Jan
27
BIS Attempts to Halt Export of Go-Fast Boat to Iran
Posted by Clif Burns at 9:02 pm on January 27, 2009
Category: General
On January 22, the Bureau of Industry and Security (“BIS”) issued a temporary denial order (“TDO”) purportedly to prevent the export of a Bladerunner 51, a “go-fast boat” favored by drug smugglers, from South Africa to Iran.
Although the boat is manufactured in Great Britain by Ice Marine International, the BIS premised its jurisdictional hook over the boat on its two U.S.-origin Caterpillar C18 engines and two Arneson surface drives. According to the TDO, BIS has evidence to believe that the vessel is destined for the Iranian Revolutionary Guard Corps for use as an attack craft.
[T]he Respondents are about to engage in conduct prohibited by the EAR by re-exporting U.S.-origin items, which are subject to the Regulations and classified as Export Control Classification Number (“ECCN”) 8A992.f and .g, from South Africa to a Specially Designated National (“SDN”) [the Iranian Revolutionary Guard Corps] located in Iran using a specially designated blocked vessel, owned by a Specially Designated National [the Islamic Republic of Iran Shipping Lines], to complete the transaction.
Given that U.S. persons are already prohibited from doing business with the Islamic Republic of Iran Shipping Lines (“IRISL”) and the specially designated blocked vessel, it’s completely unclear what the TDO actually accomplishes. Certainly IRISL is not going to pay any attention to BIS’s order that it not engage in the export of the Bladerunner 51, nor is IRISL likely to be swayed by the TDO’s denial of export privileges since that has already been effectively accomplished by its SDN status. The other two respondents — Tadbir Sanaat Sharif Technology Development Center (TSS), based in Tehran, Iran, and Icarus Marine (Pty) Ltd. of Cape Town, South Africa — are unlikely to try to block the transaction, even if they could, based on the TDO’s provisions forbidding exports to them.
Even though BIS based the TDO on fears that the vessel will be used as an attack craft, the folks at the United States Naval Institute, a private think tank, suspect something much more sinister is going on — namely that the Bladerunner 51 is merely an expensive wrapping package for South African yellowcake uranium. Here is their full-tin-foil-cap reasoning:
Why are the Iranians looking to get this 51-foot asset from South Africa? Isn’t there lots of cross-gulf smuggling going on? Plenty of big, roomy fast boats transit from UAE to Iran every single night! Why go through all the trouble of shipping something from South Africa? In a big Iranian ship, a known proliferation tool? Wouldn’t it be easier to look closer to home? Nab a cigarette smuggler and take ownership from there? Or find some nearby disenfranchised recipient of oil proceeds and encourage the fellow to, ah, buy and transfer his fine vessel?
Just seems odd that Iran is reaching so far afield, when there are plenty of go-fasts within easy reach. But then, if we note that South Africa holds 7 percent of the worlds economically recoverable uranium reserves and is the eleventh biggest producer of uranium, alarm bells start ringing.
Um, okay. Personally, I think it would be easier and safer for Iran to put yellowcake in an unmarked box than in a potential attack vessel with U.S. parts, particularly if Iran wanted to, you know, avoid detection. Stuffing the yellowcake into the go-fast boat is rather like a drug dealer deciding to smuggle heroin in a shoulder-fired rocket launcher.
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6 Comments:
This ain’t no cigarette boat or dhow. This particular powerboat set the record for circum-navigating Britain at an average speed of 63. That speed could make targeting a tad tricky for older helicopter gunships, like the Marines’ SeaCobra. It comes equipped with all sorts of luxury items which could be stripped out and replaced by enhanced radar and other sensors and fire control and communication equpment. When its planing along at top speed it will pull a very shallow draft which will allow it to avoid most mines and torpedoes, while coming in at water level at that speed rivals speed of attack helicopters and fixed wing aircraft operating at such low altitudes and are very stealthy. Most helos and aircraft are designed for, and their crews train for, engaging conventional warships or land targets. During WWII the US used PT boats to challenge Japanese destroyers in the Solomons. The Germans used E-boats in the Channel. Even given the advancement in sensors and weaponry, many NATO frigates would have difficulty engaging such a capable platform, as they were designed for anti-submarine or anti-aircraft duty in the Soviet era. When converted by someone who knows what they’re doing, the Bladerunner could be the ideal platform for challenging conventional destroyers, frigates, corvettes and their accompanying aircraft escorting Very Large Crude Carriers or larger warships in the Gulf.
The talk about yellowcake is just smoke to justify a seizure in international waters of a civilian craft under the anti-proliferation initiative.
The talk of yellowcake wasn’t coming from BIS, it was merely some ridiculous speculation by bloggers at the United States Naval Institute, which has no official affiliation with the USN or any other agency of the USG
You should re-read the recently issued regulation. BIS started this investigation months ago based on knowledge that the transaction was underway. The regulation contains a contract sanctity clause that allows transactions that are under contract prior to the imposition of the regulation to be subject to the previous regulations….meaning, if the contract was signed before the rule was published, the transaction is legal. Therefore, BIS simply embarrassed the South African company (and their government) by falsely accusing them of a violation.
Interesting. Clif writes:
The other two respondents — Tadbir Sanaat Sharif Technology Development Center (TSS), based in Tehran, Iran, and Icarus Marine (Pty) Ltd. of Cape Town, South Africa — are unlikely to try to block the transaction, even if they could, based on the TDO’s provisions forbidding exports to them.
Perhaps I missed something, but I would think the TDO on Icarus Marine could serve as incentive for it to block the transaction. Under the TDO, for 180 days, “persons” (like Caterpillar and who knows what other US manufacturers/suppliers) are now prohibited from exporting to Denied Party Icarus Marine, or being involved in any transactions with them, including facilitating re-exports (through foreign companies like Ice Marine). If Icarus Marine wants/needs more Ice boats with Caterpillar engines to sell, it may have to forgo this sale. I suppose Icarus Marine’s risk depends on what Icarus Marine has at stake for future supplies of US origin items, versus what it hopes to gain with this sale.
The South African Icarus is related to a Norwegian boat building company of the same name, and its director is a recognized marine architect that serves on the board of advisors of a New England company that specializes in the development of vessels with advanced hull designs. BIS may have more leverage over Icarus than meets the eye. On the otherhand, BIS may be stepping on the toes of an Afrikaner with the will and means to fight back, depending on how far BIS wants to push it.
Hillbilly, very interesting info.
