Jan

10

Homeless Travel Blogger Advises Readers To Violate OFAC Rules


Posted by at 6:03 pm on January 10, 2017
Category: Cuba SanctionsOFAC

Ben Schlappig via http://onemileatatime.img.boardingarea.com/wp-content/uploads/2008/01/Ben-Schlappig-10bw-cropped-e1427813265841.jpg [Fair Use]
ABOVE: Ben “Lucky” Schlappig

A homeless blogger named Ben “Lucky” Schlappig, who makes his living flying on airplanes and staying in hotels, has decided to take up the practice of law along with advising fellow travelers on the intricacies of the airline and hotel reward programs. The result is pretty much what you would expect when Lucky opines on the legality of traveling to Cuba as a tourist.

Technically Americans can only travel to Cuba for one of about a dozen approved reasons. … In practice, most people traveling to Cuba as tourists choose either “Support For The Cuban People” or “People-To-People Exchanges” as the reason for visiting.

So technically you can’t go if tourism is your stated reasons [sic], though in practice there are tens of thousands of American tourists going. That’s because they keep the categories intentionally broad, and you won’t generally be asked about the details of why you’re going to Cuba. Arguably when you’re a tourist somewhere you have “people-to-people exchanges” and also “provide support” to the people.

Without hesitation I’d feel comfortable recommending people visit Cuba as tourists and just state one of those as the reasons.

Arguably, when you’re relying on a pretend lawyer, your mileage may vary.  Also, never trust anyone who goes by the name of “Lucky.”

Of course, OFAC anticipated that amateur lawyers like Lucky would say that all tourism in Cuba was inherently a people-to-people exchange, so it gave an example here, in the actual rules (which Lucky clearly did not bother to read), to put the kibosh on such silliness:

An individual plans to travel to Cuba to rent a bicycle to explore the streets of Havana, engage in brief exchanges with shopkeepers while making purchases, and have casual conversations with waiters at restaurants and hotel staff. None of these activities are educational exchange activities that will result in meaningful interaction between the traveler and individuals in Cuba, and the traveler’s trip does not qualify for the general license.

So, just as you should not trust my opinions on how to get the most frequent flyer miles from your airline, you probably shouldn’t trust Lucky when he tells you to travel to Cuba as a tourist.

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Copyright © 2017 Clif Burns. All Rights Reserved.
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Jan

9

Our Long National Nightmare Is Over


Posted by at 5:06 pm on January 9, 2017
Category: OFACSDN List

Washington DC Fireworks by Curtis Palmer [CC-BY-SA-2.0 (http://creativecommons.org/licenses/by-sa/2.0)], via Flickr https://flic.kr/p/5294FA [cropped] Regular readers of this blog are probably quite aware of my long-running crusade, dating back almost a decade, to free Daniel Garcia or, more accurately, to free people named Daniel Garcia from the stigma of sharing a name with someone on OFAC’s Specially Designated Nationals and Blocked Persons List. Other posts on Daniel Garcia are here and here.

The impetus behind this crusade was that people named Daniel Garcia are routinely denied financial services because someone else named Daniel Garcia is on the SDN List. Worse, officials at OFAC admitted to me, anonymously of course, that no one at OFAC even knew who Daniel Garcia was or why he was on the list.

Well, Daniel Garcias of the world, rejoice! Last Friday, OFAC announced that it was removing the mysterious Daniel Garcia from the list, sans, of course, any explanation for the removal. Because no one at the agency was sure why he was designated, it couldn’t have found that Daniel Garcia had stopped doing whatever it was that got him on the list in the first place. OFAC couldn’t even say that Daniel Garcia was dead or alive or whether, like Schrödinger’s cat, he was both dead and alive at the same time.

No matter. All that counts here is the result. I hope that maybe I played a small part in this removal and in helping  the next guy named Daniel Garcia who tries to get a car loan  drive off the lot in a shiny new BMW.

Now we can focus our attention on Sally Jones.

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Copyright © 2017 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)



Dec

22

How the OFAC Gave Back Christmas


Posted by at 8:19 am on December 22, 2016
Category: Cuba SanctionsOFAC

Santa Flanked by F-16

Before leaving for the holidays, I thought it would be appropriate to repost the good news that we received earlier this year regarding Santa’s annual toy delivery being finally released from OFAC restrictions on his route.

FOR IMMEDIATE RELEASE
MEDIA CONTACT: Elf E. McElfface, [email protected] or (951) 262-3062

Santa’s Village, North Pole – Santa Claus today, on behalf of himself, Mrs. Claus and the 40,000 elfployees of the Santa Foundation, expressed his gratitude to the Office of Foreign Assets Control for its timely revision of its rules to grant Santa clear authority this year to visit children both in the United States and Cuba. For years, Santa’s efforts to bring holiday cheer to children of both countries has been thwarted by section 515.207 of the Cuba regulations which would prohibit Santa’s sleigh from landing in the United States while toys for Cuban children remained in the sleigh or in landing in the United States if those toys had been delivered to Cuban children first.

Today’s action waives these restrictions if Santa’s sleigh only carries items that would, if they were subject to the EAR, be EAR99 or controlled only for AT reasons. This ends the long struggle over whether teddy bears and other toys — which are not food, medicine, or personal communications devices — could only be delivered to Cuban children in wrapped parcels with the child’s name and address written on the outside and with the statement “GIFT—Export License Not Required” also marked on the parcel package. Notwithstanding the diligence and timely efforts of Santa’s elfployees, compliance with these requirements for each non-naughty child in Cuba has heretofore been impossible.

