LOUISIANA INTERNATIONAL
TRADE BULLETIN

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A monthly partnership publication of the Louisiana Department of Economic Development, the New Orleans U.S. Export Assistance Center, and the World Trade Center of New Orleans.

July 2002

TABLE OF CONTENTS

JULY 15 BRIEFING ON LATIN AMERICAN PORT PROJECTS
SEPTEMBER BREAKBULK CONFERENCE IN NEW ORLEANS
EXPORT AMERICA MAGAZINE PROVIDES USEFUL TRADE INFO
INDUSTRY MARKET REPORTS
RUSSIA: TRADE AND TRAVEL INFO
U.S. TRADE PROMOTION AGENDA
LOUISIANA TRADE EVENTS
WTC LANGUAGE STUDENT PROFILE: FRANCIS DEZELSKI
INCUMBENT WORKER TRAINING FUNDS AVAILABLE
NEW PORT MANCHAC WAREHOUSE
EMPLOYMENT PROSPECT
U.S. EXPORT CONTROLS OVERVIEW
SAMONA BENEFIT GOLF TOURNAMENT
LITC OFFERS FREE TRADE COUNSELING

 

JULY 15 BRIEFING ON LATIN AMERICAN PORT PROJECTS

The U.S. Trade and Development Agency (TDA) will hold an all-day business briefing at the WTC on Monday, July 15, from 8:30 a.m. to 4:30 p.m. on maritime port projects currently under development in Brazil, Colombia, and Ecuador.

Delegates from Rio de Janeiro, Paranagua (Brazil), Aguadulce, Buenaventura, Cartagena, Barranquilla, Santa Marta (Colombia), and Manta (Ecuador) are seeking contact with U.S. developers, investors, and suppliers in the maritime port sector. Projects include port development and expansion, inter-modal operators, vessel traffic management and navigation systems, dredging operations, oil spill and pollution control and clean-up, and port handling equipment for containers, grain, and fertilizers. Companies will have the opportunity to showcase their products in one-on-one meetings with 15 Latin American port authority officials directly responsible for the development of these projects, which could hold significant business and export potential for Louisiana companies.

The Latin American delegates include: Dr. Sergio Alcides Antunes, Director of Expansion, Companhia Docas do Estado de Sao Paulo; Dr. Luis Ivan Vasconcelo, Technical Director, Administracao dos Portos de Paranagua e Antonina; Dr. José Medeiros da Costa, Managing Director, Complexo Industrial Portuario de Pernambuco - SUAPE;Dr. Francisco JosÉ R. Pinto, President, Companhia Docas do Rio de Janeiro; Dr. Washington Flores, General Manager Port Operations, Companhia Vale do Rio Doce; Dr. Nyssio Ferreira Luz, President IBRALOG - Intituto Brasileiro de Logistica; Ruy B. Baptista, International Trade Specialist, U.S. Commercial Service, Brazil; Andres-Figueredo Serpa, Deputy Director Maritime and Ports Operations Division, Ministry of Transportation, Colombia; Domenico Gallo-Zawady, Technical Director, Sociedad Portuaria Regional de Santa Marta; Juan-Carlos Acosta, Engineering and Projects Director, Sociedad Portuaria Regional de Cartagena; Hector Gonzalez Infante, Operations Director, Sociedad Portuaria Regional de Barranquilla; Gilberto Asprilla-Rivas, Operations Director, Sociedad Portuaria Regional de Buenaventura; JosÉ-Pablo Castillo, General Manager, Sociedad Puerto Industrial Aguadulce; Roberto Osorio, Projects Director, Sociedad Puerto Industrial Aguadulce; Soledad de Salguero, Commercial Specialist, Commercial Service U.S. Embassy, Bogota; Alberto Calero, General Manager, Authoridad Portuaria de Manta; and Leonardo Bowen, Chief Technical Manager, Authoridad Portuaria de Manta.

Registration for the all-day briefing is $50 and includes breakfast, lunch and all materials. To register for the July 15 program, call the WTC at (504) 529-1601, ext. 271, or register online by clicking here.

