The Department of Justice reports that a U.S. company and its owner have been fined for concealing information from the Department of Commerce and U.S. Customs and Border Protection as part of a scheme to illegally export chemicals to a technology company in China with ties to the Chinese military.
Specifically, the company was fined $120,000 and the owner was fined $5,500, and each was placed on federal probation for a year. They were also ordered to (1) implement ethics and training programs for all officers and employees of the owner and his companies and (2) hire an employee to monitor all such companies to ensure that they and their employees are in full compliance with U.S. laws and regulations.
According to a DOJ press release, the company and owner admitted that they violated the Export Control Reform Act by conspiring to order two chemicals essential to the chip manufacturing process and then knowingly submitting false and misleading documentation to the U.S. government and to shipping companies in an effort to have those products illegally shipped to a company in China. That company is on a U.S. government list of businesses not permitted to receive products manufactured in the U.S. because it engages in the manufacturing of electronic components and research, development, and production of core chips and key components that are used in China’s military strategic early warning systems, air defense systems, airborne fire control systems, manned space systems, and other large-scale national projects.
For more information on export restrictions and ensuring your company is in compliance, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.
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