News of the OFAC announcement led to loud cheers and applause throughout Santa’s Village. Elf E. McElfface, Santa’s spokeself, wiped a tear of joy from his eye as he said to the elves in one of Santa’s workshops that he never believed that this would occur in his lifetime, which was saying a lot given that the average life expectancy of an elf on the North Pole is currently just over 500 years.

As Christmas approaches, Santa said that he was looking forward to this year’s delivery of toys and goodies to the nice children throughout the world more than ever before and reminded children everywhere, both in Cuba and the United States, that they could call his hotline at +1 (951) 262-3062 to leave their Christmas wishes and toy requests.

This press release may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent the Santa Foundation’s current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this press release. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.

I hope all Export Law Blog readers are able to take some time off and enjoy the holidays with their family and friends. See you in 2017!

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Copyright © 2016 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)



Dec

20

Merry Snapback! Bah! Humbug!!


Posted by at 6:24 pm on December 20, 2016
Category: Iran SanctionsOFAC

Ebeneezer Scrooge via Wikipedia https://en.wikipedia.org/wiki/Ebenezer_Scrooge [Public Domain - Copyright Expired]

Chestnuts roasting on an open flame.

Jack Frost nipping at your shoes.

Iran Sanctions coming back all the same.

So OFAC dressed up its FAQs

Ah, yes, nothing says Christmas cheer quite like the possibility that the JCPOA will be put on Santa’s naughty list and everyone will find the old Iran sanctions back under their Christmas tree.  This is why, of course, OFAC, full of the holiday spirit, just amended its JCPOA FAQs to answer the question on everyone’s mind:  what happens when Santa brings the sanctions back?

Not wanting to be too much of a Grinch, on December 15, OFAC revised JCPOA FAQs M4 and M5 to reassure the exporters in Whoville that they’ll have 180 days to wind-down their dealings with Iran after snapback or US withdrawal from the JCPOA.  But if this is a Christmas gift, it’s like the “Sea Monkey Circus” that you begged for from your parents — you know, those worms in a water bag that didn’t look anything like monkeys or a circus once you actually got the gift.

Like the Sea Monkey Circus, what the wind-down means is not what you might think.  You have 180 days to get paid for goods already delivered to Iran.  But what if you have goods in production that were destined to Iran but not completed when the sanctions are reimposed? Do you have 180 days to finish them, deliver them and get paid?  Nope.  You’re out of luck. All you can do is pray to find someone willing to buy the goods at something above salvage value.  Or that OFAC gives you a special license to finish and deliver the goods.

Grandma getting run over by a reindeer seems, well, not so bad by comparison to the JCPOA getting stolen by the Grinch.

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Copyright © 2016 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)



Dec

15

Sanctions Paranoia Strikes Again: YouTube Shutters Nork Channel


Posted by at 10:19 pm on December 15, 2016
Category: North Korea SanctionsOFAC

KimThe Washington Post reports that YouTube has removed Korean Central Television’s channel, fearing that it needed to do so to avoid breaching U.S. sanctions on North Korea. The removed channel was a Nork propaganda outlet that broadcast both unintentional comedies, such as outings by the super-sized dictator, Kim Jong Un, as well as Nork fake news broadcasts. Researchers and Nork watchers found the channel to be an invaluable resource in keeping track of what is going on North Korea, even if much of these broadcasts needed to be taken not with a grain of salt but with an entire salt mine.

Although Google is mum about why the channel was killed, the Post quotes a supposed explanation from somebody named Josh Stanton, a  blogger who appears to work for the U.S. government in his spare time.  Josh said that the reason was “YouTube and Google probably realized there was a problem with money changing hands.” Er, no, Josh.

The issue with respect to the Nork YouTube channel arises from Executive Order 13722, issued in March 2016, which prohibits exports of services to North Korea. Prior to that there were restrictions, enforced by BIS, on exports of goods to North Korea, and restrictions, enforced by OFAC, on dealing with blocked North Koreans. Providing distribution of Korean Central Television’s broadcasts over YouTube would clearly be the export of a service to North Korea in violation of Executive Order 13722.

But, and this is a big but, there is the information exception, enacted by the Berman amendment and ignored by Mr. Stanton and the Washington Post. The information exception prevents the President from prohibiting the “importation from any country … whether commercial or otherwise, regardless of format or medium of transmission, of any information.” See 50 U.S.C. § 1702(b)(3)(emphasis supplied). The italicized language is pretty much game over for the arguments by Mr. Stanton and the Post that ad money was the problem.

What would be a problem is if there were any indications (and there are not) that Google and YouTube were editing or marketing the content. OFAC has been quite clear that it does not think that such services are covered by the information exception (although it does allow those services, through various general licenses, for private individuals in sanctioned countries). If the Norks upload their nonsense and YouTube permits it to be downloaded, there is no violation of the sanctions even if somehow ad revenue makes its way back to North Korea (which itself seems doubtful).

While waiting (don’t hold your breath) for the return of Korean Central Television to YouTube, you might want to watch this riveting North Korean news broadcast showing the Dear Leader visiting an amusement park, a kitchen (with hamburgers! which he doesn’t eat!!) and a zoo.

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Copyright © 2016 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)


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