 

SEPTEMBER BREAKBULK CONFERENCE IN NEW ORLEANS

The Port of New Orleans will host the 2002 Breakbulk Conference & Exhibition September 8-10. For the past 13 years, the Breakbulk Conference has played an integral role in the breakbulk industry to develop business, forge new relationships, and facilitate communication about new technology and information. Speakers at Breakbulk 2002 include: Edward Emmett, President, National Industrial Transportation League; John R. Wilson, Logistics Manager, Fluor Daniel, Inc.; Capt. Michael Lorino, President, Associated Branch Pilots of the Port of New Orleans; Dennis Mottola, Manager of Global Logistics & Manager of Corporate Traffic & Logistics, Bechtel Corporation; Capt. William Schubert, Maritime Administrator, U.S. Department of Transportation; Richard Bennis, Maritime Director, Transportation Security Administration; Ravi Singh, Vice President of Project Division, Panalpina, Inc.; and Jeffrey Latture, Senior Vice President of the Heavy Haul Division, Barhart Crane & Rigging Company. Breakbulk 2002 participants will address the world outlook for the breakbulk and project cargo sectors, port selection, export packing and documentation, river pilots, shipping delays, breakbulk versus container cargo, substandard vessels, loading, inland project logistics, and labor-management issues. For more details and to register, visit www.cvent.com.

 

EXPORT AMERICA MAGAZINE PROVIDES USEFUL TRADE INFO

Export America, the monthly magazine from the International Trade Administration of the U.S. Department of Commerce, has all the information a small or medium-sized business needs in order to export profitably in the new global business environment. Each issue is full of information about international trade opportunities, trade events, success stories of top exporters, export statistics, and advice that can give your company a competitive edge in the international marketplace. Check out Export America’s website at exportamerica.doc.gov. Recent articles featured:

  • Doing business in Africa,
  • Following proper business etiquette abroad,
  • Registering a trademark overseas,
  • Finding reliable logistics companies, and
  • Locating market opportunities in Latin America.

You will find the format and information indispensable for growing your business overseas. Subscribing is quick and easy with Export America online forms or you may subscribe by fax, phone or mail through the Superintendent of Documents. Annual subscriptions are $55. Call toll free (866) 512-1800, visit http://bookstore.gpo.gov or exportamerica.doc.gov to subscribe. Act now to receive the September issue, devoted to Trade Promotion Authority and how it will benefit American business in international trade.

 

INDUSTRY MARKET REPORTS

Below is a list of various U.S. Commercial Service Industry Market Insight Reports. For the entire report(s), call the U.S. Export Assistance Centers in New Orleans at (504) 589-6546 or in Shreveport at (318) 676-3064.

Argentina: Frequently Asked Questions (trade related)

Brazil: Import Tax Will Drop for 155 Machinery Items

Canada: Expansion Slated for Food Center in Manitoba

Czech Rep: Seeking U.S. Air Conditioning Equipment Supplier

Ecuador: Computer Hardware Free of Import Duties

Indonesia: New Oil and Gas Fields are Offered

 

RUSSIA: TRADE AND TRAVEL INFO

In May 2002, the Export-Import Bank of the United States (EXIM) opened in Russia for long-term (over 7 years) financing in both the public and private sectors to support U.S. exports. "EXIM Bank’s action results from Russia’s improved commitment to economic reform, and will expand opportunities for U.S. exporters to participate more fully in this very large, important market," said EXIM Bank Vice Chairman Eduardo Aguirre, Jr. For a recent report on EXIM Bank activities in Russia, log on to www.bisnis.doc.gov/busnis/isa.isa-banking.cfm.

