Archive for July, 2008


Jul

14

Acquitted Export Defendant Goes After U.S. Attorney


Posted by at 6:26 pm on July 14, 2008
Category: Arms ExportCriminal Penalties

Alice Martin
ABOVE: U.S. Attorney Alice Martin

The Alex Latifi saga continues. As we have reported in detail here on Export Law Blog, Mr. Latifi was acquitted on charges that emailing a drawing of a Blackhawk helicopter part to a Chinese supplier violated the Arms Export Control Act. The acquittal appears to have been based, at least in part, on the availability of that drawing on the Internet.

Latifi’s attorney, Henry Frohsin, indicated on Friday that he has filed a complaint with the Department of Justice’s Office of Professional Responsibility against Alice Martin, the U.S. Attorney involved in the prosecution. A copy of the complaint is not publicly available, but another attorney in Frohsin’s firm told the Birmingham News that the complaint alleges that the government had exculpatory evidence that it failed to provide to the defense team. The precise nature of that exculpatory evidence was not revealed to the newspaper.

Alice Martin told the Birmingham News that her office has been the unsuccessful target of earlier complaints and that she was certain that her side would prevail again.

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Copyright © 2008 Clif Burns. All Rights Reserved.
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Jul

10

Beware Syrians Bearing Duty-Free


Posted by at 5:39 pm on July 10, 2008
Category: Syria

Damascus Duty FreeThe Office of Foreign Assets Control (“OFAC”) today continued its cage match with Rami Makhluf, the maternal cousin of Syria’s President Bashar al-Assad and owner of Syriatel, Syria’s largest mobile phone provider. Previously, OFAC has designated Makhluf as an SDN based on the novel (and dubious) theory that Makhluf’s leveraging of his family relationship to al-Assad to obtain improper business advantages for himself in Syria threatens the security of the United States.

Today OFAC designated two of Makhluf’s most visible business enterprises as SDNs — Syriatel and Ramak Duty Free, a chain of duty free stores that includes Damascus Duty Free at the Damascus International Airport. As a result of that designation, U.S. citizens are prohibited from doing business with either entity. (OFAC’s press release on the designation can be found here.)

This may catch many Americans traveling to Syria unaware. The Damascus Duty Free at the airport is reputed to have a large selection of goods at attractive discounts and is popular among travelers departing the airport. The State Department’s guidance page on travel to Syria has not yet been updated to reflect this new restriction, stating only that, because Syria is a designated state sponsor of terrorism, U.S. citizens “are prohibited from engaging in financial transactions which a U.S. person knows or has reasonable cause to believe pose a risk of furthering terrorists’ acts in the United States.”

Americans traveling in Syria with unlocked GSM phones might also violate the sanctions if they bought a pre-paid SIM card from Syriatel for use in Syria. Buying telcom services from Syriatel is arguably exempt under the Berman Amendment, but the purchase of the hardware — the SIM card — arguably could overstep the line.

One major American company is currently providing service to Syriatel. Network Solutions is the registrar for syriatel.com, which, as of this posting, was still functioning. Given the increased penalties for violating U.S. sanctions laws, it won’t be surprising if that website disappears shortly.

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Copyright © 2008 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Jul

8

Our Secret Weapon Against Tehran: Cigarettes


Posted by at 7:54 pm on July 8, 2008
Category: General

Iranian Coke Bottles
ABOVE: Coke and Fanta in Iran

A fascinating Associated Press article published today reports the results of an FOIA request the wire service made for information relating to U.S. exports to Iran. According to the information obtained by the AP, U.S. exports have grown more than ten-fold during the last seven years of the Bush administration, notwithstanding U.S. concerns about nuclear proliferation activities by Iran. The largest export: cigarettes. Almost $158 million dollars worth of cigarettes. That’s a lot of lung cancer and heart disease. (Full disclosure: as a former smoker, I tend to be a rabidly anti-smoking.)

Most surprisingly, the figures given to the AP reveal military exports to Iran, including $106,635 in military rifles and $8,760 in rifle parts and other accessories. Adam Szubin, speaking for the Office of Foreign Assets Control, argued that it was unlikely that these exports actually occurred and cited the possibility that shipping documents listed these codes erroneously or that shippers may have confused Iran and Iraq when filling out these documents. Some support for this can be found in government data saying that the U.S. exported $13,000 in “aircraft launching gear and/or deck arrestors” to Iran. As far as anyone knows Iran doesn’t have any aircraft carriers Still, even if these were mistakes by the shippers, one has to wonder why someone at Customs didn’t catch these mistakes.

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Copyright © 2008 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)

Jul

7

ICE Targets DDTC Registrants


Posted by at 3:22 pm on July 7, 2008
Category: General

Immigration RaidAgents of the U.S. Immigration and Customs Enforcement (“ICE”) raided the Washington state facilities of Aerospace Manufacturing Technologies, Inc., and walked away with thirty-two workers that ICE alleges were illegal immigrants working at the facility. Those workers are now in ICE custody in Tacoma, Washington, and are being processed for deportation.

According to the article reporting the raid, the ICE action was part of its “Worksite Enforcement” initiative. This initiative, which has its own enforcement unit, targets critical infrastructure and sensitive sites. AMT manufactures parts for civilian and military aircraft and is registered with the Directorate of Defense Trade Controls.

Assuming that the workers are ultimately determined to be illegal and undocumented aliens, AMT might be expecting, sooner rather than later, a visit from the enforcement staff of DDTC. After all, if there were thirty-two foreigners working in a facility that manufactures military aircraft parts, there will certainly be a reasonable suspicion that AMT may have transferred technical data on these military parts if, by no other reason, allowing them to see certain of the military parts. Exports under section 120.17 of the International Traffic in Arms Regulations includes “visual disclosure.”

A major topic of discussion in the deemed export area has been the possible ramifications of having legal and or illegal foreign workers on cleaning crews and in IT departments. There hasn’t been real discussion of illegal foreign workers actually involved on production crews because, I suppose, it was thought that this wasn’t a very likely possibility. Until now.

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Copyright © 2008 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)