Export Control Blog

Something to Occupy You

So yeah, I'm pretty busy these days. Hence the rather relaxed blogging schedule. But the folks at the Center for Nonproliferation are on the job, publishing the latest edition of the ever-interesting International Export Control Observer. Take a look.

Boeing's "Dr. Death" Talks Export

From The Seattle Times:

Speech by Doug Bain, Boeing senior vice president and general counsel, at Boeing Leadership Meeting on Jan. 5, 2006, in Orlando, Fla.:

...Today, I think our biggest issue we face is export.

These are our five biggest export problems, and I think you can see every heritage company and every business unit represented here.

We have not resolved QRS-11 [a gyrochip Boeing exported inside some of its commercial jets without an export license between 2000 and 2003], which is a BCA issue. But the other four, we have paid a total of $50 million in penalties, we've had three consent decrees and several special compliance officers.

It's also affected the way we do business, because we've had to go the extra mile.

When I was in BCA, we had four people in export. Today, Mike Bair [head of the 787 program] tells me, on the 787 program they have over 100.

The State Department's view of Boeing is we just don't get it. There are too many violations, and as a result it's probably their intention to hammer us on QRS-11.

The cultural question we need to ask is, do we view export as somebody else's problem because my job is to sell product? Or is it all of our responsibilities?

To Bain's question, I'll add another -- have you forwarded this to your general counsel yet?

CliffsNotes: Export Controls Edition

Only have five minutes to review everything that happened in US export controls last year? You could do a lot worse than this recap from Holland & Knight.

Export, etc. 2/3/06

• Japanese seize China-bound chopper
• As the US Navy retires the F-14, guess who's still flying them?
• EU lifts arms embargo on Bosnia, continues sanctions on Zimbabwe
• Unstoppable force, meet immovable object: Big Oil eyes Cuban waters
• OFAC busts travel agency in Cuba audit
• Council on Foreign Relations experts discuss China proliferation record
• Pratt & Whitney Canada caught up in US-Spain-Venezuela air transport row
• Congressional Research Service reports on foreign scientists in US

Looking for an ECCN?

I've updated this blog's handy list of corporate export control sites (look to your right and scroll down a bit). Out with a few dead links and in with Agilent - Scientific Software, American Megatrends, Corrent, ESRI (pdf), EqualLogic, Information Security Corp, MKS, PGP (yes, that PGP), Qualcomm, and SmartFTP.

These and the earlier-listed companies are those I'm aware of which are savvy and customer-friendly enough to post their products' ECCNs to the web for the benefit of the exporting community. I remain befuddled as to why this isn't yet a more universal practice.

If your company similarly publishes classifications or other other export info and you don't see your name on the list, drop me a note with the link and I'll add it. Unless, of course, you enjoy answering all those "What's the ECCN for...?" calls and emails all day.

Belgians Admit Iran Export Control Failure

Last spring we noted European reporting on an alleged export of an isostatic press to Iran by the Beligian company EPSI. Since then there's been little news -- until now. The story has busted open and the recriminations have begun. First on the chopping block is the chief of Beligum's federal security service, who has resigned. Paul Belien of The Brussels Journal blog has more:

It was revealed today that on November 3, 2004 a Belgian company exported a machine to Iran which will help Teheran to build (nuclear) missiles. The machine, a hot isostatic press, was exported by the Belgian company EPSI (Engineered Pressures Systems International) despite frequent and urgent requests by the American Central Intelligence Agency (CIA) not to do so. From July 17, 2004 onwards CIA officers had been warning their colleagues at the Belgian state security service, the Sûreté de l’État (SdÉ), that Iran Aircraft Industries was trying to buy an isostatic press in Belgium.

Anne-Marie Lizin, the speaker of the Belgian Senate, said today that the Americans "asked the Belgian government with insistence not to contribute, not even inadvertently, to the Iranian missile program." Yesterday evening Koen Dassen, the head of the SdÉ, resigned. A report presented to the Belgian Senate today says that Mr Dassen failed to inform the government in Brussels of the American request. However, the delivery of the isostatic press to the Iranians went ahead despite negative advice from CANPAN (Commission d’avis pour la non-prolifération des armes nucléaires), the Belgian Advisory Committee for the Non-Proliferation of Nuclear Arms. In its report of September 28, 2004 CANPAN wrote that there was "an unacceptable risk that the machine will be used for activities related to nuclear arms or nuclear explosions."

The American authorities also contacted the Belgian Customs to prevent the exportation of the isostatic press, but all to no avail. Justice Minister Laurette Onkelinx, the minister supervising the Belgian state security service, claimed that the SdÉ had never informed her of the American objections to the delivery of the isostatic press to Iran. The report blames Mr Dassen for incompetence.

Turnabout

Ever wonder what US sanctions look like from the other side? Angry Chinese Blogger provides an answer.