CPI Investigations

Question 1

3 questions to ask when starting a CPI case?

Answer 1

1) what is it?
2) where is it going?
3) does it need a license?

Question 2

deemed export:

Answer 2

• when a foreign national in the US gains access to info, data, schematics, training without authorization

Question 3

general license:

Answer 3

• not a controlled item
• not on USML or CCL
• no application or written approval needed for export

Question 4

validated license:

Answer 4

• written authorization needed for export
• listed on USML or CCL
• commodity can be any value

Question 5

electronic export information (EEI)

Answer 5

• must be filed 24 hours prior to export through AES
• required for all shipments with a validated license
• required for all general license items over $2500

Question 6

failure to file EEI:

Answer 6

• civil penalties

Question 7

penalty for false info on EEI:

Answer 7

• criminal penalties 18 usc 1001

Question 8

how long can you detain an outbound shipment for further investigation?

Answer 8

• as long as necessary to get a license determination

Question 9

denied persons list:

Answer 9

• a BIS list of individuals barred from exporting goods and services from the US based on prior EEA/EAR/IEEPA violations.

Question 10

when initiating an investigation against a new target, the target should be checked against these lists for potential previous violations:

Answer 10

• denied persons list
• entities list
• unverified list

Question 11

what is the 10 general prohibitions list?

Answer 11

• a list of violations that exporters may not engage in

Question 12

18 USC 554 - Outbound smuggling

Answer 12

• fraudulently or knowingly
• exporting merchandise
• contrary to ANY law or regulation of the US

Question 13

penalty for 554

Answer 13

• up to 10 years

Question 14

In order to charge a person for exporting without a license, prosecution must prove specific intent in these 3 ways:

Answer 14

• exporter knew of a license requirement AND
• exporter intentionally avoided the license requirement
• for OFAC violations prosecution must prove exporter knew they were exporting to a sanctioned or embargoed entity.

Question 15

how to prove specific intent:

Answer 15

• UC
• documents through search warrants
• historical documents
• interviews
• RFQ’s
• written communications

Question 16

3 general types of investigations:

Answer 16

• proactive, reactive, and historical

Question 17

CPI priorities

Answer 17

• stop export first

- arrest second

Question 18

agents should NEVER make a license ______

Answer 18

• determination

Question 19

to obtain a license determination:

Answer 19

• make a request to ECC through EARS (exodus accountability and referral system)
• ECC will return an official written determination within months.

Question 20

proactive investigation

Answer 20

• export has not yet occured

Question 21

retroactive investigation

Answer 21

• export in progress

- interdiction priority over prosecution

Question 22

historical investigation

Answer 22

• export has already occured
• attempt redelivery
• request end use checks through licensing agencies

Question 23

hsi export subpoena

Answer 23

• only ADMIN subpoena used for CPI cases

Question 24

grand jury subpoena

Answer 24

• obtain through AUSA for grand jury investigations

Question 25

foreign documents

Answer 25

- request via ROI to HSI attache over seas

Question 26

MLAT (mutual legal assistance treaty)

Answer 26

- foreign documents requested through DOJ for use as evidence

Question 27

CMAA (customs mutual assistance agreement)

Answer 27

- an agreement between 65 countries to share documents between agency to agency

Question 28

what is the primary undercover tactic of HSI CPI

Answer 28

- storefront operation

Question 29

to avoid legal issues resulting from unintentional exposure of information, strive for ______ _______

Answer 29

- "taint team" review of all materials seized prior to review by case agent.

Question 30

dual criminality concept:

Answer 30

- conduct of criminals in foreign countries for violation of US export laws MUST also be seen as CRIMINAL

Question 31

provisional arrest warrant:

Answer 31

- foreign country can make an arrest based on our indictment.

Question 32

all foreign arrests require:

Answer 32

- DOJ and ICE approval, chief of mission authority, HSI approval and coordination

Question 33

luring a target requires multiple approvals:

Answer 33

- DOJ headquarters - State department - HSI office of internal affairs

Question 34

jail time for violations of CPI laws like AECA and EAA:

Answer 34

- between 63 and 78 months

Question 35

typical export transaction:

Answer 35

- request for quotation (RFQ) - quotation - purchase order (PO) - pro forma invoice (PFI) - payment - commercial invoice/packing list - electronic export information (EEI) - export

Question 36

project shield america:

Answer 36

- developed as a means to reach out to private sector, export industry, brokers, etc - private industry cooperation with HSI investigators

Question 37

e2c2

Answer 37

- primary purpose is to deconflict | - export information clearinghouse

Question 38

exodus command center (ECC)

Answer 38

- the central POC for any CPI related questions between special agents and CPI headquarters. - ECC requests are only accepted through the Exodus Accountability Referral System (EARS).

Question 39

all requests for license determinations are submitted in _______

Answer 39

- ears