ExpoLink Eurasia is a free service that offers U.S. firms a new tool for attracting buyers and long-term partners in Eurasian markets. U.S. company profiles are displayed on the Business Information Service for the Newly Independent States (BISNIS) Russian-language website and distributed to local companies through BISNIS’ 18 representatives in Eurasia, as well as through a network of cooperative relationships in the region. To participate in the program, 1) prepare a brief company profile according to program guidelines; 2) translate info into Russian; and 3) submit it to a BISNIS industry specialist. For details, log onto www.bisnis.doc.gov/nis/ele.cfm.BISNIS maintains a list of companies and individuals providing Russian-language translation/interpretation services in the U.S. and the NIS at www.bisnis.doc.gov/bisnis/isa/011106rustransl.htm.

New Regulation for Male Travelers to Russia: U.S. male citizens age 16 to 45 seeking a Russian entry visa are required to attach a supplementary form to the standard visa application. The new form requires information on military service, participation in military conflicts, college or university degree, a list of countries visited in the last 10 years, and more. To obtain the supplementary form and other information, log on to www.russianembassy.org.

Strict currency Rules for Visitors to Russia: While it is not mandatory, visitors to Russia should complete a Russian Customs Declaration Form indicating the amount of all currency, financial instruments (including travelers’ checks) they are carrying. Visitors may not take foreign currency out of Russia unless they can show, via a stamped Russian Customs Declaration Form, that they declared the currency upon arrival.

 

U.S. TRADE PROMOTION AGENDA

In May, Commerce Secretary Donald L. Evans led U.S. government trade promotion agencies in presenting the 2002 National Export Strategy to the Senate Banking, Housing, and Urban Affairs Committee, as well as to the House International Relations Committee. The report, entitled "Unlocking America’s Potential," is the culmination of seven months of research and teamwork of the Trade Promotion Coordinating Committee (TPCC), a group of more than a dozen U.S. government agencies and departments, chaired by the secretary of the Department of Commerce (DOC). The 2002 National Export Strategy (NES), the first of the Bush administration, presents 60 recommendations with an overall goal to ensure that all U.S. companies that are interested in exporting can join the global economy.

A major theme of the 2002 NES is expanding the number of U.S. exporters, particularly small and medium-sized companies, while ensuring that all exporters have the best resources available to take advantage of overseas commercial opportunities. Small and medium-sized enterprises (SMEs, companies with fewer than 500 employees) constitute 97 percent of all U.S. exporting companies and account for about 30 percent of the value of U.S. exports. However, the TPCC’s survey of 3,000 SMEs shows that 30 percent of U.S. SMEs that do not currently export have an interest in doing so. Of those companies that do export, two-thirds export to only one market.

In order to unlock the export potential of SMEs, the 2002 NES emphasizes improvements in customer service and the more aggressive pursuit of new export opportunities. The strategy has three major themes. First, the U.S. government will be a more active partner with U.S. exporters in major project competitions. Second, the government will provide better customer service through joint promotion, training, trade finance, and information delivery. Lastly, the strategy presents a federal government that is and will be working harder, through state and local partnerships as well as trade education, to make sure that prospective exporters are aware of and have access to the services that the government provides.

(Note: The above is an excerpt from an "Export America" article prepared by the USDOC’s Trade Promotion Coordinating Committee and Office of Public Affairs.

Log on to: www.trade.gov/exportamerica/NewOpportunities/no_NES02.html to view the entire article.)

 

LOUISIANA TRADE EVENTS

June 30- July 5 - Louisiana Trade Mission to Honduras led by New Orleans Mayor Ray Nagin, City Councilman Marlin Gusman, and Louisiana Secretary of Economic Development Don Hutchinson. The mission will focus on strengthening business relations, particularly in the trade, transportation, sports, and tourism sectors.

July 15 - "Opportunities in Brazil, Colombia, and Ecuador" all-day briefing by Latin American port officials at the WTC. Call (504) 529-1601, ext. 271.

Aug. 19, 21, and 26 - Export and import seminars by the Louisiana International Trade Center-SBDC, at the World Trade Center of New Orleans, 3:45 p.m. to 8:15 p.m. Seminar topics include Export/Import Strategies and Market Research, Pricing, Terms, Quotations and Customs Entry Procedures, International Banking, Financing, Transportation, and Documentation. Call (504) 568-8222.

