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Prison Term, Civil Penalty for Export Violations

Tuesday, August 01, 2017
Sandler, Travis & Rosenberg Trade Report

U.S. Immigration and Customs Enforcement reports that a New Zealand man who came to the U.S. to take possession of export-restricted parts destined for China has been sentenced to two years in federal prison for conspiring to violate the Arms Export Control Act. The goods at issue are accelerometers designed for use in spacecraft and missile navigation that cannot be exported from the U.S. without a State Department license, which the man did not have. An ICE press release notes that the man was aware that exports of these goods were illegal. 

Separately, the Bureau of Industry and Security has imposed a $100,000 civil penalty and a ten-year suspension of export privileges against a U.S. man to settle charges that he conspired with others to export U.S.-origin goods listed on the Commerce Control List as EAR99 to Syria without the required BIS authorization. BIS states that to circumvent the U.S. embargo on Syria the man’s company prepared invoices that listed false purchasers and end-users in third countries.

However, BIS is suspending (a) the civil penalty for five years provided that during that time the man provides quarterly reports of all export and reexport transactions involving items subject to the EAR in which he participates in any way, and (b) the export privilege suspension for ten years provided that all quarterly reports are timely submitted and the man commits no further export violations during that ten-year period.

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