The Treasury’s Office of Foreign Assets Control added one person and one entity to its Specially Designated Nationals List, OFAC said in a July 2 notice. In Federal Register notices, the State Department said Lebanon-based Husain Ali Hazzima and the Pakistan-based Balochistan Liberation Army are each designated as a Specially Designated Global Terrorist. Both pose "a significant risk of committing" acts of "terrorism that threaten” the U.S. or its national or economic security, State said. OFAC also added several aliases for Jundallah, an Iran-based militant organization, which maintained its State Department designation as a foreign terrorist organization (see 1907010011).
As the Commerce Department prepares to issue export controls on emerging technologies, U.S. industries are urging the agency to limit controls on artificial intelligence and 3D printing, according to industry comments gathered by Jessica Blum Sanchez, the trade compliance manager at Accenture Federal Services.
Export Compliance Daily is providing readers with some of the top stories for June 24-28 in case they were missed.
Japan’s Ministry of Economy, Trade and Industry is implementing more restrictions surrounding licensing policies and procedures for exports of certain “controlled items” and technologies to South Korea, the ministry said in a July 1 press release. Japan said its relationship of trust with South Korea “in the field of export control and regulation” has been “significantly undermined.” Japan said it will “apply more stringent procedures over certain controlled items and their relevant technologies” to “ensure appropriate implementation of Japan’s own export control and regulation.” Some “sensitive items” have been exported to South Korea “with inadequate management by companies,” the press release said. The changes will take effect July 4, Japan said.
John Peterson and Brunella Zuppone were arrested June 26 and charged with "conspiracy to violate and attempted violations of the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR)," the U.S. Attorney's Office for the Southern District of Florida said in a June 28 news release. The pair are alleged to have tried to "illegally export to Argentina defense articles, specifically, parts and components for AR-15 assault rifles, which were smuggled across international borders by a transnational weapons trafficking group in Argentina," the Justice Department said. Neither had required licenses from the State Department for exporting such goods, it said.
Commerce’s Bureau of Industry and Security banned export privileges for a man who was convicted of illegally exporting gas turbine parts in 2018, Commerce said in a June 28 order. Commerce said the man, Olaf Tepper, violated the International Emergency Economic Powers Act after he exported parts to Germany that were intended for an end-user in Iran. Tepper did not have the proper export license from the Treasury's Office of Foreign Assets Control. Tepper was sentenced to two years in prison and a $5,000 fine in addition to the export ban, which included revoking all of Tepper’s BIS-related licenses. The ban will last 10 years after his conviction date of Aug. 3, 2018, Commerce said.
The State Department is maintaining a foreign terrorist organization designation on Jundallah, an Iran-based militant organization, according to a notice scheduled to be published July 2 in the Federal Register. The State Department said the circumstances that warranted Jundallah’s original sanctions “have not changed in such a manner as to warrant revocation of the designation.” The State Department is scheduled to publish another notice that lists several new aliases for Jundallah, also known as People’s Resistance Movement of Iran (PMRI), including the Army of God and the Baloch Peoples Resistance Movement.
the Treasury's Office of Foreign Assets Control issued a reminder for all “holders of blocked property” to submit their Annual Report of Blocked Property by Sept. 30, OFAC said in a July 2 notice. The list should contain all blocked property held as of June 30, 2019, the notice said. Blocked property is that which is blocked "pursuant to OFAC regulations." The reports must be filed using OFAC’s new form TD-F 90-22.50, which is available for download in the notice. Those who do not submit required forms are subject to violations in OFAC's Reporting, Procedures and Penalties Regulations.
Instex, the European payment system designed to allow countries to trade with Iran despite U.S. sanctions, is now “operational and available” to all European Union member countries and is processing its “first transactions,” according to a United Kingdom press release. The announcement was made by the U.K., France and Germany at a June 28 joint commission meeting on the Joint Comprehensive Plan of Action on Iran.
The Commerce Department will approve more temporary licenses to U.S. exporters selling “general merchandise” to Huawei, U.S. National Economic Council Director Larry Kudlow said on CBS and Fox News on June 30, potentially providing relief to both U.S. firms and China’s telecommunications tech giant. Although specific details have not yet been released, Commerce plans to grant export licenses for products that China can easily get from other countries, including “various chips and software,” Kudlow said.