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$10,000 Penalty for Unlicensed Exports to China

Thursday, January 18, 2018
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued an order imposing a $10,000 civil penalty against a U.S. company to settle charges that it committed two violations of the Export Administration Regulations.

BIS charged the company with exporting pressure transducers, which are controlled for nuclear nonproliferation reasons, to China and Taiwan without the required licenses. BIS states that the company did not seek to determine the export control classification number of the products or their intended end use or end users or otherwise determine whether an export license was required. The company also did not have any program in place to ensure its compliance with U.S. export control laws or regulations and did not take any steps to begin implementing an export control compliance program of any sort until more than a year after the violations took place, after an outreach visit by BIS special agents and being served with an administrative subpoena.

BIS is suspending the civil penalty for two years and will waive it thereafter provided that the company commits no further export control violations during that time. However, BIS is requiring the company to complete an external audit of its export controls compliance program. If this audit identifies actual or potential EAR violations the company will have to promptly provide copies of the pertinent air waybills and other export control documents and supporting documentation to BIS.

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