Archive for January, 2011


Jan

5

Census Blog Miffs Export Rules


Posted by at 5:15 pm on January 5, 2011
Category: DDTCITAR

Census Jobs AvailableThis may look like U.S. Government blog week on ExportLawBlog, but it’s purely a coincidence. Yesterday we highlighted the Treasury blog and today the subject is the U.S. Census blog with the somewhat enigmatic title of Global Reach. Because not much was popping in the Census world — something I imagine is more or less always the case — the industrious bloggers at Census thought that they would educate their readers about the mysteries of defense exports and the International Traffic in Arms Regulations with a post* titled “Understanding Basic Directorate of Defense Trade Controls (DDTC) License Requirements.”

As you continue to file shipments against your DDTC license, your license will become ‘decremented’ with each additional filing. This simply means that your license balance will decrease by the value of each accepted shipment. When the license balance is fully exhausted, an informational message will be sent stating:

176 DDTC LIC NOW EXHAUSTED:

At this time, your company must apply for an amendment to add more value onto the license or apply for a new license.

Um, no. There is so much wrong with the statement quoted above, it’s hard to know where to start. But I’ll start with the statement that decrementing means decreasing the balance by the “value” of each accepted shipment. Decrementing reduces the remaining quantity and the remaining value, not just the remaining value. If you are entitled to export 5 widgets with a value of $50 and you export 5 with a value of $35, the quantity on your license is decremented to zero and the license is kaput. You can’t export $15 more of widgets. You’re done.

Second, you can’t amend a license to increase quantity or value. Section 123.25(c) of the ITAR makes that perfectly clear as to increases in licensed quantities. You need a new license for the additional quantities. This notice posted on the DDTC website indicates that a new license is needed to add additional value to the license.

Here’s an idea: in the unlikely event that DDTC ever starts a blog, it should agree that it won’t post anything on the procedures for challenging population estimates if Census agrees not to post anything ever again on the ITAR.


*The original post disappeared from the Census blog a little while ago, apparently after Census received one or more emails pointing out the howler in the post. Of course, thanks to the miracle of the Google cache, nothing ever really dies on the Internet, and the link to the Census post above is a link to it in the Google cache. In case that ever disappears, here is a pdf version of the post for posterity.

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Copyright © 2011 Clif Burns. All Rights Reserved.
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Jan

4

OFAC Uses Blog to Respond to NYT Critique


Posted by at 8:43 pm on January 4, 2011
Category: OFAC

Cupcake of Mass DestructionThe Treasury Department has a blog. Who knew? Well, if you look at it, you’ll understand the reason why no one knew. One reason might be today’s post reporting the exciting news that the tax filing season has just started. Or the recent post titled “Holiday Cheer in Kabul.” No, seriously. That’s the actual title. Apparently, Treasury doesn’t know that Afghanistan is a Muslim country and that Christmas isn’t celebrated there.

But the real reason for my bringing the Treasury blog, scintillatingly titled “Treasury Notes,” to your attention is that the newly-minted blog was used by Treasury’s Office of Foreign Assets Control (“OFAC”) to respond to the preposterous article recently published in the New York Times assailing OFAC for licensing exports of cake sprinkles and popcorn to Iran. The blog post from OFAC stated, quite correctly, that OFAC has no discretion under TSRA to refuse to license agricultural products, medicine and medical devices to Iran on the grounds that they aren’t humanitarian relief items.

Apparently, this post was also sent to the New York Times as a letter to the editor. Shockingly, the newspaper hasn’t gotten around to publishing it.

Of course, blog entries from OFAC would be particularly welcome if they were used to provide guidance to exporters in difficult and confusing areas. I scanned the few articles that have been posted so far and, sadly, did not see anything of that nature. If OFAC is only going to use the blog to respond to criticisms of the agency, well, I’m not going to bookmark it and neither should you. But the blog is in its relative infancy, so I will withhold judgment. And if I do discover any helpful posts from OFAC on it, you’ll hear about it here first.

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Copyright © 2011 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)