Read the Directions Carefully Before Playing: State Department Releases Military Drone Export Guidance

The United States has a responsibility, or so the State Department tells us, to ensure the sales and exports of Unmanned Aerial Systems (UAS) are consistent with U.S. national security interests, U.S. policy, and even U.S. values. While the government would be glad to keep the export of military drones in lock-step with our policy goals, the realities of a rapidly expanding UAS market and global competition has forced export regulators to consider how to balance the potential loss of economic opportunity against the loss of control of UAS technology. Continue Reading

Add Importers to Those Facing Expanding Whistleblower Claims under the False Claims Act

On February 12, 2015, the Department of Justice (DOJ) announced that three U.S.-based importers had agreed to pay more than $3 million to resolve a lawsuit brought by the United States under the False Claims Act (FCA) alleging that they had made false declarations to U.S. Customs and Border Protection (CBP) and conspired with other domestic companies to make false declarations to CBP in order avoid paying “antidumping” and “countervailing” duties.  No government contracts were involved.  These were “reverse” FCA claims based upon underpayment of duties for private sector import transactions. Continue Reading

Havana Hold Your Hand: Reaching Out to Cuban Entrepreneurs

USA and Cuba
New regulations on Cuba enter into force today, only 29 days after President Obama promised them. The liberalized provisions focus on support for private sector actors in Cuba.

Continue Reading

The First Law of International Dynamics: Sanctions May Be Transformed But Never Created or Destroyed

U.S. economic sanctions, by their nature, often change without warning. Since sanctions reflect U.S. foreign and national security policy, they must evolve rapidly with world events. Often, it seems that when one door is closed, another is opened. Most recently, President Obama’s December 17 announcement of an opening to Cuba was followed rapidly by the January 2 announcement of tightening North Korea sanctions. Hence our (mostly facetious) Newtonian law of the conservation of economic sanctions: sanctions may be transformed but never created or destroyed.

Continue Reading

New Year, New Orleans, Old Tricks

The Department of Justice’s Kleptocracy Initiative is kicking off 2015 strong.  On January 13, 2015, the DOJ filed a civil complaint seeking the forfeiture of nine properties in New Orleans, worth close to $1.53 million.  The property was allegedly purchased with corrupt proceeds, traced to $2 million in bribes paid to a former Honduran official.

Continue Reading

Change Your Entire Energy Export Policy Using This One Weird Trick! BIS “Clarifies” Short Supply Controls to Make Oil Exporting Easier

On December 30 the Commerce Department shifted the oil export landscape as it had existed for 40 years, with only a little administrative sleight-of-hand.

Continue Reading

Turnin’ Havana to Atlanta: The White House Opens Doors for U.S. Telecommunications Investment in Cuba and Latin America

Cuba Map

Historic changes in relations between the United States and Cuba (that touch nerves in Hip-Hop and on Capitol Hill) and new U.S. sanctions against Venezuela may provide increased opportunities for U.S. business generally, and electronic communications technologies and infrastructure providers in particular.  This week’s Cuba and Venezuela headlines, combined with recent and historic shifts in telecommunications and broadcasting markets in Mexico, on which we reported here, herald historic changes in Latin American electronic communications and infrastructure markets.

Continue Reading

New Russian Sanctions Legislation

On December 18, the President signed legislation passed by Congress that authorizes further sanctions on Russia.  The Ukraine Freedom Support Act of 2014 (UFSA) is aimed to assist “in restoring Ukraine’s sovereignty and territorial integrity” and to deter the Russian Government “from further destabilizing and invading Ukraine and other independent countries in Central and Eastern Europe, the Caucasus and Central Asia.” While the legislation authorizes a range of new sanctions on Russia’s defense and energy sectors as well as foreign financial institutions who engage in sanctionable transactions, it also grants the President significant discretion to waive both the industry-wide sanctions and specific transactions on national security grounds.

Continue Reading

Mandatory Reporting of Foreign Direct Investments in the U.S.

Overview

The Department of Commerce’s Bureau of Economic Analysis (BEA) has reinstated the mandatory reporting requirements of the BE–13, Survey of New Foreign Direct Investment in the United States, which was discontinued in 2009 due to budget restrictions.  It is expected to result in the filings of reports from approximately 1,350 U.S. affiliates of foreign companies each year.  The survey collects information on the acquisition or establishment of U.S. business enterprises by foreign investors, which was collected on the previous BE–13 survey, and information on expansions by existing U.S. affiliates of foreign companies, which was not previously collected.  The statistical data will be used to measure the amount of new foreign direct investment in the United States, assess the impact on the U.S. economy and any potential implications for national security, and based on this assessment, inform future policy decisions.

Continue Reading

A New Latitude: Charting a Course for Cuba

Today President Barack Obama made a stunning speech announcing steps the United States will take to reduce U.S. sanctions against Cuba. The announcement followed the release of two U.S. citizens held by the Cuban government. Alan Gross was detained by Cuban authorities in 2009 while working as a USAID subcontractor. Separately, a U.S. intelligence officer, not named in the announcement but described by the President as “one of the most important” U.S. intelligence agents in Cuba, had been imprisoned in Cuba for nearly two decades.

Continue Reading

LexBlog