The Daily Bugle Weekly Highlights: Week 8 (18-22 Feb 2019)

Every Monday we post the highlights out of last week’s FCC Export/Import Daily Update (“The Daily Bugle”). Send out every business day to approximately 6,500 readers of changes to defense and high-tech trade laws and regulations, The Daily Bugle is a free daily newsletter from Full Circle Compliance, edited by James E. Bartlett III, Alexander P. Bosch, Vincent J.A. Goossen, and Alex Witt.

We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items. To subscribe, click here.

Last week’s highlights of The Daily Bugle included in this edition are:

  1. UK TID Publishes 3 New OGELs Pursuant to Export Control (Order) 2018 Update Concerning Software Entries; The Daily Bugle; Tuesday, 19 Feb 2019, Item #11;
  2. President Continues National Emergencies with Respect to Cuba and Libya; The Daily Bugle; Wednesday, 20 Feb 2019, Item #6;
  3. UK Government Publishes Guidance Concerning Interception and Monitoring Prohibitions in Sanctions; The Daily Bugle; Wednesday, 20 Feb 2019, Item #9;
  4. Treasury/OFAC Posts Settlement with ZAG IP, LLC for Five Apparent Iranian Sanctions Violations; The Daily Bugle; Thursday, 21 Jan 2019, Item #5; and
  5. Dutch Government Publishes Updated ICP Guidelines; The Daily Bugle; Friday, 22 Feb 2019, Item #7.

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UK TID Publishes 3 New OGELs Pursuant to Export Control (Order) 2018 Update Concerning Software Entries

(Source: UK TID, 18 Feb 2019.)

The Department for International Trade (DIT) has updated and amended three open general export licenses (OGELs) with the addition of entry ML21.b.4.

The updated OGELS are:

  – Open general export license (military goods, software and technology)

  – Open general export license (software and source code for military goods)

  – Open general export license (military goods, software and technology: government or NATO end use)

The changes reflect a review of the software entries in Schedule 2 of the Export control (Order) 2008. ML21.b.4 refers to software that is both specially designed for military use and specially designed for:

  – command, communications, control and intelligence (C3I) applications

  – command, communications, control, computer and intelligence (C4I) applications

The revised licenses come into force on 18 February 2019

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President Continues National Emergencies with Respect to Cuba and Libya

(Source: The White House, 20 Feb 2019.)

Text of a Notice on the Continuation of the National Emergency with Respect to Cuba [and Continuing to Authorize the Regulation of the Anchorage and Movement of Vessels]

On February 22, 2018, by Proclamation 9699, the national emergency with respect to Cuba declared in Proclamation 6867 of March 1, 1996, expanded by Proclamation 7757 of February 26, 2004, and modified by Proclamation 9398 of February 24, 2016, was modified and continued based on a disturbance or threatened disturbance of the international relations of the United States related to Cuba.  The unauthorized entry of any United States-registered vessel into Cuban territorial waters and the situation in Cuba continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)) and section 1 of title II of Public Law 65-24, ch. 30, June 15, 1917, as amended (50 U.S.C. 191), I am continuing for 1 year the national emergency declared in Proclamations 6867, 7757, 9398, and 9699.

This notice shall be published in the Federal Register and transmitted to the Congress.

  DONALD J. TRUMP

THE WHITE HOUSE,

February 19, 2019.

Text of a Notice on the Continuation of the National Emergency with Respect to Libya

On February 25, 2011, by Executive Order 13566, the President declared a national emergency pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701‑1706) to deal with the unusual and extraordinary threat to the national security and foreign policy of the United States constituted by the actions of Colonel Muammar Qadhafi, his government, and close associates, which took extreme measures against the people of Libya, including by using weapons of war, mercenaries, and wanton violence against unarmed civilians.  In addition, there was a serious risk that Libyan state assets would be misappropriated by Qadhafi, members of his government, members of his family, or his close associates if those assets were not protected.  The foregoing circumstances, the prolonged attacks against civilians, and the increased numbers of Libyans seeking refuge in other countries caused a deterioration in the security of Libya and posed a serious risk to its stability.

The situation in Libya continues to pose an unusual and extraordinary threat to the national security and foreign policy of the United States, and measures are needed to protect against the diversion of assets or other abuses by members of Qadhafi’s family, their associates, and other persons hindering Libyan national reconciliation.

For this reason, the national emergency declared on February 25, 2011, must continue in effect beyond February 25, 2019.  Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency declared in Executive Order 13566.

This notice shall be published in the Federal Register and transmitted to the Congress.

  DONALD J. TRUMP

THE WHITE HOUSE,

February 19, 2019.

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UK Government Publishes Guidance Concerning Interception and Monitoring Prohibitions in Sanctions

(Source: Gov.UK, 20 Feb 2019.)

UK sanctions on Burma, Iran, Syria and Venezuela include prohibitions in relation to items that could be used to intercept communications, as well as related services.

This guidance (Interception and monitoring prohibitions in sanctions made under the Sanctions and Anti-Money Laundering Act 2018: technical guidance) provides further information on the meaning of specific terms used in the schedules to these regulations. If in doubt, exporters should ensure that they seek appropriate technical and legal advice on whether their activity is prohibited.

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Treasury/OFAC Posts Settlement with ZAG IP, LLC for Five Apparent Iranian Sanctions Violations

(Source: Treasury/OFAC, 21 Feb 2019.)    

Today OFAC announced a $506,250 settlement with ZAG IP, LLC (formerly known as ZAG International, LLC) (“ZAG”), a U.S. company with its business address in Newtown, Connecticut, for five apparent violations of § 560.206 of the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR).  Specifically, between on or about July 11, 2014 and on or about January 15, 2015, through five separate transactions, ZAG purchased a total of 263,563 metric tons of Iranian-origin clinker from a company located in the United Arab Emirates, with knowledge that the cement clinker was sourced from Iran, and then resold and transported it to a company in Tanzania.  OFAC determined that ZAG voluntarily self-disclosed the apparent violations to OFAC, and that the apparent violations constitute a non-egregious case.

For more information on this action, please visit the following web notice.

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Dutch Government Publishes Updated ICP Guidelines

(Source: Rijksoverheid, 22 Feb 2019.)

The Dutch government has published on its website an updated version (1.1.) of its guidelines for compiling an Internal Compliance Program for strategic Goods, torture goods, technology and sanctions.

  – Click here for the English version (PDF).

  – Click here for the Dutch version (PDF).

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