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Criminal Fine, Prison Sentence Possible for Illegal Export Charges

Wednesday, June 27, 2018
Sandler, Travis & Rosenberg Trade Report

The Department of Justice reports that a Chinese national has been charged with conspiring to violate U.S. export laws by working with employees of an entity affiliated with the People’s Liberation Army to illegally export U.S.-origin goods to China. This charge provides for a fine of up to $1 million, a prison sentence of up to 20 years, and as much as three years of supervised release.

According to a DOJ press release, the man operates several companies in China that purport to import U.S. and European goods with applications in underwater or marine technologies. From at least July 2015 to December 2016 he allegedly exported approximately 78 hydrophones (devices used to detect and monitor sound underwater) from the U.S. to a Chinese institution on the Department of Commerce’s Entity List without obtaining the required export licenses, in violation of U.S. export laws. This was done by concealing the true end-user from the U.S. supplier and causing false information to be filed with the U.S. government.

Further, the DOJ states, the man allegedly falsely certified on his visa application that he had never engaged in export control violations or other unlawful activity and falsely characterized the items he exported to China during an interview with U.S. Customs and Border Protection officers.

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