Deck 13: Export Controls and Sanctions

Question 1

In 1949,NATO's COCOM was created:

A) to aid Europe's economic recovery after WWII.
B) to control the exporting of goods with military applications to communist countries.
C) to prevent the escalation of the Cold War.
D) to provide U.S. manufacturers with fairer trading opportunities outside the U.S.

Answer 1

B

Question 2

Items that are not classified on the Commerce Control List may be exported without an in individual export license.

Answer 2

True

Question 3

Formulas,blueprints,and technical data are subject to controls when exported.

Answer 3

True

Question 4

The U.S.anti boycott laws are applicable to foreign affiliates of U.S.based companies.

Question 5

Unilateral export controls are determined by several countries (against another or group of other countries)but enacted by only one country; multilateral export controls are determined and enacted by several countries to control the exports to another country or groups of countries.

Question 6

Companies in some countries cooperate with the boycott against Israel.

Question 7

In some circumstances,the presentation of research by a U.S.scientist at a convention in a foreign nation may require an export license.

Question 8

Since the end of the cold war all controls have been abolished on all commodities going to Russia.

Question 9

Diversion refers to the illegal placement of goods in the hands of an individual for whom an export license would not be granted because of the type of product,the product's end use,or the country involved.

Question 10

The current law that controls the export of goods from a U.S.manufacturer to a foreign buyer also controls the re-export of those goods beyond the boundaries of the country of the original foreign buyer.

Question 11

The two principal agencies that regulate the export of goods from the U.S.are:

A) U.S. Department of Commerce, U.S. Department of State.
B) U.S. Department of Defense, U.S. Bureau of Customs and Border Protection.
C) U.S. Customs Service, Federal Trade Commission.
D) Federal Trade Commission, U.S. Department of Commerce.

Question 12

The Department of Commerce has the responsibility for the control of nonmilitary commercial goods,commodities,and technology.

Question 13

"Diversion" is when controlled goods are sold by a U.S.exporter to an importer in Country A,who in turn re-exports them to a buyer in Country B,which is unfriendly with the United States.

Question 14

An example of a failed unilateral use of export controls was the embargo of wheat destined to Russia as a political response to the Russian invasion of Afghanistan.

Question 15

The trade sanctions against the Castro government in Cuba has been successful in encouraging a more democratic style representation.

Question 16

Export controls have been extended by the president through the issuance of executive orders pursuant to the USA Patriot Act.

Question 17

In Briggs and Stratton Corp.v.Baldridge,Briggs was blacklisted by Arab countries because of its compliance with U.S.anti-boycott regulations.Briggs subsequently brought a lawsuit claiming damages as a result of U.S.government action.Specifically,Briggs demanded "just compensation" under the Fifth Amendment "takings clause." The court:

A) invoked sovereign immunity to avoid taking subject matter jurisdiction.
B) refused relief because the amount of damages was "speculative, at best."
C) refused relief because Briggs's property had not been "seized or restrained."
D) allowed relief, since Briggs could demonstrate a complete taking of certain contractual opportunities and reasonable investment expectations.
E) refused relief because Briggs lacked "standing."

Question 18

The U.S.export control system is conflicted as on one hand it advocates free trade argue with limited restrictions while national security on the other hand advocates press for relatively more restrictions.

Question 19

Among the reasons for controlling exports are the protection of national security,the prevention of terrorism,the promotion of regional stability,and the preservation of scarce materials.

Question 20

There is no global consensus on an effective international control system over arms and technology.

Question 21

Enforcement of the U.S.export laws is the function of the:

A) U.S. Department of Commerce.
B) Office of Export Enforcement.
C) State and local police forces.
D) U.S. military.

Question 22

In the United States,the office that initially reviews and rules on license applications is the:

A) Bureau of Industry and Security.
B) Office of Export Trade Control.
C) Export Administration Board.
D) Export Policy Operations Committee.

Question 23

Compare and contrast unilateral export controls with multilateral controls.

Question 24

Discuss the strengths and weaknesses of using export controls to effectively stem the tide of high-tech equipment to countries who do not share our political or democratic beliefs.

Question 25

Multilateral controls are typically subject to self-regulation (via each home country).??Outline an (alternative)internationalized process to address situations where one partner to such an agreement believes that another partner to the agreement is not enforcing the agreement or is doing so unevenly.

Question 26

When the president decides to impose export controls for national security or foreign policy reasons,the following businesses may be adversely affected:

A) farmers whose crops are in short supply.
B) businesses who cooperate with Arab nations in boycotting Israel.
C) subsidiaries of U.S. companies having contracts with nations targeted by U.S. foreign policy.
D) All of these are correct.

Question 27

Which of the following statements is not true?

A) U.S. export control law requires the issuance of an export license to cover the movement of controlled U.S.-origin products from India to Taiwan.
B) The Department of Commerce will not recommend the decontrol of a product on grounds that a non-U.S. item of comparable quality is available rendering the control ineffective.
C) The Bureau of Industry and Security has 90 days to review and rule on the application of an export license.
D) Civil penalties may be imposed on a strict liability basis for violations of export control law without having to prove criminal intent.

Question 28

K&L Chemicals is a U.S.-based manufacturer of agricultural chemicals.K&L recently sold two thousand gallons of its most toxic pesticide to Sahara Traders,a company headquartered in the North African desert nation of Chad.Sahara Traders refused to disclose the use that it intended to make of the product and paid cash upon its delivery.Sahara ultimately shipped the pesticide to the North Korean government for use in its chemical weapons program.Is K&L liable for the ultimate transshipment of its pesticide to North Korea? Please explain your answer.

Question 29

In United States v.Mousavi,the federal court upheld the conviction of criminal charges against the defendant under IEEPA and the Iranian Transaction Regulations and rejected his defense that:

A) he did not willfully violate a specific law or regulation.
B) the items in dispute were not under any type of "control" or sanctions list by the U.S.
C) IEEPA was an unconstitutional exercise of power by Congress.
D) none of these are correct.

Question 30

Which is not a current issue regarding export controls?

A) Can effective multilateral controls be established?
B) Who is the enemy?
C) In the absence of multilateral controls, can unilateral controls be effective?
D) Can the State Department both promote trade and commerce and control exports?