The Biden administration is still working through a sweeping review of its arms transfer policies, which is expected to place more of an emphasis on human rights concerns while helping to remove foreign barriers to U.S. defense exporters, said Tim Betts, a senior State Department official. He said the agency is in the middle of an “intensive” interagency process and “wide ranging” discussions with industry and Congress to determine how best to revise its conventional arms transfer policies, which could represent a more cautious approach compared with the previous administration.
Christopher Monahan has joined Faegre Drinker as a partner in its Washington, D.C.-based customs and international trade practice, the firm announced. Monahan, formerly of Winston & Strawn, has advised clients on U.S. international trade and investment regulations, including the International Traffic in Arms Regulations, the Export Administration Regulations and the Foreign Corrupt Practices Act, the firm said.
The State Department amended the International Traffic in Arms Regulations to reflect the sanctions imposed against Ethiopia and Eritrea last month (see 2109170036 and (see 2109200006). The agency revised the ITAR to “codify” that the U.S. will adopt a policy of denial for export licenses for defense articles and services to certain end-users in those countries, according to a notice. The policy of denial applies to defense exports to or for “armed forces, police, intelligence, or other internal security forces” for both Ethiopia and Eritrea. The agency also revised the ITAR to make certain technical and administrative changes to reflect the new policy. The changes are effective Nov. 1.
The State Department's Directorate of Defense Trade Controls recently posted a name change notice for ST Engineering Land Systems Ltd., KIS Division, a legal entity of Singapore Technologies Engineering Ltd. It also is waiving the requirement for amendments to change approved license authorizations because of the “volume” of authorizations requiring amendments to reflect the change, DDTC said. ST Engineering Land Systems Ltd. will become ST Engineering Land MRO & Services Pte. Ltd., effective Jan. 1, 2022.
The Department of Justice may issue severe penalties in the future for foreign hacking that violates U.S. export controls despite the “lenient” deferred prosecution agreement it announced in September (see 2109150031), national security lawyers said. Companies shouldn't expect that case to signal the start of a trend of minor penalties for hacking, the lawyers said, and should be especially cautious before providing cyber services to foreign governments.
Export controls may prevent some hurdles in the investment and development of emerging quantum computing technologies, the Government Accountability Office said in an Oct. 19 report. Controls may limit some U.S. trade, prevent U.S. quantum technology companies from collaborating with other countries and deter U.S. firms from employing highly skilled foreign workers, the GAO said.
The State Department’s Directorate of Defense Trade Controls said the phone lines for its Help Desk and Response Team have been experiencing issues this week and urged industry to instead email DDTCCustomerService@state.gov with questions. DDTC said it is “working towards a resolution” and will post updates on its websites.
Aydan Sin of British Columbia was convicted of violating the Arms Export Control Act for exporting defense articles on the U.S. Munitions List to the United Arab Emirates and Colombia, the U.S. Attorney's Office for the Western District of New York said. Sin, who allegedly conspired with Guy Deland and Charan Singh, will serve 46 months in prison. Singh began communicating with an undercover law enforcement agent in 2016 to ask about whether the undercover agent could export firearms from the U.S. to Dubai. The agent advised Sin, Deland and Singh that a license was required from the State Department, establishing that the trio knew about the regulations, the U.S. Attorney's Office said. Acknowledging the illegality of the shipments, Sin, Deland and Singh then gave the agent an encrypted BlackBerry device to establish secure communications and wired the agent around $70,000 from Canada to the U.S. as a down payment for the guns. The agent sent Sin and Deland two invoices -- one for a shipment to Dubai and one for a shipment to Colombia. Money for the shipments was wired to a bank account in New York. Charges remain pending against Deland and Singh, the U.S. Attorney's Office said.
The State Department extended a September 2020 rule that temporarily suspended restrictions on certain defense exports to Cyprus because it has proven to be “in the national security interest” of the U.S., the agency said in a notice released Sept. 29. The rule (see 2009020045) amended the International Traffic in Arms Regulations to relax restrictions surrounding exports of nonlethal defense goods and services to Cyprus, and also eased restrictions on reexports, retransfers and temporary imports. The agency had been considering extending the rule for several months and was monitoring whether it was helping U.S. exporters (see 2010220049). The extended rule, effective Sept. 30, will now last through Sept. 30, 2022.
The State Department is considering an open general-license concept for certain defense exports, which would allow U.S. exporters to ship to certain U.S. trading partners without having to apply for a specific license, a senior agency official said. The concept would likely begin as a pilot program, said Mike Miller, deputy assistant secretary for defense trade in the Bureau of Political-Military Affairs, but it's still being discussed and there isn’t yet a timetable for release.