By: John Black
1. Commerce Department Unverified List
In the November 21, 2002 Federal Register, the Commerce Department REMOVED the following entity from its Unverified List:
S.B. Submarine Systems Co., Ltd.
1591 Hongqiao Rd., Bldg. 15
People’s Republic of China
2. Commerce Department Denied Parties List
In the November 18, 2002 Federal Register Department of Commerce denied the export privileges of the following party:
Oerlikon Schweisstechnik AG (also known in Switzerland as Oerlikon-Welding Ltd.)
CH-8050 Zurich, Switzerland,
Commerce alleged that Oerlikon committed three violations of the Export Administration Regulations (EAR) by soliciting the export of cellulose from the United States to Iran and related conspiracy charges. Commerce also charged another party, Reweld AG of Switzerland, with two violations of the EAR for its role. According to Commerce the “conspirators” represented the transaction to the US supplier as an export from the United States to Switzerland.
Commerce and Oerlikon reached a settlement in which Oerlikon goes on the denial list for one year (with six months suspended) and pays a fine of $33,000. Commerce and Reweld reached a settlement in which Reweld would pay a fine of $11,000.
The cellulose, which is classified as EAR99, would be eligible for reexport from inventory outside of the United States to Iran without a US license. US regulations, however, prohibit the export of the same material from the United States if it is destined for a third country and then ultimately for Iran. According to US Government charges, however, Oerlikon and Reweld knew at the time of export the material was destined for Iran, a violation of US rules.
The violations are based on Commerce allegations that “the conspirators placed an order for the abovementioned goods without identifying the [sic] Iran as the ultimate destination of the export and attempted to export the goods to Iran.” Commerce also said that the “conspirators” violated the regulations by the mere act of placing an order for the US-origin items knowing the items ultimately were destined for Iran.
Because, according to Commerce, both the act of placing the order and the act of not identifying Iran as the final destination were EAR violations, an interesting aspect of this case is that two parties located outside of the United States were charged with violations for an attempted (or nearly attempted) export from the United States. In most cases, parties outside of the United States are charged with reexport violations and are not charged for attempting to cause an illegal export from the United States. This is an interesting extension of liability for export violations to parties outside the United States who place orders for illegal exports and do not tell the US exporter the final destination of the export.
3. Office of Foreign Assets Control Lists
The Office of Foreign Assets Control published three changes to its prohibited parties lists on its website during November:
11/22/2002-OFAC added the following to its Specially Designated Global Terrorist list:
MOROCCAN ISLAMIC COMBATANT GROUP (a.k.a. GICM; a.k.a. GROUPE ISLAMIQUE COMBATTANT MAROCAIN) [SDGT]
11/19/2002-OFAC redesignated Benevolence International Foundation on its “Specially Designated Global Terrorist” [SDGT] list as follows:
