corporation “based on a determination it is involved, or poses a significant risk of becoming involved, in activities contrary to the national security and foreign policy interests of the United States. Designation on the Entity List imposes a license requirement for the export, reexport or foreign transfer of items subject to the Export Administration Regulations to the designated entities, with a presumption of denial.”

Link:

BIS Press Release

 

07.23.14
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BIS leaves no stone unturned…

A very cool story out of the Export Law Blog. BIS fined C A Litzler $45000 for the unlicensed export of machinery by Western Advanced Engineering Company (WAECO), whose assets it had bought. But, since WAECO still exists as a shell company, BIS also got a settlement out of them for a 3-year export denial order.

Due diligence is a marvelous thing, isn't it?

Link:

BIS Slaps Defunct Company with Suspended Export Denial Order

 

07.16.14
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BIS leaves no stone unturned…

A very cool story out of the Export Law Blog. BIS fined C A Litzler $45000 for the unlicensed export of machinery by Western Advanced Engineering Company (WAECO), whose assets it had bought. But, since WAECO still exists as a shell company, BIS also got a settlement out of them for a 3-year export denial order.

Due diligence is a marvelous thing, isn't it?

Link:

BIS Slaps Defunct Company with Suspended Export Denial Order

 

07.11.14
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OFAC FAQ: The SDN List vs. the BIS Denied Persons List

56. What is the difference between the SDN List and the Commerce Department's List of Denied Parties? Why can't they be integrated into one list?

Specially Designated Nationals and Blocked Persons (SDNs) are individuals and entities located throughout the world that are blocked pursuant to the various sanctions programs administered by OFAC. SDNs can be front companies, parastatal entities, or individuals determined to be owned or controlled by, or acting for or on behalf of, targeted countries or groups. They also can be specially identified individuals such as terrorists or narcotics traffickers. U.S. persons are prohibited from engaging in any transactions with SDNs and must block any property in their possession or under their control in which an SDN has an interest. SDNs are designated primarily under the statutory authority of the Trading With the Enemy Act, the International Emergency Economic Powers Act, the Anti-Terrorism and Effective Death Penalty Act and the Foreign Narcotics Kingpin Designation Act. Implementing regulations can be found in Chapter V, Title 31 of the U.S. Code of Federal Regulations.

The Bureau of Industry and Security (“BIS”) of the U.S. Department of Commerce maintains separate lists for the purposes of the programs that it administers (including the Denied Persons List and the Entity List). The Denied Persons List consists of individuals and companies that have been denied export and re-export privileges by BIS. The Entity List consists of foreign end users who pose an unacceptable risk of diverting U.S. exports and the technology they contain to alternate destinations for the development of weapons of mass destruction. Accordingly, U.S. exports to those entities may require a license. Authority for the Denied Persons List and the Entity List can be found in Title 15, Part 764, Supplement No. 2 and Title 15, Part 744, Supplement No.4 of the U.S. Code of Federal Regulations, respectively.

The foreign policy objectives and legal requirements of the SDN list are significantly different from those of the BIS lists. The Commerce lists do not involve a full trade embargo of all goods and services nor do they require U.S. persons to block property. They are concerned with issues of export privileges and export licensing. The unique goals of the OFAC and BIS programs preclude the creation of a unified “master list.” [09-10-02]

 

04.23.14
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Notice to Exporters 2014/11: A400M OGEL Issued

The A400M is an airlifter aircraft. The Open General Export License allows the export of the aircraft and the bits and pieces needed to produce and maintain it between the 7 countries (Belgium, France, Germany, Luxemburg, Spain, Turkey and the UK) producing the A400M, and Malaysia, who is the only currently-identified customer.

Link:

Notice to Exporters 2014/11