Aug

8

Antiques Dealer Pleads to Rhino Charges


Posted by at 6:14 pm on August 8, 2013
Category: Plants and Wildlife

White Rhino in Lake Nakuru 2To blatantly plagiarize Ogden Nash, jail time for exporting rhinoceros is not something very prepocerous. Or, to put it in another less poetic way, exporting libation cups made from rhinoceros horns to China is not a smart idea.   This was a lesson learned the hard way by New York antiques dealer Qiang Wang who pleaded guilty yesterday in federal court to various charges arising from his exports of elephant ivory and the rhinoceros horns to his co-conspirators in China.

The criminal information that served as a basis for the plea reveals that, among other things, Wang purchased from a New York auction house three rhinoceros horn libation cups for $1,159,500. It is not clear whether these items made it to China, but it is alleged that other items containing elephant ivory and rhinoceros horn did. Wang apparently realized that his exports were problematic because, according to the information, he falsified the export documents to conceal the true nature of the shipments. This was not the case of some small time antiques dealer confused by a welter of confusing federal rules and regulations.

The exports were violations of the Lacey Act and the Endangered Species Act. Not surprisingly, the second count of the information charged a violation of 18 U.S.C. § 554, the “anti-smuggling” provision which is doubtlessly familiar to regular readers of this blog and which prohibits the export of any item “contrary to any law or regulation of the United States.” The reason for the smuggling charge, no doubt, is because 18 U.S.C. § 554 provides for a maximum imprisonment of 10 years. The Endangered Species Act and the Lacey Act only provide for prison terms, respectively, of one year and five years.

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Aug

7

There’s No Crying in Baseball (Unless OFAC Gets Involved)


Posted by at 5:48 pm on August 7, 2013
Category: Cuba SanctionsOFAC

There is no better proof that comprehensive sanctions are useless and silly than this: U.S. sanctions on Cuba are going to prevent the participation of Cuba’s national baseball team in the Caribbean Series which will take place next February in Venezuela and will not involve any U.S. teams. Founded in 1949, with Cuba as one of the original founders, Cuba played in the annual series until 1961 when Castro banned professional sports on the island.

So there was quite a bit of excitement when several months ago Cuba said it would return to the series. But just as the excitement for mighty Casey faded when he struck out, hopes were quickly dashed for Cuba’s time at bat when OFAC struck them out before they could even get to the plate. Apparently the organizers of the Caribbean Series received a letter from Major League Baseball saying that players signed with the MLB couldn’t play in the tournament if Cuba participated. Most of the Carribean league players already have MLB contracts, even if only with the minor leagues, so excluding players with MLB contracts is a non-starter. And no one knows whether OFAC licenses could be obtained at all, much less in time.

MLB’s theory about the application of the sanctions to players under contract with the League is a bit bizarre, to say the least. Last time I checked, signing a contract with the MLB does not turn the player automatically into a U.S. person (or even an honorary one). I suppose the fear is that even if the player is playing in his personal capacity as a member of one of the Caribbean leagues he is still somehow a Major League player and this would bring down the wrath of OFAC on MLB. That being said, given the huge fines that OFAC can impose and the general perception that OFAC doesn’t play fairly, I can understand MLB’s reticence to run this risk.

One thing is certain: banning Cuba from the Caribbean series will not lead the current Cuban government to abdicate; nor will itwin the U.S. any friends among ordinary Cubans.

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Copyright © 2013 Clif Burns. All Rights Reserved.
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Aug

6

Selling Guns to Canadians in a Parking Lot Is a Really Bad Idea


Posted by at 3:53 pm on August 6, 2013
Category: General

Settle Inn Source: Google MapsShawn James Hartnell, a Canadian citizen, pleaded guilty last week to charges he attempted to export rifles from the United States to Canada without a license. Hartnell had been nabbed when he tried to sell rifles to U.S. and Canadian agents in the parking lot of the felicitously named Settle Inn in Grand Forks, North Dakota.