 

WTC LANGUAGE STUDENT PROFILE: FRANCIS DEZELSKI

Learning a language is like growing a tree, according to WTC member and language class student Francis Dezelski. "It takes so long to grow that you have no time to lose in planting the tree."

Mr. Dezelski began cultivating his foreign language skills last January when he joined the WTC to take Beginning French. His job as a Well Engineer for Shell Exploration & Production Company in New Orleans has taken him around the globe for training, from Malaysia to Holland, and could lead to an overseas position soon. Since French is widely used in some of the countries in which Shell operates, learning to speak it proficiently is a competitive advantage for Mr. Dezelski. On a personal note, he also enjoys communicating directly with the local people when he travels to learn firsthand about their countries’ culture and politics.

Mr. Dezelski chose to take WTC language classes because of the small class size, convenient evening meeting time, and easy enrollment process. Additionally, the WTC offers one of the best values in the New Orleans area, especially since members receive a 50% discount on tuition.

Having never studied a modern foreign language previously, Mr. Dezelski felt intimidated at the prospect of learning French. He concedes that he is not yet fluent after taking the 11-week spring session of courses, but now believes it is possible for him to learn a new language with enough time and effort. On a recent weekend site-seeing trip to Geneva, he was able to confidently exercise some of his new skills. "Always try to learn a few words of the language spoken in a country you plan to visit," Mr. Dezelski advises. "The locals always appreciate the effort."

The WTC offers classes in French, German, Italian, Japanese, Spanish, and other languages at beginning, intermediate, and advanced levels. The 11-week fall session starts September 3. Classes are conducted by Alpha Tech Communications and meet one night per week from 5:30 p.m. to 7:30 p.m. in the WTC building. Tuition is $130 for WTC members and $260 for non-members (plus a $45 registration and book fee). To register, call Alpha Tech at (504) 454-6554.

 

INCUMBENT WORKER TRAINING FUNDS AVAILABLE

In order to maintain the competitive edge of regional industry and business within the global market, the State of Louisiana has launched the Incumbent Worker Training Fund. This $50 million annual fund benefits business and industry by providing the funds to train and upgrade the skill sets of existing employees, resulting in increased employee productivity and company growth. Established by the Louisiana Legislature in 1998, Incumbent Worker Training has had a strong impact on state business and industry, funding customized cross-industry workforce training programs as diverse as maritime & oil rig safety, ship navigation, welding, basic electronics and computer training.

Among other training initiatives, $300,000 of Incumbent Worker funds helped to pay for Delgado Community College’s ship simulator, which is expected to train approximately 500 students during 2002. The simulator teaches mariners how to operate in several types of vessels and a variety of port settings including The Port of New Orleans. It also has the capacity to simulate conditions such as fog, high seas, rough water, and night and day, with rainfall to be added to that list in the near future.

Faron Chiasson, administrative manager at Crosby Tugs, LLC, in Galliano, La. expects an estimated 75 employees to complete the simulator course this year. Said Chiasson of the program: "We are extremely thankful for the opportunity for our guys to train at Delgado. Many of them cannot afford to travel out of state, so this is a once-in-a-lifetime deal for them. It keeps them off the unemployment roles, and the certification gives them the opportunity to make up to $350 a day as a deck captain. They can practice on the simulator instead of taking dangerous risks in a ‘real’ vessel, so it helps them to avoid accidents."

Incumbent Worker Training funds are available to companies operating in any industry sector. Reported benefits include improved employee capacity to learn and use new technologies, increased output of goods & services, reduced time and material waste and decreased employee turnover. For more information on Incumbent Worker Training Grants, please contact Liza Sherman, Regional Workforce Manager with MetroVision Economic Development Partnership, at lssherman@norcc.org or (504) 527-6928.

 

NEW PORT MANCHAC WAREHOUSE

Port Manchac held a groundbreaking ceremony on May 17 for its new 30,000-square-foot warehouse. The project is part of efforts by state and local officials to develop Port Manchac as an inter-modal port and distribution center. The new warehouse will be located next to the loading and unloading platform to allow direct access to double rail tracks, enabling up to eight rail cars to be loaded or unloaded at one time. Construction on the new facility is scheduled to be completed by the end of 2002.