OFAC deleted the following entry:
BENEVOLENCE INTERNATIONAL FOUNDATION, INC., 20-24 Branford Place, Suite 705, Newark, NJ 07102, U.S.A.; 9838 S. Roberts Road, Suite 1-W, Palos Hills, IL 60465, U.S.A.; P.O. Box 548, Worth, IL 60482, U.S.A.; U.S. FEIN: 36-3823186 (all financial assets and all records are blocked) [BPI-PA]
OFAC added the following entries:
BENEVOLENCE INTERNATIONAL FOUNDATION (a.k.a. AL BIR AL DAWALIA; a.k.a. BIF; a.k.a. BIF-USA; a.k.a. MEZHDUNARODNYJ BLAGOTVORITEL’NYJ FOND), 8820 Mobile Avenue, 1A, Oak Lawn, IL 60453, U.S.A.; P.O. Box 548, Worth, IL 60482, U.S.A.; formerly at 9838 S. Roberts Road, Suite 1W, Palos Hills, IL 60465, U.S.A.; formerly at 20-24 Branford Place, Suite 705, Newark, NJ 07102, U.S.A.; Bashir Safar Ugli 69, Baku, Azerbaijan; 69 Boshir Safaroglu St., Baku, Azerbaijan; Sarajevo, Bosnia-Herzegovina; Zenica, Bosnia-Herzegovina; “last known address,” 3 King Street, South Waterloo, Ontario, N2J 3Z6 Canada; “last known address,” P.O. Box 1508 Station B, Mississauga, Ontario, L4Y 4G2 Canada; “last known address,” 2465 Cawthra Rd., #203, Mississauga, Ontario, L5A 3P2 Canada; Ottawa, Canada; Grozny, Chechnya; 91 Paihonggou, Lanzhou, Gansu, China 730000; Hrvatov 30, 41000, Zagreb, Croatia; Makhachkala, Daghestan; Duisi, Georgia; Tbilisi, Georgia; Nazran, Ingushetia; Burgemeester Kessensingel 40, Maastricht, Netherlands; House 111, First Floor, Street 64, F-10/3, Islamabad, Pakistan; P.O. Box 1055, Peshawar, Pakistan; Azovskaya 6, km. 3, off. 401, Moscow, Russia 113149; Ulitsa Oktyabr’skaya, dom. 89, Moscow, Russia 127521; P.O. Box 1937, Khartoum, Sudan; P.O. Box 7600, Jeddah 21472, Saudi Arabia; P.O. Box 10845, Riyadh 11442, Saudi Arabia; Dushanbe, Tajikistan; United Kingdom; Afghanistan; Bangladesh; Bosnia-Herzegovina; Gaza Strip; Yemen; U.S. FEIN: 36-3823186 [SDGT]
BENEVOLENCE INTERNATIONAL FUND (a.k.a. BENEVOLENT INTERNATIONAL FUND; a.k.a. BIF-CANADA), “last known address,” 2465 Cawthra Rd., Unit 203, Mississauga, Ontario, L5A 3P2 Canada; “last known address,” P.O. Box 1508, Station B, Mississauga, Ontario, L4Y 4G2 Canada; “last known address,” P.O. Box 40015, 75 King Street South, Waterloo, Ontario, N2J 4V1 Canada; “last known address,” 92 King Street, 201, Waterloo, Ontario, N2J 1P5 Canada [SDGT]
BOSANSKA IDEALNA FUTURA (a.k.a. BECF CHARITABLE EDUCATIONAL CENTER; a.k.a. BENEVOLENCE EDUCATIONAL CENTER; a.k.a. BIF-BOSNIA; a.k.a. BOSNIAN IDEAL FUTURE), Salke Lagumdzije 12, 71000 Sarajevo, Bosnia-Herzegovina; Hadzije Mazica Put 16F, 72000 Zenica, Bosnia-Herzegovina; Sehidska Street, Breza, Bosnia-Herzegovina; Kanal 1, 72000 Zenica, Bosnia-Herzegovina; Hamze Celenke 35, Ilidza, Sarajevo, Bosnia-Herzegovina [SDGT]
11/06/2002-OFAC added the following entries to its Specially Designated Global Terrorists (SDGTs) list:
ECHEBERRIA SIMARRO, Leire; member ETA; DOB 20 Dec 1977; POB Basauri (Vizcaya Province), Spain; D.N.I. 45.625.646 (individual) [SDGT]
ECHEGARAY ACHIRICA, Alfonso; member ETA; DOB 10 Jan 1958; POB Plencia (Vizcaya Province), Spain; D.N.I. 16.027.051 (individual) [SDGT]
IZTUETA BARANDICA, Enrique; member ETA; DOB 30 Jul 1955; POB Santurce (Vizcaya Province), Spain; D.N.I. 14.929.950 (individual) [SDGT]
VALLEJO FRANCO, Inigo; member ETA; DOB 21 May 1976; POB Bilbao (Vizcaya Province), Spain; D.N.I. 29.036.694 (individual) [SDGT]