{"id":418,"date":"2020-10-27T23:00:35","date_gmt":"2020-10-27T23:00:35","guid":{"rendered":"http:\/\/exportcompliancesolutions.com\/blog\/?p=418"},"modified":"2020-10-27T23:00:35","modified_gmt":"2020-10-27T23:00:35","slug":"cyprus-missiles-human-rights-cfius-export-compliance-updates","status":"publish","type":"post","link":"https:\/\/exportcompliancesolutions.com\/blog\/2020\/10\/27\/cyprus-missiles-human-rights-cfius-export-compliance-updates\/","title":{"rendered":"Cyprus, Missiles, Human Rights, and CFIUS \u2013 Export Compliance Updates"},"content":{"rendered":"

Waiver May Permit Non-Lethal Exports to Cyprus<\/strong><\/p>\n

On September 28, 2020, the Department of State, Directorate of Defense Trade Controls (DDTC), published an amendment (85 FR 60698<\/a>) to the International Traffic in Arms Regulations (ITAR) updating the defense trade policy towards the Republic of Cyprus.\u00a0 Cyprus is listed as a prohibited destination, with certain exceptions, at ITAR \u00a7126.1(r).<\/p>\n

The effect of the amendment is to potentially authorize non-lethal defense articles and defense services for the Government of the Republic of Cyprus.<\/p>\n

The \u00a7126.1<\/a> entry for Cyprus now reads (new text in bold):<\/p>\n

(r) Cyprus. It is the policy of the United States to deny licenses or other approvals for exports or imports of defense articles and defense services destined for or originating in Cyprus, except that a license or other approval may be issued, on a case-by-case basis, for the United Nations Forces in Cyprus (UNFICYP) or for civilian end-users. This policy of denial does not apply to exports, reexports, retransfers, and temporary imports of non-lethal defense articles and defense services destined for or originating in Cyprus if:<\/strong><\/p>\n

(1) The request is made by or on behalf of the Government of the Republic of Cyprus;<\/strong><\/p>\n

(2) The end-user of such defense articles or defense services is the Government of the Republic of Cyprus; and<\/strong><\/p>\n

(3) There are no credible human rights concerns.<\/strong><\/p>\n

This change implements a one-year waiver authorized under the National Defense Authorization Act for Fiscal Year 2020 and the Eastern Mediterranean Security and Energy Act.\u00a0 The amendment was effective on October 1, 2020 and expires on September 30, 2021 if not subsequently extended.\u00a0 DDTC has previously stated on their website that authorizations issued during this time will not automatically be revoked if the waiver is not extended.<\/p>\n

Cyprus was originally listed in \u00a7126.1 out of concern that arms exports to Cyprus could contribute to an arms race and hinder efforts to reach a permanent settlement on the island, the northern portion of which has been occupied by Turkey since 1974.\u00a0 In the absence of a resolution, the Republic of Cyprus entered the European Union in May 2004 and is the only EU member in \u00a7126.1.<\/p>\n

North Korea Ballistic Missile Procurement Advisory<\/strong><\/p>\n

On September 1, 2020, the U.S. Department of State\u2019s Bureau of International Security and Nonproliferation (ISN), the Department of the Treasury\u2019s Office of Foreign Assets Control (OFAC), and the Department of Commerce\u2019s Bureau of Industry and Security (BIS) released a North Korea Ballistic Missile Procurement Advisory<\/a>.<\/p>\n

This guidance provides background to North Korean ballistic missile procurement efforts as well as various laws and regulations that affect U.S. exporters.\u00a0 The advisory notes that:<\/p>\n

North Korea relies on foreign-sourced ballistic missile-related components that it cannot produce domestically. To obtain these components, North Korea uses an extensive overseas network of procurement agents, including officials who operate from North Korean diplomatic missions or trade offices, as well as third country nationals and foreign companies.<\/p>\n

In particular, the guidance notes that North Korea seeks to acquire the following types of products:<\/p>\n