Archive for the ‘BIS’ Category


Apr

18

T-Platforms Placed on Entity List; SUNY No Longer Feels Sunny


Posted by at 8:11 pm on April 18, 2013
Category: BISEntity List

Source: T-Platform (Fair Use)Some tech writers have just discovered the Bureau of Industry and Securities’ Entity List and they are, well, perplexed. Arstechnica, Slashdot and HPC Wire all weighed in on the mysterious list, with all three expressing some surprise that U.S. companies could no longer supply components to T-Platforms, the Russian supercomputer manufacturer that BIS put on the Entity List back in March.

The BIS notice putting T-Platforms on the Entity List cited two rationales. First, the company had received shipments of a number of export-controlled items that had been shipped without the required licenses. Second, the notice stated that there was “reason to believe” that T-Platform was involved with the Russian military’s research on nuclear weapons. As a result, BIS stated that all exports of items subject to the EAR would require licenses and that the licensing policy would be a presumption of denial.

By focusing on the impact of the designation on exports of components and hardware to T-Platforms, the articles all missed a more interesting issue. Last year, T-Platforms delivered a supercomputer to the State University of New York at Stony Brook. My educated guess is the SUNY paid a small fortune and expected and received an agreement from T-Platforms that it would provide maintenance and service as needed for the supercomputer.

Uh-oh. To say the least. Somebody at SUNY right now is probably asking who on earth had the bright idea to buy this thing from Russia, because I’m sure that someone has realized by now that most requests for service by T-Platforms of this leviathan would inevitably require that SUNY transfer EAR99 technology to T-Platforms.  Such a transfer would occur to the extent that the request would transfer to T-Platforms non-public information on the development, production or use of the computers.

How long before we see SUNY’s new supercomputer on eBay for $19.99 OBO?

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Copyright © 2013 Clif Burns. All Rights Reserved.
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Mar

29

Apple’s Newest Fanboi?


Posted by at 2:39 pm on March 29, 2013
Category: BISNorth Korea Sanctions

Photo By Korean Central News Agency (derivative work; fair use)

Well, well, well.   It seems that North Korea’s well-fed Dear Leader is planning his attack on the United States mainland using a 21.5 inch aluminum unibody iMac.  Or perhaps he just uses it to play Call of Duty Mac Edition in between snacks and drawing pictures.  It’s hard to tell.

But, you may ask, what’s he doing with an iMac?  Don’t we have laws against that? Yes, we do. Currently, exports to North Korea of all items other than food and medicine classified as EAR99 require a license from the Bureau of Industry and Security (“BIS”). An iMac is classified as ECCN 5A992. Under EAR § 742.19(b)(vii), licenses to export 5A992 items to North Korea are subject to a general policy of denial, so I think we can reasonably assume that no license was issued by BIS to export the iMac to our Dear Leader.

So where did he get it? Um, where do you think? China, probably..

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Copyright © 2013 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Mar

5

It Pays To Plan Ahead


Posted by at 1:29 pm on March 5, 2013
Category: BIS

Update 3013

Regrettably, I doubt that I will be able to attend.

(Source Link)

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Copyright © 2013 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Dec

18

Two Men in China Indicted by U.S. for Export Violations


Posted by at 8:42 pm on December 18, 2012
Category: BISCriminal Penalties

Lattice Semiconductor HQAn FBI press release today announced the indictment of two Chinese citizens, both of whom are now in China and both of whom were in China at the time of the alleged criminal activity, for efforts to export programmable logic devices from the United States to China. The devices in question, presumably field programmable logic devices controlled under ECCN 3A001.a.2, were manufactured by Lattice Semiconductor Corporation of Hillsboro, Oregon.

One of the defendants, Wan Yi Luan, adopted the presidential-sounding alias Nicholas Bush and attempted to have the items shipped to the New York address of a freight forwarder, falsely representing that this was the address of a New York company that was supposedly the customer. It’s not too hard to figure out what went wrong with this plan.

Of course, if Yuan wasn’t smart enough to come up with a better plan, he was smart enough to stay out of the United States, which is why the FBI press release says this:

“The Department of Justice is committed to finding, charging, and prosecuting anyone who attempts to illegally procure American technology,” said Amanda Marshall, U.S. Attorney for the District of Oregon. “Even if we cannot arrest them overseas, we will seek to forfeit any assets we find in the United States.”

I think it is safe to say that the Chinese probably won’t permit us to arrest or to extradite Yuan. But all is not lost. Apparently, BIS and the FBI were able to seize $414,000 sent by Yuan as down payments for the PLDs.

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Copyright © 2012 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Dec

11

We’re From The Government and We’re (Not) Here to Help You


Posted by at 5:50 pm on December 11, 2012
Category: BIS

Capintec Dose CalibratorThe Bureau of Industry and Security (“BIS”) recently released settlement documents under which the agency imposed a $23,000 fine on Capintec, Inc., for an unlicensed export of an EAR99 nuclear dose calibrator worth $5,120 dollars to Pakistan. The export required a license because it allegedly was sent to the Pakistan Atomic Energy Commission, which is listed on BIS’s Entity List.

The charging documents make a big deal about an “outreach” visit paid to Capintec in which BIS agents supposedly

discussed with Capintec the need to screen all parties to an export transaction against, inter alia, BIS’s Entity List to determine whether an export license was required.

Although this was not used to add a charge against Capintec for exporting “with knowledge,” it does illustrate that there are good reasons why companies might want to schedule these meetings with their lawyers present since the content of the meetings is often used by BIS in subsequent penalty proceedings.

Another thing bears comment here. The item involved is used in nuclear medicine to calibrate doses used, for example, to provide radiation treatment to cancer patients. The PAEC is in charge of all nuclear medicine in Pakistan and runs 14 hospitals in 12 cities providing treatment to cancer patients. It would surprise me if the purchaser of these medical devices was the PAEC and not one of its hospitals instead. None of these hospitals are mentioned or referenced on the Entity List, and this might well have been the reason that the item was shipped by Capintec without a license even if it checked the list. Of course, there’s not enough information in the charging documents to determine the exact addressee of the export, so it’s impossible to tell whether this was the case or not.

The safest course for exporters is to exercise caution in exporting anything relating to nuclear medicine to Pakistan and to apply for a license in all cases. There is a presumption of approval for export licenses for EAR99 items to PAEC, so a license request will likely be granted easily and promptly.

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Copyright © 2012 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)