I was taking an on-line learning course on Export law. This is due to the fact that my employer had to pay some hefty penalties for doing the wrong thing; so now, we have to get the training. The following test question was interesting because of the example chosen and because of the last sentence (of the answer).
Question #1
A customer in Herzliya, Israel, who builds guidance systems for an Israeli missile system orders a workstation that is well below the license exception limits for Israel.
The organization is well-known and is partially funded by the Israeli government. Also, this customer has demonstrated that the system will be used in support of a joint development project with the U.S. Department of Defense.
True or False? Because of these circumstances, no export license is required for this sale.
(Answer: this is displayed after you pick true/false.)
Correct. This is a false statement. The research described is clearly proscribed proliferation activity under EPCI (which includes nuclear, chemical, and biological weapons or missile delivery systems). U.S. participation in Israeli proliferation activity is stringently controlled, despite the military cooperation that takes place between the two countries. Therefore, an export license is required in this case, although there is a good chance of approval.
Joanna