 

EMPLOYMENT PROSPECT

In the past ten years, Tom Rey has had a successful sales and management career in domestic and global markets, including Europe, Africa, Asia and Latin America.

Tom received a B.A. degree in Communication, with emphasis in Public Relations, from Tulane University in 1991. He was granted a Certificate of French from the University of Paris (Sorbonne) in 1984 and a Certificate of Spanish from the University of Costa Rica in 1993.

For the past four years, Tom has been with Cataphote, a subsidiary of Sovitec Cataphote Group. As International Sales Manager for the company, Tom conducted and directed sales efforts in Africa, Asia and Latin America for the thermoplastics and glass bead manufacturer with multi-million dollar sales. He joined Cataphote as their International Logistics Manager after four years in the Sales and Import / Export Departments of Alexander International, a major domestic and international air and ocean forwarder in New Orleans. Tom can be contacted by telephone at (504) 891-0245 or by e-mail at patito8@bellsouth.net.

 

U.S. EXPORT CONTROLS OVERVIEW

Most export transactions do not require specific approval from the U.S. Government. In order for certain export transactions to take place legally, however, an exporter must obtain, in advance, a special export permission, called a license. Licenses are required in certain situations involving national security, foreign policy, short-supply, nuclear non-proliferation, missile technology, chemical and biological weapons, regional stability, crime control, or terrorist concerns.

Four U.S. Government agencies have primary export licensing responsibilities: the Departments of Commerce, Energy, State, and the Treasury. The majority of exports which do require a license are either controlled on the Commerce Control List (CCL), administered by the Commerce Department, or the U.S. Munitions List (USML), administered by the State Department. The CCL is used to regulate the export and re-export of items that have commercial uses but also have possible military applications ("dual-use" items). The USML is used to control the export of defense articles, services, and related technologies. The Defense Department is actively involved in the inter-agency review of those items controlled on both the CCL and the USML. The agencies work together when there is a question about whether a proposed export is controlled on the CCL or the USML. The Energy Department controls nuclear technology and technical data for nuclear power. These agencies collectively review certain proposed dual-use exports.

The Treasury Department is responsible for economic and trade sanctions against targeted foreign countries and their agents, terrorists and terrorism-sponsoring organizations, and international narcotics traffickers.

Several other federal agencies also have some licensing responsibilities. These are listed on the Commerce Department’s webpage at http://www.bxa.doc.gov/reslinks.htm, along with a brief explanation of each agency’s responsibilities.

The U.S. Government controls exports on a case-by-case basis, examining the following factors: the destination, the end-user, the product, and its end-use. Those entities handling or servicing the sale of the product may also be a factor. When a company decides to export, it must review these factors for each transaction:

The destination: Are there countries to which I am not permitted to export?

The United States severely restricts exports to several countries. Certain exports, however, may be approved with a license. The Office of Foreign Assets Control (OFAC) at the Treasury Department has information about embargoed countries on its website at http://www.treas.gov/ofac, or the office can be contacted at (202) 622-2426. Currently, U.S. persons are generally prohibited from exporting to Cuba, Iran, Iraq, Libya, Sudan, and the Unita faction in Angola. U.S. persons cannot export mining equipment, military material, petroleum and petroleum products, aircraft and aircraft components, motorized vehicles or watercraft and any related spare parts to Angola other than through certain designated ports.

The provision of mining, transportation and aircraft services is similarly restricted to areas that are considered not to be under the control of the Angolan central government. (For more information about permitted ports and restricted areas in Angola, please see Title 31, Part 590 of the Code of Federal Regulations, available on http://www.treas.gov/ofac). In most cases, licenses are issued for exports of agricultural goods, medicines, and medical equipment to sanctioned countries.

The end user: Are there entities to which Iam not permitted to export?

