Background

The Bureau of Industry and Security has assessed a $54,000 civil penalty against a U.S. university to settle charges that on 37 occasions it exported various strains and recombinants of an animal pathogen to overseas research institutions without the required BIS licenses. These items are classified under ECCNs 1C351, 1C352, or 1C353 and controlled for chemical and biological weapons reasons.

BIS has also ordered the university to complete one external audit, which must be conducted by an unaffiliated third-party consultant with expertise in U.S. export control laws, and one internal audit of its export controls compliance program. Both audits must be in substantial compliance with the Export Compliance Program sample audit module and include a comprehensive assessment of the university’s compliance with the Export Administration Regulations.

If these audits identify actual or potential violations, the university will have to promptly provide BIS with a detailed plan of corrective actions to be taken along with copies of the pertinent air waybills and other export control documents and supporting documentation related to the identified compliance concerns.

Finally, the order directs the university to complete two reports, a year apart, describing enhancements to its EAR compliance.

If the university fails to timely pay the penalty or meet the other requirements, BIS may suspend its export privileges for one year.

For more information on how to avoid export penalties, please contact Kristine Pirnia.

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