Penalty, Export Controls Audit Ordered for Unlicensed Export to Russia
The Bureau of Industry and Security has issued an order imposing a $28,000 civil penalty against a New York company to settle charges that it exported an item subject to the Export Administration Regulations to a Russian entity on the BIS Entity List without the required license.
The company will also be required to hire an unaffiliated third-party consultant with expertise in U.S. export control laws to conduct an external audit of the company’s compliance with those laws with respect to all exports and reexports that are subject to the EAR. The audit will cover the period June 1, 2017, through May 31, 2018, and must be in substantial compliance with the export management and compliance program sample audit module. Where the audit identifies actual or potential EAR violations the company must promptly provide copies of the pertinent invoices, waybills, and other export control documents and supporting documentation to BIS.
If the company fails to fully or timely pay the penalty, complete the audit, or submit the audit results BIS may suspend its export privileges for one year.