Exporters should screen all parties involved in an international transaction against the "Prohibited Parties Lists". The "Prohibited Parties Lists" is a term used to describe the four lists of entities with which an exporter is prohibited from doing business under most circumstances:

- The SDN (Specially Designated Nationals)List is published by OFAC on the internet (http://www.treas.gov/ofac) as well as in the Federal Register. SDNs are individuals and entities located throughout the world that are blocked pursuant to the various sanctions programs. SDNs can be front companies, parastatals, or individuals determined to be owned or controlled by, or acting for or on behalf of, targeted countries or groups. They can also be specifically identified individuals such as terrorists or narcotics traffickers. U.S. persons are prohibited from engaging in any transactions with SDNs and must block any property under their control in which an SDN has an interest.

In the aftermath of the September 11 terrorist attacks, President Bush issued Executive Order 13224 for the purpose of "blocking property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism." This order created a new category of SDNs called "Specially Designated Global Terrorists" (SDGTs), resulting in a significant expansion of the SDN list. Due to the frequency of additions to the SDN list, U.S. persons are encouraged to check the OFAC web site on a daily basis for updates.

- The Denied Persons List contains the names of persons who have been issued a denial order by the Commerce Department’s Bureau of Industry and Security (BIS). U.S. exporters, and third parties in general, are prohibited from dealing with denied parties in transactions involving U.S. items. The list can be accessed at http://www.bxa.doc.gov.

- BIS also maintains an Entities List, comprising foreign end-users engaged in proliferation activities. Since these entities pose proliferation concerns, exports to them are usually prohibited without a license. However, since the BIS guidelines are administered under a case-by-case basis, there are some listed entities that can still receive low-level technology without an export license. This list can be accessed through BIS’s website at http://www.bxa.doc.gov.

- The Debarred Parties List is maintained by the U.S. State Department. It lists the names of individuals denied export privileges under the International Traffic in Arms Regulations (ITAR). The information can be accessed at http://www.pmdtc.org.

Even if a party is not a prohibited entity, the end-user will become an important factor if a transaction needs a license. The license issuing agency will want to screen the foreign customer’s history, and examine any prior violations of U.S. laws or placement on any of the lists mentioned above. The U.S. firm applying for the license should also know not just who the customer is, but who owns the company.

Those servicing the sale product: What about shipping lanes, insurers and banks?

It is important for exporters to take care in screening the parties involved in servicing the sale of the product. For example, an otherwise legitimate trade transaction may be a violation of sanctions if one of the banks involved in the financing is on OFAC’s SDN List. Since the SDN List contains the names of banks, insurance companies, shipping lines, and freight forwarders throughout the world, exporters need to evaluate all parties to a trade transaction, not just the buyer or the end user.

The product and its end use: Does my product require a license?

Sophisticated and high technology products; short supply items; technical information and products that have defense, strategic, weapons development, proliferation or law enforcement applications can be subject to export licenses. Major factors in determining whether an export license is required include the destination and end-use of the product or service. Some chemicals, for instance, that could possibly be used in weapons of mass destruction are subject to export controls. For example, "precursor chemicals" are prohibited to Syria. However, some exports may be subject to controls regardless of the function or the country to which they are shipped.

It is up to the exporter to determine whether the product requires a license and to research the end use of the product, in other words, to perform "due diligence" regarding the transaction. Exporters should learn which federal department or agency has jurisdiction over the item they are planning to export in order to find out if a license is required.

- The Commerce Department focuses primarily on dual-use items, i.e., items that can be used for both military/strategic purposes and commercial applications. Exporters should consult the Commerce Department’s BIS and find out if the items or services they are planning to export are classified on the Commerce Control List (CCL). If a product appears on this list, it may require a license. In general, this list contains items controlled by the Export Administration Regulations (EAR) because they are considered to be "dual use" items.

- The State Department’s Office of Defense Trade Controls (DTC) licenses defense services and defense munitions articles.

- The Department of Energy licenses nuclear technology and technical data for nuclear power and special nuclear materials. It licenses the export of electric power to Mexico and Canada. It also licenses the export of natural gas.