Apparently, Hartnell had been engaged in gun running from the United States to Canada for quite some time and had been under investigation by the Feds and the Mounties for over a year. During the course of the investigation, the resourceful Mr. Hartnell had told undercover agents that they could always smuggle the guns into Canada using a snowmobile.

Hartnell’s sentencing hearing has not yet been scheduled.

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



Aug

1

No, You Aren’t Imagining Things


Posted by at 5:04 pm on August 1, 2013
Category: BISDDTC

Tim Hoffman via DTSA website http://www.dtsa.mil/sys_art/Hoffman_Hugh.jpg [Public Domain]
ABOVE: Tim Hoffman, DTSA

If you thought it was taking longer to get export licenses from the Bureau of Industry and Security (“BIS”) and from the Directorate of Defense Trade Controls (“DDTC”), you’re right. And the reason? Furloughs at the Defense Technology Security Administration (“DTSA”) are the culprit.

Speaking at the BIS Update Conference last week, Tim Hoffman, Deputy Director of DTSA, pointed his finger at the furloughs at DTSA caused by the budget sequester. Hoffman said that DTSA has taken some steps with BIS and DDTC to give them some “slippage” in their required response times on BIS and DDTC applications. And even when the sequester is theoretically over in October (and assuming that there are no more budget shenanigans on the Hill), Hoffman predicted that processing delays would persist for a while as ripple effects from the current furloughs.

Get more information from this in the July 29 issue (subscription required) of the Washington Trade and Tariff Letter.

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



Jul

30

That’s Why It’s Called Dirt


Posted by at 9:24 pm on July 30, 2013
Category: BISNorth Korea SanctionsOFAC

Kim Jong Un Official Photo Source: Korean Central News Agency [fair use]As the result of an FOIA request, the Office of Foreign Asset Controls (“OFAC”) released a pile of requests by U.S. citizens to import all kinds of things from North Korea, including beer, printer cartridges, children’s shoes, blue jeans (!!), columbite, and collectible postage stamps. You can’t help but being intrigued by the concept of importing blue jeans from Pyongyang, that international capital of haute couture best exemplified by the pudgy fashion plate who is the titular ruler of the country.

But more entertaining than picturing what exactly Nork jeans would look like is a singularly clueless article  on the license requests that ran on the aptly named website TechDirt, which apparently dispenses its “dirt” on the tech scene without actually knowing anything or doing any research. The author of the TechDirt post, one Mike Masnick, is all befuddled over requests by several law firms for permission to take steps to register trademarks in North Korea. Masnick sees these requests as just an example of law firms trying to gouge their clients for performing pointless services.

Case in point, he says, was the request by the lawyers by Intel to register its trademarks in North Korea

[W]hy does Intel care about protecting its trademarks in North Korea when it can’t sell its chips into North Korea in the first place?

Hello, Mike, does Google still work on your computer? Obviously not, or you would have easily found this. Exports to North Korea aren’t banned but merely require licenses from the Bureau of Industry and Security (“BIS”). In the case of consumer grade computer chips, license requests are considered on a case-by-case basis. Also, Intel products with less than 10 percent U.S.-origin content could be sold in North Korea without licenses under BIS’s de minimis rules. But, let’s suppose, for the sake of argument, that Intel couldn’t sell anything at all in North Korea, it still might want trademark protection there to prevent other people from outside the United States from selling products in North Korea under that name.

As a bit of background, the real reason for the requests by law firms to help register trademarks in North Korea stems from a curious inconsistency in OFAC’s sanctions regulations. In most if not all of the other sanctions regimes, including those for Cuba and Iran, there are specific provisions permitting registration and protection of trademarks in the sanctioned countries. For reasons that are not clear, the North Korea regulations do not include this exception, hence the request. Whether OFAC granted these requests or not is not revealed by the FOIA documents but I’m fairly certain that the requests would have been granted.

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


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