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Global Trade Law Blog

Timely Updates and Analysis on Key International Trade Law Issues

A Man Overboard Will Not Sink the Ship: How Robust FCPA Compliance Can Keep a Company Out of Hot Water Even When An Executive is Neck Deep

By Sheppard Mullin on Posted in Foreign Corrupt Practices Act (FCPA)

By: Reid Whitten

The story of one man prosecuted by the SEC and the DOJ for an FCPA violation may run a little below the radar these days, when allegations of bribery by manufacturing, retail, and entertainment companies plaster the headlines.  The guilty plea entered by an ex-Morgan Stanley executive, Garth Peterson, however, holds a very important lesson for companies that do not wish to see their own names on the broadsheets above a story about corruption enforcement actions. The lesson is simple: robust corporate compliance can protect a company even when a high-level employee commits brazen acts of bribery. Continue Reading

Loosening Up: New Developments in Sanctions Against Myanmar

By Sheppard Mullin on Posted in Economic Sanctions and Embargoes, Office of Foreign Assets Control (OFAC)

By: Scott Maberry and Cheryl Palmeri

The U.S. government has taken another in a series of steps relaxing the sanctions it imposes against Myanmar, a country the Obama Administration still refers to by its pre-coup name, Burma. On April 17, 2012, the U.S. Department of the Treasury, Office of Foreign Assets Control issued General License No. 14-C (General License), authorizing certain financial transactions in support of humanitarian, religious, and other not-for-profit activities in Myanmar. This General License – which permits transactions previously prohibited under U.S. sanctions laws – is the U.S. government’s most recent move to scale back its restrictions on trade with Myanmar. Continue Reading

Peak Pressure: CISADA and NDAA Timeline

By Sheppard Mullin on Posted in Economic Sanctions and Embargoes, Office of Foreign Assets Control (OFAC)

By: Thad McBride and Mark Jensen

Since July 1, 2010, when the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA) was enacted, there have been many developments under the law, as well as the recent passage of the complementary National Defense Authorization Act for Fiscal Year 2012 (NDAA).  The following timeline provides a summary of key actions related to the laws and U.S. sanctions on Iran more generally. Continue Reading

Proposed Easing of Satellite Export Controls Could Benefit U.S. Satellite Industry

By Sheppard Mullin on Posted in Export Administration Regulations (EAR), International Traffic in Arms Regulations (ITAR)

By: Curt Dombek, Brian Weimer, Dan Brooks, and Reid Whitten

Since 1999, strict controls on the export of U.S. satellites and satellite components have drastically eroded U.S. manufacturers’ market share in the global satellite industry.  On April 18, 2012, the U.S. Departments of State and Defense released the “1248 Report” containing findings related to reducing some of those controls.  The 1248 Report assesses the national security risks of removing certain satellites and related components from the tightly controlled United States Munitions List (USML) and transferring them to the generally less restrictive Commerce Control List (CCL).  The report concludes that most communications satellites, lower-performing remote sensing satellites, and related components could be transferred from the USML to the CCL without harming U.S. national security.  The transfer of these items to the CCL could greatly benefit the U.S. satellite industry by significantly easing the export controls placed on its products. Continue Reading

OFAC Provides Much Needed Guidance for Anyone Wishing to Export Personal Communications Services or Software to Iran

By Sheppard Mullin on Posted in Economic Sanctions and Embargoes, Office of Foreign Assets Control (OFAC)

By: John M. Hynes

The U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) has issued welcome guidance for those wishing to provide personal communications services or software to individuals in Iran. On March 20, 2012, OFAC released interpretive guidance regarding the scope of the personal communications general and specific licenses found in Section 560.540 of the Iranian Transactions Regulations, 31 C.F.R. part 560 (“ITR”). On the same day, OFAC also revised the ITR definition of the term “entity owned or controlled by the Government of Iran”.

While the personal communications licenses remain limited in scope, OFAC’s new interpretive guidance should help exporters understand what specific services and software may be provided to individuals in Iran. Continue Reading

Export Control Settlements Highlight the Need to Pay Attention During “Outreach” Visits

By Sheppard Mullin on Posted in Bureau of Industry and Security (BIS), Economic Sanctions and Embargoes, Export Administration Regulations (EAR), Office of Foreign Assets Control (OFAC)

By: Scott Maberry

As illustrated by three recent export enforcement actions, when armed government enforcement agents come to your door with PowerPoint slides, pay close attention. On March 8, 2012, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Attorney’s Office for the District of Wyoming announced settlements of three related cases involving illegal exports to Syria. The cases involved an increasingly common enforcement tool, the U.S. government “outreach” visit. Continue Reading

Continuing the Trend: Medical Device Maker Biomet Settles FCPA Charges For More Than $22 million

By Sheppard Mullin on Posted in Foreign Corrupt Practices Act (FCPA)

By: Thad McBride and Mark Jensen

On March 26, 2012, U.S. medical device maker Biomet, Inc. (Biomet) agreed with the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC) to settle charges related to alleged bribes paid to obtain business in Argentina, Brazil, and China. This is the third – though almost certainly not the last – Foreign Corrupt Practices Act (FCPA) settlement with medical device manufacturers.

In the wake of recent setbacks in the Shot Show and Lindsey cases, the settlement serves as a reminder that the U.S. government is still aggressively enforcing the FCPA and broadly interpreting its provisions. Continue Reading

A Noble Pursuit? SEC Brings FCPA Charges Against Individual Oil Services Executives

By Sheppard Mullin on Posted in Foreign Corrupt Practices Act (FCPA)

By: Thad McBride and Cheryl Palmeri

On February 24, 2012, the U.S. Securities and Exchange Commission (SEC) charged three executives of Noble Corporation (Noble), a Swiss oil services company, with violating the Foreign Corrupt Practices Act (FCPA). The SEC accused Noble’s former CEO and the company’s current Division Manager in Nigeria of arranging hundreds of thousands of dollars in bribes from 2003 to 2007. According to the SEC, the bribes were to induce Nigerian customs officials to grant new temporary permits and extensions to allow Noble’s oil rigs to remain in the country improperly. Both individuals are disputing the charges.

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On The List, Off The Menu: How 5 Major ITAR Shippers Disappeared

By Sheppard Mullin on Posted in Arms Exports, Directorate of Defense Trade Controls (DDTC), International, International Traffic in Arms Regulations (ITAR)

By: Reid Whitten and Scott Maberry

How did five of the most prominent freight forwarders shipping goods subject to the International Traffic in Arms Regulations (ITAR), suddenly become ineligible as carriers for ITAR exporters? The answer begins with a Sherman Antitrust action by the U.S. Department of Justice and ends, for the moment, with a major gap in logistics, supply chain, and transport for companies manufacturing, trading, or exporting ITAR-controlled products. Continue Reading

Risk Mitigation and the Jolly Roger: The Multinational Regulatory Compliance Challenges of Fighting Pirates

By Sheppard Mullin on Posted in Arms Exports, Directorate of Defense Trade Controls (DDTC), International, International Traffic in Arms Regulations (ITAR)

By: Reid Whitten

Background

Since 2005, the scourge of sea piracy has resurfaced with a vengeance.  The old pursuit has taken new life, advanced by modern navigation and weapons technology.  This article examines emerging practical and legal guidelines for private marine security providers and the shippers, insurers, and vessels they protect.

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