An exporter should request a "commodity jurisdiction" (CJ) determination to resolve any uncertainty regarding the export licensing jurisdiction of an item or service. A CJ is used to determine whether an item or service is subject to the export licensing authority of BIS or DTC. Contact BIS at (202) 482-4811 for more details. Another option is to contact the Office of Defense Trade Controls at (703) 875-6644 or via fax at (703) 875-6647 (Attn: PM/DTC/CJ).

Where should an exporter start to ensure compliance with the various export regulations?

The country to which a product is to be exported should be considered first. Potential transactions should be checked for compliance with the sanctions administrated by the Treasury and Commerce Departments. If a transaction is subject to country-specific sanctions, it may be eligible for a license, depending on the goods involved. Call OFAC at 202-622-2490 with any questions regarding country-specific sanctions and where to apply for a license.

The next stop should be to obtain information about a customer and how that customer will use a product. Information about the customer’s location, including complete street address (P.O. boxes are not enough) and phone number, the nature of its business, ownership and control, and information with regard to the final destination and use of the product is necessary for determining if the export is in compliance with U.S. law. Always check all parties against the Prohibited Parties Lists, including Treasury, Commerce, and State. Don’t forget freight forwarders, banks, shipping lines and insurers.

To determine whether a license is needed to export a particular product or service, an exporter must classify the item by identifying what is called an Export Control Classification Number (ECCN) for the item. View the Business and Security’s website at http://www.bxa.doc.gov to get help with the ECCN and consult the TIC’s "Ask the TIC" column online. Products under ECCN# EAR 99, a broad category, normally do not require a license when shipped to most destinations. For information on other categories, the exporter should contact BIS directly at (202) 482-4811. When in doubt about agency jurisdiction, the exporter can also contact BIS, as BIS will route the application to other agencies for determination.

What are the penalties for not complying with export control laws?

Millions of dollars in civil penalties are imposed each year by the federal government for violations of export control laws. BIS’s website contains real-world examples of civil penalties that have been imposed in the past. Civil penalties assessed by OFAC are $11,000 per prohibited transaction in most cases, but can reach $275,000 per infraction under the sanctions against Iraq and $1,000,000 if they involve narcotics "kingpins". In cases where there is criminal intent to violate export control laws, criminal penalties can be imposed, resulting in significant corporate or personal fines as well as imprisonment.

(The above article was updated this year. It first appeared in the July 2000 edition of "Export America", a monthly U.S. Commerce publication that provides assistance for the exporter looking to expand into new markets. Call the U.S. Export Assistance Center in New Orleans at (504) 589-6546 or in Shreveport at (318) 676-3064 for a sample copy of "Export America".)

 

SAMONA BENEFIT GOLF TOURNAMENT

A Benefit Golf Tournament for Sam Samona will take place on July 31 at the Bayou Barriere Golf Course. The benefit has been organized to assist Mr. Samona, who was recently diagnosed with Leukemia, and his family to offset the expenses associated with treatment for this disease. Registration for the golf tournament begins at 11:00 a.m., with tee off at 12:30 p.m. An informal dinner and auction will follow the tournament at 4:30 p.m. For more information about the golf tournament or to donate items for the auction, contact the Friends of Sam Samona at (504) 529-3924, (504) 874-3471, (504) 529-3932, or (504) 277-8956.

 

LITC OFFERS FREE TRADE COUNSELING

The Louisiana International Trade Center is part of the Small Business Development Center, a nationwide network of hundreds of centers in all fifty states and territories that are dedicated to assisting small and medium sized companies. The LITC helps business people in the state of Louisiana interested in exporting, importing, and foreign investment. Counseling services are provided FREE of charge to their clients. Counseling sessions are provided by experts in forwarders, customs brokers, attorneys, and Internet developers. For more information about educational seminars or individual counseling, contact Doris Bahr at 504-568-8222.

 


The Louisiana International Trade Bulletin is a monthly partnership publication of the:
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New Orleans U.S. Export Assistance Center, and
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